Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011
In late spring 2009, Stroz Friedberg co-presidents Edward Stroz and Eric Friedberg had to set growth targets for 2010. The leading global consulting firm they had built specialized in managing digital risk and uncovering digital evidence and had grown very rapidly. With the firm CFO, they believed that the firm could grow from $58 million to $72 million, a growth rate of 27% over the preceding year. However, the firm's 11 offices had submitted first draft FY2010 plans that together added up to firm-wide revenues of only $53 million, a growth rate of negative 10.2%. The preceding years of rapid growth had been successful but challenging, and a thorough review of the firm's culture, systems, structure, and processes in late 2008 had resulted in a significant set of changes to which the organization was still adjusting. Stroz and Friedberg wondered whether to push for continued, aggressive growth.
Swot Analysis of "Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011" written by David A. Garvin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Friedberg Stroz facing as an external strategic factors. Some of the topics covered in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 case study are - Strategic Management Strategies, Entrepreneurial management, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, cloud computing is disrupting traditional business models, increasing commodity prices, technology disruption, increasing transportation and logistics costs, there is backlash against globalization,
geopolitical disruptions, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Friedberg Stroz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Friedberg Stroz 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 can be done for the following purposes –
1. Strategic planning using facts provided in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 case study
2. Improving business portfolio management of Friedberg Stroz
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 Friedberg Stroz
Strengths Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Friedberg Stroz in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 Harvard Business Review case study are -
High switching costs
– The high switching costs that Friedberg Stroz 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.
Cross disciplinary teams
– Horizontal connected teams at the Friedberg Stroz 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
– Friedberg Stroz is one of the most innovative firm in sector. Manager in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Friedberg Stroz in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 firm has clearly differentiated products in the market place. This has enabled Friedberg Stroz to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Friedberg Stroz to invest into research and development (R&D) and innovation.
High brand equity
– Friedberg Stroz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Friedberg Stroz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Friedberg Stroz in the sector have low bargaining power. Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Friedberg Stroz to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Friedberg Stroz is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Friedberg Stroz 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Friedberg Stroz is present in almost all the verticals within the industry. This has provided firm in Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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.
Analytics focus
– Friedberg Stroz 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 David A. Garvin 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.
Ability to recruit top talent
– Friedberg Stroz is one of the leading recruiters in the industry. Managers in the Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Friedberg Stroz has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011, in the dynamic environment Friedberg Stroz has struggled to respond to the nimble upstart competition. Friedberg Stroz has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Friedberg Stroz 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.
Interest costs
– Compare to the competition, Friedberg Stroz 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.
Aligning sales with marketing
– It come across in the case study Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 can leverage the sales team experience to cultivate customer relationships as Friedberg Stroz is planning to shift buying processes online.
Products dominated business model
– Even though Friedberg Stroz 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 - Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Friedberg Stroz 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.
Lack of clear differentiation of Friedberg Stroz products
– To increase the profitability and margins on the products, Friedberg Stroz needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Friedberg Stroz 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.
High cash cycle compare to competitors
Friedberg Stroz 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.
Opportunities Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 | 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 are -
Buying journey improvements
– Friedberg Stroz can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Friedberg Stroz 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.
Loyalty marketing
– Friedberg Stroz 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.
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 Friedberg Stroz in the consumer business. Now Friedberg Stroz can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Friedberg Stroz has opened avenues for new revenue streams for the organization in the industry. This can help Friedberg Stroz to build a more holistic ecosystem as suggested in the Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 case study. Friedberg Stroz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Friedberg Stroz 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 Friedberg Stroz to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Friedberg Stroz can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Friedberg Stroz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Friedberg Stroz 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Friedberg Stroz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Friedberg Stroz 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. Friedberg Stroz 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.
Better consumer reach
– The expansion of the 5G network will help Friedberg Stroz to increase its market reach. Friedberg Stroz 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.
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. Friedberg Stroz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Friedberg Stroz can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 are -
Increasing wage structure of Friedberg Stroz
– 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 Friedberg Stroz.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Friedberg Stroz 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Friedberg Stroz with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Friedberg Stroz.
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 Friedberg Stroz in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Friedberg Stroz 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 .
Consumer confidence and its impact on Friedberg Stroz 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.
Environmental challenges
– Friedberg Stroz 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. Friedberg Stroz 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. Friedberg Stroz can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Friedberg Stroz needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Friedberg Stroz has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Friedberg Stroz 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.
Stagnating economy with rate increase
– Friedberg Stroz 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.
Weighted SWOT Analysis of Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011 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 Friedberg Stroz needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, In-Class Comments, April 15, 2011
