Developing Effective Middle Management in an Entrepreneurial Firm in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Developing Effective Middle Management in an Entrepreneurial Firm in China
Victoria Idea Company Limited was a major network security solution provider based in Zhuhai, China. The company had been facing problems common to many family-owned businesses due to its management style. It was later restructured with the goal of transforming it from a family-run business to a professionally managed one by first removing most family members from the company and then slowly re-building a new, solid management structure. In order to instil a sense of responsibility and accountability in its middle managers, the company promoted staff from within instead of recruiting from outside, sponsored management training courses and made several other changes, including giving out shares to management staff. Despite all the efforts made, middle managers were still reluctant to make decisions on their own and would turn to senior management who used to be the sole decision-makers before the restructuring. Victoria Idea needed to find a way to develop a sense of trust among its middle managers so that the latter would feel confident to make decisions on their own without seeking advice or approval from senior management. A proactive and responsible management team was deemed to be crucial if the company wanted to expand further. This case illustrates how and why changes to long-established practices and operations or management styles can be difficult to implement.
Swot Analysis of "Developing Effective Middle Management in an Entrepreneurial Firm in China" written by Allen Fu Tze Yu, Yuen-ching Sin Fu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Middle Management facing as an external strategic factors. Some of the topics covered in Developing Effective Middle Management in an Entrepreneurial Firm in China case study are - Strategic Management Strategies, Organizational culture, Reorganization, Social responsibility, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Developing Effective Middle Management in an Entrepreneurial Firm in China casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
increasing commodity prices, geopolitical disruptions, etc
Introduction to SWOT Analysis of Developing Effective Middle Management in an Entrepreneurial Firm in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Developing Effective Middle Management in an Entrepreneurial Firm in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Middle Management, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Middle Management 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 Developing Effective Middle Management in an Entrepreneurial Firm in China can be done for the following purposes –
1. Strategic planning using facts provided in Developing Effective Middle Management in an Entrepreneurial Firm in China case study
2. Improving business portfolio management of Middle Management
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Middle Management
Strengths Developing Effective Middle Management in an Entrepreneurial Firm in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Middle Management in Developing Effective Middle Management in an Entrepreneurial Firm in China Harvard Business Review case study are -
Strong track record of project management
– Middle Management 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 Innovation & Entrepreneurship field
– Middle Management 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 Middle Management in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Middle Management 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 Middle Management is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Developing Effective Middle Management in an Entrepreneurial Firm in China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Middle Management is present in almost all the verticals within the industry. This has provided firm in Developing Effective Middle Management in an Entrepreneurial Firm in China 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.
High brand equity
– Middle Management has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Middle Management to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Middle Management has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Developing Effective Middle Management in an Entrepreneurial Firm in China 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.
Innovation driven organization
– Middle Management is one of the most innovative firm in sector. Manager in Developing Effective Middle Management in an Entrepreneurial Firm in China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Developing Effective Middle Management in an Entrepreneurial Firm in China 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.
Low bargaining power of suppliers
– Suppliers of Middle Management in the sector have low bargaining power. Developing Effective Middle Management in an Entrepreneurial Firm in China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Middle Management to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Middle Management 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 Allen Fu Tze Yu, Yuen-ching Sin Fu 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.
Cross disciplinary teams
– Horizontal connected teams at the Middle Management 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.
High switching costs
– The high switching costs that Middle Management 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.
Weaknesses Developing Effective Middle Management in an Entrepreneurial Firm in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Developing Effective Middle Management in an Entrepreneurial Firm in China are -
Need for greater diversity
– Middle Management 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.
Low market penetration in new markets
– Outside its home market of Middle Management, firm in the HBR case study Developing Effective Middle Management in an Entrepreneurial Firm in China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Middle Management 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 - Developing Effective Middle Management in an Entrepreneurial Firm in China should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Developing Effective Middle Management in an Entrepreneurial Firm in China HBR case study mentions - Middle Management takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Middle Management is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Developing Effective Middle Management in an Entrepreneurial Firm in China can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Middle Management 's lucrative customers.
Interest costs
– Compare to the competition, Middle Management 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 Developing Effective Middle Management in an Entrepreneurial Firm in China, is just above the industry average. Middle Management 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Middle Management 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 Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Middle Management has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Middle Management 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. Middle Management 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.
Opportunities Developing Effective Middle Management in an Entrepreneurial Firm in China | 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 Developing Effective Middle Management in an Entrepreneurial Firm in China are -
Developing new processes and practices
– Middle Management can develop new processes and procedures in Innovation & Entrepreneurship 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.
Better consumer reach
– The expansion of the 5G network will help Middle Management to increase its market reach. Middle Management 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Middle Management 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 Middle Management to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Middle Management can use these opportunities to build new business models that can help the communities that Middle Management operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Middle Management can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Middle Management 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, Developing Effective Middle Management in an Entrepreneurial Firm in China, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Middle Management can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Middle Management is facing challenges because of the dominance of functional experts in the organization. Developing Effective Middle Management in an Entrepreneurial Firm in China 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Middle Management 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. Middle Management 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.
Creating value in data economy
– The success of analytics program of Middle Management has opened avenues for new revenue streams for the organization in the industry. This can help Middle Management to build a more holistic ecosystem as suggested in the Developing Effective Middle Management in an Entrepreneurial Firm in China case study. Middle Management can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Middle Management in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Middle Management 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 Developing Effective Middle Management in an Entrepreneurial Firm in China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Middle Management 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 Middle Management can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Developing Effective Middle Management in an Entrepreneurial Firm in China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Developing Effective Middle Management in an Entrepreneurial Firm in China are -
High dependence on third party suppliers
– Middle Management 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Middle Management 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 Developing Effective Middle Management in an Entrepreneurial Firm in China .
Regulatory challenges
– Middle Management 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 Innovation & Entrepreneurship industry regulations.
Increasing wage structure of Middle Management
– 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 Middle Management.
Consumer confidence and its impact on Middle Management 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.
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.
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. Middle Management needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Developing Effective Middle Management in an Entrepreneurial Firm in China, Middle Management may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Middle Management in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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 Middle Management is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Middle Management 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.
Technology acceleration in Forth Industrial Revolution
– Middle Management has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Middle Management needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Middle Management with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Developing Effective Middle Management in an Entrepreneurial Firm in China 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 Middle Management needs to make to build a sustainable competitive advantage.
