Case Study Description of Layoffs: Effects on Key Stakeholders
From 2004-2009, almost 40,000 mass layoffs occurred in the US, representing over 7 million workers. This note describes the effects of layoffs on employees, firms, and communities.
Authors :: Sandra J. Sucher, Elana Green, David Rosales
Swot Analysis of "Layoffs: Effects on Key Stakeholders" written by Sandra J. Sucher, Elana Green, David Rosales includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Layoffs Effects facing as an external strategic factors. Some of the topics covered in Layoffs: Effects on Key Stakeholders case study are - Strategic Management Strategies, Decision making, Diversity, Entrepreneurship, Labor, Leadership development, Professional transitions, Reorganization, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Layoffs: Effects on Key Stakeholders casestudy better are - – challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Layoffs: Effects on Key Stakeholders
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Layoffs: Effects on Key Stakeholders case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Layoffs Effects, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Layoffs Effects 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 Layoffs: Effects on Key Stakeholders can be done for the following purposes –
1. Strategic planning using facts provided in Layoffs: Effects on Key Stakeholders case study
2. Improving business portfolio management of Layoffs Effects
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 Layoffs Effects
Strengths Layoffs: Effects on Key Stakeholders | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Layoffs Effects in Layoffs: Effects on Key Stakeholders Harvard Business Review case study are -
Diverse revenue streams
– Layoffs Effects is present in almost all the verticals within the industry. This has provided firm in Layoffs: Effects on Key Stakeholders case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Leadership & Managing People field
– Layoffs Effects 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 Layoffs Effects in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Layoffs Effects is one of the leading recruiters in the industry. Managers in the Layoffs: Effects on Key Stakeholders are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Layoffs Effects 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.
Analytics focus
– Layoffs Effects 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 Sandra J. Sucher, Elana Green, David Rosales 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Layoffs: Effects on Key Stakeholders firm has clearly differentiated products in the market place. This has enabled Layoffs Effects to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Layoffs Effects to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Layoffs Effects in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Layoffs Effects digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Layoffs Effects 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.
High brand equity
– Layoffs Effects has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Layoffs Effects to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Layoffs Effects 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 Layoffs: Effects on Key Stakeholders HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Layoffs Effects is one of the most innovative firm in sector. Manager in Layoffs: Effects on Key Stakeholders Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Layoffs Effects
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Layoffs Effects does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Layoffs: Effects on Key Stakeholders | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Layoffs: Effects on Key Stakeholders are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Layoffs: Effects on Key Stakeholders, is just above the industry average. Layoffs Effects 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, Layoffs Effects 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. Layoffs Effects 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Layoffs: Effects on Key Stakeholders, in the dynamic environment Layoffs Effects has struggled to respond to the nimble upstart competition. Layoffs Effects has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Layoffs: Effects on Key Stakeholders 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 Layoffs Effects 's lucrative customers.
High cash cycle compare to competitors
Layoffs Effects 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 Layoffs Effects is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Layoffs Effects needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Layoffs Effects to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandra J. Sucher, Elana Green, David Rosales suggests that, Layoffs Effects 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Layoffs: Effects on Key Stakeholders, it seems that the employees of Layoffs Effects 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Layoffs: Effects on Key Stakeholders 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 Layoffs Effects has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Layoffs Effects, firm in the HBR case study Layoffs: Effects on Key Stakeholders needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Layoffs: Effects on Key Stakeholders HBR case study mentions - Layoffs Effects 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.
Opportunities Layoffs: Effects on Key Stakeholders | 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 Layoffs: Effects on Key Stakeholders are -
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. Layoffs Effects can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Layoffs Effects 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.
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. Layoffs Effects 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. Layoffs Effects can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Layoffs Effects 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.
Using analytics as competitive advantage
– Layoffs Effects 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 Layoffs: Effects on Key Stakeholders - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Layoffs Effects to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Layoffs Effects 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.
Learning at scale
– Online learning technologies has now opened space for Layoffs Effects 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.
Buying journey improvements
– Layoffs Effects can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Layoffs: Effects on Key Stakeholders 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.
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 Layoffs Effects 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Layoffs Effects 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Layoffs Effects is facing challenges because of the dominance of functional experts in the organization. Layoffs: Effects on Key Stakeholders 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.
Better consumer reach
– The expansion of the 5G network will help Layoffs Effects to increase its market reach. Layoffs Effects 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Layoffs Effects can use these opportunities to build new business models that can help the communities that Layoffs Effects operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Layoffs: Effects on Key Stakeholders External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Layoffs: Effects on Key Stakeholders are -
Increasing wage structure of Layoffs Effects
– 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 Layoffs Effects.
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 Layoffs Effects.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Layoffs Effects 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 Layoffs: Effects on Key Stakeholders .
Shortening product life cycle
– it is one of the major threat that Layoffs Effects is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Layoffs Effects 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.
Environmental challenges
– Layoffs Effects 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. Layoffs Effects can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Layoffs Effects can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Layoffs Effects has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Layoffs Effects 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
High dependence on third party suppliers
– Layoffs Effects 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Layoffs Effects with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Layoffs: Effects on Key Stakeholders, Layoffs Effects 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 .
Weighted SWOT Analysis of Layoffs: Effects on Key Stakeholders 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 Layoffs: Effects on Key Stakeholders 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 Layoffs: Effects on Key Stakeholders 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 Layoffs: Effects on Key Stakeholders 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 Layoffs: Effects on Key Stakeholders 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 Layoffs Effects needs to make to build a sustainable competitive advantage.
