Swot Analysis of "Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement" written by Julio J. Rotemberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reagan Reagan's facing as an external strategic factors. Some of the topics covered in Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement case study are - Strategic Management Strategies, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement casestudy better are - – challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
increasing transportation and logistics costs, technology disruption, etc
Introduction to SWOT Analysis of Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reagan Reagan's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reagan Reagan's 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement can be done for the following purposes –
1. Strategic planning using facts provided in Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement case study
2. Improving business portfolio management of Reagan Reagan's
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 Reagan Reagan's
Strengths Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reagan Reagan's in Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Reagan Reagan's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reagan Reagan's 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.
Sustainable margins compare to other players in Global Business industry
– Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement firm has clearly differentiated products in the market place. This has enabled Reagan Reagan's to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Reagan Reagan's to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Reagan Reagan's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Reagan Reagan's 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 Julio J. Rotemberg 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
– Reagan Reagan's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reagan Reagan's 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.
Strong track record of project management
– Reagan Reagan's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Reagan Reagan's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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.
Operational resilience
– The operational resilience strategy in the Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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.
Cross disciplinary teams
– Horizontal connected teams at the Reagan Reagan's 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
– Reagan Reagan's 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Reagan Reagan's 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.
Low bargaining power of suppliers
– Suppliers of Reagan Reagan's in the sector have low bargaining power. Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reagan Reagan's to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement are -
Skills based hiring
– The stress on hiring functional specialists at Reagan Reagan's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Reagan Reagan's 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 Reagan Reagan's supply chain. Even after few cautionary changes mentioned in the HBR case study - Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reagan Reagan's vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement HBR case study mentions - Reagan Reagan's 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.
No frontier risks strategy
– After analyzing the HBR case study Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Reagan's has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Reagan Reagan's is dominated by functional specialists. It is not different from other players in the Global Business segment. Reagan Reagan's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reagan Reagan's to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Reagan Reagan's, firm in the HBR case study Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement, is just above the industry average. Reagan Reagan's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reagan Reagan's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Reagan Reagan's 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.
Opportunities Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement | 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Reagan Reagan's 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
– Reagan Reagan's 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.
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 Reagan Reagan's in the consumer business. Now Reagan Reagan's can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Reagan Reagan's 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. Reagan Reagan's 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.
Building a culture of innovation
– managers at Reagan Reagan's 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, Reagan Reagan's can use these opportunities to build new business models that can help the communities that Reagan Reagan's operates in. Secondly it can use opportunities from government spending in Global Business sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Reagan Reagan's is facing challenges because of the dominance of functional experts in the organization. Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reagan Reagan's 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, Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Reagan Reagan's 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Reagan Reagan's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Reagan Reagan's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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.
Loyalty marketing
– Reagan Reagan's 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.
Manufacturing automation
– Reagan Reagan's 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.
Developing new processes and practices
– Reagan Reagan's can develop new processes and procedures in Global Business 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.
Threats Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement are -
High dependence on third party suppliers
– Reagan Reagan's 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.
Stagnating economy with rate increase
– Reagan Reagan's 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Reagan Reagan's
– 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 Reagan Reagan's.
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. Reagan Reagan's needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement, Reagan Reagan's 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reagan Reagan's 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement .
Consumer confidence and its impact on Reagan Reagan's 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.
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 Reagan Reagan's in the Global Business sector and impact the bottomline of the organization.
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. Reagan Reagan's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Reagan Reagan's 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 Reagan Reagan's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Plan: Fiscal and Monetary Policy at the Beginning of Reagan's Presidency, Supplement 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 Reagan Reagan's needs to make to build a sustainable competitive advantage.
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