Transforming the Business Service Portfolio at Global Consultancy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transforming the Business Service Portfolio at Global Consultancy
Global Consultancy Canada, the national branch of a global tax, accounting and consulting services firm, is seeking to improve the efficiency and effectiveness of its organization. The leader of the sourcing practice has been tasked by the company's chief executive officer to identify opportunities for transforming the firm's marketing and communications, human resources, finance and information technology functions. He must decide on the most suitable models for these business areas and make a recommendation at the next leadership update meeting.
Swot Analysis of "Transforming the Business Service Portfolio at Global Consultancy" written by Ning Su, Naqaash Pirani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Consultancy Transforming facing as an external strategic factors. Some of the topics covered in Transforming the Business Service Portfolio at Global Consultancy case study are - Strategic Management Strategies, International business, Supply chain and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Transforming the Business Service Portfolio at Global Consultancy casestudy better are - – talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, there is backlash against globalization, wage bills are increasing, technology disruption, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Transforming the Business Service Portfolio at Global Consultancy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming the Business Service Portfolio at Global Consultancy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Consultancy Transforming, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Consultancy Transforming 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 Transforming the Business Service Portfolio at Global Consultancy can be done for the following purposes –
1. Strategic planning using facts provided in Transforming the Business Service Portfolio at Global Consultancy case study
2. Improving business portfolio management of Consultancy Transforming
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 Consultancy Transforming
Strengths Transforming the Business Service Portfolio at Global Consultancy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Consultancy Transforming in Transforming the Business Service Portfolio at Global Consultancy Harvard Business Review case study are -
High switching costs
– The high switching costs that Consultancy Transforming 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.
Operational resilience
– The operational resilience strategy in the Transforming the Business Service Portfolio at Global Consultancy 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Transforming the Business Service Portfolio at Global Consultancy firm has clearly differentiated products in the market place. This has enabled Consultancy Transforming to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Consultancy Transforming to invest into research and development (R&D) and innovation.
Learning organization
- Consultancy Transforming 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 Consultancy Transforming is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transforming the Business Service Portfolio at Global Consultancy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Consultancy Transforming is one of the most innovative firm in sector. Manager in Transforming the Business Service Portfolio at Global Consultancy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Consultancy Transforming has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Transforming the Business Service Portfolio at Global Consultancy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Consultancy Transforming has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Consultancy Transforming to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Consultancy Transforming is present in almost all the verticals within the industry. This has provided firm in Transforming the Business Service Portfolio at Global Consultancy 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
– Consultancy Transforming is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Consultancy Transforming in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Consultancy Transforming in the sector have low bargaining power. Transforming the Business Service Portfolio at Global Consultancy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Consultancy Transforming to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Consultancy Transforming 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 Ning Su, Naqaash Pirani 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.
Weaknesses Transforming the Business Service Portfolio at Global Consultancy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming the Business Service Portfolio at Global Consultancy are -
Workers concerns about automation
– As automation is fast increasing in the segment, Consultancy Transforming 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.
Interest costs
– Compare to the competition, Consultancy Transforming 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.
Capital Spending Reduction
– Even during the low interest decade, Consultancy Transforming 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 Consultancy Transforming, firm in the HBR case study Transforming the Business Service Portfolio at Global Consultancy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Consultancy Transforming is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Consultancy Transforming needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Consultancy Transforming to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Transforming the Business Service Portfolio at Global Consultancy that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Transforming the Business Service Portfolio at Global Consultancy can leverage the sales team experience to cultivate customer relationships as Consultancy Transforming is planning to shift buying processes online.
High cash cycle compare to competitors
Consultancy Transforming has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Consultancy Transforming 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 - Transforming the Business Service Portfolio at Global Consultancy should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Transforming the Business Service Portfolio at Global Consultancy, it seems that the employees of Consultancy Transforming 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.
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 Consultancy Transforming supply chain. Even after few cautionary changes mentioned in the HBR case study - Transforming the Business Service Portfolio at Global Consultancy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Consultancy Transforming vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transforming the Business Service Portfolio at Global Consultancy, is just above the industry average. Consultancy Transforming 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.
Opportunities Transforming the Business Service Portfolio at Global Consultancy | 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 Transforming the Business Service Portfolio at Global Consultancy are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Consultancy Transforming 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Consultancy Transforming 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Consultancy Transforming can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Consultancy Transforming can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Transforming the Business Service Portfolio at Global Consultancy 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Consultancy Transforming can use these opportunities to build new business models that can help the communities that Consultancy Transforming 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, Consultancy Transforming is facing challenges because of the dominance of functional experts in the organization. Transforming the Business Service Portfolio at Global Consultancy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Consultancy Transforming 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.
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. Consultancy Transforming can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Consultancy Transforming to increase its market reach. Consultancy Transforming 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.
Learning at scale
– Online learning technologies has now opened space for Consultancy Transforming 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.
Leveraging digital technologies
– Consultancy Transforming 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Consultancy Transforming 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 Consultancy Transforming to hire the very best people irrespective of their geographical location.
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. Consultancy Transforming can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Transforming the Business Service Portfolio at Global Consultancy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming the Business Service Portfolio at Global Consultancy are -
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 Consultancy Transforming.
Regulatory challenges
– Consultancy Transforming 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.
Shortening product life cycle
– it is one of the major threat that Consultancy Transforming is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Consultancy Transforming needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Consultancy Transforming 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 Transforming the Business Service Portfolio at Global Consultancy .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Consultancy Transforming 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.
Environmental challenges
– Consultancy Transforming 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. Consultancy Transforming can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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 Consultancy Transforming business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Consultancy Transforming 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.
Stagnating economy with rate increase
– Consultancy Transforming 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.
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 Consultancy Transforming in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Consultancy Transforming can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Transforming the Business Service Portfolio at Global Consultancy 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 Transforming the Business Service Portfolio at Global Consultancy 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 Transforming the Business Service Portfolio at Global Consultancy 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 Transforming the Business Service Portfolio at Global Consultancy 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 Transforming the Business Service Portfolio at Global Consultancy 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 Consultancy Transforming needs to make to build a sustainable competitive advantage.