B Lab and the Impact Assessment Evolution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of B Lab and the Impact Assessment Evolution
This 2014 case discusses the U.S. nonprofit organization B Lab and its mission to support and help drive investment capital toward private enterprises that 1) aim to provide social and environmental benefits, and 2) are accountable to stakeholders (such as employees and their community) in addition to their equity investors. B Lab created robust tools for assessing the impact of these enterprises so that the social and environmental Return on Investment could be measured and evaluated in a consistent, comparable and transparent fashion. The tools were based on a 200-point assessment scheme called the B Impact Assessment. In addition, B Lab created a certification called "B Corp," which identified companies that considered diverse stakeholder interest in its definition of corporate and fiduciary responsibility. B Lab also created and championed a new legal form, the Benefit organization, which supported those organizations. Through these activities, B Lab played an important role in the relatively new practice of impact investing, which seeks to generate positive social or environmental value alongside financial returns. In 2014 the eight-year-old company was at a strategic crossroads. Many organizations found the B Lab assessment process to be burdensome, and the investment markets were showing a lack of interest, if not resistance to, using B Lab's measurement systems. Many market participants wanted to focus only on specific parts of B Lab's assessment, or wanted more customized tools to suit data collection for their own existing metrics. However, enabling investors to do that would make it harder for B Lab to create common standards - a key part of the organization's mission. B Lab's leaders were grappling with the issue of how far to go to meet the market with highly customized products and services that investors were demanding, versus how much B Lab should lead the market to a higher bar for measuring impact.
Swot Analysis of "B Lab and the Impact Assessment Evolution" written by Paul Brest, Georgia Levenson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lab Assessment facing as an external strategic factors. Some of the topics covered in B Lab and the Impact Assessment Evolution case study are - Strategic Management Strategies, Corporate governance, Financial management, Performance measurement, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the B Lab and the Impact Assessment Evolution casestudy better are - – central banks are concerned over increasing inflation, technology disruption, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc
Introduction to SWOT Analysis of B Lab and the Impact Assessment Evolution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in B Lab and the Impact Assessment Evolution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lab Assessment, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lab Assessment 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 B Lab and the Impact Assessment Evolution can be done for the following purposes –
1. Strategic planning using facts provided in B Lab and the Impact Assessment Evolution case study
2. Improving business portfolio management of Lab Assessment
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 Lab Assessment
Strengths B Lab and the Impact Assessment Evolution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lab Assessment in B Lab and the Impact Assessment Evolution Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– B Lab and the Impact Assessment Evolution firm has clearly differentiated products in the market place. This has enabled Lab Assessment to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Lab Assessment to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Lab Assessment digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lab Assessment 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.
Training and development
– Lab Assessment has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in B Lab and the Impact Assessment Evolution 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.
Superior customer experience
– The customer experience strategy of Lab Assessment in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Lab Assessment 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.
Strong track record of project management
– Lab Assessment is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Lab Assessment has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lab Assessment 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.
Ability to recruit top talent
– Lab Assessment is one of the leading recruiters in the industry. Managers in the B Lab and the Impact Assessment Evolution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Lab Assessment 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 Paul Brest, Georgia Levenson 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.
Innovation driven organization
– Lab Assessment is one of the most innovative firm in sector. Manager in B Lab and the Impact Assessment Evolution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the B Lab and the Impact Assessment Evolution 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.
High switching costs
– The high switching costs that Lab Assessment 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.
Weaknesses B Lab and the Impact Assessment Evolution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of B Lab and the Impact Assessment Evolution are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study B Lab and the Impact Assessment Evolution, in the dynamic environment Lab Assessment has struggled to respond to the nimble upstart competition. Lab Assessment has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Lab Assessment, firm in the HBR case study B Lab and the Impact Assessment Evolution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Lab Assessment 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.
Lack of clear differentiation of Lab Assessment products
– To increase the profitability and margins on the products, Lab Assessment needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Lab Assessment 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the B Lab and the Impact Assessment Evolution 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 Lab Assessment has relatively successful track record of launching new products.
High cash cycle compare to competitors
Lab Assessment 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.
Increasing silos among functional specialists
– The organizational structure of Lab Assessment is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Lab Assessment needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lab Assessment to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lab Assessment is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study B Lab and the Impact Assessment Evolution can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study B Lab and the Impact Assessment Evolution, is just above the industry average. Lab Assessment 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, Lab Assessment 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. Lab Assessment 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.
Opportunities B Lab and the Impact Assessment Evolution | 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 B Lab and the Impact Assessment Evolution are -
Building a culture of innovation
– managers at Lab Assessment 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.
Better consumer reach
– The expansion of the 5G network will help Lab Assessment to increase its market reach. Lab Assessment 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lab Assessment is facing challenges because of the dominance of functional experts in the organization. B Lab and the Impact Assessment Evolution 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.
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. Lab Assessment can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lab Assessment 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.
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 Lab Assessment in the consumer business. Now Lab Assessment can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Lab Assessment 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 Lab Assessment has opened avenues for new revenue streams for the organization in the industry. This can help Lab Assessment to build a more holistic ecosystem as suggested in the B Lab and the Impact Assessment Evolution case study. Lab Assessment can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Lab Assessment 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.
Developing new processes and practices
– Lab Assessment 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lab Assessment 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 Lab Assessment to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Lab Assessment 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 B Lab and the Impact Assessment Evolution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lab Assessment to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Lab Assessment 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 B Lab and the Impact Assessment Evolution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study B Lab and the Impact Assessment Evolution are -
Regulatory challenges
– Lab Assessment 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.
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 Lab Assessment.
Shortening product life cycle
– it is one of the major threat that Lab Assessment is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Lab Assessment business can come under increasing regulations regarding data privacy, data security, etc.
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. Lab Assessment can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Lab Assessment 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.
Increasing wage structure of Lab Assessment
– 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 Lab Assessment.
Environmental challenges
– Lab Assessment 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. Lab Assessment can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Lab Assessment 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 Lab Assessment 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.
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 Lab Assessment in the Leadership & Managing People sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lab Assessment with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 B Lab and the Impact Assessment Evolution 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 B Lab and the Impact Assessment Evolution 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 B Lab and the Impact Assessment Evolution 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 B Lab and the Impact Assessment Evolution 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 B Lab and the Impact Assessment Evolution 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 Lab Assessment needs to make to build a sustainable competitive advantage.
