Swot Analysis of "Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8)" written by Luann J. Lynch, Jennifer Forman, Graham Gillam includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Handout 8 facing as an external strategic factors. Some of the topics covered in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) case study are - Strategic Management Strategies, Assessing performance, Balanced scorecard and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) casestudy better are - – increasing commodity prices, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Handout 8, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Handout 8 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) can be done for the following purposes –
1. Strategic planning using facts provided in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) case study
2. Improving business portfolio management of Handout 8
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Handout 8
Strengths Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Handout 8 in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) Harvard Business Review case study are -
Diverse revenue streams
– Handout 8 is present in almost all the verticals within the industry. This has provided firm in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Handout 8 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Handout 8 is one of the most innovative firm in sector. Manager in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Handout 8 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Handout 8 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Handout 8 is one of the leading recruiters in the industry. Managers in the Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Handout 8 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Handout 8 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 Handout 8 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Handout 8
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Handout 8 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Handout 8 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Handout 8 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.
Analytics focus
– Handout 8 is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Luann J. Lynch, Jennifer Forman, Graham Gillam can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Highly skilled collaborators
– Handout 8 has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Handout 8 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.
Weaknesses Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) are -
Increasing silos among functional specialists
– The organizational structure of Handout 8 is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Handout 8 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Handout 8 to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Handout 8 has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) HBR case study mentions - Handout 8 takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8), is just above the industry average. Handout 8 needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Lack of clear differentiation of Handout 8 products
– To increase the profitability and margins on the products, Handout 8 needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Handout 8 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8), in the dynamic environment Handout 8 has struggled to respond to the nimble upstart competition. Handout 8 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Handout 8 has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Handout 8 has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Handout 8 has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Handout 8 even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8), it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) | 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Handout 8 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Handout 8 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Handout 8 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, Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Handout 8 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 Finance & Accounting segment.
Learning at scale
– Online learning technologies has now opened space for Handout 8 to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Handout 8 to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Handout 8 to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Handout 8 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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 Handout 8 in the consumer business. Now Handout 8 can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Handout 8 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Handout 8 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Handout 8 can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Handout 8 is facing challenges because of the dominance of functional experts in the organization. Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Handout 8 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) are -
Environmental challenges
– Handout 8 needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Handout 8 can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Stagnating economy with rate increase
– Handout 8 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
Shortening product life cycle
– it is one of the major threat that Handout 8 is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Handout 8
– 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 Handout 8.
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. Handout 8 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Handout 8 can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) .
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 Handout 8 in the Finance & Accounting sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Handout 8 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8), Handout 8 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Handout 8 business can come under increasing regulations regarding data privacy, data security, etc.
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. Handout 8 needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) 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 Johansen's: The New Scorecard System-Northwest Regional Manager (Handout 8) 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 Handout 8 needs to make to build a sustainable competitive advantage.