Case Study Description of Yoshiko Shinohara and Tempstaff
The case presents a biographical portrait of Yoshiko Shinohara who founded Tempstaff in 1973, one of the largest temporary staffing agencies in Japan. In addition to chronicling Shinohara's entrepreneurial activities, the case provides contextual background about the role of women in business in Japan in the last few decades of the 20th century.
Authors :: Anthony J. Mayo, Masako Egawa, Mayuka Yamazaki
Swot Analysis of "Yoshiko Shinohara and Tempstaff" written by Anthony J. Mayo, Masako Egawa, Mayuka Yamazaki includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shinohara Tempstaff facing as an external strategic factors. Some of the topics covered in Yoshiko Shinohara and Tempstaff case study are - Strategic Management Strategies, Entrepreneurship, Gender, Government and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Yoshiko Shinohara and Tempstaff casestudy better are - – talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Yoshiko Shinohara and Tempstaff
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yoshiko Shinohara and Tempstaff case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shinohara Tempstaff, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shinohara Tempstaff 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 Yoshiko Shinohara and Tempstaff can be done for the following purposes –
1. Strategic planning using facts provided in Yoshiko Shinohara and Tempstaff case study
2. Improving business portfolio management of Shinohara Tempstaff
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 Shinohara Tempstaff
Strengths Yoshiko Shinohara and Tempstaff | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shinohara Tempstaff in Yoshiko Shinohara and Tempstaff Harvard Business Review case study are -
Effective Research and Development (R&D)
– Shinohara Tempstaff 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 Yoshiko Shinohara and Tempstaff - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Shinohara Tempstaff 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
– Shinohara Tempstaff 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 Anthony J. Mayo, Masako Egawa, Mayuka Yamazaki 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.
Successful track record of launching new products
– Shinohara Tempstaff has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shinohara Tempstaff has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Shinohara Tempstaff 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.
Organizational Resilience of Shinohara Tempstaff
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shinohara Tempstaff does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Shinohara Tempstaff is one of the most innovative firm in sector. Manager in Yoshiko Shinohara and Tempstaff Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Shinohara Tempstaff digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shinohara Tempstaff 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.
Low bargaining power of suppliers
– Suppliers of Shinohara Tempstaff in the sector have low bargaining power. Yoshiko Shinohara and Tempstaff has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shinohara Tempstaff to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Shinohara Tempstaff has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yoshiko Shinohara and Tempstaff 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
– Shinohara Tempstaff has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shinohara Tempstaff to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Yoshiko Shinohara and Tempstaff firm has clearly differentiated products in the market place. This has enabled Shinohara Tempstaff to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Shinohara Tempstaff to invest into research and development (R&D) and innovation.
Weaknesses Yoshiko Shinohara and Tempstaff | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yoshiko Shinohara and Tempstaff are -
Need for greater diversity
– Shinohara Tempstaff 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Yoshiko Shinohara and Tempstaff, it seems that the employees of Shinohara Tempstaff 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.
Interest costs
– Compare to the competition, Shinohara Tempstaff 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Anthony J. Mayo, Masako Egawa, Mayuka Yamazaki suggests that, Shinohara Tempstaff 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Yoshiko Shinohara and Tempstaff, is just above the industry average. Shinohara Tempstaff 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.
Skills based hiring
– The stress on hiring functional specialists at Shinohara Tempstaff 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.
Increasing silos among functional specialists
– The organizational structure of Shinohara Tempstaff is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Shinohara Tempstaff needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shinohara Tempstaff to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Yoshiko Shinohara and Tempstaff 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 Shinohara Tempstaff 's lucrative customers.
Lack of clear differentiation of Shinohara Tempstaff products
– To increase the profitability and margins on the products, Shinohara Tempstaff needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Shinohara Tempstaff 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. Shinohara Tempstaff 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Yoshiko Shinohara and Tempstaff 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 Shinohara Tempstaff has relatively successful track record of launching new products.
Opportunities Yoshiko Shinohara and Tempstaff | 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 Yoshiko Shinohara and Tempstaff are -
Buying journey improvements
– Shinohara Tempstaff can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Yoshiko Shinohara and Tempstaff 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.
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. Shinohara Tempstaff 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. Shinohara Tempstaff 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.
Learning at scale
– Online learning technologies has now opened space for Shinohara Tempstaff 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shinohara Tempstaff can use these opportunities to build new business models that can help the communities that Shinohara Tempstaff operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– Shinohara Tempstaff 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 Yoshiko Shinohara and Tempstaff - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shinohara Tempstaff to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shinohara Tempstaff 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.
Developing new processes and practices
– Shinohara Tempstaff 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 Shinohara Tempstaff 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.
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 Shinohara Tempstaff in the consumer business. Now Shinohara Tempstaff can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shinohara Tempstaff 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.
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. Shinohara Tempstaff can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Shinohara Tempstaff can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Shinohara Tempstaff can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Yoshiko Shinohara and Tempstaff External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yoshiko Shinohara and Tempstaff are -
High dependence on third party suppliers
– Shinohara Tempstaff 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.
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 Shinohara Tempstaff.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shinohara Tempstaff 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.
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. Shinohara Tempstaff can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Shinohara Tempstaff
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Shinohara Tempstaff.
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. Shinohara Tempstaff needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Shinohara Tempstaff 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Shinohara Tempstaff with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Shinohara Tempstaff can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Shinohara Tempstaff 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. Shinohara Tempstaff can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology acceleration in Forth Industrial Revolution
– Shinohara Tempstaff has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Shinohara Tempstaff 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.
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.
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 Shinohara Tempstaff business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Yoshiko Shinohara and Tempstaff 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 Yoshiko Shinohara and Tempstaff 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 Yoshiko Shinohara and Tempstaff 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 Yoshiko Shinohara and Tempstaff 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 Yoshiko Shinohara and Tempstaff 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 Shinohara Tempstaff needs to make to build a sustainable competitive advantage.
