Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs
During the next decade-plus, thousands of Baby Boomer entrepreneurs will retire, usually without formal succession plans. Next-generation relatives, former employees, or outsiders will assume leadership of these now-mature enterprises, hopefully bringing their own visions and initiatives and becoming, in every sense, re-entrepreneurs. Re-entrepreneurship describes a process through which a mature enterprise can be made new again. Re-entrepreneurial leaders will encounter challenges that differ radically from those confronted by traditional entrepreneurial leaders. Re-entrepreneurial initiatives necessarily should begin with new visions of what mature organizations might do to become new again; will succeed only if stakeholders commit to that vision; and should culminate with reimagined, restaged, and revitalized enterprises. To secure re-entrepreneurial outcomes, three framing principles are proposed. Each principle is rooted in the theory of Joseph Schumpeter, the godfather of entrepreneurism and creative destruction. Seven re-entrepreneurial rules follow. While grounded in entrepreneurial theory, each rule is based primarily on experiential lessons shared by re-entrepreneurial executives who have previously assumed leadership succession roles inside mature organizations--and subsequently reimagined, restaged, and revitalized, ultimately renewing their firms.
Swot Analysis of "Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs" written by Robert McEnany, David Strutton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Entrepreneurial Mature facing as an external strategic factors. Some of the topics covered in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs case study are - Strategic Management Strategies, Leadership, Succession planning and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs casestudy better are - – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, central banks are concerned over increasing inflation,
wage bills are increasing, increasing energy prices, etc
Introduction to SWOT Analysis of Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Entrepreneurial Mature, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Entrepreneurial Mature 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs can be done for the following purposes –
1. Strategic planning using facts provided in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs case study
2. Improving business portfolio management of Entrepreneurial Mature
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 Entrepreneurial Mature
Strengths Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Entrepreneurial Mature in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs Harvard Business Review case study are -
High brand equity
– Entrepreneurial Mature has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Entrepreneurial Mature to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Entrepreneurial Mature has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs firm has clearly differentiated products in the market place. This has enabled Entrepreneurial Mature to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Entrepreneurial Mature to invest into research and development (R&D) and innovation.
Organizational Resilience of Entrepreneurial Mature
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Entrepreneurial Mature does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Innovation & Entrepreneurship field
– Entrepreneurial Mature 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 Entrepreneurial Mature in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Entrepreneurial Mature 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.
Low bargaining power of suppliers
– Suppliers of Entrepreneurial Mature in the sector have low bargaining power. Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Entrepreneurial Mature to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Entrepreneurial Mature is one of the most innovative firm in sector. Manager in Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Entrepreneurial Mature is one of the leading recruiters in the industry. Managers in the Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Entrepreneurial Mature 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Entrepreneurial Mature digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Entrepreneurial Mature 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.
Analytics focus
– Entrepreneurial Mature 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 Robert McEnany, David Strutton 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs are -
Workers concerns about automation
– As automation is fast increasing in the segment, Entrepreneurial Mature 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Entrepreneurial Mature has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Entrepreneurial Mature 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 Entrepreneurial Mature, firm in the HBR case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Entrepreneurial Mature 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.
Increasing silos among functional specialists
– The organizational structure of Entrepreneurial Mature is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Entrepreneurial Mature needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Entrepreneurial Mature to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Entrepreneurial Mature 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. Entrepreneurial Mature 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Entrepreneurial Mature is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs, it seems that the employees of Entrepreneurial Mature 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 cash cycle compare to competitors
Entrepreneurial Mature 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.
No frontier risks strategy
– After analyzing the HBR case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs | 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Entrepreneurial Mature is facing challenges because of the dominance of functional experts in the organization. Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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. Entrepreneurial Mature can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Entrepreneurial Mature can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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.
Better consumer reach
– The expansion of the 5G network will help Entrepreneurial Mature to increase its market reach. Entrepreneurial Mature 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 Entrepreneurial Mature 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 Entrepreneurial Mature to hire the very best people irrespective of their geographical location.
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. Entrepreneurial Mature 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. Entrepreneurial Mature 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Entrepreneurial Mature can use these opportunities to build new business models that can help the communities that Entrepreneurial Mature operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Entrepreneurial Mature can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Developing new processes and practices
– Entrepreneurial Mature 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Entrepreneurial Mature 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Entrepreneurial Mature 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, Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Entrepreneurial Mature 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.
Leveraging digital technologies
– Entrepreneurial Mature 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.
Threats Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Entrepreneurial Mature with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Entrepreneurial Mature is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Entrepreneurial Mature business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Entrepreneurial Mature 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Entrepreneurial Mature 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs, Entrepreneurial Mature 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 .
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.
Regulatory challenges
– Entrepreneurial Mature 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.
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 Entrepreneurial Mature.
High dependence on third party suppliers
– Entrepreneurial Mature 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.
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. Entrepreneurial Mature can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Entrepreneurial Mature 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs .
Weighted SWOT Analysis of Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs 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 Entrepreneurial Mature needs to make to build a sustainable competitive advantage.
