Portrays Margaret Thatcher's rise to the leadership of Great Britain's Conservative Party. Thatcher's political career began with her election to Parliament's House of Commons in 1959. Sixteen years later she was elected the leader of her party, and then in 1979, she became prime minister. Thatcher's emergence as a world leader illustrates her unlikely transition from ultimate outsider to powerful insider.
Swot Analysis of "Margaret Thatcher" written by Herminia Ibarra, Jennifer M. Suesse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Thatcher's Margaret facing as an external strategic factors. Some of the topics covered in Margaret Thatcher case study are - Strategic Management Strategies, Government, Influence, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Margaret Thatcher casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, wage bills are increasing, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization,
increasing household debt because of falling income levels, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Margaret Thatcher
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Margaret Thatcher case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Thatcher's Margaret, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Thatcher's Margaret 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 Margaret Thatcher can be done for the following purposes –
1. Strategic planning using facts provided in Margaret Thatcher case study
2. Improving business portfolio management of Thatcher's Margaret
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 Thatcher's Margaret
Strengths Margaret Thatcher | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Thatcher's Margaret in Margaret Thatcher Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Thatcher's Margaret in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Thatcher's Margaret has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Margaret Thatcher 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.
Ability to recruit top talent
– Thatcher's Margaret is one of the leading recruiters in the industry. Managers in the Margaret Thatcher are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Thatcher's Margaret is present in almost all the verticals within the industry. This has provided firm in Margaret Thatcher 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.
Highly skilled collaborators
– Thatcher's Margaret 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 Margaret Thatcher HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Thatcher's Margaret 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 Thatcher's Margaret is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Margaret Thatcher Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Thatcher's Margaret 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.
Ability to lead change in Leadership & Managing People field
– Thatcher's Margaret 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 Thatcher's Margaret in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Thatcher's Margaret 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 Herminia Ibarra, Jennifer M. Suesse 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.
Innovation driven organization
– Thatcher's Margaret is one of the most innovative firm in sector. Manager in Margaret Thatcher Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Thatcher's Margaret digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Thatcher's Margaret 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Margaret Thatcher firm has clearly differentiated products in the market place. This has enabled Thatcher's Margaret to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Thatcher's Margaret to invest into research and development (R&D) and innovation.
Weaknesses Margaret Thatcher | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Margaret Thatcher are -
Interest costs
– Compare to the competition, Thatcher's Margaret has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study Margaret Thatcher 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 Thatcher's Margaret 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Herminia Ibarra, Jennifer M. Suesse suggests that, Thatcher's Margaret 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.
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 Thatcher's Margaret supply chain. Even after few cautionary changes mentioned in the HBR case study - Margaret Thatcher, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Thatcher's Margaret vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Thatcher's Margaret 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 Margaret Thatcher, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Thatcher's Margaret is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Margaret Thatcher can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Thatcher's Margaret 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 - Margaret Thatcher should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Margaret Thatcher 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 Margaret Thatcher can leverage the sales team experience to cultivate customer relationships as Thatcher's Margaret is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Thatcher's Margaret 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 Thatcher's Margaret, firm in the HBR case study Margaret Thatcher needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Margaret Thatcher | 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 Margaret Thatcher are -
Using analytics as competitive advantage
– Thatcher's Margaret 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 Margaret Thatcher - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Thatcher's Margaret to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Thatcher's Margaret has opened avenues for new revenue streams for the organization in the industry. This can help Thatcher's Margaret to build a more holistic ecosystem as suggested in the Margaret Thatcher case study. Thatcher's Margaret can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Thatcher's Margaret can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Thatcher's Margaret can use these opportunities to build new business models that can help the communities that Thatcher's Margaret operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Thatcher's Margaret 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, Margaret Thatcher, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Thatcher's Margaret can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Thatcher's Margaret 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.
Manufacturing automation
– Thatcher's Margaret can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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. Thatcher's Margaret can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Thatcher's Margaret 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.
Building a culture of innovation
– managers at Thatcher's Margaret 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 Leadership & Managing People segment.
Buying journey improvements
– Thatcher's Margaret can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Margaret Thatcher 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Thatcher's Margaret 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.
Threats Margaret Thatcher External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Margaret Thatcher are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Thatcher's Margaret 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 Margaret Thatcher .
Stagnating economy with rate increase
– Thatcher's Margaret 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.
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.
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 Thatcher's Margaret business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Thatcher's Margaret 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.
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 Thatcher's Margaret.
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 Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Thatcher's Margaret can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Thatcher's Margaret 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. Thatcher's Margaret can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People 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. Thatcher's Margaret needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Thatcher's Margaret with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Thatcher's Margaret
– 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 Thatcher's Margaret.
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 Thatcher's Margaret in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Margaret Thatcher 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 Margaret Thatcher 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 Margaret Thatcher 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 Margaret Thatcher 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 Margaret Thatcher 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 Thatcher's Margaret needs to make to build a sustainable competitive advantage.
