A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover
Increased workforce mobility imposes a significant cost on many organizations because of the negative impact departing employees have on informal networks. The turnover of well-connected employees disrupts networks important to innovation, best practice transfer, and project execution. Yet while network losses can be quite costly, they are typically invisible to most organizations' financial and performance management systems. Using network data, this article shows how managers formulate three different kinds of strategies, namely, identifying flight risks in advance of departure, investing in key people in the network to improve retention, and improving network connectivity to enable it to be maintained in the face of turnover.
Authors :: Gary Ballinger, Elizabeth Craig, Rob Cross, Peter H. Gray
Swot Analysis of "A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover" written by Gary Ballinger, Elizabeth Craig, Rob Cross, Peter H. Gray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Turnover Network facing as an external strategic factors. Some of the topics covered in A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover case study are - Strategic Management Strategies, Employee retention, Human resource management, Innovation, Networking and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover casestudy better are - – increasing household debt because of falling income levels, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing energy prices, there is backlash against globalization, cloud computing is disrupting traditional business models, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Turnover Network, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Turnover Network 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover can be done for the following purposes –
1. Strategic planning using facts provided in A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover case study
2. Improving business portfolio management of Turnover Network
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 Turnover Network
Strengths A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Turnover Network in A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Turnover Network 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.
Organizational Resilience of Turnover Network
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Turnover Network 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 Turnover Network in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Turnover Network is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Turnover Network digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Turnover Network 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.
Ability to lead change in Innovation & Entrepreneurship field
– Turnover Network 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 Turnover Network in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover firm has clearly differentiated products in the market place. This has enabled Turnover Network to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Turnover Network to invest into research and development (R&D) and innovation.
Analytics focus
– Turnover Network 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 Gary Ballinger, Elizabeth Craig, Rob Cross, Peter H. Gray 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.
Low bargaining power of suppliers
– Suppliers of Turnover Network in the sector have low bargaining power. A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Turnover Network to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Turnover Network 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.
Learning organization
- Turnover Network 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 Turnover Network is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Turnover Network 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover are -
Skills based hiring
– The stress on hiring functional specialists at Turnover Network 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.
Capital Spending Reduction
– Even during the low interest decade, Turnover Network 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.
Low market penetration in new markets
– Outside its home market of Turnover Network, firm in the HBR case study A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Turnover Network 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 Turnover Network has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover, in the dynamic environment Turnover Network has struggled to respond to the nimble upstart competition. Turnover Network has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Turnover Network 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.
Slow decision making process
– As mentioned earlier in the report, Turnover Network 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. Turnover Network 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.
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 Turnover Network supply chain. Even after few cautionary changes mentioned in the HBR case study - A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Turnover Network vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Turnover Network 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.
Increasing silos among functional specialists
– The organizational structure of Turnover Network is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Turnover Network needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Turnover Network to focus more on services rather than just following the product oriented approach.
Opportunities A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover | 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover are -
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. Turnover Network can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Turnover Network is facing challenges because of the dominance of functional experts in the organization. A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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.
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. Turnover Network can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Turnover Network can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Turnover Network 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.
Leveraging digital technologies
– Turnover Network 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.
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. Turnover Network 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. Turnover Network 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.
Better consumer reach
– The expansion of the 5G network will help Turnover Network to increase its market reach. Turnover Network 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.
Buying journey improvements
– Turnover Network can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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.
Developing new processes and practices
– Turnover Network 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Turnover Network 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, A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Turnover Network 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Turnover Network 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Turnover Network with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Turnover Network 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.
Stagnating economy with rate increase
– Turnover Network 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.
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 Turnover Network.
Regulatory challenges
– Turnover Network 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.
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.
Environmental challenges
– Turnover Network 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. Turnover Network can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Consumer confidence and its impact on Turnover Network 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.
Shortening product life cycle
– it is one of the major threat that Turnover Network 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. Turnover Network can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Turnover Network needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Turnover Network has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Turnover Network 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.
Increasing wage structure of Turnover Network
– 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 Turnover Network.
Weighted SWOT Analysis of A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 A Stitch in Time Saves Nine: Leveraging Networks to Reduce the Costs of Turnover 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 Turnover Network needs to make to build a sustainable competitive advantage.