Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
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Case Study SWOT Analysis Solution
Case Study Description of Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg
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 "Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg" 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg casestudy better are - – there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg can be done for the following purposes –
1. Strategic planning using facts provided in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Friedberg Stroz in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg Harvard Business Review case study are -
Organizational Resilience of Friedberg Stroz
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Friedberg Stroz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.
Learning organization
- Friedberg Stroz 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 Friedberg Stroz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Successful track record of launching new products
– Friedberg Stroz has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Friedberg Stroz 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.
Innovation driven organization
– Friedberg Stroz is one of the most innovative firm in sector. Manager in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Friedberg Stroz 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Friedberg Stroz in the sector have low bargaining power. Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.
Diverse revenue streams
– Friedberg Stroz is present in almost all the verticals within the industry. This has provided firm in Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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
– Friedberg Stroz 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 Friedberg Stroz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
Weaknesses Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.
Slow decision making process
– As mentioned earlier in the report, Friedberg Stroz 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. Friedberg Stroz 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.
Slow to strategic competitive environment developments
– As Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg HBR case study mentions - Friedberg Stroz 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.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, 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.
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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg can leverage the sales team experience to cultivate customer relationships as Friedberg Stroz is planning to shift buying processes online.
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.
Increasing silos among functional specialists
– The organizational structure of Friedberg Stroz is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Friedberg Stroz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Friedberg Stroz to focus more on services rather than just following the product oriented approach.
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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg | 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Friedberg Stroz can use these opportunities to build new business models that can help the communities that Friedberg Stroz operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Friedberg Stroz can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.
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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg - 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.
Manufacturing automation
– Friedberg Stroz can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Building a culture of innovation
– managers at Friedberg Stroz 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.
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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg case study. Friedberg Stroz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Learning at scale
– Online learning technologies has now opened space for Friedberg Stroz 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.
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 Friedberg Stroz 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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Friedberg Stroz 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, Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Threats Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg, Friedberg Stroz 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 .
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.
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.
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
– Friedberg Stroz 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.
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.
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.
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.
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.
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.
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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg .
Weighted SWOT Analysis of Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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 Interview with Edward Stroz and Eric Friedberg, Co-Presidents of Stroz Friedberg 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.