Best Western Italy (B): Creating an Authentizotic Organization by Putting People First SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First
The case follows the progress of a year-long multi-module 'Make a Difference' programme for all 70 employees of Best Western Italy, the European operations and reservations centre for Best Western International, a global hotel group. The programme is designed to help individuals explore their own personal and professional goals, and then to work together to redesign the mission and vision of their organization. The objective is to unlock organizational energy, and to enhance trust and communication across all hierarchical levels. The outcomes included a restructuring of the senior executive level to create a flatter organization with more distributed leadership; improvement in the Great Places to Work Institute Italia ranking; and six company-wide projects initiated by employees. The case describes not only the programme design, but the necessary precursors for successful implementation, including organizational readiness for change and the skills and experience required of the coaches. It poses the question: How can this level of organizational change and renewal be sustained over time? Please visit the dedicated case website http://cases.insead.edu/best-western-italy to access video interviews and other support material.
Authors :: Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries
Swot Analysis of "Best Western Italy (B): Creating an Authentizotic Organization by Putting People First" written by Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Programme Western facing as an external strategic factors. Some of the topics covered in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study are - Strategic Management Strategies, Leadership, Leadership development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, there is backlash against globalization, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Programme Western, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First can be done for the following purposes –
1. Strategic planning using facts provided in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study
2. Improving business portfolio management of Programme Western
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 Programme Western
Strengths Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Programme Western in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First Harvard Business Review case study are -
Highly skilled collaborators
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Programme Western 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 Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries 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.
Ability to recruit top talent
– Programme Western is one of the leading recruiters in the industry. Managers in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Programme Western
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Programme Western does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Programme Western digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Programme Western 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.
Low bargaining power of suppliers
– Suppliers of Programme Western in the sector have low bargaining power. Best Western Italy (B): Creating an Authentizotic Organization by Putting People First has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Programme Western to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Programme Western is one of the most innovative firm in sector. Manager in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Programme Western 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 Programme Western in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Programme Western is present in almost all the verticals within the industry. This has provided firm in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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.
Training and development
– Programme Western has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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.
Learning organization
- Programme Western 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 Programme Western is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, it seems that the employees of Programme Western 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First can leverage the sales team experience to cultivate customer relationships as Programme Western is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Programme Western 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.
Slow to strategic competitive environment developments
– As Best Western Italy (B): Creating an Authentizotic Organization by Putting People First HBR case study mentions - Programme Western takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Programme Western 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Programme Western 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.
Slow decision making process
– As mentioned earlier in the report, Programme Western 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. Programme Western even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Programme Western is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Buying journey improvements
– Programme Western can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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.
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. Programme Western 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. Programme Western 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Programme Western 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, Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Programme Western in the consumer business. Now Programme Western can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Programme Western has opened avenues for new revenue streams for the organization in the industry. This can help Programme Western to build a more holistic ecosystem as suggested in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study. Programme Western can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Programme Western 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 Programme Western to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Programme Western 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
– Programme Western 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.
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. Programme Western can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Programme Western to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Programme Western is facing challenges because of the dominance of functional experts in the organization. Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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.
Learning at scale
– Online learning technologies has now opened space for Programme Western 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Programme Western 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.
Threats Best Western Italy (B): Creating an Authentizotic Organization by Putting People First External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Programme Western 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.
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. Programme Western needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Programme Western has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Programme Western 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.
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. Programme Western can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Programme Western.
Regulatory challenges
– Programme Western 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.
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. Programme Western 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.
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 Programme Western 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, Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First .
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 Programme Western
– 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 Programme Western.
Stagnating economy with rate increase
– Programme Western 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.
Shortening product life cycle
– it is one of the major threat that Programme Western is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western needs to make to build a sustainable competitive advantage.
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