Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B)
Case B: An update bringing the reader current with developments in Booz Allen HamiltonA?s knowledge management strategy since Case A. Reinforces and deepens the point that knowledge management is a convergence of at least three factors: an appreciation of knowledge issues, the availability of sophisticated IT technology, and the managerial competence to suitably craft jobs and culture. This case takes the reader through the experiences of Booz-Allen & Hamilton in crafting their knowledge system and dealing with these factors.
Authors :: John Weeks, D. Charles Galunic, Joris Beerens, Robert Oushoorn
Swot Analysis of "Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B)" written by John Weeks, D. Charles Galunic, Joris Beerens, Robert Oushoorn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Booz Knowledge facing as an external strategic factors. Some of the topics covered in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) case study are - Strategic Management Strategies, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) casestudy better are - – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, wage bills are increasing, geopolitical disruptions, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
increasing energy prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Booz Knowledge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Booz Knowledge 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) can be done for the following purposes –
1. Strategic planning using facts provided in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) case study
2. Improving business portfolio management of Booz Knowledge
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 Booz Knowledge
Strengths Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Booz Knowledge in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) Harvard Business Review case study are -
Successful track record of launching new products
– Booz Knowledge has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Booz Knowledge 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.
Strong track record of project management
– Booz Knowledge is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Booz Knowledge 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 Booz Knowledge is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Booz Knowledge 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
– Booz Knowledge has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Booz Knowledge to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Booz Knowledge in the sector have low bargaining power. Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Booz Knowledge to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Booz Knowledge 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Booz Knowledge in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Booz Knowledge
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Booz Knowledge does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Booz Knowledge has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) firm has clearly differentiated products in the market place. This has enabled Booz Knowledge to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Booz Knowledge to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Booz Knowledge is one of the leading recruiters in the industry. Managers in the Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) are -
High cash cycle compare to competitors
Booz Knowledge 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 operating costs
– Compare to the competitors, firm in the HBR case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Booz Knowledge 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Booz Knowledge 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. Booz Knowledge 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.
Increasing silos among functional specialists
– The organizational structure of Booz Knowledge is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Booz Knowledge needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Booz Knowledge to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B), 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.
Products dominated business model
– Even though Booz Knowledge 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 - Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, John Weeks, D. Charles Galunic, Joris Beerens, Robert Oushoorn suggests that, Booz Knowledge 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Booz Knowledge is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B), is just above the industry average. Booz Knowledge 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.
Low market penetration in new markets
– Outside its home market of Booz Knowledge, firm in the HBR case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Booz Knowledge has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) | 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) are -
Buying journey improvements
– Booz Knowledge can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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.
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 Booz Knowledge 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Booz Knowledge can use these opportunities to build new business models that can help the communities that Booz Knowledge operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Booz Knowledge can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Booz Knowledge can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Booz Knowledge has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Booz Knowledge 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 Booz Knowledge to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Booz Knowledge 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.
Using analytics as competitive advantage
– Booz Knowledge 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Booz Knowledge to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Booz Knowledge in the consumer business. Now Booz Knowledge can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Booz Knowledge 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.
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. Booz Knowledge 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. Booz Knowledge 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.
Building a culture of innovation
– managers at Booz Knowledge 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.
Threats Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B), Booz Knowledge 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 .
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. Booz Knowledge 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.
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.
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. Booz Knowledge can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Booz Knowledge 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.
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.
Technology acceleration in Forth Industrial Revolution
– Booz Knowledge has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Booz Knowledge 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 Booz Knowledge.
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 Booz Knowledge business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Booz Knowledge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Booz Knowledge in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Booz Knowledge 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.
Increasing wage structure of Booz Knowledge
– 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 Booz Knowledge.
Weighted SWOT Analysis of Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Managing Knowledge at Booz-Allen & Hamilton: Knowledge On-Line and Off (B) 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 Booz Knowledge needs to make to build a sustainable competitive advantage.
