Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A)
On January 7, 2002, Paul Levy became CEO of the Beth Israel Deaconess Medical Center, a troubled organization, in serious financial difficulty. This case describes the situation Levy inherited, his negotiations prior to taking the job, and his first six months as CEO.
Swot Analysis of "Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A)" written by David A. Garvin, Michael A. Roberto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Levy Deaconess facing as an external strategic factors. Some of the topics covered in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) case study are - Strategic Management Strategies, Communication, Corporate governance, Decision making, Leadership, Managing people and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) casestudy better are - – technology disruption, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing commodity prices, geopolitical disruptions, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Levy Deaconess, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Levy Deaconess 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) can be done for the following purposes –
1. Strategic planning using facts provided in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) case study
2. Improving business portfolio management of Levy Deaconess
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 Levy Deaconess
Strengths Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Levy Deaconess in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) Harvard Business Review case study are -
Successful track record of launching new products
– Levy Deaconess has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Levy Deaconess 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.
Learning organization
- Levy Deaconess 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 Levy Deaconess is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Levy Deaconess 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.
Cross disciplinary teams
– Horizontal connected teams at the Levy Deaconess 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 Levy Deaconess in the sector have low bargaining power. Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Levy Deaconess to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Levy Deaconess is one of the leading recruiters in the industry. Managers in the Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Levy Deaconess in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Levy Deaconess 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Levy Deaconess is present in almost all the verticals within the industry. This has provided firm in Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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.
Ability to lead change in Leadership & Managing People field
– Levy Deaconess 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 Levy Deaconess in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Levy Deaconess digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Levy Deaconess 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.
Organizational Resilience of Levy Deaconess
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Levy Deaconess does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Levy Deaconess supply chain. Even after few cautionary changes mentioned in the HBR case study - Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Levy Deaconess vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, David A. Garvin, Michael A. Roberto suggests that, Levy Deaconess 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.
Products dominated business model
– Even though Levy Deaconess 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 - Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A), 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, Levy Deaconess is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Levy Deaconess 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.
Lack of clear differentiation of Levy Deaconess products
– To increase the profitability and margins on the products, Levy Deaconess needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Levy Deaconess 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.
Need for greater diversity
– Levy Deaconess 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.
Low market penetration in new markets
– Outside its home market of Levy Deaconess, firm in the HBR case study Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Levy Deaconess 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.
Opportunities Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) | 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Levy Deaconess 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, Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Levy Deaconess 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. Levy Deaconess 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Levy Deaconess can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Levy Deaconess 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 Levy Deaconess has opened avenues for new revenue streams for the organization in the industry. This can help Levy Deaconess to build a more holistic ecosystem as suggested in the Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) case study. Levy Deaconess can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Levy Deaconess 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.
Manufacturing automation
– Levy Deaconess 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.
Buying journey improvements
– Levy Deaconess can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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.
Building a culture of innovation
– managers at Levy Deaconess 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.
Learning at scale
– Online learning technologies has now opened space for Levy Deaconess to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Levy Deaconess 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 Levy Deaconess to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Levy Deaconess is facing challenges because of the dominance of functional experts in the organization. Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Levy Deaconess 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Levy Deaconess.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Levy Deaconess 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) .
High dependence on third party suppliers
– Levy Deaconess 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.
Technology acceleration in Forth Industrial Revolution
– Levy Deaconess has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Levy Deaconess needs to keep up with the evolution of technology in the Leadership & Managing People 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
– Levy Deaconess 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. Levy Deaconess 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 Levy Deaconess 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 Levy Deaconess is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Levy Deaconess 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.
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. Levy Deaconess needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Levy Deaconess business can come under increasing regulations regarding data privacy, data security, 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A), Levy Deaconess 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 .
Regulatory challenges
– Levy Deaconess 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.
Weighted SWOT Analysis of Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Paul Levy: Taking Charge of the Beth Israel Deaconess Medical Center (A) 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 Levy Deaconess needs to make to build a sustainable competitive advantage.
