The Big Three Performance Variables: Macroperformance of the United States and the Eurozone SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Big Three Performance Variables: Macroperformance of the United States and the Eurozone
The "big three" performance variables--growth in real GDP, inflation rate, and unemployment rate--are important starting points for delving into the macroeconomies of any country. This note offers some brief background on the policy environment surrounding performance reporting in the United States and the Eurozone; exhibits show historical performance on each of the big three variables for both. Students are asked to relate important events in the world economy to the path of the three variables from 1999 through mid-2009. Differences in performance in each country/region over time and differences among the regions are also requested in the assignment questions.
Swot Analysis of "The Big Three Performance Variables: Macroperformance of the United States and the Eurozone" written by Alan R Beckenstein includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Variables Eurozone facing as an external strategic factors. Some of the topics covered in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone case study are - Strategic Management Strategies, Labor, Recession and Global Business.
Some of the macro environment factors that can be used to understand the The Big Three Performance Variables: Macroperformance of the United States and the Eurozone casestudy better are - – increasing commodity prices, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation,
digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of The Big Three Performance Variables: Macroperformance of the United States and the Eurozone
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Variables Eurozone, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone can be done for the following purposes –
1. Strategic planning using facts provided in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone case study
2. Improving business portfolio management of Variables Eurozone
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 Variables Eurozone
Strengths The Big Three Performance Variables: Macroperformance of the United States and the Eurozone | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Variables Eurozone in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone Harvard Business Review case study are -
Diverse revenue streams
– Variables Eurozone is present in almost all the verticals within the industry. This has provided firm in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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.
Training and development
– Variables Eurozone has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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.
High brand equity
– Variables Eurozone has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Variables Eurozone to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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.
Sustainable margins compare to other players in Global Business industry
– The Big Three Performance Variables: Macroperformance of the United States and the Eurozone firm has clearly differentiated products in the market place. This has enabled Variables Eurozone to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Variables Eurozone to invest into research and development (R&D) and innovation.
Strong track record of project management
– Variables Eurozone 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 Global Business field
– Variables Eurozone 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 Variables Eurozone in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Variables Eurozone digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Variables Eurozone 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.
Highly skilled collaborators
– Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Variables Eurozone is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Variables Eurozone is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Variables Eurozone 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 Alan R Beckenstein 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Big Three Performance Variables: Macroperformance of the United States and the Eurozone are -
Slow decision making process
– As mentioned earlier in the report, Variables Eurozone 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. Variables Eurozone 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, is just above the industry average. Variables Eurozone needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone can leverage the sales team experience to cultivate customer relationships as Variables Eurozone is planning to shift buying processes online.
High cash cycle compare to competitors
Variables Eurozone 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.
Low market penetration in new markets
– Outside its home market of Variables Eurozone, firm in the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Variables Eurozone 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, it seems that the employees of Variables Eurozone 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Variables Eurozone 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 star products
– The top 2 products and services of the firm as mentioned in the The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 Variables Eurozone has relatively successful track record of launching new products.
Products dominated business model
– Even though Variables Eurozone 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 - The Big Three Performance Variables: Macroperformance of the United States and the Eurozone should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, in the dynamic environment Variables Eurozone has struggled to respond to the nimble upstart competition. Variables Eurozone has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities The Big Three Performance Variables: Macroperformance of the United States and the Eurozone | 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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. Variables Eurozone can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Variables Eurozone in the consumer business. Now Variables Eurozone can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Variables Eurozone 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.
Loyalty marketing
– Variables Eurozone 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.
Building a culture of innovation
– managers at Variables Eurozone 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, Variables Eurozone is facing challenges because of the dominance of functional experts in the organization. The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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.
Leveraging digital technologies
– Variables Eurozone 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Variables Eurozone 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 Variables Eurozone to hire the very best people irrespective of their geographical location.
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. Variables Eurozone 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. Variables Eurozone 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.
Buying journey improvements
– Variables Eurozone can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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.
Developing new processes and practices
– Variables Eurozone 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Variables Eurozone can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Variables Eurozone 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.
Threats The Big Three Performance Variables: Macroperformance of the United States and the Eurozone External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Variables Eurozone 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.
Environmental challenges
– Variables Eurozone 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. Variables Eurozone can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Technology acceleration in Forth Industrial Revolution
– Variables Eurozone has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Variables Eurozone 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Variables Eurozone with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Variables Eurozone can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Variables Eurozone
– 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 Variables Eurozone.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, Variables Eurozone 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 .
Shortening product life cycle
– it is one of the major threat that Variables Eurozone is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Variables Eurozone 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 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. Variables Eurozone needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone 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 Variables Eurozone needs to make to build a sustainable competitive advantage.
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