RetailSoft: Role for Regan Kessel SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of RetailSoft: Role for Regan Kessel
Presents a three-way version of the RetailMax simulation requiring students to enact an internal salary negotiation, taking on the roles of Cam Archer, a star employee, and Regan Kessel, a VP trying to attract the MBA into his department. However, RetailSoft introduces a third party, Sydney Masser, to illustrate the effects of negotiating for self vs. others. A rewritten version of an earlier exercise.
Authors :: Dina Witter, Hannah Riley Bowles, Kathleen L. McGinn
Swot Analysis of "RetailSoft: Role for Regan Kessel" written by Dina Witter, Hannah Riley Bowles, Kathleen L. McGinn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Retailsoft Kessel facing as an external strategic factors. Some of the topics covered in RetailSoft: Role for Regan Kessel case study are - Strategic Management Strategies, Compensation, Decision making, Developing employees, Negotiations, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the RetailSoft: Role for Regan Kessel casestudy better are - – there is increasing trade war between United States & China, geopolitical disruptions, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of RetailSoft: Role for Regan Kessel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in RetailSoft: Role for Regan Kessel case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Retailsoft Kessel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Retailsoft Kessel 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 RetailSoft: Role for Regan Kessel can be done for the following purposes –
1. Strategic planning using facts provided in RetailSoft: Role for Regan Kessel case study
2. Improving business portfolio management of Retailsoft Kessel
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 Retailsoft Kessel
Strengths RetailSoft: Role for Regan Kessel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Retailsoft Kessel in RetailSoft: Role for Regan Kessel Harvard Business Review case study are -
Training and development
– Retailsoft Kessel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in RetailSoft: Role for Regan Kessel 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.
Analytics focus
– Retailsoft Kessel 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 Dina Witter, Hannah Riley Bowles, Kathleen L. McGinn can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Leadership & Managing People field
– Retailsoft Kessel 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 Retailsoft Kessel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Retailsoft Kessel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Retailsoft Kessel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Retailsoft Kessel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Retailsoft Kessel 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.
Effective Research and Development (R&D)
– Retailsoft Kessel 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 RetailSoft: Role for Regan Kessel - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Retailsoft Kessel is one of the leading recruiters in the industry. Managers in the RetailSoft: Role for Regan Kessel are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Retailsoft Kessel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Retailsoft Kessel has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in RetailSoft: Role for Regan Kessel HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Retailsoft Kessel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Retailsoft Kessel 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.
Learning organization
- Retailsoft Kessel 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 Retailsoft Kessel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in RetailSoft: Role for Regan Kessel Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Retailsoft Kessel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses RetailSoft: Role for Regan Kessel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of RetailSoft: Role for Regan Kessel are -
Low market penetration in new markets
– Outside its home market of Retailsoft Kessel, firm in the HBR case study RetailSoft: Role for Regan Kessel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Dina Witter, Hannah Riley Bowles, Kathleen L. McGinn suggests that, Retailsoft Kessel 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the RetailSoft: Role for Regan Kessel 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 Retailsoft Kessel has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Retailsoft Kessel 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. Retailsoft Kessel 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 Retailsoft Kessel is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Retailsoft Kessel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Retailsoft Kessel to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Retailsoft Kessel products
– To increase the profitability and margins on the products, Retailsoft Kessel needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Retailsoft Kessel 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 - RetailSoft: Role for Regan Kessel should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study RetailSoft: Role for Regan Kessel, in the dynamic environment Retailsoft Kessel has struggled to respond to the nimble upstart competition. Retailsoft Kessel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Retailsoft Kessel 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Retailsoft Kessel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study RetailSoft: Role for Regan Kessel 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 RetailSoft: Role for Regan Kessel, is just above the industry average. Retailsoft Kessel 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 RetailSoft: Role for Regan Kessel | 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 RetailSoft: Role for Regan Kessel are -
Developing new processes and practices
– Retailsoft Kessel 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Retailsoft Kessel 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 Retailsoft Kessel to hire the very best people irrespective of their geographical location.
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. Retailsoft Kessel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Retailsoft Kessel 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.
Loyalty marketing
– Retailsoft Kessel 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.
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. Retailsoft Kessel 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. Retailsoft Kessel 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.
Creating value in data economy
– The success of analytics program of Retailsoft Kessel has opened avenues for new revenue streams for the organization in the industry. This can help Retailsoft Kessel to build a more holistic ecosystem as suggested in the RetailSoft: Role for Regan Kessel case study. Retailsoft Kessel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Retailsoft Kessel 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.
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 Retailsoft Kessel 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.
Leveraging digital technologies
– Retailsoft Kessel 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Retailsoft Kessel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Retailsoft Kessel is facing challenges because of the dominance of functional experts in the organization. RetailSoft: Role for Regan Kessel 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.
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 Retailsoft Kessel in the consumer business. Now Retailsoft Kessel can target international markets with far fewer capital restrictions requirements than the existing system.
Threats RetailSoft: Role for Regan Kessel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study RetailSoft: Role for Regan Kessel are -
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.
Environmental challenges
– Retailsoft Kessel 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. Retailsoft Kessel can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Retailsoft Kessel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Retailsoft Kessel needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Retailsoft Kessel 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.
Regulatory challenges
– Retailsoft Kessel 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.
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 Retailsoft Kessel.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study RetailSoft: Role for Regan Kessel, Retailsoft Kessel 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Retailsoft Kessel 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.
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. Retailsoft Kessel 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Retailsoft Kessel 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 RetailSoft: Role for Regan Kessel .
Consumer confidence and its impact on Retailsoft Kessel 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.
Technology acceleration in Forth Industrial Revolution
– Retailsoft Kessel has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Retailsoft Kessel 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.
Weighted SWOT Analysis of RetailSoft: Role for Regan Kessel 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 RetailSoft: Role for Regan Kessel 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 RetailSoft: Role for Regan Kessel 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 RetailSoft: Role for Regan Kessel 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 RetailSoft: Role for Regan Kessel 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 Retailsoft Kessel needs to make to build a sustainable competitive advantage.