Best Western Italy (B): Creating an Authentizotic Organization by Putting People First SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First
The case follows the progress of a year-long multi-module 'Make a Difference' programme for all 70 employees of Best Western Italy, the European operations and reservations centre for Best Western International, a global hotel group. The programme is designed to help individuals explore their own personal and professional goals, and then to work together to redesign the mission and vision of their organization. The objective is to unlock organizational energy, and to enhance trust and communication across all hierarchical levels. The outcomes included a restructuring of the senior executive level to create a flatter organization with more distributed leadership; improvement in the Great Places to Work Institute Italia ranking; and six company-wide projects initiated by employees. The case describes not only the programme design, but the necessary precursors for successful implementation, including organizational readiness for change and the skills and experience required of the coaches. It poses the question: How can this level of organizational change and renewal be sustained over time? Please visit the dedicated case website http://cases.insead.edu/best-western-italy to access video interviews and other support material.
Authors :: Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries
Swot Analysis of "Best Western Italy (B): Creating an Authentizotic Organization by Putting People First" written by Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Programme Western facing as an external strategic factors. Some of the topics covered in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study are - Strategic Management Strategies, Leadership, Leadership development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First casestudy better are - – increasing transportation and logistics costs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation,
supply chains are disrupted by pandemic , increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Programme Western, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First can be done for the following purposes –
1. Strategic planning using facts provided in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study
2. Improving business portfolio management of Programme Western
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 Programme Western
Strengths Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Programme Western in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First Harvard Business Review case study are -
Learning organization
- Programme Western 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 Programme Western is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Programme Western
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Programme Western does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Programme Western has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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.
Highly skilled collaborators
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Programme Western 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
– Programme Western is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Programme Western has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 switching costs
– The high switching costs that Programme Western 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.
Diverse revenue streams
– Programme Western is present in almost all the verticals within the industry. This has provided firm in Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western 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
– Programme Western has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Programme Western 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.
Weaknesses Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, is just above the industry average. Programme Western 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, Programme Western 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. Programme Western even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Best Western Italy (B): Creating an Authentizotic Organization by Putting People First HBR case study mentions - Programme Western 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Elizabeth Florent-Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries suggests that, Programme Western 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.
Products dominated business model
– Even though Programme Western 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 - Best Western Italy (B): Creating an Authentizotic Organization by Putting People First should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Programme Western is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Programme Western needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Programme Western to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Programme Western 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Programme Western 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, it seems that the employees of Programme Western 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.
Opportunities Best Western Italy (B): Creating an Authentizotic Organization by Putting People First | 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Programme Western can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Programme Western 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.
Creating value in data economy
– The success of analytics program of Programme Western has opened avenues for new revenue streams for the organization in the industry. This can help Programme Western to build a more holistic ecosystem as suggested in the Best Western Italy (B): Creating an Authentizotic Organization by Putting People First case study. Programme Western can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Programme Western can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Programme Western 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.
Building a culture of innovation
– managers at Programme Western 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.
Learning at scale
– Online learning technologies has now opened space for Programme Western 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Programme Western 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.
Loyalty marketing
– Programme Western 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.
Manufacturing automation
– Programme Western 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.
Using analytics as competitive advantage
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Programme Western to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Programme Western 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.
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 Programme Western in the consumer business. Now Programme Western can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Best Western Italy (B): Creating an Authentizotic Organization by Putting People First External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Best Western Italy (B): Creating an Authentizotic Organization by Putting People First are -
Increasing wage structure of Programme Western
– 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 Programme Western.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First .
Shortening product life cycle
– it is one of the major threat that Programme Western is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Programme Western.
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.
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.
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 Programme Western business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Programme Western 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First, Programme Western 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. Programme Western 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.
High dependence on third party suppliers
– Programme Western 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.
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 Programme Western in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Programme Western needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Best Western Italy (B): Creating an Authentizotic Organization by Putting People First 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 Programme Western needs to make to build a sustainable competitive advantage.
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