Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video
A series of video clips of Jack Welch from 1981 to 2001 shows his development as a leader, the evolution of his management approach, and his consistency.
Swot Analysis of "Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video" written by Joseph L. Bower includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Welch 1981 facing as an external strategic factors. Some of the topics covered in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video case study are - Strategic Management Strategies, Competitive strategy, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Welch 1981, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Welch 1981 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video can be done for the following purposes –
1. Strategic planning using facts provided in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video case study
2. Improving business portfolio management of Welch 1981
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 Welch 1981
Strengths Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Welch 1981 in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video Harvard Business Review case study are -
Diverse revenue streams
– Welch 1981 is present in almost all the verticals within the industry. This has provided firm in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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
– Welch 1981 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 Joseph L. Bower 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Welch 1981 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Welch 1981 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.
High brand equity
– Welch 1981 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Welch 1981 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Welch 1981 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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.
Learning organization
- Welch 1981 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 Welch 1981 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Welch 1981 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video firm has clearly differentiated products in the market place. This has enabled Welch 1981 to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Welch 1981 to invest into research and development (R&D) and innovation.
Organizational Resilience of Welch 1981
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Welch 1981 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Welch 1981 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Welch 1981 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.
Low bargaining power of suppliers
– Suppliers of Welch 1981 in the sector have low bargaining power. Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Welch 1981 to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Welch 1981 is one of the most innovative firm in sector. Manager in Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video are -
Interest costs
– Compare to the competition, Welch 1981 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.
Slow decision making process
– As mentioned earlier in the report, Welch 1981 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. Welch 1981 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video, it seems that the employees of Welch 1981 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, Welch 1981 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Welch 1981 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 Welch 1981 products
– To increase the profitability and margins on the products, Welch 1981 needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Welch 1981 has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video HBR case study mentions - Welch 1981 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 dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Welch 1981 supply chain. Even after few cautionary changes mentioned in the HBR case study - Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Welch 1981 vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video can leverage the sales team experience to cultivate customer relationships as Welch 1981 is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video, in the dynamic environment Welch 1981 has struggled to respond to the nimble upstart competition. Welch 1981 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video | 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Welch 1981 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, Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video, 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
– Welch 1981 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 Welch 1981 to increase its market reach. Welch 1981 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.
Loyalty marketing
– Welch 1981 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Welch 1981 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.
Developing new processes and practices
– Welch 1981 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.
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 Welch 1981 in the consumer business. Now Welch 1981 can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Welch 1981 can use these opportunities to build new business models that can help the communities that Welch 1981 operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Welch 1981 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.
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. Welch 1981 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Welch 1981 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.
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. Welch 1981 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. Welch 1981 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Welch 1981 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video are -
Environmental challenges
– Welch 1981 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. Welch 1981 can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Welch 1981
– 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 Welch 1981.
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.
Regulatory challenges
– Welch 1981 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.
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 Welch 1981 business can come under increasing regulations regarding data privacy, data security, etc.
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. Welch 1981 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Welch 1981 in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Welch 1981 is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Welch 1981 needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video, Welch 1981 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 .
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 Welch 1981.
Stagnating economy with rate increase
– Welch 1981 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
– Welch 1981 has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Welch 1981 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.
Weighted SWOT Analysis of Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Jack Welch at GE: 1981-2001--The Evolution of a Chief Executive, Video 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 Welch 1981 needs to make to build a sustainable competitive advantage.