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 - – increasing transportation and logistics costs, technology disruption, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models,
customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, 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 -
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.
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.
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.
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.
Training and development
– Macroeconomic Phenomena has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in U.S. in 2001: Macroeconomic Policy and the New Economy 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.
Effective Research and Development (R&D)
– Macroeconomic Phenomena 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 U.S. in 2001: Macroeconomic Policy and the New Economy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
Diverse revenue streams
– Macroeconomic Phenomena is present in almost all the verticals within the industry. This has provided firm in U.S. in 2001: Macroeconomic Policy and the New Economy 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.
Cross disciplinary teams
– Horizontal connected teams at the Macroeconomic Phenomena 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.
Strong track record of project management
– Macroeconomic Phenomena is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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 -
Lack of clear differentiation of Macroeconomic Phenomena products
– To increase the profitability and margins on the products, Macroeconomic Phenomena needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the U.S. in 2001: Macroeconomic Policy and the New Economy 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 Macroeconomic Phenomena has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Macroeconomic Phenomena is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study U.S. in 2001: Macroeconomic Policy and the New Economy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Macroeconomic Phenomena has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - U.S. in 2001: Macroeconomic Policy and the New Economy should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As U.S. in 2001: Macroeconomic Policy and the New Economy HBR case study mentions - Macroeconomic Phenomena 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.
Interest costs
– Compare to the competition, Macroeconomic Phenomena 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.
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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study U.S. in 2001: Macroeconomic Policy and the New Economy, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study U.S. in 2001: Macroeconomic Policy and the New Economy, is just above the industry average. Macroeconomic Phenomena 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 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 -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Macroeconomic Phenomena can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Macroeconomic Phenomena 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Macroeconomic Phenomena 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.
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.
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 Macroeconomic Phenomena 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.
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.
Better consumer reach
– The expansion of the 5G network will help Macroeconomic Phenomena to increase its market reach. Macroeconomic Phenomena will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
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.
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.
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 -
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 Macroeconomic Phenomena business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Macroeconomic Phenomena with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Macroeconomic Phenomena 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.
Environmental challenges
– Macroeconomic Phenomena 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. Macroeconomic Phenomena can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
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 .
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.
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.
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 .
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.
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.
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.
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.
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.