Swot Analysis of "Advika Consulting Services: Challenges and Opportunities in Managing Human Capital" written by Alison Wood Brooks, Francesca Gino, Julia J. Lee, Bradley R. Staats includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Advika Casename facing as an external strategic factors. Some of the topics covered in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Advika Consulting Services: Challenges and Opportunities in Managing Human Capital casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Advika Consulting Services: Challenges and Opportunities in Managing Human Capital
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Advika Casename, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Advika Casename 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital can be done for the following purposes –
1. Strategic planning using facts provided in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital case study
2. Improving business portfolio management of Advika Casename
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 Advika Casename
Strengths Advika Consulting Services: Challenges and Opportunities in Managing Human Capital | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Advika Casename in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital Harvard Business Review case study are -
Diverse revenue streams
– Advika Casename is present in almost all the verticals within the industry. This has provided firm in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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.
Ability to recruit top talent
– Advika Casename is one of the leading recruiters in the industry. Managers in the Advika Consulting Services: Challenges and Opportunities in Managing Human Capital are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Advika Casename 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.
Analytics focus
– Advika Casename 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 Alison Wood Brooks, Francesca Gino, Julia J. Lee, Bradley R. Staats 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.
Superior customer experience
– The customer experience strategy of Advika Casename in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Advika Casename has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Innovation driven organization
– Advika Casename is one of the most innovative firm in sector. Manager in Advika Consulting Services: Challenges and Opportunities in Managing Human Capital Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Advika Casename has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Advika Casename 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.
Effective Research and Development (R&D)
– Advika Casename 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Advika Casename in the sector have low bargaining power. Advika Consulting Services: Challenges and Opportunities in Managing Human Capital has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Advika Casename 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
– Advika Consulting Services: Challenges and Opportunities in Managing Human Capital firm has clearly differentiated products in the market place. This has enabled Advika Casename to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Advika Casename to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Advika Casename 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Advika Consulting Services: Challenges and Opportunities in Managing Human Capital | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Advika Consulting Services: Challenges and Opportunities in Managing Human Capital are -
Need for greater diversity
– Advika Casename 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.
Increasing silos among functional specialists
– The organizational structure of Advika Casename is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Advika Casename needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Advika Casename to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Advika Casename 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. Advika Casename 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.
Low market penetration in new markets
– Outside its home market of Advika Casename, firm in the HBR case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Casename has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital, 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.
Skills based hiring
– The stress on hiring functional specialists at Advika Casename 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Casename 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital can leverage the sales team experience to cultivate customer relationships as Advika Casename is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital, is just above the industry average. Advika Casename 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Alison Wood Brooks, Francesca Gino, Julia J. Lee, Bradley R. Staats suggests that, Advika Casename 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.
Opportunities Advika Consulting Services: Challenges and Opportunities in Managing Human Capital | 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Advika Casename 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 Advika Casename 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 Advika Casename to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Advika Casename 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Advika Casename to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Advika Casename 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.
Building a culture of innovation
– managers at Advika Casename 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.
Manufacturing automation
– Advika Casename 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.
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 Advika Casename 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.
Creating value in data economy
– The success of analytics program of Advika Casename has opened avenues for new revenue streams for the organization in the industry. This can help Advika Casename to build a more holistic ecosystem as suggested in the Advika Consulting Services: Challenges and Opportunities in Managing Human Capital case study. Advika Casename 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 Advika Casename in the consumer business. Now Advika Casename can target international markets with far fewer capital restrictions requirements than the existing system.
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. Advika Casename 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. Advika Casename 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.
Developing new processes and practices
– Advika Casename 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.
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. Advika Casename 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 Advika Casename 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital, Advika Casename 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 Advika Casename 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.
Regulatory challenges
– Advika Casename 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.
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. Advika Casename can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Advika Casename 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 acceleration in Forth Industrial Revolution
– Advika Casename has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Advika Casename 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.
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 Advika Casename business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Advika Casename 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.
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 Advika Casename.
Shortening product life cycle
– it is one of the major threat that Advika Casename is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Advika Casename 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.
Environmental challenges
– Advika Casename 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. Advika Casename can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Advika Casename in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Consulting Services: Challenges and Opportunities in Managing Human Capital 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 Advika Casename needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Advika Consulting Services: Challenges and Opportunities in Managing Human Capital
