Long-Term Orientation in the Benedictine Monastery of Admont SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Long-Term Orientation in the Benedictine Monastery of Admont
At the Benedictine monastery of Admont in Austria, which had been economically active for over 940 years, the monks tended to think in centuries rather than quarters. However, the monastery's business director needed to make a decision in a much shorter timeframe. The monastery employed approximately 600 people in its forestry, wine-growing, energy, real estate, services, and industrial businesses. Its largest subsidiary, an industrial manufacturer of wooden floorboards, was faced with severe challenges in 2015, including highly fluctuating demand and a growing pressure on margins due to low-cost competition from Asia. The business director had to decide how to proceed with the loss-making company, bearing in mind his responsibility towards the monastery and its higher purposes (such as providing pastoral care and fostering regional development through the creation of jobs). Dietmar Sternad is affiliated with Carinthia University of Applied Sciences.
Swot Analysis of "Long-Term Orientation in the Benedictine Monastery of Admont" written by Dietmar Sternad includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Monastery Admont facing as an external strategic factors. Some of the topics covered in Long-Term Orientation in the Benedictine Monastery of Admont case study are - Strategic Management Strategies, Leadership, Manufacturing, Social responsibility, Strategy, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Long-Term Orientation in the Benedictine Monastery of Admont casestudy better are - – increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing energy prices, increasing transportation and logistics costs, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic ,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Long-Term Orientation in the Benedictine Monastery of Admont
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Long-Term Orientation in the Benedictine Monastery of Admont case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Monastery Admont, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Monastery Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont can be done for the following purposes –
1. Strategic planning using facts provided in Long-Term Orientation in the Benedictine Monastery of Admont case study
2. Improving business portfolio management of Monastery Admont
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 Monastery Admont
Strengths Long-Term Orientation in the Benedictine Monastery of Admont | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Monastery Admont in Long-Term Orientation in the Benedictine Monastery of Admont Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Long-Term Orientation in the Benedictine Monastery of Admont 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.
Low bargaining power of suppliers
– Suppliers of Monastery Admont in the sector have low bargaining power. Long-Term Orientation in the Benedictine Monastery of Admont has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Monastery Admont 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 Monastery Admont digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Monastery Admont 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
- Monastery Admont 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 Monastery Admont is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Long-Term Orientation in the Benedictine Monastery of Admont Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Monastery Admont has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Monastery Admont to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Monastery Admont is one of the most innovative firm in sector. Manager in Long-Term Orientation in the Benedictine Monastery of Admont Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Monastery Admont 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 Dietmar Sternad 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Long-Term Orientation in the Benedictine Monastery of Admont firm has clearly differentiated products in the market place. This has enabled Monastery Admont to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Monastery Admont to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Monastery Admont in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Monastery Admont is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Monastery Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Monastery Admont is present in almost all the verticals within the industry. This has provided firm in Long-Term Orientation in the Benedictine Monastery of Admont 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.
Weaknesses Long-Term Orientation in the Benedictine Monastery of Admont | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Long-Term Orientation in the Benedictine Monastery of Admont are -
Low market penetration in new markets
– Outside its home market of Monastery Admont, firm in the HBR case study Long-Term Orientation in the Benedictine Monastery of Admont needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Long-Term Orientation in the Benedictine Monastery of Admont, in the dynamic environment Monastery Admont has struggled to respond to the nimble upstart competition. Monastery Admont has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Long-Term Orientation in the Benedictine Monastery of Admont, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Dietmar Sternad suggests that, Monastery Admont 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 Monastery Admont 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 - Long-Term Orientation in the Benedictine Monastery of Admont should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Monastery Admont 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.
Capital Spending Reduction
– Even during the low interest decade, Monastery Admont 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Long-Term Orientation in the Benedictine Monastery of Admont, is just above the industry average. Monastery Admont needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Interest costs
– Compare to the competition, Monastery Admont 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.
Aligning sales with marketing
– It come across in the case study Long-Term Orientation in the Benedictine Monastery of Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont can leverage the sales team experience to cultivate customer relationships as Monastery Admont is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Monastery Admont is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Long-Term Orientation in the Benedictine Monastery of Admont can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Long-Term Orientation in the Benedictine Monastery of Admont | 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 Long-Term Orientation in the Benedictine Monastery of Admont are -
Better consumer reach
– The expansion of the 5G network will help Monastery Admont to increase its market reach. Monastery Admont 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.
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 Monastery Admont in the consumer business. Now Monastery Admont can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Monastery Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Monastery Admont to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Monastery Admont 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Monastery Admont 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.
Creating value in data economy
– The success of analytics program of Monastery Admont has opened avenues for new revenue streams for the organization in the industry. This can help Monastery Admont to build a more holistic ecosystem as suggested in the Long-Term Orientation in the Benedictine Monastery of Admont case study. Monastery Admont can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Monastery Admont 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Monastery Admont is facing challenges because of the dominance of functional experts in the organization. Long-Term Orientation in the Benedictine Monastery of Admont 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Monastery Admont can use these opportunities to build new business models that can help the communities that Monastery Admont operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Monastery Admont 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 Monastery Admont 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 Monastery Admont to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Monastery Admont can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Monastery Admont 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.
Threats Long-Term Orientation in the Benedictine Monastery of Admont External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Long-Term Orientation in the Benedictine Monastery of Admont are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Monastery Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Monastery Admont with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Monastery Admont 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
– Monastery Admont 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Long-Term Orientation in the Benedictine Monastery of Admont, Monastery Admont 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 .
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. Monastery Admont 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.
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.
Consumer confidence and its impact on Monastery Admont 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.
Shortening product life cycle
– it is one of the major threat that Monastery Admont is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Monastery Admont business can come under increasing regulations regarding data privacy, data security, etc.
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.
Technology acceleration in Forth Industrial Revolution
– Monastery Admont has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Monastery Admont 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
– Monastery Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont 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 Long-Term Orientation in the Benedictine Monastery of Admont 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 Monastery Admont needs to make to build a sustainable competitive advantage.