Case Study Description of CONNECT: The Knowledge Network (A)
In 1992, Maureen Clarry and Kelly Gilmore quit their jobs to start CONNECT: The Knowledge Network, an Information Technology Consulting company. Maureen and Kelly did not take a salary for the first six months of operation, and expected to keep expenses down by working out of their homes. When both women became pregnant, they had to redefine their business model and find a suitable office space. They found an old Victorian house with a separate building to serve as an on-site daycare center and proceeded to create a family-friendly office environment. They focused their business strategy on building a network of consultant "partners" to provide data warehousing and information systems consulting to large companies in the Denver area. In 1998, as companies attempted to expand their workforce in an increasingly tight job market, CONNECT added permanent-placement to their temporary-placement services. This new service line required an increase in CONNECT's workforce, and within a year, CONNECT expanded from 8 to 20 employees. The economic downturn of 1999-2000 prompted CONNECT to refocus the business once again, forcing a layoff of some long-time staff as well as its recently hired recruiters. This case chronicles the process that Maureen and Kelly and the entire staff of CONNECT went through in making the difficult downsizing decisions.
Swot Analysis of "CONNECT: The Knowledge Network (A)" written by Joan Winn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Connect Maureen facing as an external strategic factors. Some of the topics covered in CONNECT: The Knowledge Network (A) case study are - Strategic Management Strategies, Downsizing, Human resource management, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the CONNECT: The Knowledge Network (A) casestudy better are - – challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, wage bills are increasing, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google,
there is backlash against globalization, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of CONNECT: The Knowledge Network (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CONNECT: The Knowledge Network (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Connect Maureen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Connect Maureen 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 CONNECT: The Knowledge Network (A) can be done for the following purposes –
1. Strategic planning using facts provided in CONNECT: The Knowledge Network (A) case study
2. Improving business portfolio management of Connect Maureen
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 Connect Maureen
Strengths CONNECT: The Knowledge Network (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Connect Maureen in CONNECT: The Knowledge Network (A) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Connect Maureen 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 CONNECT: The Knowledge Network (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Connect Maureen 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 Connect Maureen is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CONNECT: The Knowledge Network (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Connect Maureen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Connect Maureen 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Connect Maureen digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Connect Maureen 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 Connect Maureen
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Connect Maureen does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Connect Maureen 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 Connect Maureen in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Connect Maureen has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CONNECT: The Knowledge Network (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Connect Maureen 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.
High brand equity
– Connect Maureen has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Connect Maureen to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Connect Maureen is present in almost all the verticals within the industry. This has provided firm in CONNECT: The Knowledge Network (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.
Strong track record of project management
– Connect Maureen is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Connect Maureen in the sector have low bargaining power. CONNECT: The Knowledge Network (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Connect Maureen to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses CONNECT: The Knowledge Network (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CONNECT: The Knowledge Network (A) are -
High cash cycle compare to competitors
Connect Maureen 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Connect Maureen is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CONNECT: The Knowledge Network (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.
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 Connect Maureen supply chain. Even after few cautionary changes mentioned in the HBR case study - CONNECT: The Knowledge Network (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Connect Maureen vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study CONNECT: The Knowledge Network (A) 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 CONNECT: The Knowledge Network (A) can leverage the sales team experience to cultivate customer relationships as Connect Maureen is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CONNECT: The Knowledge Network (A), it seems that the employees of Connect Maureen 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.
Products dominated business model
– Even though Connect Maureen 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 - CONNECT: The Knowledge Network (A) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study CONNECT: The Knowledge Network (A), is just above the industry average. Connect Maureen 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.
Capital Spending Reduction
– Even during the low interest decade, Connect Maureen 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 CONNECT: The Knowledge Network (A) HBR case study mentions - Connect Maureen 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.
High operating costs
– Compare to the competitors, firm in the HBR case study CONNECT: The Knowledge Network (A) 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 Connect Maureen 's lucrative customers.
Lack of clear differentiation of Connect Maureen products
– To increase the profitability and margins on the products, Connect Maureen needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities CONNECT: The Knowledge Network (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 CONNECT: The Knowledge Network (A) are -
Manufacturing automation
– Connect Maureen 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Connect Maureen can use these opportunities to build new business models that can help the communities that Connect Maureen operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Connect Maureen 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Connect Maureen 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 Connect Maureen to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Connect Maureen 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Connect Maureen 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, CONNECT: The Knowledge Network (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.
Buying journey improvements
– Connect Maureen can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CONNECT: The Knowledge Network (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.
Leveraging digital technologies
– Connect Maureen 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Connect Maureen can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Connect Maureen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Connect Maureen in the consumer business. Now Connect Maureen can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Connect Maureen is facing challenges because of the dominance of functional experts in the organization. CONNECT: The Knowledge Network (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.
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. Connect Maureen 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. Connect Maureen 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.
Threats CONNECT: The Knowledge Network (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CONNECT: The Knowledge Network (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Connect Maureen 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.
Environmental challenges
– Connect Maureen 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. Connect Maureen 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
– Connect Maureen has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Connect Maureen 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.
Shortening product life cycle
– it is one of the major threat that Connect Maureen 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 Connect Maureen
– 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 Connect Maureen.
Regulatory challenges
– Connect Maureen 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.
Stagnating economy with rate increase
– Connect Maureen can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CONNECT: The Knowledge Network (A), Connect Maureen 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 .
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.
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. Connect Maureen 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 Connect Maureen business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Connect Maureen 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.
Weighted SWOT Analysis of CONNECT: The Knowledge Network (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 CONNECT: The Knowledge Network (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 CONNECT: The Knowledge Network (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 CONNECT: The Knowledge Network (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 CONNECT: The Knowledge Network (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 Connect Maureen needs to make to build a sustainable competitive advantage.
