ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months
The case looks at Ian Lambert's first year as the new general manager of ElektroSecur, a Canadian SMB with about 40 employees, specialized in the production and distribution of emergency vehicle technologies. Part A of the case focuses on his first six months in the job (September 2012 to February 2013), while Part B shifts attention to the following six months (March to August 2013). Part A: Ian Lambert took over as general manager of ElektroSecur in September 2012. The company was founded in 1997 by its two current owners, Daniel Dufour and Marc Rorty, who are respectively president and vice-president, business development. ElektroSecur had annual sales of approximately $7 million generated by some 50 in-house products and roughly 100 products distributed by it. The company was making a small net profit of no more than $20,000 a year and had always struggled to remain profitable. Part B: Contrary to what Ian had hoped after six months on the job (Part A), the company's financial situation did not improve over the following six months. Financially speaking, it was shaping up to be the worst year in the company's history. Up to the month of May, sales were more catastrophic than ever.
Swot Analysis of "ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months" written by Anne Mesny includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Elektrosecur Ian facing as an external strategic factors. Some of the topics covered in ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months case study are - Strategic Management Strategies, Managing people and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, increasing commodity prices, technology disruption, geopolitical disruptions, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Elektrosecur Ian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Elektrosecur Ian 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months can be done for the following purposes –
1. Strategic planning using facts provided in ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months case study
2. Improving business portfolio management of Elektrosecur Ian
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 Elektrosecur Ian
Strengths ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Elektrosecur Ian in ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months firm has clearly differentiated products in the market place. This has enabled Elektrosecur Ian to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Elektrosecur Ian to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Elektrosecur Ian 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.
Low bargaining power of suppliers
– Suppliers of Elektrosecur Ian in the sector have low bargaining power. ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Elektrosecur Ian to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Elektrosecur Ian in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Elektrosecur Ian digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Elektrosecur Ian 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.
Successful track record of launching new products
– Elektrosecur Ian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Elektrosecur Ian 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.
Training and development
– Elektrosecur Ian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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.
High brand equity
– Elektrosecur Ian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Elektrosecur Ian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Elektrosecur Ian 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Elektrosecur Ian is one of the leading recruiters in the industry. Managers in the ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Elektrosecur Ian 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months - 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
– Elektrosecur Ian 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 Elektrosecur Ian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 Elektrosecur Ian supply chain. Even after few cautionary changes mentioned in the HBR case study - ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Elektrosecur Ian vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Elektrosecur Ian is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Elektrosecur Ian needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Elektrosecur Ian to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Elektrosecur Ian products
– To increase the profitability and margins on the products, Elektrosecur Ian needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 Elektrosecur Ian has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 Elektrosecur Ian 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Elektrosecur Ian, firm in the HBR case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Elektrosecur Ian 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months, is just above the industry average. Elektrosecur Ian 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.
Slow decision making process
– As mentioned earlier in the report, Elektrosecur Ian 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. Elektrosecur Ian 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months, it seems that the employees of Elektrosecur Ian don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Skills based hiring
– The stress on hiring functional specialists at Elektrosecur Ian 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months | 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Elektrosecur Ian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Elektrosecur Ian 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. Elektrosecur Ian 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Elektrosecur Ian 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, ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Elektrosecur Ian 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Elektrosecur Ian 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 Elektrosecur Ian to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Elektrosecur Ian is facing challenges because of the dominance of functional experts in the organization. ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Elektrosecur Ian 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.
Loyalty marketing
– Elektrosecur Ian 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.
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. Elektrosecur Ian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Elektrosecur Ian 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.
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 Elektrosecur Ian 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.
Better consumer reach
– The expansion of the 5G network will help Elektrosecur Ian to increase its market reach. Elektrosecur Ian 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.
Using analytics as competitive advantage
– Elektrosecur Ian 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Elektrosecur Ian to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months are -
High dependence on third party suppliers
– Elektrosecur Ian 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months, Elektrosecur Ian 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 .
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. Elektrosecur Ian needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Elektrosecur Ian business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Elektrosecur Ian is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Elektrosecur Ian 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.
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. Elektrosecur Ian 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
– Elektrosecur Ian 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. Elektrosecur Ian 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. Elektrosecur Ian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Elektrosecur Ian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Elektrosecur Ian.
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.
Weighted SWOT Analysis of ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 ElektroSecur: General Manager of an SMB at the Age of 29 - (A) The First Six Months 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 Elektrosecur Ian needs to make to build a sustainable competitive advantage.
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