From Conflict to Balance: Mastering Creative Tension SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of From Conflict to Balance: Mastering Creative Tension
Great innovation is often born of an ability to harmonize opposing tensions, the author argues. Like the pressure to avoid failure and the need to take risks; or the demands of getting results quickly and the freedom to search for 'the best way'. Unfortunately, all-too-often, the artful balancing of opposing tensions goes by the wayside, and compromises are made that sub-optimize efforts to create value. He introduces a technique that prevents compromise: intentional goal conflict. He provides two examples of this approach, cut from the annals of innovation at Toyota, to illustrate exactly how it works.
Swot Analysis of "From Conflict to Balance: Mastering Creative Tension" written by Matthew E May includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Opposing Tensions facing as an external strategic factors. Some of the topics covered in From Conflict to Balance: Mastering Creative Tension case study are - Strategic Management Strategies, Innovation, Leadership and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the From Conflict to Balance: Mastering Creative Tension casestudy better are - – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , there is backlash against globalization, talent flight as more people leaving formal jobs,
customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, etc
Introduction to SWOT Analysis of From Conflict to Balance: Mastering Creative Tension
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in From Conflict to Balance: Mastering Creative Tension case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Opposing Tensions, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Opposing Tensions 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 From Conflict to Balance: Mastering Creative Tension can be done for the following purposes –
1. Strategic planning using facts provided in From Conflict to Balance: Mastering Creative Tension case study
2. Improving business portfolio management of Opposing Tensions
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 Opposing Tensions
Strengths From Conflict to Balance: Mastering Creative Tension | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Opposing Tensions in From Conflict to Balance: Mastering Creative Tension Harvard Business Review case study are -
Organizational Resilience of Opposing Tensions
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Opposing Tensions does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Opposing Tensions is present in almost all the verticals within the industry. This has provided firm in From Conflict to Balance: Mastering Creative Tension case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Opposing Tensions has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Opposing Tensions to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Opposing Tensions is one of the leading recruiters in the industry. Managers in the From Conflict to Balance: Mastering Creative Tension are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Opposing Tensions 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 From Conflict to Balance: Mastering Creative Tension HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Opposing Tensions has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Opposing Tensions has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Opposing Tensions 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
- Opposing Tensions 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 Opposing Tensions is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in From Conflict to Balance: Mastering Creative Tension Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Opposing Tensions 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 From Conflict to Balance: Mastering Creative Tension - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– From Conflict to Balance: Mastering Creative Tension firm has clearly differentiated products in the market place. This has enabled Opposing Tensions to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Opposing Tensions to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the From Conflict to Balance: Mastering Creative Tension 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.
Training and development
– Opposing Tensions has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in From Conflict to Balance: Mastering Creative Tension 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.
Weaknesses From Conflict to Balance: Mastering Creative Tension | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of From Conflict to Balance: Mastering Creative Tension are -
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 Opposing Tensions supply chain. Even after few cautionary changes mentioned in the HBR case study - From Conflict to Balance: Mastering Creative Tension, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Opposing Tensions vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Opposing Tensions 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.
Need for greater diversity
– Opposing Tensions 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.
Slow decision making process
– As mentioned earlier in the report, Opposing Tensions 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. Opposing Tensions 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 bargaining power of channel partners
– Because of the regulatory requirements, Matthew E May suggests that, Opposing Tensions is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Opposing Tensions 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.
Low market penetration in new markets
– Outside its home market of Opposing Tensions, firm in the HBR case study From Conflict to Balance: Mastering Creative Tension needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Opposing Tensions 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.
Lack of clear differentiation of Opposing Tensions products
– To increase the profitability and margins on the products, Opposing Tensions needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study From Conflict to Balance: Mastering Creative Tension, is just above the industry average. Opposing Tensions 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.
Increasing silos among functional specialists
– The organizational structure of Opposing Tensions is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Opposing Tensions needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Opposing Tensions to focus more on services rather than just following the product oriented approach.
Opportunities From Conflict to Balance: Mastering Creative Tension | 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 From Conflict to Balance: Mastering Creative Tension are -
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 Opposing Tensions in the consumer business. Now Opposing Tensions can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Opposing Tensions 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.
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. Opposing Tensions can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Opposing Tensions 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.
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 Opposing Tensions 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.
Using analytics as competitive advantage
– Opposing Tensions 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 From Conflict to Balance: Mastering Creative Tension - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Opposing Tensions to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Opposing Tensions 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Opposing Tensions 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 Opposing Tensions to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Opposing Tensions to increase its market reach. Opposing Tensions 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.
Loyalty marketing
– Opposing Tensions has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Opposing Tensions has opened avenues for new revenue streams for the organization in the industry. This can help Opposing Tensions to build a more holistic ecosystem as suggested in the From Conflict to Balance: Mastering Creative Tension case study. Opposing Tensions can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Opposing Tensions 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.
Buying journey improvements
– Opposing Tensions can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. From Conflict to Balance: Mastering Creative Tension 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.
Threats From Conflict to Balance: Mastering Creative Tension External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study From Conflict to Balance: Mastering Creative Tension are -
Technology acceleration in Forth Industrial Revolution
– Opposing Tensions has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Opposing Tensions 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.
Environmental challenges
– Opposing Tensions 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. Opposing Tensions can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Opposing Tensions needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Opposing Tensions is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study From Conflict to Balance: Mastering Creative Tension, Opposing Tensions 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 .
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.
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. Opposing Tensions 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 Opposing Tensions business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Opposing Tensions 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 From Conflict to Balance: Mastering Creative Tension .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Opposing Tensions 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.
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.
Increasing wage structure of Opposing Tensions
– 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 Opposing Tensions.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Opposing Tensions with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of From Conflict to Balance: Mastering Creative Tension 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 From Conflict to Balance: Mastering Creative Tension 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 From Conflict to Balance: Mastering Creative Tension 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 From Conflict to Balance: Mastering Creative Tension 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 From Conflict to Balance: Mastering Creative Tension 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 Opposing Tensions needs to make to build a sustainable competitive advantage.