Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital
Organizational capital is an intangible asset that is a continuous creator of value through generating above-normal revenue growth, innovation, operational excellence, and stakeholder relationships. The elusive nature of organizational capital stems from competing perspectives on how it can be defined and managed. This article presents a comprehensive model for understanding the critical process, components, and necessary linkages that result in increased enterprise value through the creation of organizational capital. Attention is given to the factors that influence organizational capital (fit among leadership, strategy, and organization design), its influence on human capital, and, ultimately, the impact on operational excellence, stakeholder capital, and the essential levels of innovation that drive capital efficient growth. Guidance is provided for the CEO, CFO, and CHRO wishing to harness the power of organizational capital and increase both current and future value of the firm.
Authors :: Sandra Jeanquart Miles, Mark Van Clieaf
Swot Analysis of "Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital" written by Sandra Jeanquart Miles, Mark Van Clieaf includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Capital Organizational facing as an external strategic factors. Some of the topics covered in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital case study are - Strategic Management Strategies, Financial management, Growth strategy, Human resource management, Innovation, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Capital Organizational, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital can be done for the following purposes –
1. Strategic planning using facts provided in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital case study
2. Improving business portfolio management of Capital Organizational
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 Capital Organizational
Strengths Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Capital Organizational in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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.
Analytics focus
– Capital Organizational 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 Sandra Jeanquart Miles, Mark Van Clieaf 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.
High brand equity
– Capital Organizational has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Capital Organizational to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital - 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
– Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Capital Organizational is present in almost all the verticals within the industry. This has provided firm in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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.
Organizational Resilience of Capital Organizational
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Capital Organizational does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Capital Organizational is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Capital Organizational 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
– Capital Organizational is one of the most innovative firm in sector. Manager in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Capital Organizational digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Capital Organizational 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.
Training and development
– Capital Organizational has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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.
Weaknesses Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital are -
Products dominated business model
– Even though Capital Organizational 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 - Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Capital Organizational products
– To increase the profitability and margins on the products, Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital, in the dynamic environment Capital Organizational has struggled to respond to the nimble upstart competition. Capital Organizational has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Capital Organizational 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.
Increasing silos among functional specialists
– The organizational structure of Capital Organizational is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Capital Organizational needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Capital Organizational to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital, is just above the industry average. Capital Organizational 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.
Aligning sales with marketing
– It come across in the case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital can leverage the sales team experience to cultivate customer relationships as Capital Organizational is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Capital Organizational 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.
Need for greater diversity
– Capital Organizational 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Capital Organizational is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Capital Organizational 's lucrative customers.
Opportunities Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital | 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital are -
Developing new processes and practices
– Capital Organizational 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.
Better consumer reach
– The expansion of the 5G network will help Capital Organizational to increase its market reach. Capital Organizational 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.
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 Capital Organizational 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.
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 Capital Organizational in the consumer business. Now Capital Organizational can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Capital Organizational 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Capital Organizational 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, Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital, 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
– Capital Organizational 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Capital Organizational can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Capital Organizational can use these opportunities to build new business models that can help the communities that Capital Organizational operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Capital Organizational 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 Capital Organizational to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Capital Organizational in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Capital Organizational 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.
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. Capital Organizational can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital are -
Shortening product life cycle
– it is one of the major threat that Capital Organizational is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Capital Organizational 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
– Capital Organizational 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. Capital Organizational can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Capital Organizational will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
High dependence on third party suppliers
– Capital Organizational 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.
Consumer confidence and its impact on Capital Organizational 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital .
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. Capital Organizational needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Capital Organizational in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Capital Organizational has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Capital Organizational 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.
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. Capital Organizational can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Capital Organizational.
Weighted SWOT Analysis of Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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 Capital Organizational needs to make to build a sustainable competitive advantage.
