Case Study Description of The PCNet Project (B): Dynamically Managing Residual Risk
The case describes a large and complex IT integration project, after the acquisition of one metals mining company by another. As part of the integration, 40,000 PCs, applications, and the network had to be consolidated into one system. The project lasted two years and involved 1,000 people across the organization.
Swot Analysis of "The PCNet Project (B): Dynamically Managing Residual Risk" written by Christoph H. Loch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pcnet Project facing as an external strategic factors. Some of the topics covered in The PCNet Project (B): Dynamically Managing Residual Risk case study are - Strategic Management Strategies, Project management, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The PCNet Project (B): Dynamically Managing Residual Risk casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
increasing transportation and logistics costs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of The PCNet Project (B): Dynamically Managing Residual Risk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The PCNet Project (B): Dynamically Managing Residual Risk case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pcnet Project, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pcnet Project 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 The PCNet Project (B): Dynamically Managing Residual Risk can be done for the following purposes –
1. Strategic planning using facts provided in The PCNet Project (B): Dynamically Managing Residual Risk case study
2. Improving business portfolio management of Pcnet Project
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 Pcnet Project
Strengths The PCNet Project (B): Dynamically Managing Residual Risk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pcnet Project in The PCNet Project (B): Dynamically Managing Residual Risk Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Pcnet Project 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
– Pcnet Project is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Pcnet Project 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
– Pcnet Project is one of the most innovative firm in sector. Manager in The PCNet Project (B): Dynamically Managing Residual Risk Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Pcnet Project 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.
Training and development
– Pcnet Project has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The PCNet Project (B): Dynamically Managing Residual Risk 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.
Low bargaining power of suppliers
– Suppliers of Pcnet Project in the sector have low bargaining power. The PCNet Project (B): Dynamically Managing Residual Risk has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pcnet Project to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Pcnet Project is one of the leading recruiters in the industry. Managers in the The PCNet Project (B): Dynamically Managing Residual Risk are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Pcnet Project 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 The PCNet Project (B): Dynamically Managing Residual Risk HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Pcnet Project
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pcnet Project does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Pcnet Project 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 Pcnet Project is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The PCNet Project (B): Dynamically Managing Residual Risk Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the The PCNet Project (B): Dynamically Managing Residual Risk 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.
Weaknesses The PCNet Project (B): Dynamically Managing Residual Risk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The PCNet Project (B): Dynamically Managing Residual Risk are -
High operating costs
– Compare to the competitors, firm in the HBR case study The PCNet Project (B): Dynamically Managing Residual Risk 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 Pcnet Project 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The PCNet Project (B): Dynamically Managing Residual Risk, it seems that the employees of Pcnet Project 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pcnet Project needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Pcnet Project 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 - The PCNet Project (B): Dynamically Managing Residual Risk should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The PCNet Project (B): Dynamically Managing Residual Risk, in the dynamic environment Pcnet Project has struggled to respond to the nimble upstart competition. Pcnet Project has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Christoph H. Loch suggests that, Pcnet Project 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The PCNet Project (B): Dynamically Managing Residual Risk 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 Pcnet Project has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As The PCNet Project (B): Dynamically Managing Residual Risk HBR case study mentions - Pcnet Project 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.
No frontier risks strategy
– After analyzing the HBR case study The PCNet Project (B): Dynamically Managing Residual Risk, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pcnet Project is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The PCNet Project (B): Dynamically Managing Residual Risk can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Pcnet Project products
– To increase the profitability and margins on the products, Pcnet Project needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities The PCNet Project (B): Dynamically Managing Residual Risk | 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 The PCNet Project (B): Dynamically Managing Residual Risk are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pcnet Project 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, The PCNet Project (B): Dynamically Managing Residual Risk, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Pcnet Project in the consumer business. Now Pcnet Project 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. Pcnet Project 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. Pcnet Project 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.
Building a culture of innovation
– managers at Pcnet Project 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.
Loyalty marketing
– Pcnet Project 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.
Creating value in data economy
– The success of analytics program of Pcnet Project has opened avenues for new revenue streams for the organization in the industry. This can help Pcnet Project to build a more holistic ecosystem as suggested in the The PCNet Project (B): Dynamically Managing Residual Risk case study. Pcnet Project can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Pcnet Project 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 The PCNet Project (B): Dynamically Managing Residual Risk - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pcnet Project 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
– Pcnet Project 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.
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 Pcnet Project 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.
Buying journey improvements
– Pcnet Project can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The PCNet Project (B): Dynamically Managing Residual Risk suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pcnet Project can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pcnet Project 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pcnet Project can use these opportunities to build new business models that can help the communities that Pcnet Project operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats The PCNet Project (B): Dynamically Managing Residual Risk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The PCNet Project (B): Dynamically Managing Residual Risk are -
Regulatory challenges
– Pcnet Project 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.
High dependence on third party suppliers
– Pcnet Project 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
– Pcnet Project 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. Pcnet Project can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pcnet Project in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pcnet Project 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 The PCNet Project (B): Dynamically Managing Residual Risk .
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 Pcnet Project in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Pcnet Project can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Pcnet Project.
Stagnating economy with rate increase
– Pcnet Project 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.
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 Pcnet Project business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The PCNet Project (B): Dynamically Managing Residual Risk, Pcnet Project 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 Pcnet Project 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.
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. Pcnet Project needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of The PCNet Project (B): Dynamically Managing Residual Risk 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 The PCNet Project (B): Dynamically Managing Residual Risk 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 The PCNet Project (B): Dynamically Managing Residual Risk 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 The PCNet Project (B): Dynamically Managing Residual Risk 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 The PCNet Project (B): Dynamically Managing Residual Risk 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 Pcnet Project needs to make to build a sustainable competitive advantage.
