Belmont Abbey College: Strategy Formulation in Turbulent Times SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Belmont Abbey College: Strategy Formulation in Turbulent Times
Belmont Abbey College was on the verge of closing when a new president took office in the spring of 2004. Enrolment at the private liberal arts college had dropped to just over 500 students, and net revenues were insufficient to support ongoing operations. Belmont Abbey College was not alone in facing dire financial prospects, however. Higher education in general confronted an array of challenges due to dramatically escalating costs and a significant decline in the number and economic circumstances of prospective students. The president made efforts to strategically position the college in attempting to mitigate costs. In 2014, would his efforts over the last decade-including a bold and perhaps risky move to compete directly on the basis of price-pay off and secure future enrolment? Roger Anderson is affiliated with Bryant University. Michael A. Roberto is affiliated with Bryant University.
Swot Analysis of "Belmont Abbey College: Strategy Formulation in Turbulent Times" written by Roger Anderson, Michael A. Roberto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Belmont Abbey facing as an external strategic factors. Some of the topics covered in Belmont Abbey College: Strategy Formulation in Turbulent Times case study are - Strategic Management Strategies, Competitive strategy, Leadership, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Belmont Abbey College: Strategy Formulation in Turbulent Times casestudy better are - – central banks are concerned over increasing inflation, increasing energy prices, wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, talent flight as more people leaving formal jobs,
increasing commodity prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Belmont Abbey College: Strategy Formulation in Turbulent Times
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Belmont Abbey College: Strategy Formulation in Turbulent Times case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Belmont Abbey, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Belmont Abbey 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 Belmont Abbey College: Strategy Formulation in Turbulent Times can be done for the following purposes –
1. Strategic planning using facts provided in Belmont Abbey College: Strategy Formulation in Turbulent Times case study
2. Improving business portfolio management of Belmont Abbey
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 Belmont Abbey
Strengths Belmont Abbey College: Strategy Formulation in Turbulent Times | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Belmont Abbey in Belmont Abbey College: Strategy Formulation in Turbulent Times Harvard Business Review case study are -
Effective Research and Development (R&D)
– Belmont Abbey 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 Belmont Abbey College: Strategy Formulation in Turbulent Times - 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 lead change in Leadership & Managing People field
– Belmont Abbey 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 Belmont Abbey in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Belmont Abbey has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Belmont Abbey College: Strategy Formulation in Turbulent Times 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.
Cross disciplinary teams
– Horizontal connected teams at the Belmont Abbey 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Belmont Abbey College: Strategy Formulation in Turbulent Times firm has clearly differentiated products in the market place. This has enabled Belmont Abbey to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Belmont Abbey to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Belmont Abbey is present in almost all the verticals within the industry. This has provided firm in Belmont Abbey College: Strategy Formulation in Turbulent Times 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Belmont Abbey digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Belmont Abbey 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.
High switching costs
– The high switching costs that Belmont Abbey 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.
Ability to recruit top talent
– Belmont Abbey is one of the leading recruiters in the industry. Managers in the Belmont Abbey College: Strategy Formulation in Turbulent Times are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Belmont Abbey has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Belmont Abbey 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.
Highly skilled collaborators
– Belmont Abbey 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 Belmont Abbey College: Strategy Formulation in Turbulent Times HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Belmont Abbey 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 Belmont Abbey is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Belmont Abbey College: Strategy Formulation in Turbulent Times Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Belmont Abbey College: Strategy Formulation in Turbulent Times | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Belmont Abbey College: Strategy Formulation in Turbulent Times are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Belmont Abbey is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Belmont Abbey College: Strategy Formulation in Turbulent Times can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Belmont Abbey 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 decision making process
– As mentioned earlier in the report, Belmont Abbey 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. Belmont Abbey 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Belmont Abbey needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Skills based hiring
– The stress on hiring functional specialists at Belmont Abbey 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.
Aligning sales with marketing
– It come across in the case study Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times can leverage the sales team experience to cultivate customer relationships as Belmont Abbey is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Belmont Abbey College: Strategy Formulation in Turbulent Times, in the dynamic environment Belmont Abbey has struggled to respond to the nimble upstart competition. Belmont Abbey has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Belmont Abbey supply chain. Even after few cautionary changes mentioned in the HBR case study - Belmont Abbey College: Strategy Formulation in Turbulent Times, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Belmont Abbey vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Belmont Abbey is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Belmont Abbey needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Belmont Abbey to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Belmont Abbey 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey 's lucrative customers.
Opportunities Belmont Abbey College: Strategy Formulation in Turbulent Times | 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 Belmont Abbey College: Strategy Formulation in Turbulent Times are -
Manufacturing automation
– Belmont Abbey 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.
Creating value in data economy
– The success of analytics program of Belmont Abbey has opened avenues for new revenue streams for the organization in the industry. This can help Belmont Abbey to build a more holistic ecosystem as suggested in the Belmont Abbey College: Strategy Formulation in Turbulent Times case study. Belmont Abbey can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Belmont Abbey can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Belmont Abbey to increase its market reach. Belmont Abbey 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Belmont Abbey can use these opportunities to build new business models that can help the communities that Belmont Abbey operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Belmont Abbey 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, Belmont Abbey College: Strategy Formulation in Turbulent Times, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Belmont Abbey 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.
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. Belmont Abbey can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Belmont Abbey 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 Belmont Abbey to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Belmont Abbey can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Belmont Abbey 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.
Leveraging digital technologies
– Belmont Abbey 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Belmont Abbey 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.
Threats Belmont Abbey College: Strategy Formulation in Turbulent Times External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times are -
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 Belmont Abbey.
Consumer confidence and its impact on Belmont Abbey 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Belmont Abbey 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 Belmont Abbey College: Strategy Formulation in Turbulent Times .
Environmental challenges
– Belmont Abbey 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. Belmont Abbey can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Belmont Abbey can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Belmont Abbey 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.
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.
Regulatory challenges
– Belmont Abbey 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.
Increasing wage structure of Belmont Abbey
– 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 Belmont Abbey.
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.
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. Belmont Abbey 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.
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. Belmont Abbey needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Belmont Abbey 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.
Weighted SWOT Analysis of Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey needs to make to build a sustainable competitive advantage.
