When It Takes a Network: Creating Strategy and Agility through Wargaming SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of When It Takes a Network: Creating Strategy and Agility through Wargaming
Rational, analytical, directed approaches for strategy creation and execution may work for creating value by conventional, hierarchically structured organizations operating in stable environments. However, when the basis of competition shifts from product features to an experience delivered by a network of independently acting participants in a complex and fast-evolving market environment, approaches based on command and control do not work. For order to emerge from such chaos and to gain more control over success, strategy based on reason alone is not enough to inspire action in others. To understand what it takes to effectively make strategy under such circumstances, this article shows how the UK's Royal Marines, in collaboration with more than a dozen different stakeholder groups, developed a novel adaptation of wargaming to affect strategic change in Afghanistan. It also demonstrates the broad applicability of this strategic approach.
Swot Analysis of "When It Takes a Network: Creating Strategy and Agility through Wargaming" written by Arnoud Franken, Harry Thomsett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wargaming Marines facing as an external strategic factors. Some of the topics covered in When It Takes a Network: Creating Strategy and Agility through Wargaming case study are - Strategic Management Strategies, Networking, Strategy and Finance & Accounting.
Some of the macro environment factors that can be used to understand the When It Takes a Network: Creating Strategy and Agility through Wargaming casestudy better are - – challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, technology disruption, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of When It Takes a Network: Creating Strategy and Agility through Wargaming
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in When It Takes a Network: Creating Strategy and Agility through Wargaming case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wargaming Marines, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wargaming Marines 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 When It Takes a Network: Creating Strategy and Agility through Wargaming can be done for the following purposes –
1. Strategic planning using facts provided in When It Takes a Network: Creating Strategy and Agility through Wargaming case study
2. Improving business portfolio management of Wargaming Marines
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 Wargaming Marines
Strengths When It Takes a Network: Creating Strategy and Agility through Wargaming | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wargaming Marines in When It Takes a Network: Creating Strategy and Agility through Wargaming Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Wargaming Marines digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wargaming Marines 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.
Successful track record of launching new products
– Wargaming Marines has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wargaming Marines 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.
High switching costs
– The high switching costs that Wargaming Marines 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.
Strong track record of project management
– Wargaming Marines is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Finance & Accounting field
– Wargaming Marines is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Wargaming Marines in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Wargaming Marines in the sector have low bargaining power. When It Takes a Network: Creating Strategy and Agility through Wargaming has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wargaming Marines to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Wargaming Marines has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wargaming Marines to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Wargaming Marines 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 When It Takes a Network: Creating Strategy and Agility through Wargaming - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Wargaming Marines is present in almost all the verticals within the industry. This has provided firm in When It Takes a Network: Creating Strategy and Agility through Wargaming 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.
Organizational Resilience of Wargaming Marines
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wargaming Marines does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Wargaming Marines 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.
Highly skilled collaborators
– Wargaming Marines 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 When It Takes a Network: Creating Strategy and Agility through Wargaming HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses When It Takes a Network: Creating Strategy and Agility through Wargaming | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of When It Takes a Network: Creating Strategy and Agility through Wargaming are -
Aligning sales with marketing
– It come across in the case study When It Takes a Network: Creating Strategy and Agility through Wargaming 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 When It Takes a Network: Creating Strategy and Agility through Wargaming can leverage the sales team experience to cultivate customer relationships as Wargaming Marines is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study When It Takes a Network: Creating Strategy and Agility through Wargaming, in the dynamic environment Wargaming Marines has struggled to respond to the nimble upstart competition. Wargaming Marines has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Wargaming Marines supply chain. Even after few cautionary changes mentioned in the HBR case study - When It Takes a Network: Creating Strategy and Agility through Wargaming, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wargaming Marines vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Wargaming Marines 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wargaming Marines is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study When It Takes a Network: Creating Strategy and Agility through Wargaming can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Arnoud Franken, Harry Thomsett suggests that, Wargaming Marines is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the When It Takes a Network: Creating Strategy and Agility through Wargaming 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 Wargaming Marines has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study When It Takes a Network: Creating Strategy and Agility through Wargaming, it seems that the employees of Wargaming Marines 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.
Slow to strategic competitive environment developments
– As When It Takes a Network: Creating Strategy and Agility through Wargaming HBR case study mentions - Wargaming Marines 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.
Low market penetration in new markets
– Outside its home market of Wargaming Marines, firm in the HBR case study When It Takes a Network: Creating Strategy and Agility through Wargaming needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study When It Takes a Network: Creating Strategy and Agility through Wargaming, is just above the industry average. Wargaming Marines 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.
Opportunities When It Takes a Network: Creating Strategy and Agility through Wargaming | 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 When It Takes a Network: Creating Strategy and Agility through Wargaming are -
Creating value in data economy
– The success of analytics program of Wargaming Marines has opened avenues for new revenue streams for the organization in the industry. This can help Wargaming Marines to build a more holistic ecosystem as suggested in the When It Takes a Network: Creating Strategy and Agility through Wargaming case study. Wargaming Marines can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Wargaming Marines 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.
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 Wargaming Marines in the consumer business. Now Wargaming Marines can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Wargaming Marines 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.
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. Wargaming Marines can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wargaming Marines 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. Wargaming Marines can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wargaming Marines 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 Wargaming Marines to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Wargaming Marines 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wargaming Marines is facing challenges because of the dominance of functional experts in the organization. When It Takes a Network: Creating Strategy and Agility through Wargaming 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.
Buying journey improvements
– Wargaming Marines can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. When It Takes a Network: Creating Strategy and Agility through Wargaming 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wargaming Marines can use these opportunities to build new business models that can help the communities that Wargaming Marines operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Loyalty marketing
– Wargaming Marines 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 When It Takes a Network: Creating Strategy and Agility through Wargaming External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study When It Takes a Network: Creating Strategy and Agility through Wargaming are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wargaming Marines in the Finance & Accounting industry. The Finance & Accounting 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.
Regulatory challenges
– Wargaming Marines 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.
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.
Shortening product life cycle
– it is one of the major threat that Wargaming Marines is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Wargaming Marines in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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. Wargaming Marines 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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Wargaming Marines.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study When It Takes a Network: Creating Strategy and Agility through Wargaming, Wargaming Marines 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 .
Stagnating economy with rate increase
– Wargaming Marines 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.
High dependence on third party suppliers
– Wargaming Marines 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.
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. Wargaming Marines can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Wargaming Marines 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.
Weighted SWOT Analysis of When It Takes a Network: Creating Strategy and Agility through Wargaming 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 When It Takes a Network: Creating Strategy and Agility through Wargaming 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 When It Takes a Network: Creating Strategy and Agility through Wargaming 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 When It Takes a Network: Creating Strategy and Agility through Wargaming 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 When It Takes a Network: Creating Strategy and Agility through Wargaming 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 Wargaming Marines needs to make to build a sustainable competitive advantage.