Swot Analysis of "Non-Equity Financing for Entrepreneurial Ventures" written by Joan Farre-Mensa, Ramana Nanda, Piyush Jain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ventures Entrepreneurial facing as an external strategic factors. Some of the topics covered in Non-Equity Financing for Entrepreneurial Ventures case study are - Strategic Management Strategies, Financial management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Non-Equity Financing for Entrepreneurial Ventures casestudy better are - – challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , increasing energy prices, etc
Introduction to SWOT Analysis of Non-Equity Financing for Entrepreneurial Ventures
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Non-Equity Financing for Entrepreneurial Ventures case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ventures Entrepreneurial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ventures Entrepreneurial 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 Non-Equity Financing for Entrepreneurial Ventures can be done for the following purposes –
1. Strategic planning using facts provided in Non-Equity Financing for Entrepreneurial Ventures case study
2. Improving business portfolio management of Ventures Entrepreneurial
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 Ventures Entrepreneurial
Strengths Non-Equity Financing for Entrepreneurial Ventures | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ventures Entrepreneurial in Non-Equity Financing for Entrepreneurial Ventures Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Non-Equity Financing for Entrepreneurial Ventures 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.
Ability to recruit top talent
– Ventures Entrepreneurial is one of the leading recruiters in the industry. Managers in the Non-Equity Financing for Entrepreneurial Ventures are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Ventures Entrepreneurial 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 Ventures Entrepreneurial is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Non-Equity Financing for Entrepreneurial Ventures Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Ventures Entrepreneurial is present in almost all the verticals within the industry. This has provided firm in Non-Equity Financing for Entrepreneurial Ventures 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.
Strong track record of project management
– Ventures Entrepreneurial 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
– Ventures Entrepreneurial 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 Ventures Entrepreneurial in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Ventures Entrepreneurial in the sector have low bargaining power. Non-Equity Financing for Entrepreneurial Ventures has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ventures Entrepreneurial to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Ventures Entrepreneurial has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ventures Entrepreneurial to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Ventures Entrepreneurial 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.
Training and development
– Ventures Entrepreneurial has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Non-Equity Financing for Entrepreneurial Ventures 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.
Organizational Resilience of Ventures Entrepreneurial
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ventures Entrepreneurial does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Ventures Entrepreneurial in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Non-Equity Financing for Entrepreneurial Ventures | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Non-Equity Financing for Entrepreneurial Ventures are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Non-Equity Financing for Entrepreneurial Ventures, it seems that the employees of Ventures Entrepreneurial 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ventures Entrepreneurial is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Non-Equity Financing for Entrepreneurial Ventures 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, Ventures Entrepreneurial 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.
Slow to strategic competitive environment developments
– As Non-Equity Financing for Entrepreneurial Ventures HBR case study mentions - Ventures Entrepreneurial 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Non-Equity Financing for Entrepreneurial Ventures, is just above the industry average. Ventures Entrepreneurial 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.
Capital Spending Reduction
– Even during the low interest decade, Ventures Entrepreneurial 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.
Lack of clear differentiation of Ventures Entrepreneurial products
– To increase the profitability and margins on the products, Ventures Entrepreneurial 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 Non-Equity Financing for Entrepreneurial Ventures 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 Ventures Entrepreneurial 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Non-Equity Financing for Entrepreneurial Ventures, in the dynamic environment Ventures Entrepreneurial has struggled to respond to the nimble upstart competition. Ventures Entrepreneurial has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Ventures Entrepreneurial, firm in the HBR case study Non-Equity Financing for Entrepreneurial Ventures needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Ventures Entrepreneurial supply chain. Even after few cautionary changes mentioned in the HBR case study - Non-Equity Financing for Entrepreneurial Ventures, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ventures Entrepreneurial vulnerable to further global disruptions in South East Asia.
Opportunities Non-Equity Financing for Entrepreneurial Ventures | 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 Non-Equity Financing for Entrepreneurial Ventures are -
Buying journey improvements
– Ventures Entrepreneurial can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Non-Equity Financing for Entrepreneurial Ventures 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.
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. Ventures Entrepreneurial can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Ventures Entrepreneurial 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. Ventures Entrepreneurial 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.
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 Ventures Entrepreneurial in the consumer business. Now Ventures Entrepreneurial can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ventures Entrepreneurial can use these opportunities to build new business models that can help the communities that Ventures Entrepreneurial operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ventures Entrepreneurial is facing challenges because of the dominance of functional experts in the organization. Non-Equity Financing for Entrepreneurial Ventures 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.
Developing new processes and practices
– Ventures Entrepreneurial 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.
Using analytics as competitive advantage
– Ventures Entrepreneurial 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 Non-Equity Financing for Entrepreneurial Ventures - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ventures Entrepreneurial 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 Ventures Entrepreneurial can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ventures Entrepreneurial 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 Ventures Entrepreneurial to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Ventures Entrepreneurial to increase its market reach. Ventures Entrepreneurial 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.
Creating value in data economy
– The success of analytics program of Ventures Entrepreneurial has opened avenues for new revenue streams for the organization in the industry. This can help Ventures Entrepreneurial to build a more holistic ecosystem as suggested in the Non-Equity Financing for Entrepreneurial Ventures case study. Ventures Entrepreneurial 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 Ventures Entrepreneurial 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.
Threats Non-Equity Financing for Entrepreneurial Ventures External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Non-Equity Financing for Entrepreneurial Ventures 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 Ventures Entrepreneurial in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ventures Entrepreneurial 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 Non-Equity Financing for Entrepreneurial Ventures .
Regulatory challenges
– Ventures Entrepreneurial 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.
Technology acceleration in Forth Industrial Revolution
– Ventures Entrepreneurial has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Ventures Entrepreneurial 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Non-Equity Financing for Entrepreneurial Ventures, Ventures Entrepreneurial 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 .
Shortening product life cycle
– it is one of the major threat that Ventures Entrepreneurial is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ventures Entrepreneurial can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ventures Entrepreneurial business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Ventures Entrepreneurial
– 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 Ventures Entrepreneurial.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ventures Entrepreneurial 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.
High dependence on third party suppliers
– Ventures Entrepreneurial 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.
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 Ventures Entrepreneurial.
Weighted SWOT Analysis of Non-Equity Financing for Entrepreneurial Ventures 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 Non-Equity Financing for Entrepreneurial Ventures 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 Non-Equity Financing for Entrepreneurial Ventures 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 Non-Equity Financing for Entrepreneurial Ventures 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 Non-Equity Financing for Entrepreneurial Ventures 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 Ventures Entrepreneurial needs to make to build a sustainable competitive advantage.