U.S. in 2001: Macroeconomic Policy and the New Economy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of U.S. in 2001: Macroeconomic Policy and the New Economy
Presents four views of U.S. macroeconomic developments in the late 1990s: an HBS professor, the Federal Reserve, the Clinton administration, and President George W. Bush. Develops the implications of the new economy--technological and organizational change--for business and discusses the important issues for the conduct of macroeconomic policy that these phenomena raise.
Swot Analysis of "U.S. in 2001: Macroeconomic Policy and the New Economy" written by Huw Pill includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Macroeconomic Phenomena facing as an external strategic factors. Some of the topics covered in U.S. in 2001: Macroeconomic Policy and the New Economy case study are - Strategic Management Strategies, Economics, Internet, Policy, Productivity and Global Business.
Some of the macro environment factors that can be used to understand the U.S. in 2001: Macroeconomic Policy and the New Economy casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, geopolitical disruptions, increasing energy prices, there is backlash against globalization, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of U.S. in 2001: Macroeconomic Policy and the New Economy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in U.S. in 2001: Macroeconomic Policy and the New Economy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Macroeconomic Phenomena, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Macroeconomic Phenomena 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 U.S. in 2001: Macroeconomic Policy and the New Economy can be done for the following purposes –
1. Strategic planning using facts provided in U.S. in 2001: Macroeconomic Policy and the New Economy case study
2. Improving business portfolio management of Macroeconomic Phenomena
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Macroeconomic Phenomena
Strengths U.S. in 2001: Macroeconomic Policy and the New Economy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Macroeconomic Phenomena in U.S. in 2001: Macroeconomic Policy and the New Economy Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Macroeconomic Phenomena in the sector have low bargaining power. U.S. in 2001: Macroeconomic Policy and the New Economy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Macroeconomic Phenomena to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Macroeconomic Phenomena in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Macroeconomic Phenomena is one of the leading recruiters in the industry. Managers in the U.S. in 2001: Macroeconomic Policy and the New Economy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Global Business field
– Macroeconomic Phenomena 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 Macroeconomic Phenomena in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Macroeconomic Phenomena 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.
Highly skilled collaborators
– Macroeconomic Phenomena 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 U.S. in 2001: Macroeconomic Policy and the New Economy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Macroeconomic Phenomena
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Macroeconomic Phenomena does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Global Business industry
– U.S. in 2001: Macroeconomic Policy and the New Economy firm has clearly differentiated products in the market place. This has enabled Macroeconomic Phenomena to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Macroeconomic Phenomena to invest into research and development (R&D) and innovation.
Innovation driven organization
– Macroeconomic Phenomena is one of the most innovative firm in sector. Manager in U.S. in 2001: Macroeconomic Policy and the New Economy 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
– Macroeconomic Phenomena has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Macroeconomic Phenomena to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Macroeconomic Phenomena digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Macroeconomic Phenomena 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
– Macroeconomic Phenomena 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 Huw Pill 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.
Weaknesses U.S. in 2001: Macroeconomic Policy and the New Economy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of U.S. in 2001: Macroeconomic Policy and the New Economy are -
Capital Spending Reduction
– Even during the low interest decade, Macroeconomic Phenomena 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.
Slow decision making process
– As mentioned earlier in the report, Macroeconomic Phenomena 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. Macroeconomic Phenomena 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.
Increasing silos among functional specialists
– The organizational structure of Macroeconomic Phenomena is dominated by functional specialists. It is not different from other players in the Global Business segment. Macroeconomic Phenomena needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Macroeconomic Phenomena to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Macroeconomic Phenomena 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.
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 Macroeconomic Phenomena supply chain. Even after few cautionary changes mentioned in the HBR case study - U.S. in 2001: Macroeconomic Policy and the New Economy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Macroeconomic Phenomena vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study U.S. in 2001: Macroeconomic Policy and the New Economy 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 U.S. in 2001: Macroeconomic Policy and the New Economy can leverage the sales team experience to cultivate customer relationships as Macroeconomic Phenomena is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Huw Pill suggests that, Macroeconomic Phenomena 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.
Need for greater diversity
– Macroeconomic Phenomena 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.
High cash cycle compare to competitors
Macroeconomic Phenomena 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study U.S. in 2001: Macroeconomic Policy and the New Economy, in the dynamic environment Macroeconomic Phenomena has struggled to respond to the nimble upstart competition. Macroeconomic Phenomena has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Macroeconomic Phenomena 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.
Opportunities U.S. in 2001: Macroeconomic Policy and the New Economy | 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 U.S. in 2001: Macroeconomic Policy and the New Economy are -
Creating value in data economy
– The success of analytics program of Macroeconomic Phenomena has opened avenues for new revenue streams for the organization in the industry. This can help Macroeconomic Phenomena to build a more holistic ecosystem as suggested in the U.S. in 2001: Macroeconomic Policy and the New Economy case study. Macroeconomic Phenomena can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Macroeconomic Phenomena can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Leveraging digital technologies
– Macroeconomic Phenomena 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Macroeconomic Phenomena 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, U.S. in 2001: Macroeconomic Policy and the New Economy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Macroeconomic Phenomena 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 Macroeconomic Phenomena 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 Macroeconomic Phenomena to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Macroeconomic Phenomena 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 Macroeconomic Phenomena in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Macroeconomic Phenomena can use these opportunities to build new business models that can help the communities that Macroeconomic Phenomena operates in. Secondly it can use opportunities from government spending in Global Business sector.
Buying journey improvements
– Macroeconomic Phenomena can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. U.S. in 2001: Macroeconomic Policy and the New Economy 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.
Using analytics as competitive advantage
– Macroeconomic Phenomena 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 U.S. in 2001: Macroeconomic Policy and the New Economy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Macroeconomic Phenomena to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Macroeconomic Phenomena 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 Global Business segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Macroeconomic Phenomena is facing challenges because of the dominance of functional experts in the organization. U.S. in 2001: Macroeconomic Policy and the New Economy 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.
Threats U.S. in 2001: Macroeconomic Policy and the New Economy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study U.S. in 2001: Macroeconomic Policy and the New Economy are -
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. Macroeconomic Phenomena 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, Macroeconomic Phenomena 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 U.S. in 2001: Macroeconomic Policy and the New Economy .
Technology acceleration in Forth Industrial Revolution
– Macroeconomic Phenomena has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Macroeconomic Phenomena needs to keep up with the evolution of technology in the Global Business 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.
Regulatory challenges
– Macroeconomic Phenomena 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 Global Business industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Macroeconomic Phenomena in the Global Business industry. The Global Business 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.
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 Macroeconomic Phenomena in the Global Business 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.
Consumer confidence and its impact on Macroeconomic Phenomena 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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Macroeconomic Phenomena can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study U.S. in 2001: Macroeconomic Policy and the New Economy, Macroeconomic Phenomena may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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.
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. Macroeconomic Phenomena needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Macroeconomic Phenomena is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of U.S. in 2001: Macroeconomic Policy and the New Economy 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 U.S. in 2001: Macroeconomic Policy and the New Economy 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 U.S. in 2001: Macroeconomic Policy and the New Economy 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 U.S. in 2001: Macroeconomic Policy and the New Economy 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 U.S. in 2001: Macroeconomic Policy and the New Economy 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 Macroeconomic Phenomena needs to make to build a sustainable competitive advantage.
