Case Study Description of Donovan Marks: Shifting Entrepreneur Motivations
The entrepreneur owner of Proof Engineering is facing a difficult decision: whether to sell his family business to a large corporation and shift to a corporate career or abandon the deal and continue as an entrepreneur. Following a setback from a previous deal in which he sold 50 per cent of his company, the entrepreneur has managed to grow Proof Engineering into a successful international enterprise. However, this second offer presents many potentially lucrative opportunities. There are a number of motivations involved in the decision to sell - including personal, financial and business considerations. Albert Wocke is affiliated with University of Pretoria.
Swot Analysis of "Donovan Marks: Shifting Entrepreneur Motivations" written by Albert Wocke includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Entrepreneur Proof facing as an external strategic factors. Some of the topics covered in Donovan Marks: Shifting Entrepreneur Motivations case study are - Strategic Management Strategies, Motivating people and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Donovan Marks: Shifting Entrepreneur Motivations casestudy better are - – increasing energy prices, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Donovan Marks: Shifting Entrepreneur Motivations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Donovan Marks: Shifting Entrepreneur Motivations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Entrepreneur Proof, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Entrepreneur Proof 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 Donovan Marks: Shifting Entrepreneur Motivations can be done for the following purposes –
1. Strategic planning using facts provided in Donovan Marks: Shifting Entrepreneur Motivations case study
2. Improving business portfolio management of Entrepreneur Proof
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 Entrepreneur Proof
Strengths Donovan Marks: Shifting Entrepreneur Motivations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Entrepreneur Proof in Donovan Marks: Shifting Entrepreneur Motivations Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Donovan Marks: Shifting Entrepreneur Motivations firm has clearly differentiated products in the market place. This has enabled Entrepreneur Proof to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Entrepreneur Proof to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Entrepreneur Proof is one of the leading recruiters in the industry. Managers in the Donovan Marks: Shifting Entrepreneur Motivations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Entrepreneur Proof has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Entrepreneur Proof to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Entrepreneur Proof has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Donovan Marks: Shifting Entrepreneur Motivations 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
- Entrepreneur Proof 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 Entrepreneur Proof is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Donovan Marks: Shifting Entrepreneur Motivations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Entrepreneur Proof 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 Entrepreneur Proof in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Entrepreneur Proof in the sector have low bargaining power. Donovan Marks: Shifting Entrepreneur Motivations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Entrepreneur Proof to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Entrepreneur Proof 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 Albert Wocke 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.
Organizational Resilience of Entrepreneur Proof
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Entrepreneur Proof does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Entrepreneur Proof 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.
Innovation driven organization
– Entrepreneur Proof is one of the most innovative firm in sector. Manager in Donovan Marks: Shifting Entrepreneur Motivations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Entrepreneur Proof has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Entrepreneur Proof 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.
Weaknesses Donovan Marks: Shifting Entrepreneur Motivations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Donovan Marks: Shifting Entrepreneur Motivations are -
Capital Spending Reduction
– Even during the low interest decade, Entrepreneur Proof 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 Entrepreneur Proof, firm in the HBR case study Donovan Marks: Shifting Entrepreneur Motivations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Donovan Marks: Shifting Entrepreneur Motivations 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 Entrepreneur Proof has relatively successful track record of launching new products.
High cash cycle compare to competitors
Entrepreneur Proof 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Albert Wocke suggests that, Entrepreneur Proof 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.
Need for greater diversity
– Entrepreneur Proof 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.
Aligning sales with marketing
– It come across in the case study Donovan Marks: Shifting Entrepreneur Motivations 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 Donovan Marks: Shifting Entrepreneur Motivations can leverage the sales team experience to cultivate customer relationships as Entrepreneur Proof is planning to shift buying processes online.
Products dominated business model
– Even though Entrepreneur Proof 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 - Donovan Marks: Shifting Entrepreneur Motivations should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Donovan Marks: Shifting Entrepreneur Motivations, it seems that the employees of Entrepreneur Proof 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.
No frontier risks strategy
– After analyzing the HBR case study Donovan Marks: Shifting Entrepreneur Motivations, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Donovan Marks: Shifting Entrepreneur Motivations, is just above the industry average. Entrepreneur Proof 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.
Opportunities Donovan Marks: Shifting Entrepreneur Motivations | 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 Donovan Marks: Shifting Entrepreneur Motivations are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Entrepreneur Proof is facing challenges because of the dominance of functional experts in the organization. Donovan Marks: Shifting Entrepreneur Motivations 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.
Better consumer reach
– The expansion of the 5G network will help Entrepreneur Proof to increase its market reach. Entrepreneur Proof 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Entrepreneur Proof 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.
Creating value in data economy
– The success of analytics program of Entrepreneur Proof has opened avenues for new revenue streams for the organization in the industry. This can help Entrepreneur Proof to build a more holistic ecosystem as suggested in the Donovan Marks: Shifting Entrepreneur Motivations case study. Entrepreneur Proof can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Entrepreneur Proof 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Entrepreneur Proof 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, Donovan Marks: Shifting Entrepreneur Motivations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Entrepreneur Proof 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Entrepreneur Proof 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 Entrepreneur Proof 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. Entrepreneur Proof can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Entrepreneur Proof can use these opportunities to build new business models that can help the communities that Entrepreneur Proof operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Entrepreneur Proof can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Entrepreneur Proof can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Donovan Marks: Shifting Entrepreneur Motivations 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.
Developing new processes and practices
– Entrepreneur Proof 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.
Threats Donovan Marks: Shifting Entrepreneur Motivations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Donovan Marks: Shifting Entrepreneur Motivations are -
High dependence on third party suppliers
– Entrepreneur Proof 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
– Entrepreneur Proof 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.
Consumer confidence and its impact on Entrepreneur Proof 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Entrepreneur Proof 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 Donovan Marks: Shifting Entrepreneur Motivations .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Entrepreneur Proof 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.
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.
Regulatory challenges
– Entrepreneur Proof 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.
Environmental challenges
– Entrepreneur Proof 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. Entrepreneur Proof can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology acceleration in Forth Industrial Revolution
– Entrepreneur Proof has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Entrepreneur Proof 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.
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 Entrepreneur Proof.
Shortening product life cycle
– it is one of the major threat that Entrepreneur Proof is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Entrepreneur Proof
– 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 Entrepreneur Proof.
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. Entrepreneur Proof can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Donovan Marks: Shifting Entrepreneur Motivations 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 Donovan Marks: Shifting Entrepreneur Motivations 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 Donovan Marks: Shifting Entrepreneur Motivations 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 Donovan Marks: Shifting Entrepreneur Motivations 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 Donovan Marks: Shifting Entrepreneur Motivations 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 Entrepreneur Proof needs to make to build a sustainable competitive advantage.