Analyzing Performance in Service Organizations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Analyzing Performance in Service Organizations
This is an MIT Sloan Management Review article. Just as sports teams have increasingly relied on rigorous quantitative analyses, so have many businesses. In particular, a growing number of service organizations have been investigating the use of a sophisticated linear programming technique called DEA, or data envelopment analysis. (In this article, the authors use the term "balanced benchmarking"to denote DEA.) The technique enables companies to benchmark and locate best practices that are not visible through other commonly used management methodologies. Today, balanced benchmarking can be used by anyone with Microsoft Excel, but it was not always so easy. When it was first introduced in the 1980s, balanced benchmarking was an academic tool for measuring and managing relative efficiency of peer organizations. Balanced benchmarking simultaneously considers the multiple resources used to generate multiple services, along with the quality of the services provided. It also provides managers with a sophisticated mechanism to assess the performance of different service providers -comparing, for example, the London and Tokyo offices of a global advertising agency -by going well beyond crude metrics and ratios such as profitability and account billings per employee. A company can identify its least efficient offices or business units, and it can assess the magnitude of the inefficiency and investigate potential paths for improvement. Moreover, executives can study the top-performing units, identify the best practices and transfer that valuable knowledge throughout the organization. Lastly, balanced benchmarking enables companies to test their assumptions, particularly before implementing initiatives that might inadvertently be counterproductive.
Swot Analysis of "Analyzing Performance in Service Organizations" written by H. David Sherman, Joe Zhu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Benchmarking Balanced facing as an external strategic factors. Some of the topics covered in Analyzing Performance in Service Organizations case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Analyzing Performance in Service Organizations casestudy better are - – increasing commodity prices, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing energy prices,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Analyzing Performance in Service Organizations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Analyzing Performance in Service Organizations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Benchmarking Balanced, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Benchmarking Balanced 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 Analyzing Performance in Service Organizations can be done for the following purposes –
1. Strategic planning using facts provided in Analyzing Performance in Service Organizations case study
2. Improving business portfolio management of Benchmarking Balanced
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 Benchmarking Balanced
Strengths Analyzing Performance in Service Organizations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Benchmarking Balanced in Analyzing Performance in Service Organizations Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Benchmarking Balanced is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Benchmarking Balanced in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Benchmarking Balanced digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Benchmarking Balanced 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.
Diverse revenue streams
– Benchmarking Balanced is present in almost all the verticals within the industry. This has provided firm in Analyzing Performance in Service Organizations 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.
Superior customer experience
– The customer experience strategy of Benchmarking Balanced in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Benchmarking Balanced has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Benchmarking Balanced 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.
Strong track record of project management
– Benchmarking Balanced is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Benchmarking Balanced is one of the leading recruiters in the industry. Managers in the Analyzing Performance in Service Organizations 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
– Benchmarking Balanced 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 H. David Sherman, Joe Zhu 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.
High switching costs
– The high switching costs that Benchmarking Balanced 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.
Learning organization
- Benchmarking Balanced 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 Benchmarking Balanced is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Analyzing Performance in Service Organizations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Benchmarking Balanced has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Benchmarking Balanced to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Benchmarking Balanced has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Analyzing Performance in Service Organizations 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.
Weaknesses Analyzing Performance in Service Organizations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Analyzing Performance in Service Organizations are -
Low market penetration in new markets
– Outside its home market of Benchmarking Balanced, firm in the HBR case study Analyzing Performance in Service Organizations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Benchmarking Balanced has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High operating costs
– Compare to the competitors, firm in the HBR case study Analyzing Performance in Service Organizations 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 Benchmarking Balanced 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Benchmarking Balanced is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Analyzing Performance in Service Organizations can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Benchmarking Balanced supply chain. Even after few cautionary changes mentioned in the HBR case study - Analyzing Performance in Service Organizations, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Benchmarking Balanced vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Benchmarking Balanced 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 - Analyzing Performance in Service Organizations should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Benchmarking Balanced 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.
Interest costs
– Compare to the competition, Benchmarking Balanced 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Analyzing Performance in Service Organizations, in the dynamic environment Benchmarking Balanced has struggled to respond to the nimble upstart competition. Benchmarking Balanced has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Benchmarking Balanced is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Benchmarking Balanced needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Benchmarking Balanced to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, H. David Sherman, Joe Zhu suggests that, Benchmarking Balanced 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 Analyzing Performance in Service Organizations | 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 Analyzing Performance in Service Organizations are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Benchmarking Balanced 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.
Creating value in data economy
– The success of analytics program of Benchmarking Balanced has opened avenues for new revenue streams for the organization in the industry. This can help Benchmarking Balanced to build a more holistic ecosystem as suggested in the Analyzing Performance in Service Organizations case study. Benchmarking Balanced can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Benchmarking Balanced 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.
Building a culture of innovation
– managers at Benchmarking Balanced 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Benchmarking Balanced 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 Benchmarking Balanced to hire the very best people irrespective of their geographical location.
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. Benchmarking Balanced can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Benchmarking Balanced in the consumer business. Now Benchmarking Balanced can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Benchmarking Balanced 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.
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. Benchmarking Balanced 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 Benchmarking Balanced 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.
Loyalty marketing
– Benchmarking Balanced 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Benchmarking Balanced can use these opportunities to build new business models that can help the communities that Benchmarking Balanced operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Benchmarking Balanced 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. Benchmarking Balanced 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.
Threats Analyzing Performance in Service Organizations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Analyzing Performance in Service Organizations are -
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. Benchmarking Balanced can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Benchmarking Balanced business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Benchmarking Balanced 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. Benchmarking Balanced can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Benchmarking Balanced 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 Benchmarking Balanced in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Benchmarking Balanced has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Benchmarking Balanced 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.
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 Benchmarking Balanced.
Stagnating economy with rate increase
– Benchmarking Balanced 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.
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.
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. Benchmarking Balanced 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.
Regulatory challenges
– Benchmarking Balanced 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
– Benchmarking Balanced 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.
Increasing wage structure of Benchmarking Balanced
– 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 Benchmarking Balanced.
Weighted SWOT Analysis of Analyzing Performance in Service Organizations 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 Analyzing Performance in Service Organizations 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 Analyzing Performance in Service Organizations 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 Analyzing Performance in Service Organizations 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 Analyzing Performance in Service Organizations 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 Benchmarking Balanced needs to make to build a sustainable competitive advantage.