Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications
Since the industrial revolution, we have been living in a linear economy. Our consumer and "single use" lifestyles have made the planet a "take, make, dispose" world. This refers to a unidirectional model of production: natural resources provide our factory inputs, which are then used to create mass-produced goods to be purchased and, typically, disposed after a single use. This linear economy model of mass production and mass consumption is testing the physical limits of the globe. It is, therefore, unsustainable and a shift toward a circular economy is becoming inevitable.
Authors :: Mark Esposito, Terence Tse, Khaled Soufani
Swot Analysis of "Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications" written by Mark Esposito, Terence Tse, Khaled Soufani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mass Economy facing as an external strategic factors. Some of the topics covered in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study are - Strategic Management Strategies, Economy, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications casestudy better are - – increasing household debt because of falling income levels, technology disruption, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mass Economy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mass Economy operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications can be done for the following purposes –
1. Strategic planning using facts provided in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications case study
2. Improving business portfolio management of Mass Economy
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mass Economy
Strengths Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mass Economy in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study are -
Learning organization
- Mass Economy is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Mass Economy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Mass Economy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Mass Economy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mass Economy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Mass Economy has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Mass Economy are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– Mass Economy is one of the most innovative firm in sector. Manager in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications firm has clearly differentiated products in the market place. This has enabled Mass Economy to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mass Economy to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Mass Economy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mass Economy has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mass Economy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mass Economy has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Mass Economy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Mass Economy has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, in the dynamic environment Mass Economy has struggled to respond to the nimble upstart competition. Mass Economy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Mass Economy is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mass Economy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mass Economy to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Mass Economy, firm in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, it seems that the employees of Mass Economy don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Mass Economy has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Mass Economy has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Mass Economy products
– To increase the profitability and margins on the products, Mass Economy needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications can leverage the sales team experience to cultivate customer relationships as Mass Economy is planning to shift buying processes online.
Need for greater diversity
– Mass Economy has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Mass Economy needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mass Economy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mass Economy can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Mass Economy can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mass Economy to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mass Economy in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mass Economy in the consumer business. Now Mass Economy can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mass Economy can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Mass Economy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Mass Economy to increase its market reach. Mass Economy will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Mass Economy can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mass Economy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Mass Economy can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mass Economy can use these opportunities to build new business models that can help the communities that Mass Economy operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Mass Economy has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mass Economy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mass Economy business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mass Economy will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mass Economy in the Strategy & Execution sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mass Economy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Mass Economy demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Mass Economy
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Mass Economy.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mass Economy in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Mass Economy high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mass Economy needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Mass Economy has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mass Economy needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications, Mass Economy may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mass Economy needs to make to build a sustainable competitive advantage.
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