Global Managers' Perceptions of Cultural Competence SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Global Managers' Perceptions of Cultural Competence
To work effectively in the global business arena, managers need a strong set of intercultural management skills. When dealing with clients, co-workers, and other stakeholders at home or abroad, managers with cross-cultural competence have a distinct competitive advantage in the multicultural marketplace. Although generally accepted as a valuable asset for doing business, cross-cultural competence defies easy definition. This study attempts to conceptualize the complex term from the practitioner's point of view. What does cross-cultural competence mean to global managers? From their perspective, which aspects of culture do business people need to understand? From the universe of cultural beliefs, values, attitudes, and country-specific information, what should an executive, with limited time, focus on to develop a basic level of cultural competence? This study asked Mexican managers what they needed to know about culture to do business with the U.S. In the process, they consistently identified certain basic components of cultural competence. Responses were surprisingly similar among the managers, indicating they had a clear picture of which cultural essentials were most important for global executives to learn. The results of the study reveal a working definition of cultural competence for global managers. This research also provides trainers and business educators a content framework for a short-term training program, based on the global managers' perceptions of cross-cultural competence.
Swot Analysis of "Global Managers' Perceptions of Cultural Competence" written by Christine Uber Grosse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Competence Cultural facing as an external strategic factors. Some of the topics covered in Global Managers' Perceptions of Cultural Competence case study are - Strategic Management Strategies, Developing employees, Leadership development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Global Managers' Perceptions of Cultural Competence casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, technology disruption, increasing energy prices, central banks are concerned over increasing inflation,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Global Managers' Perceptions of Cultural Competence
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Managers' Perceptions of Cultural Competence case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Competence Cultural, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Competence Cultural 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 Global Managers' Perceptions of Cultural Competence can be done for the following purposes –
1. Strategic planning using facts provided in Global Managers' Perceptions of Cultural Competence case study
2. Improving business portfolio management of Competence Cultural
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Competence Cultural
Strengths Global Managers' Perceptions of Cultural Competence | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Competence Cultural in Global Managers' Perceptions of Cultural Competence Harvard Business Review case study are -
Highly skilled collaborators
– Competence Cultural 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 Global Managers' Perceptions of Cultural Competence HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Competence Cultural
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Competence Cultural does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Global Managers' Perceptions of Cultural Competence 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.
Analytics focus
– Competence Cultural 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 Christine Uber Grosse 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.
Superior customer experience
– The customer experience strategy of Competence Cultural in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Competence Cultural has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Competence Cultural 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.
Low bargaining power of suppliers
– Suppliers of Competence Cultural in the sector have low bargaining power. Global Managers' Perceptions of Cultural Competence has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Competence Cultural to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Competence Cultural 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 Global Managers' Perceptions of Cultural Competence - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Competence Cultural 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 Competence Cultural is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Global Managers' Perceptions of Cultural Competence Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Competence Cultural has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Competence Cultural has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Global Managers' Perceptions of Cultural Competence 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.
High brand equity
– Competence Cultural has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Competence Cultural to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Global Managers' Perceptions of Cultural Competence | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Managers' Perceptions of Cultural Competence are -
High operating costs
– Compare to the competitors, firm in the HBR case study Global Managers' Perceptions of Cultural Competence has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Competence Cultural 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Competence Cultural 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 Global Managers' Perceptions of Cultural Competence 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 Competence Cultural has relatively successful track record of launching new products.
Products dominated business model
– Even though Competence Cultural 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 - Global Managers' Perceptions of Cultural Competence should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Competence Cultural is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Global Managers' Perceptions of Cultural Competence can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Global Managers' Perceptions of Cultural Competence 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 Global Managers' Perceptions of Cultural Competence can leverage the sales team experience to cultivate customer relationships as Competence Cultural is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Global Managers' Perceptions of Cultural Competence, is just above the industry average. Competence Cultural 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Global Managers' Perceptions of Cultural Competence, in the dynamic environment Competence Cultural has struggled to respond to the nimble upstart competition. Competence Cultural has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Global Managers' Perceptions of Cultural Competence, it seems that the employees of Competence Cultural 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
Competence Cultural 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.
Interest costs
– Compare to the competition, Competence Cultural 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.
Opportunities Global Managers' Perceptions of Cultural Competence | 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 Global Managers' Perceptions of Cultural Competence are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Competence Cultural is facing challenges because of the dominance of functional experts in the organization. Global Managers' Perceptions of Cultural Competence 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Competence Cultural in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Competence Cultural can develop new processes and procedures in Leadership & Managing People 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Competence Cultural can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Competence Cultural can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Competence Cultural 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 Competence Cultural 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 Leadership & Managing People industry, but it has also influenced the consumer preferences. Competence Cultural can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Competence Cultural 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. Competence Cultural 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.
Buying journey improvements
– Competence Cultural can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Global Managers' Perceptions of Cultural Competence 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.
Creating value in data economy
– The success of analytics program of Competence Cultural has opened avenues for new revenue streams for the organization in the industry. This can help Competence Cultural to build a more holistic ecosystem as suggested in the Global Managers' Perceptions of Cultural Competence case study. Competence Cultural can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Competence Cultural in the consumer business. Now Competence Cultural can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Competence Cultural 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, Global Managers' Perceptions of Cultural Competence, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Competence Cultural to increase its market reach. Competence Cultural 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.
Threats Global Managers' Perceptions of Cultural Competence External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Global Managers' Perceptions of Cultural Competence are -
Environmental challenges
– Competence Cultural 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. Competence Cultural can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Competence Cultural 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 Competence Cultural is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Competence Cultural 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 Leadership & Managing People industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Competence Cultural in the Leadership & Managing People industry. The Leadership & Managing People 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Competence Cultural will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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 Competence Cultural in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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. Competence Cultural needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Competence Cultural 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
– Competence Cultural 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Global Managers' Perceptions of Cultural Competence, Competence Cultural may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Weighted SWOT Analysis of Global Managers' Perceptions of Cultural Competence 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 Global Managers' Perceptions of Cultural Competence 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 Global Managers' Perceptions of Cultural Competence 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 Global Managers' Perceptions of Cultural Competence 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 Global Managers' Perceptions of Cultural Competence 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 Competence Cultural needs to make to build a sustainable competitive advantage.