Cyklop: Service Domain Employees and Turnover SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cyklop: Service Domain Employees and Turnover
In the spring of 2016, Cyklop Packaging Systems India Private Limited (Cyklop) was facing the critical situation of high employee turnover. One out of every two employees was leaving the company each month. Although most employees were leaving voluntarily, some were being asked to leave because of below-par performance. The problem was not grave for major competitors as they were able to retain most of their employees. Cyklop's managing director, was concerned about the impact the turnover would have on relationships with key clients. He was also worried about increasing managerial and other costs. He asked the head of human resources to analyze the problem and provide an action plan for containing turnover in the service domain. Geeta Mishra is affiliated with Amity University. Sandeep Puri is affiliated with Institute of Management Technology, Ghaziabad.
Swot Analysis of "Cyklop: Service Domain Employees and Turnover" written by Geeta Mishra, Sandeep Puri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cyklop Turnover facing as an external strategic factors. Some of the topics covered in Cyklop: Service Domain Employees and Turnover case study are - Strategic Management Strategies, Labor, Manufacturing, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Cyklop: Service Domain Employees and Turnover casestudy better are - – technology disruption, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, talent flight as more people leaving formal jobs,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Cyklop: Service Domain Employees and Turnover
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cyklop: Service Domain Employees and Turnover case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cyklop Turnover, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover can be done for the following purposes –
1. Strategic planning using facts provided in Cyklop: Service Domain Employees and Turnover case study
2. Improving business portfolio management of Cyklop Turnover
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 Cyklop Turnover
Strengths Cyklop: Service Domain Employees and Turnover | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cyklop Turnover in Cyklop: Service Domain Employees and Turnover Harvard Business Review case study are -
Analytics focus
– Cyklop Turnover 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 Geeta Mishra, Sandeep Puri 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.
Successful track record of launching new products
– Cyklop Turnover has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cyklop Turnover 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.
Ability to recruit top talent
– Cyklop Turnover is one of the leading recruiters in the industry. Managers in the Cyklop: Service Domain Employees and Turnover are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Cyklop Turnover has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cyklop: Service Domain Employees and Turnover 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.
Effective Research and Development (R&D)
– Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Cyklop Turnover has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cyklop Turnover to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Cyklop Turnover 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 Cyklop Turnover is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cyklop: Service Domain Employees and Turnover Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Cyklop Turnover in the sector have low bargaining power. Cyklop: Service Domain Employees and Turnover has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cyklop Turnover to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– Cyklop: Service Domain Employees and Turnover firm has clearly differentiated products in the market place. This has enabled Cyklop Turnover to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Cyklop Turnover to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Cyklop Turnover in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Cyklop Turnover 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 Cyklop Turnover in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Cyklop: Service Domain Employees and Turnover | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cyklop: Service Domain Employees and Turnover are -
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 Cyklop Turnover supply chain. Even after few cautionary changes mentioned in the HBR case study - Cyklop: Service Domain Employees and Turnover, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cyklop Turnover vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Geeta Mishra, Sandeep Puri suggests that, Cyklop Turnover 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.
Products dominated business model
– Even though Cyklop Turnover 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 - Cyklop: Service Domain Employees and Turnover should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Cyklop Turnover 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.
Slow decision making process
– As mentioned earlier in the report, Cyklop Turnover 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. Cyklop Turnover 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 Cyklop Turnover is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Cyklop Turnover needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cyklop Turnover to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Cyklop: Service Domain Employees and Turnover, 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.
Lack of clear differentiation of Cyklop Turnover products
– To increase the profitability and margins on the products, Cyklop Turnover needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cyklop: Service Domain Employees and Turnover, in the dynamic environment Cyklop Turnover has struggled to respond to the nimble upstart competition. Cyklop Turnover has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover can leverage the sales team experience to cultivate customer relationships as Cyklop Turnover is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover | 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 Cyklop: Service Domain Employees and Turnover are -
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. Cyklop Turnover can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Cyklop Turnover 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. Cyklop Turnover 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.
Using analytics as competitive advantage
– Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cyklop Turnover to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Cyklop Turnover 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cyklop Turnover 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cyklop Turnover 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 Cyklop Turnover to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Cyklop Turnover has opened avenues for new revenue streams for the organization in the industry. This can help Cyklop Turnover to build a more holistic ecosystem as suggested in the Cyklop: Service Domain Employees and Turnover case study. Cyklop Turnover can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Cyklop Turnover can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cyklop: Service Domain Employees and Turnover 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 Cyklop Turnover 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
– Cyklop Turnover 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cyklop Turnover can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Cyklop Turnover to increase its market reach. Cyklop Turnover 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.
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. Cyklop Turnover can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Cyklop: Service Domain Employees and Turnover External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover, Cyklop Turnover 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cyklop Turnover with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Cyklop Turnover 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.
Environmental challenges
– Cyklop Turnover 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. Cyklop Turnover can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Cyklop Turnover needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Cyklop Turnover has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Cyklop Turnover 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.
High dependence on third party suppliers
– Cyklop Turnover high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cyklop Turnover.
Regulatory challenges
– Cyklop Turnover 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.
Shortening product life cycle
– it is one of the major threat that Cyklop Turnover is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Cyklop Turnover
– 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 Cyklop Turnover.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cyklop Turnover 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cyklop Turnover 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 Cyklop: Service Domain Employees and Turnover .
Weighted SWOT Analysis of Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover 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 Cyklop: Service Domain Employees and Turnover 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 Cyklop Turnover needs to make to build a sustainable competitive advantage.