MTI: Cash Budgeting in Times of a Sharp Business Downturn SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of MTI: Cash Budgeting in Times of a Sharp Business Downturn
Please note, it is recommended that this case be used with the accompanying spreadsheetBill Young, president and CEO of MTI was in Victoria, BC at the time of the terrorist attacks on the World Trade Center on September 11, 2001. Bill knew that his Seattle, Washington-based market research firm faced numerous challenges in the aftermath of the attacks. The economic turmoil which was certain to follow a national disaster of this magnitude would have a serious impact on the business. This was particularly true since reliable market research depended heavily on consumer confidence and perceptions about the future. Young was unsure how to respond to the challenges he faced. Bill Young is attempting to develop revised cash projections and to determine whether staffing cuts and other cost-saving measures will be needed in order to maintain the financial health of the firm.
Swot Analysis of "MTI: Cash Budgeting in Times of a Sharp Business Downturn" written by Gerald M. Myers, William W. Young includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mti Attacks facing as an external strategic factors. Some of the topics covered in MTI: Cash Budgeting in Times of a Sharp Business Downturn case study are - Strategic Management Strategies, Business models and Finance & Accounting.
Some of the macro environment factors that can be used to understand the MTI: Cash Budgeting in Times of a Sharp Business Downturn casestudy better are - – there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of MTI: Cash Budgeting in Times of a Sharp Business Downturn
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MTI: Cash Budgeting in Times of a Sharp Business Downturn case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mti Attacks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mti Attacks 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn can be done for the following purposes –
1. Strategic planning using facts provided in MTI: Cash Budgeting in Times of a Sharp Business Downturn case study
2. Improving business portfolio management of Mti Attacks
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 Mti Attacks
Strengths MTI: Cash Budgeting in Times of a Sharp Business Downturn | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mti Attacks in MTI: Cash Budgeting in Times of a Sharp Business Downturn Harvard Business Review case study are -
Innovation driven organization
– Mti Attacks is one of the most innovative firm in sector. Manager in MTI: Cash Budgeting in Times of a Sharp Business Downturn Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Mti Attacks 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 Gerald M. Myers, William W. Young 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.
Successful track record of launching new products
– Mti Attacks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mti Attacks 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.
Effective Research and Development (R&D)
– Mti Attacks 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the MTI: Cash Budgeting in Times of a Sharp Business Downturn 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.
Learning organization
- Mti Attacks 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 Mti Attacks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MTI: Cash Budgeting in Times of a Sharp Business Downturn Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Mti Attacks is one of the leading recruiters in the industry. Managers in the MTI: Cash Budgeting in Times of a Sharp Business Downturn are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Mti Attacks 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Mti Attacks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mti Attacks 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.
Cross disciplinary teams
– Horizontal connected teams at the Mti Attacks 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.
Training and development
– Mti Attacks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MTI: Cash Budgeting in Times of a Sharp Business Downturn 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.
Sustainable margins compare to other players in Finance & Accounting industry
– MTI: Cash Budgeting in Times of a Sharp Business Downturn firm has clearly differentiated products in the market place. This has enabled Mti Attacks to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Mti Attacks to invest into research and development (R&D) and innovation.
Weaknesses MTI: Cash Budgeting in Times of a Sharp Business Downturn | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MTI: Cash Budgeting in Times of a Sharp Business Downturn are -
Skills based hiring
– The stress on hiring functional specialists at Mti Attacks has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Mti Attacks 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.
Slow decision making process
– As mentioned earlier in the report, Mti Attacks 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. Mti Attacks 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.
High cash cycle compare to competitors
Mti Attacks 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.
No frontier risks strategy
– After analyzing the HBR case study MTI: Cash Budgeting in Times of a Sharp Business Downturn, 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.
Capital Spending Reduction
– Even during the low interest decade, Mti Attacks 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.
Lack of clear differentiation of Mti Attacks products
– To increase the profitability and margins on the products, Mti Attacks needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Mti Attacks is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Mti Attacks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mti Attacks to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study MTI: Cash Budgeting in Times of a Sharp Business Downturn, is just above the industry average. Mti Attacks 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.
Aligning sales with marketing
– It come across in the case study MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn can leverage the sales team experience to cultivate customer relationships as Mti Attacks is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MTI: Cash Budgeting in Times of a Sharp Business Downturn, it seems that the employees of Mti Attacks 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.
Opportunities MTI: Cash Budgeting in Times of a Sharp Business Downturn | 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mti Attacks can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mti Attacks can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Mti Attacks can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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. Mti Attacks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Mti Attacks 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mti Attacks 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.
Developing new processes and practices
– Mti Attacks 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mti Attacks 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 Mti Attacks to hire the very best people irrespective of their geographical location.
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 Mti Attacks 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mti Attacks can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Mti Attacks can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mti Attacks 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, MTI: Cash Budgeting in Times of a Sharp Business Downturn, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mti Attacks can use these opportunities to build new business models that can help the communities that Mti Attacks operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Creating value in data economy
– The success of analytics program of Mti Attacks has opened avenues for new revenue streams for the organization in the industry. This can help Mti Attacks to build a more holistic ecosystem as suggested in the MTI: Cash Budgeting in Times of a Sharp Business Downturn case study. Mti Attacks can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats MTI: Cash Budgeting in Times of a Sharp Business Downturn External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MTI: Cash Budgeting in Times of a Sharp Business Downturn are -
High dependence on third party suppliers
– Mti Attacks 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.
Consumer confidence and its impact on Mti Attacks 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.
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 Mti Attacks business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Mti Attacks 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. Mti Attacks can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Mti Attacks needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Increasing wage structure of Mti Attacks
– 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 Mti Attacks.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mti Attacks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mti Attacks with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mti Attacks 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mti Attacks 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn .
Technology acceleration in Forth Industrial Revolution
– Mti Attacks has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Mti Attacks needs to keep up with the evolution of technology in the Finance & Accounting 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn, Mti Attacks 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 .
Weighted SWOT Analysis of MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 MTI: Cash Budgeting in Times of a Sharp Business Downturn 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 Mti Attacks needs to make to build a sustainable competitive advantage.
