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 - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, technology disruption, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, 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 -
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.
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.
Low bargaining power of suppliers
– Suppliers of Variables Eurozone in the sector have low bargaining power. The Big Three Performance Variables: Macroperformance of the United States and the Eurozone has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Variables Eurozone to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Variables Eurozone 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
– Variables Eurozone is one of the leading recruiters in the industry. Managers in the The Big Three Performance Variables: Macroperformance of the United States and the Eurozone are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
Successful track record of launching new products
– Variables Eurozone has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Variables Eurozone has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High 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.
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.
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.
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.
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 -
Capital Spending Reduction
– Even during the low interest decade, Variables Eurozone 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Variables Eurozone 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Variables Eurozone is dominated by functional specialists. It is not different from other players in the Global Business segment. Variables Eurozone needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Variables Eurozone to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Alan R Beckenstein suggests that, Variables Eurozone 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.
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.
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.
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.
Need for greater diversity
– Variables Eurozone 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.
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.
Lack of clear differentiation of Variables Eurozone products
– To increase the profitability and margins on the products, Variables Eurozone needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Variables Eurozone is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
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.
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.
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.
Creating value in data economy
– The success of analytics program of Variables Eurozone has opened avenues for new revenue streams for the organization in the industry. This can help Variables Eurozone to build a more holistic ecosystem as suggested in the The Big Three Performance Variables: Macroperformance of the United States and the Eurozone case study. Variables Eurozone can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Using analytics as competitive advantage
– Variables Eurozone 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 The Big Three Performance Variables: Macroperformance of the United States and the Eurozone - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Variables Eurozone to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Variables Eurozone 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, The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Variables Eurozone 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.
Learning at scale
– Online learning technologies has now opened space for Variables Eurozone 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.
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. Variables Eurozone can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 -
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 .
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.
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.
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 .
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.
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.
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 Variables Eurozone business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Variables Eurozone 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.
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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Variables Eurozone 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.
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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