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 - – technology disruption, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing commodity prices, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, 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 -
Successful track record of launching new products
– Capital Organizational has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Capital Organizational 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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Capital Organizational in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Capital Organizational 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.
Ability to recruit top talent
– Capital Organizational is one of the leading recruiters in the industry. Managers in the Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
Learning organization
- Capital Organizational 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 Capital Organizational is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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 -
Skills based hiring
– The stress on hiring functional specialists at Capital Organizational 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 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.
Slow to strategic competitive environment developments
– As Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital HBR case study mentions - Capital Organizational 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 Capital Organizational supply chain. Even after few cautionary changes mentioned in the HBR case study - Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Capital Organizational vulnerable to further global disruptions in South East Asia.
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.
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.
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.
Interest costs
– Compare to the competition, Capital Organizational 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.
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.
Low market penetration in new markets
– Outside its home market of Capital Organizational, firm in the HBR case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Capital Organizational 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. Capital Organizational 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.
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 -
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.
Buying journey improvements
– Capital Organizational can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital 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.
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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Capital Organizational can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Learning at scale
– Online learning technologies has now opened space for Capital Organizational 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.
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. Capital Organizational 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. Capital Organizational 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.
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.
Using analytics as competitive advantage
– Capital Organizational 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 Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Capital Organizational 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 Capital Organizational has opened avenues for new revenue streams for the organization in the industry. This can help Capital Organizational to build a more holistic ecosystem as suggested in the Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital case study. Capital Organizational can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Capital Organizational 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.
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.
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.
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 -
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.
Increasing wage structure of Capital Organizational
– 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 Capital Organizational.
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.
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 .
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategic Fit: Key to Growing Enterprise Value Through Organizational Capital, Capital Organizational 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 .
Regulatory challenges
– Capital Organizational 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.
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.
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.
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 Capital Organizational business can come under increasing regulations regarding data privacy, data security, 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. Capital Organizational needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
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.