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, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, 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 -
Strong track record of project management
– Cyklop Turnover is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cyklop Turnover digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cyklop Turnover 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.
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.
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.
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.
Organizational Resilience of Cyklop Turnover
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cyklop Turnover does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
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 -
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.
Capital Spending Reduction
– Even during the low interest decade, Cyklop Turnover 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cyklop: Service Domain Employees and Turnover 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 Cyklop Turnover has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cyklop Turnover is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cyklop: Service Domain Employees and Turnover can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Need for greater diversity
– Cyklop Turnover 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.
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.
Low market penetration in new markets
– Outside its home market of Cyklop Turnover, firm in the HBR case study Cyklop: Service Domain Employees and Turnover needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Cyklop Turnover 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.
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.
Slow to strategic competitive environment developments
– As Cyklop: Service Domain Employees and Turnover HBR case study mentions - Cyklop Turnover 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.
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 -
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.
Manufacturing automation
– Cyklop Turnover 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.
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.
Learning at scale
– Online learning technologies has now opened space for Cyklop Turnover 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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cyklop Turnover 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.
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.
Developing new processes and practices
– Cyklop Turnover 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.
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.
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 Cyklop Turnover in the consumer business. Now Cyklop Turnover can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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 -
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.
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.
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.
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.
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.
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 .
Consumer confidence and its impact on Cyklop Turnover 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, 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 .
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.
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.
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.
Stagnating economy with rate increase
– Cyklop Turnover 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.
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.
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.
