The Big Three Performance Variables: Macroperformance of the United States and the Eurozone SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

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.

Authors :: Alan R Beckenstein

Topics :: Global Business

Tags :: Labor, Recession, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

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 - – talent flight as more people leaving formal jobs, increasing commodity prices, increasing energy prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc

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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.

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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

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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 -

Organizational Resilience of Variables Eurozone

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Variables Eurozone does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– Variables Eurozone is one of the most innovative firm in sector. Manager in The Big Three Performance Variables: Macroperformance of the United States and the Eurozone Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

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.

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.

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.

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.

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.

Superior customer experience

– The customer experience strategy of Variables Eurozone in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Cross disciplinary teams

– Horizontal connected teams at the Variables Eurozone 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.

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.

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.

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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 -

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.

Interest costs

– Compare to the competition, Variables Eurozone 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.

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.

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.

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.

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.

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.

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.

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.

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 Variables Eurozone supply chain. Even after few cautionary changes mentioned in the HBR case study - The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Variables Eurozone vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– After analyzing the HBR case study The Big Three Performance Variables: Macroperformance of the United States and the Eurozone, 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.

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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 -

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.

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.

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.

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.

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Variables Eurozone can use these opportunities to build new business models that can help the communities that Variables Eurozone 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. Variables Eurozone can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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.

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.

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.

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.

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.

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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 -

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.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Variables Eurozone.

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.

Regulatory challenges

– Variables Eurozone needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.

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.

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.

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 .

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.

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 .

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.

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 Variables Eurozone in the Global Business sector and impact the bottomline of the organization.

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.

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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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