Tradition and Transformation at the Spanish Riding School of Vienna SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tradition and Transformation at the Spanish Riding School of Vienna
The Spanish Riding School (SRS) was an icon of Austrian national identity, the oldest riding school in the world and the primary exponent of the art of classical dressage (a "ballet" with horses). In 2012, 447 years after its founding, the School confronted a serious threat: how to survive its so-called "privatization" by the Austrian government. Elisabeth GA?rtler, recently reappointed to a five-year term as Managing Director needed to address three interrelated challenges: how to counter the critics of the SRS and its leadership and the avalanche of bad press they had generated, how to consolidate the significant organizational changes she had implemented during her first five years as Managing Director, and how to generate additional revenue so that the SRS would continue to breakeven financially - and in the long run, achieving financial sustainability for the SRS and preserving both its exalted status as the world's foremost institution of classical dressage and its responsibility to preserve and improve the breed of Lipizzaner horses. Since her appointment (on a 5-year contract) in December, 2007, GA?rtler had acted quickly to implement a series of initiatives aimed at reducing costs, increasing revenue, and improving organizational capabilities. While these changes appeared to be successful at staunching the SRS's financial losses, they were not without cost. Internally, a number of experienced riders had strongly resisted the changes and had been subsequently dismissed; externally, critics had initiated a media campaign claiming that the quality of the SRS's performances had declined and been "debased" as a consequence of the changes. As GA?rtler looks to her second term as Managing Director, students are asked to evaluate her organizational change efforts, and consider her strategic options going forward.
Authors :: James Kennelly, Liza Nagode
Topics :: Leadership & Managing People
Tags :: Corporate governance, Leadership, Organizational culture, Public relations, Social enterprise, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Tradition and Transformation at the Spanish Riding School of Vienna" written by James Kennelly, Liza Nagode includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Srs Rtler facing as an external strategic factors. Some of the topics covered in Tradition and Transformation at the Spanish Riding School of Vienna case study are - Strategic Management Strategies, Corporate governance, Leadership, Organizational culture, Public relations, Social enterprise and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Tradition and Transformation at the Spanish Riding School of Vienna casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing household debt because of falling income levels,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Tradition and Transformation at the Spanish Riding School of Vienna
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tradition and Transformation at the Spanish Riding School of Vienna case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Srs Rtler, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Srs Rtler 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 Tradition and Transformation at the Spanish Riding School of Vienna can be done for the following purposes –
1. Strategic planning using facts provided in Tradition and Transformation at the Spanish Riding School of Vienna case study
2. Improving business portfolio management of Srs Rtler
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 Srs Rtler
Strengths Tradition and Transformation at the Spanish Riding School of Vienna | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Srs Rtler in Tradition and Transformation at the Spanish Riding School of Vienna Harvard Business Review case study are -
Analytics focus
– Srs Rtler 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 James Kennelly, Liza Nagode 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.
Operational resilience
– The operational resilience strategy in the Tradition and Transformation at the Spanish Riding School of Vienna 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.
Ability to lead change in Leadership & Managing People field
– Srs Rtler 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 Srs Rtler in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Srs Rtler in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Srs Rtler has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Srs Rtler to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Srs Rtler has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Srs Rtler 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.
Cross disciplinary teams
– Horizontal connected teams at the Srs Rtler 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.
High switching costs
– The high switching costs that Srs Rtler 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.
Training and development
– Srs Rtler has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tradition and Transformation at the Spanish Riding School of Vienna 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.
Diverse revenue streams
– Srs Rtler is present in almost all the verticals within the industry. This has provided firm in Tradition and Transformation at the Spanish Riding School of Vienna 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.
Learning organization
- Srs Rtler 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 Srs Rtler is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tradition and Transformation at the Spanish Riding School of Vienna Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Srs Rtler 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 Tradition and Transformation at the Spanish Riding School of Vienna HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Tradition and Transformation at the Spanish Riding School of Vienna | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tradition and Transformation at the Spanish Riding School of Vienna are -
Increasing silos among functional specialists
– The organizational structure of Srs Rtler is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Srs Rtler needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Srs Rtler to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Srs Rtler is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tradition and Transformation at the Spanish Riding School of Vienna 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 operating costs
– Compare to the competitors, firm in the HBR case study Tradition and Transformation at the Spanish Riding School of Vienna 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 Srs Rtler 's lucrative customers.
Need for greater diversity
– Srs Rtler has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Srs Rtler 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.
Low market penetration in new markets
– Outside its home market of Srs Rtler, firm in the HBR case study Tradition and Transformation at the Spanish Riding School of Vienna needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Srs Rtler products
– To increase the profitability and margins on the products, Srs Rtler needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Srs Rtler 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. Srs Rtler 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.
Slow to strategic competitive environment developments
– As Tradition and Transformation at the Spanish Riding School of Vienna HBR case study mentions - Srs Rtler 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tradition and Transformation at the Spanish Riding School of Vienna, in the dynamic environment Srs Rtler has struggled to respond to the nimble upstart competition. Srs Rtler has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tradition and Transformation at the Spanish Riding School of Vienna, it seems that the employees of Srs Rtler 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.
Opportunities Tradition and Transformation at the Spanish Riding School of Vienna | 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 Tradition and Transformation at the Spanish Riding School of Vienna are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Srs Rtler can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Srs Rtler 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 Tradition and Transformation at the Spanish Riding School of Vienna - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Srs Rtler to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Srs Rtler can use these opportunities to build new business models that can help the communities that Srs Rtler operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Srs Rtler 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.
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 Srs Rtler 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.
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 Srs Rtler in the consumer business. Now Srs Rtler can target international markets with far fewer capital restrictions requirements than the existing system.
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. Srs Rtler can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Srs Rtler can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tradition and Transformation at the Spanish Riding School of Vienna 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.
Manufacturing automation
– Srs Rtler 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Srs Rtler 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Srs Rtler is facing challenges because of the dominance of functional experts in the organization. Tradition and Transformation at the Spanish Riding School of Vienna 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. Srs Rtler 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. Srs Rtler 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.
Leveraging digital technologies
– Srs Rtler 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.
Threats Tradition and Transformation at the Spanish Riding School of Vienna External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tradition and Transformation at the Spanish Riding School of Vienna are -
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. Srs Rtler 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.
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. Srs Rtler can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Srs Rtler 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 Tradition and Transformation at the Spanish Riding School of Vienna .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tradition and Transformation at the Spanish Riding School of Vienna, Srs Rtler 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 Srs Rtler 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.
High dependence on third party suppliers
– Srs Rtler 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.
Technology acceleration in Forth Industrial Revolution
– Srs Rtler has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Srs Rtler 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.
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.
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 Srs Rtler in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Srs Rtler 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
– Srs Rtler 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.
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 Srs Rtler.
Consumer confidence and its impact on Srs Rtler 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 Tradition and Transformation at the Spanish Riding School of Vienna 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 Tradition and Transformation at the Spanish Riding School of Vienna 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 Tradition and Transformation at the Spanish Riding School of Vienna 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 Tradition and Transformation at the Spanish Riding School of Vienna 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 Tradition and Transformation at the Spanish Riding School of Vienna 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 Srs Rtler needs to make to build a sustainable competitive advantage.