Transforming Companies Into Respected Institutions: A More Holistic View of the Firm SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm
Respect for business has fallen. This article suggests how to make companies respected institutions in society once again. The author starts by arguing that a firm's heterogeneous goals cannot be limited to short-term economic performance. Instead, top managers need to embrace a much more holistic view of the firm and its goals. Then, he outlines the qualities that make a firm a respected institution and he presents a framework to assess the firm's performance in this regard. Finally, he offers some pointers for CEOs to help restore their credibility as leaders.
Swot Analysis of "Transforming Companies Into Respected Institutions: A More Holistic View of the Firm" written by Jordi Canals Margalef includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Respected Holistic facing as an external strategic factors. Some of the topics covered in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study are - Strategic Management Strategies, Social responsibility, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing commodity prices,
supply chains are disrupted by pandemic , technology disruption, etc
Introduction to SWOT Analysis of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Respected Holistic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm can be done for the following purposes –
1. Strategic planning using facts provided in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study
2. Improving business portfolio management of Respected Holistic
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 Respected Holistic
Strengths Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Respected Holistic in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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.
Low bargaining power of suppliers
– Suppliers of Respected Holistic in the sector have low bargaining power. Transforming Companies Into Respected Institutions: A More Holistic View of the Firm has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Respected Holistic to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Respected Holistic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Respected Holistic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Respected Holistic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Respected Holistic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Respected Holistic 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.
High switching costs
– The high switching costs that Respected Holistic 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.
Diverse revenue streams
– Respected Holistic is present in almost all the verticals within the industry. This has provided firm in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Leadership & Managing People field
– Respected Holistic 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 Respected Holistic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– Transforming Companies Into Respected Institutions: A More Holistic View of the Firm firm has clearly differentiated products in the market place. This has enabled Respected Holistic to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Respected Holistic to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Respected Holistic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Respected Holistic 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.
Innovation driven organization
– Respected Holistic is one of the most innovative firm in sector. Manager in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
Skills based hiring
– The stress on hiring functional specialists at Respected Holistic 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.
No frontier risks strategy
– After analyzing the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 Respected Holistic supply chain. Even after few cautionary changes mentioned in the HBR case study - Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Respected Holistic vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, it seems that the employees of Respected Holistic 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, is just above the industry average. Respected Holistic 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.
Slow decision making process
– As mentioned earlier in the report, Respected Holistic 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. Respected Holistic 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.
Products dominated business model
– Even though Respected Holistic 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 - Transforming Companies Into Respected Institutions: A More Holistic View of the Firm should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Respected Holistic is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Respected Holistic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Respected Holistic to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Transforming Companies Into Respected Institutions: A More Holistic View of the Firm HBR case study mentions - Respected Holistic 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.
Need for greater diversity
– Respected Holistic 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.
Opportunities Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
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. Respected Holistic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Respected Holistic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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.
Creating value in data economy
– The success of analytics program of Respected Holistic has opened avenues for new revenue streams for the organization in the industry. This can help Respected Holistic to build a more holistic ecosystem as suggested in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study. Respected Holistic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Respected Holistic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Respected Holistic 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 Respected Holistic 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Respected Holistic 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 Respected Holistic to hire the very best people irrespective of their geographical location.
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 Respected Holistic in the consumer business. Now Respected Holistic can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Respected Holistic 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, Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, 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
– Respected Holistic 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.
Using analytics as competitive advantage
– Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Respected Holistic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Respected Holistic 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.
Building a culture of innovation
– managers at Respected Holistic 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.
Threats Transforming Companies Into Respected Institutions: A More Holistic View of the Firm External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
Shortening product life cycle
– it is one of the major threat that Respected Holistic 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 Respected Holistic 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
– Respected Holistic 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. Respected Holistic can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Respected Holistic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Respected Holistic 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.
Technology acceleration in Forth Industrial Revolution
– Respected Holistic has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Respected Holistic 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.
Stagnating economy with rate increase
– Respected Holistic 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.
Increasing wage structure of Respected Holistic
– 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 Respected Holistic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm .
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. Respected Holistic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Respected Holistic needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Respected Holistic 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.
High dependence on third party suppliers
– Respected Holistic 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.
Weighted SWOT Analysis of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic needs to make to build a sustainable competitive advantage.
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