Ivey Builds: The Second Act SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Ivey Builds: The Second Act

Ivey Builds: The Second Act examines the process and outcome of a student lead initiative to build a Habitat for Humanity house and organize an international conference on corporate social responsibility. Students will learn how to identify the importance of contributing to their communities as both students and alumni.

Authors :: Murray J. Bryant

Topics :: Leadership & Managing People

Tags :: Communication, Leading teams, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Ivey Builds: The Second Act" written by Murray J. Bryant includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Builds Ivey facing as an external strategic factors. Some of the topics covered in Ivey Builds: The Second Act case study are - Strategic Management Strategies, Communication, Leading teams, Social responsibility and Leadership & Managing People.

Some of the macro environment factors that can be used to understand the Ivey Builds: The Second Act casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing energy prices, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, wage bills are increasing, etc

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Introduction to SWOT Analysis of Ivey Builds: The Second Act

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ivey Builds: The Second Act case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Builds Ivey, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Builds Ivey 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Ivey Builds: The Second Act can be done for the following purposes –
1. Strategic planning using facts provided in Ivey Builds: The Second Act case study
2. Improving business portfolio management of Builds Ivey
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 Builds Ivey

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Strengths Ivey Builds: The Second Act | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Builds Ivey in Ivey Builds: The Second Act Harvard Business Review case study are -

Digital Transformation in Leadership & Managing People segment

- digital transformation varies from industry to industry. For Builds Ivey digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Builds Ivey has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Effective Research and Development (R&D)

– Builds Ivey 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 Ivey Builds: The Second Act - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Builds Ivey 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 Ivey Builds: The Second Act HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to lead change in Leadership & Managing People field

– Builds Ivey 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 Builds Ivey in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– Builds Ivey has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Builds Ivey 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.

High brand equity

– Builds Ivey has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Builds Ivey to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of Builds Ivey in the sector have low bargaining power. Ivey Builds: The Second Act has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Builds Ivey to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Builds Ivey in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Learning organization

- Builds Ivey 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 Builds Ivey is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ivey Builds: The Second Act Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Training and development

– Builds Ivey has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ivey Builds: The Second Act 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.

Sustainable margins compare to other players in Leadership & Managing People industry

– Ivey Builds: The Second Act firm has clearly differentiated products in the market place. This has enabled Builds Ivey to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Builds Ivey to invest into research and development (R&D) and innovation.

Operational resilience

– The operational resilience strategy in the Ivey Builds: The Second Act 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.

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Weaknesses Ivey Builds: The Second Act | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Ivey Builds: The Second Act are -

Slow to strategic competitive environment developments

– As Ivey Builds: The Second Act HBR case study mentions - Builds Ivey 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 Ivey Builds: The Second Act 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 Builds Ivey 's lucrative customers.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Ivey Builds: The Second Act, it seems that the employees of Builds Ivey 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Builds Ivey is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ivey Builds: The Second Act can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Slow decision making process

– As mentioned earlier in the report, Builds Ivey 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. Builds Ivey 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Ivey Builds: The Second Act, is just above the industry average. Builds Ivey 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Builds Ivey 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.

Products dominated business model

– Even though Builds Ivey 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 - Ivey Builds: The Second Act should strive to include more intangible value offerings along with its core products and services.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Ivey Builds: The Second Act 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 Builds Ivey has relatively successful track record of launching new products.

High cash cycle compare to competitors

Builds Ivey 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.

Lack of clear differentiation of Builds Ivey products

– To increase the profitability and margins on the products, Builds Ivey needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Ivey Builds: The Second Act | 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 Ivey Builds: The Second Act are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Builds Ivey 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 Builds Ivey in the consumer business. Now Builds Ivey can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Builds Ivey 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 Ivey Builds: The Second Act - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Builds Ivey to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Builds Ivey has opened avenues for new revenue streams for the organization in the industry. This can help Builds Ivey to build a more holistic ecosystem as suggested in the Ivey Builds: The Second Act case study. Builds Ivey can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Builds Ivey can use these opportunities to build new business models that can help the communities that Builds Ivey operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Builds Ivey 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, Ivey Builds: The Second Act, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Manufacturing automation

– Builds Ivey 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.

Better consumer reach

– The expansion of the 5G network will help Builds Ivey to increase its market reach. Builds Ivey 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.

Building a culture of innovation

– managers at Builds Ivey 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.

Buying journey improvements

– Builds Ivey can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ivey Builds: The Second Act 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.

Learning at scale

– Online learning technologies has now opened space for Builds Ivey 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 Builds Ivey 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.

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. Builds Ivey 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. Builds Ivey 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.

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Threats Ivey Builds: The Second Act External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Ivey Builds: The Second Act are -

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.

Stagnating economy with rate increase

– Builds Ivey 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.

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 Builds Ivey business can come under increasing regulations regarding data privacy, data security, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ivey Builds: The Second Act, Builds Ivey 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 .

Technology acceleration in Forth Industrial Revolution

– Builds Ivey has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Builds Ivey 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 dependence on third party suppliers

– Builds Ivey 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.

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 Builds Ivey.

Consumer confidence and its impact on Builds Ivey 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.

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. Builds Ivey needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Builds Ivey 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.

Environmental challenges

– Builds Ivey 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. Builds Ivey can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

Increasing wage structure of Builds Ivey

– 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 Builds Ivey.

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Weighted SWOT Analysis of Ivey Builds: The Second Act 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 Ivey Builds: The Second Act 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 Ivey Builds: The Second Act 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 Ivey Builds: The Second Act 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 Ivey Builds: The Second Act 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 Builds Ivey needs to make to build a sustainable competitive advantage.

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