Using Hypothesis-Driven Thinking in Strategy Consulting SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Using Hypothesis-Driven Thinking in Strategy Consulting
This technical note describes the process of hypothesis-driven thinking, using examples from strategy consulting, medicine, and architecture. Associated with the scientific method, hypothesis-driven thinking focuses on the creative generation of alternative hypotheses and on their subsequent validation or refutation through the use of data. Hypothesis generation asks the creative question, "What if ...?" Hypothesis testing follows with "If ..., then ..." and brings relevant data to bear on the analysis. Taken together, and repeated over time, this sequence allows us to pose ever-improving hypotheses without forfeiting the ability to explore new ideas.
Swot Analysis of "Using Hypothesis-Driven Thinking in Strategy Consulting" written by Jeanne M. Liedtka includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hypothesis Hypotheses facing as an external strategic factors. Some of the topics covered in Using Hypothesis-Driven Thinking in Strategy Consulting case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Using Hypothesis-Driven Thinking in Strategy Consulting casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
technology disruption, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Using Hypothesis-Driven Thinking in Strategy Consulting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Hypothesis-Driven Thinking in Strategy Consulting case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hypothesis Hypotheses, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hypothesis Hypotheses 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 Using Hypothesis-Driven Thinking in Strategy Consulting can be done for the following purposes –
1. Strategic planning using facts provided in Using Hypothesis-Driven Thinking in Strategy Consulting case study
2. Improving business portfolio management of Hypothesis Hypotheses
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 Hypothesis Hypotheses
Strengths Using Hypothesis-Driven Thinking in Strategy Consulting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hypothesis Hypotheses in Using Hypothesis-Driven Thinking in Strategy Consulting Harvard Business Review case study are -
Innovation driven organization
– Hypothesis Hypotheses is one of the most innovative firm in sector. Manager in Using Hypothesis-Driven Thinking in Strategy Consulting Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Hypothesis Hypotheses is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Hypothesis Hypotheses 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 Jeanne M. Liedtka 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.
Effective Research and Development (R&D)
– Hypothesis Hypotheses 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 Using Hypothesis-Driven Thinking in Strategy Consulting - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Global Business industry
– Using Hypothesis-Driven Thinking in Strategy Consulting firm has clearly differentiated products in the market place. This has enabled Hypothesis Hypotheses to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Hypothesis Hypotheses to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Hypothesis Hypotheses 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 Hypothesis Hypotheses in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Hypothesis Hypotheses has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using Hypothesis-Driven Thinking in Strategy Consulting 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 Hypothesis Hypotheses digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hypothesis Hypotheses 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.
Superior customer experience
– The customer experience strategy of Hypothesis Hypotheses in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Hypothesis Hypotheses 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
– Hypothesis Hypotheses is present in almost all the verticals within the industry. This has provided firm in Using Hypothesis-Driven Thinking in Strategy Consulting 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.
Successful track record of launching new products
– Hypothesis Hypotheses has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hypothesis Hypotheses 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.
Weaknesses Using Hypothesis-Driven Thinking in Strategy Consulting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using Hypothesis-Driven Thinking in Strategy Consulting are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Using Hypothesis-Driven Thinking in Strategy Consulting 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 Hypothesis Hypotheses has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hypothesis Hypotheses is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using Hypothesis-Driven Thinking in Strategy Consulting 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, Hypothesis Hypotheses 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Using Hypothesis-Driven Thinking in Strategy Consulting, is just above the industry average. Hypothesis Hypotheses 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 decision making process
– As mentioned earlier in the report, Hypothesis Hypotheses 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. Hypothesis Hypotheses 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
– Hypothesis Hypotheses 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.
Lack of clear differentiation of Hypothesis Hypotheses products
– To increase the profitability and margins on the products, Hypothesis Hypotheses needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Using Hypothesis-Driven Thinking in Strategy Consulting 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 Hypothesis Hypotheses 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Using Hypothesis-Driven Thinking in Strategy Consulting, it seems that the employees of Hypothesis Hypotheses 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Using Hypothesis-Driven Thinking in Strategy Consulting, in the dynamic environment Hypothesis Hypotheses has struggled to respond to the nimble upstart competition. Hypothesis Hypotheses has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Hypothesis Hypotheses 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.
Opportunities Using Hypothesis-Driven Thinking in Strategy Consulting | 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 Using Hypothesis-Driven Thinking in Strategy Consulting are -
Loyalty marketing
– Hypothesis Hypotheses 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.
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. Hypothesis Hypotheses 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. Hypothesis Hypotheses 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
– Hypothesis Hypotheses can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Using Hypothesis-Driven Thinking in Strategy Consulting 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.
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. Hypothesis Hypotheses can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Hypothesis Hypotheses 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.
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 Hypothesis Hypotheses 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.
Using analytics as competitive advantage
– Hypothesis Hypotheses 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 Using Hypothesis-Driven Thinking in Strategy Consulting - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hypothesis Hypotheses to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Hypothesis Hypotheses 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hypothesis Hypotheses in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Hypothesis Hypotheses to increase its market reach. Hypothesis Hypotheses will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hypothesis Hypotheses 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hypothesis Hypotheses can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Hypothesis Hypotheses in the consumer business. Now Hypothesis Hypotheses can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Using Hypothesis-Driven Thinking in Strategy Consulting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using Hypothesis-Driven Thinking in Strategy Consulting are -
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 Hypothesis Hypotheses 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. Hypothesis Hypotheses can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Hypothesis Hypotheses business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Hypothesis Hypotheses 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hypothesis Hypotheses with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Hypothesis Hypotheses 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.
Consumer confidence and its impact on Hypothesis Hypotheses 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.
Environmental challenges
– Hypothesis Hypotheses 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. Hypothesis Hypotheses can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hypothesis Hypotheses in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Hypothesis Hypotheses is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Hypothesis Hypotheses
– 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 Hypothesis Hypotheses.
Technology acceleration in Forth Industrial Revolution
– Hypothesis Hypotheses has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Hypothesis Hypotheses 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.
Weighted SWOT Analysis of Using Hypothesis-Driven Thinking in Strategy Consulting 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 Using Hypothesis-Driven Thinking in Strategy Consulting 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 Using Hypothesis-Driven Thinking in Strategy Consulting 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 Using Hypothesis-Driven Thinking in Strategy Consulting 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 Using Hypothesis-Driven Thinking in Strategy Consulting 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 Hypothesis Hypotheses needs to make to build a sustainable competitive advantage.
