Belmont Abbey College: Strategy Formulation in Turbulent Times SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Belmont Abbey College: Strategy Formulation in Turbulent Times
Belmont Abbey College was on the verge of closing when a new president took office in the spring of 2004. Enrolment at the private liberal arts college had dropped to just over 500 students, and net revenues were insufficient to support ongoing operations. Belmont Abbey College was not alone in facing dire financial prospects, however. Higher education in general confronted an array of challenges due to dramatically escalating costs and a significant decline in the number and economic circumstances of prospective students. The president made efforts to strategically position the college in attempting to mitigate costs. In 2014, would his efforts over the last decade-including a bold and perhaps risky move to compete directly on the basis of price-pay off and secure future enrolment? Roger Anderson is affiliated with Bryant University. Michael A. Roberto is affiliated with Bryant University.
Swot Analysis of "Belmont Abbey College: Strategy Formulation in Turbulent Times" written by Roger Anderson, Michael A. Roberto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Belmont Abbey facing as an external strategic factors. Some of the topics covered in Belmont Abbey College: Strategy Formulation in Turbulent Times case study are - Strategic Management Strategies, Competitive strategy, Leadership, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Belmont Abbey College: Strategy Formulation in Turbulent Times casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing transportation and logistics costs, there is backlash against globalization, talent flight as more people leaving formal jobs,
central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Belmont Abbey College: Strategy Formulation in Turbulent Times
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Belmont Abbey College: Strategy Formulation in Turbulent Times case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Belmont Abbey, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Belmont Abbey 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 Belmont Abbey College: Strategy Formulation in Turbulent Times can be done for the following purposes –
1. Strategic planning using facts provided in Belmont Abbey College: Strategy Formulation in Turbulent Times case study
2. Improving business portfolio management of Belmont Abbey
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 Belmont Abbey
Strengths Belmont Abbey College: Strategy Formulation in Turbulent Times | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Belmont Abbey in Belmont Abbey College: Strategy Formulation in Turbulent Times Harvard Business Review case study are -
Analytics focus
– Belmont Abbey 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 Roger Anderson, Michael A. Roberto 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.
Learning organization
- Belmont Abbey 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 Belmont Abbey is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Belmont Abbey College: Strategy Formulation in Turbulent Times Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Belmont Abbey 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 Belmont Abbey in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Belmont Abbey
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Belmont Abbey does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Belmont Abbey 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.
Innovation driven organization
– Belmont Abbey is one of the most innovative firm in sector. Manager in Belmont Abbey College: Strategy Formulation in Turbulent Times Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Belmont Abbey 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.
Training and development
– Belmont Abbey has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Belmont Abbey College: Strategy Formulation in Turbulent Times 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
– Belmont Abbey has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Belmont Abbey to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Belmont Abbey is one of the leading recruiters in the industry. Managers in the Belmont Abbey College: Strategy Formulation in Turbulent Times are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Belmont Abbey is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– Belmont Abbey College: Strategy Formulation in Turbulent Times firm has clearly differentiated products in the market place. This has enabled Belmont Abbey to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Belmont Abbey to invest into research and development (R&D) and innovation.
Weaknesses Belmont Abbey College: Strategy Formulation in Turbulent Times | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Belmont Abbey College: Strategy Formulation in Turbulent Times are -
High bargaining power of channel partners
– Because of the regulatory requirements, Roger Anderson, Michael A. Roberto suggests that, Belmont Abbey is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Belmont Abbey 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.
Low market penetration in new markets
– Outside its home market of Belmont Abbey, firm in the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Belmont Abbey College: Strategy Formulation in Turbulent Times, in the dynamic environment Belmont Abbey has struggled to respond to the nimble upstart competition. Belmont Abbey has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Belmont Abbey College: Strategy Formulation in Turbulent Times HBR case study mentions - Belmont Abbey 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.
Need for greater diversity
– Belmont Abbey 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times, is just above the industry average. Belmont Abbey 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.
Products dominated business model
– Even though Belmont Abbey 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 - Belmont Abbey College: Strategy Formulation in Turbulent Times should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Belmont Abbey 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Belmont Abbey is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Belmont Abbey College: Strategy Formulation in Turbulent Times can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Belmont Abbey College: Strategy Formulation in Turbulent Times | 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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. Belmont Abbey 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 Belmont Abbey 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.
Building a culture of innovation
– managers at Belmont Abbey 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.
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 Belmont Abbey in the consumer business. Now Belmont Abbey can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Belmont Abbey is facing challenges because of the dominance of functional experts in the organization. Belmont Abbey College: Strategy Formulation in Turbulent Times 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.
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. Belmont Abbey can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Belmont Abbey to increase its market reach. Belmont Abbey 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.
Buying journey improvements
– Belmont Abbey can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey 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.
Developing new processes and practices
– Belmont Abbey 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.
Manufacturing automation
– Belmont Abbey 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.
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. Belmont Abbey 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. Belmont Abbey 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.
Creating value in data economy
– The success of analytics program of Belmont Abbey has opened avenues for new revenue streams for the organization in the industry. This can help Belmont Abbey to build a more holistic ecosystem as suggested in the Belmont Abbey College: Strategy Formulation in Turbulent Times case study. Belmont Abbey can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Belmont Abbey College: Strategy Formulation in Turbulent Times External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Belmont Abbey College: Strategy Formulation in Turbulent Times are -
Increasing wage structure of Belmont Abbey
– 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 Belmont Abbey.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Belmont Abbey 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.
High dependence on third party suppliers
– Belmont Abbey 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.
Technology acceleration in Forth Industrial Revolution
– Belmont Abbey has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Belmont Abbey 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.
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. Belmont Abbey needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Belmont Abbey 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Belmont Abbey College: Strategy Formulation in Turbulent Times, Belmont Abbey 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 .
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. Belmont Abbey 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.
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 Belmont Abbey in the Leadership & Managing People sector and impact the bottomline of the organization.
Environmental challenges
– Belmont Abbey 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. Belmont Abbey can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Belmont Abbey with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Belmont Abbey.
Shortening product life cycle
– it is one of the major threat that Belmont Abbey is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey College: Strategy Formulation in Turbulent Times 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 Belmont Abbey needs to make to build a sustainable competitive advantage.
