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 energy prices, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing commodity prices, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, 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 -
Strong track record of project management
– Respected Holistic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Respected Holistic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Respected Holistic 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.
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.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm - 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
– 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.
Superior customer experience
– The customer experience strategy of Respected Holistic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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 -
Lack of clear differentiation of Respected Holistic products
– To increase the profitability and margins on the products, Respected Holistic needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Respected Holistic 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.
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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, in the dynamic environment Respected Holistic has struggled to respond to the nimble upstart competition. Respected Holistic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
Low market penetration in new markets
– Outside its home market of Respected Holistic, firm in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 -
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.
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. Respected Holistic 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. Respected Holistic 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 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.
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.
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. Respected Holistic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Respected Holistic 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
– Respected Holistic 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, Respected Holistic 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Respected Holistic can use these opportunities to build new business models that can help the communities that Respected Holistic operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Respected Holistic is facing challenges because of the dominance of functional experts in the organization. Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, Respected Holistic 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 .
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.
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 Respected Holistic in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
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.
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.
Regulatory challenges
– Respected Holistic 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.
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.
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.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm