SkillsForTomorrow: A Management Team in Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SkillsForTomorrow: A Management Team in Crisis
A management consultant has been hired to fix the morale issues at a branch of SkillsForTomorrow (SFT) in Pennsylvania, United States. SFT is a government-sponsored organization tasked with helping at-risk young adults gain vocational training toward preparing them for a successful career in one of several areas, including automotive and machine repair, construction, health care and information technology. The program provides support to students beyond technical training, including the development of interpersonal skills, problem-solving skills and skills in effectively conducting a job search and interview - all towards the goal of graduating individuals that are prepared to live independently and become productive citizens (and taxpayers). Several factors are influencing the morale of the SFT management team, some of which point directly to the sponsor of the consulting project, the executive director at SFT Harrisburg. The consultant must identify the root causes of the management discord and derive a solution that can help solve the various issues. The consultant will need to consider the political and interpersonal aspects of the consulting relationship between herself and the executive director. Steven D. Charlier is affiliated with Quinnipiac University
Swot Analysis of "SkillsForTomorrow: A Management Team in Crisis" written by Steven D. Charlier, Martin M. Brennan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sft Skillsfortomorrow facing as an external strategic factors. Some of the topics covered in SkillsForTomorrow: A Management Team in Crisis case study are - Strategic Management Strategies, Conflict, Leadership, Leading teams and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the SkillsForTomorrow: A Management Team in Crisis casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of SkillsForTomorrow: A Management Team in Crisis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SkillsForTomorrow: A Management Team in Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sft Skillsfortomorrow, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis can be done for the following purposes –
1. Strategic planning using facts provided in SkillsForTomorrow: A Management Team in Crisis case study
2. Improving business portfolio management of Sft Skillsfortomorrow
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 Sft Skillsfortomorrow
Strengths SkillsForTomorrow: A Management Team in Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sft Skillsfortomorrow in SkillsForTomorrow: A Management Team in Crisis Harvard Business Review case study are -
Successful track record of launching new products
– Sft Skillsfortomorrow has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sft Skillsfortomorrow 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.
Superior customer experience
– The customer experience strategy of Sft Skillsfortomorrow in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Sft Skillsfortomorrow digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sft Skillsfortomorrow 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.
Training and development
– Sft Skillsfortomorrow has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SkillsForTomorrow: A Management Team in Crisis 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.
Low bargaining power of suppliers
– Suppliers of Sft Skillsfortomorrow in the sector have low bargaining power. SkillsForTomorrow: A Management Team in Crisis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sft Skillsfortomorrow to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Sft Skillsfortomorrow 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 Steven D. Charlier, Martin M. Brennan 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.
Effective Research and Development (R&D)
– Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the SkillsForTomorrow: A Management Team in Crisis Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Sft Skillsfortomorrow 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 Sft Skillsfortomorrow is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SkillsForTomorrow: A Management Team in Crisis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Sft Skillsfortomorrow is one of the most innovative firm in sector. Manager in SkillsForTomorrow: A Management Team in Crisis Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Sft Skillsfortomorrow 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.
Diverse revenue streams
– Sft Skillsfortomorrow is present in almost all the verticals within the industry. This has provided firm in SkillsForTomorrow: A Management Team in Crisis 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.
Weaknesses SkillsForTomorrow: A Management Team in Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SkillsForTomorrow: A Management Team in Crisis are -
High operating costs
– Compare to the competitors, firm in the HBR case study SkillsForTomorrow: A Management Team in Crisis 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 Sft Skillsfortomorrow 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study SkillsForTomorrow: A Management Team in Crisis, in the dynamic environment Sft Skillsfortomorrow has struggled to respond to the nimble upstart competition. Sft Skillsfortomorrow has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Sft Skillsfortomorrow is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sft Skillsfortomorrow needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sft Skillsfortomorrow to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study SkillsForTomorrow: A Management Team in Crisis, it seems that the employees of Sft Skillsfortomorrow 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.
Aligning sales with marketing
– It come across in the case study SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis can leverage the sales team experience to cultivate customer relationships as Sft Skillsfortomorrow is planning to shift buying processes online.
High cash cycle compare to competitors
Sft Skillsfortomorrow 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 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 Sft Skillsfortomorrow supply chain. Even after few cautionary changes mentioned in the HBR case study - SkillsForTomorrow: A Management Team in Crisis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sft Skillsfortomorrow vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the SkillsForTomorrow: A Management Team in Crisis 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 Sft Skillsfortomorrow has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sft Skillsfortomorrow is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SkillsForTomorrow: A Management Team in Crisis can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Sft Skillsfortomorrow 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. Sft Skillsfortomorrow 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.
Interest costs
– Compare to the competition, Sft Skillsfortomorrow 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.
Opportunities SkillsForTomorrow: A Management Team in Crisis | 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 SkillsForTomorrow: A Management Team in Crisis are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sft Skillsfortomorrow 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 Sft Skillsfortomorrow to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Sft Skillsfortomorrow 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.
Developing new processes and practices
– Sft Skillsfortomorrow 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Sft Skillsfortomorrow to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sft Skillsfortomorrow 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, SkillsForTomorrow: A Management Team in Crisis, 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. Sft Skillsfortomorrow 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. Sft Skillsfortomorrow 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sft Skillsfortomorrow can use these opportunities to build new business models that can help the communities that Sft Skillsfortomorrow operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Manufacturing automation
– Sft Skillsfortomorrow 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. Sft Skillsfortomorrow can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Sft Skillsfortomorrow to increase its market reach. Sft Skillsfortomorrow 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Sft Skillsfortomorrow can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Sft Skillsfortomorrow 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SkillsForTomorrow: A Management Team in Crisis are -
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. Sft Skillsfortomorrow needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Sft Skillsfortomorrow in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sft Skillsfortomorrow with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Sft Skillsfortomorrow
– 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 Sft Skillsfortomorrow.
Environmental challenges
– Sft Skillsfortomorrow 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. Sft Skillsfortomorrow can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Shortening product life cycle
– it is one of the major threat that Sft Skillsfortomorrow is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
High dependence on third party suppliers
– Sft Skillsfortomorrow high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Sft Skillsfortomorrow.
Consumer confidence and its impact on Sft Skillsfortomorrow 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.
Stagnating economy with rate increase
– Sft Skillsfortomorrow 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis .
Weighted SWOT Analysis of SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 Sft Skillsfortomorrow needs to make to build a sustainable competitive advantage.