Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time

In an era of rapidly evolving systems of health care delivery, the impact on patients, physicians, hospitals, medical device manufacturers and small business owners are often conflicting. This case highlights these conflicts and stressors from all perspectives, providing unique insights and offering potential options.

Authors :: Srikant M. Datar, Michael R. Jaff, Caitlin N. Bowler

Topics :: Finance & Accounting

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time" written by Srikant M. Datar, Michael R. Jaff, Caitlin N. Bowler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Contempo Sievers facing as an external strategic factors. Some of the topics covered in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time case study are - Strategic Management Strategies, and Finance & Accounting.

Some of the macro environment factors that can be used to understand the Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing transportation and logistics costs, wage bills are increasing, there is increasing trade war between United States & China, etc

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Introduction to SWOT Analysis of Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Contempo Sievers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Contempo Sievers 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time can be done for the following purposes –
1. Strategic planning using facts provided in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time case study
2. Improving business portfolio management of Contempo Sievers
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Contempo Sievers

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Strengths Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Contempo Sievers in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Contempo Sievers in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Highly skilled collaborators

– Contempo Sievers 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Learning organization

- Contempo Sievers 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 Contempo Sievers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

High switching costs

– The high switching costs that Contempo Sievers 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.

Sustainable margins compare to other players in Finance & Accounting industry

– Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time firm has clearly differentiated products in the market place. This has enabled Contempo Sievers to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Contempo Sievers to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Contempo Sievers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Contempo Sievers 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.

Operational resilience

– The operational resilience strategy in the Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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.

Effective Research and Development (R&D)

– Contempo Sievers 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Training and development

– Contempo Sievers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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.

Strong track record of project management

– Contempo Sievers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to lead change in Finance & Accounting field

– Contempo Sievers 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 Contempo Sievers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Digital Transformation in Finance & Accounting segment

- digital transformation varies from industry to industry. For Contempo Sievers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Contempo Sievers 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.

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Weaknesses Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time are -

Capital Spending Reduction

– Even during the low interest decade, Contempo Sievers 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.

No frontier risks strategy

– After analyzing the HBR case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.

Products dominated business model

– Even though Contempo Sievers 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 - Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time, in the dynamic environment Contempo Sievers has struggled to respond to the nimble upstart competition. Contempo Sievers 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

Contempo Sievers 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.

High operating costs

– Compare to the competitors, firm in the HBR case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Sievers 's lucrative customers.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Contempo Sievers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

– The organizational structure of Contempo Sievers is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Contempo Sievers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Contempo Sievers to focus more on services rather than just following the product oriented approach.

Workers concerns about automation

– As automation is fast increasing in the segment, Contempo Sievers 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.

Aligning sales with marketing

– It come across in the case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time can leverage the sales team experience to cultivate customer relationships as Contempo Sievers is planning to shift buying processes online.

Interest costs

– Compare to the competition, Contempo Sievers 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.

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Opportunities Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time | 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Contempo Sievers 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 Contempo Sievers to hire the very best people irrespective of their geographical location.

Loyalty marketing

– Contempo Sievers 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Contempo Sievers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Contempo Sievers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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 Contempo Sievers in the consumer business. Now Contempo Sievers can target international markets with far fewer capital restrictions requirements than the existing system.

Buying journey improvements

– Contempo Sievers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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, Contempo Sievers is facing challenges because of the dominance of functional experts in the organization. Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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.

Leveraging digital technologies

– Contempo Sievers 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Contempo Sievers 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.

Manufacturing automation

– Contempo Sievers can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Contempo Sievers can use these opportunities to build new business models that can help the communities that Contempo Sievers operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.

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. Contempo Sievers can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Developing new processes and practices

– Contempo Sievers can develop new processes and procedures in Finance & Accounting 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.

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Threats Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time are -

Technology acceleration in Forth Industrial Revolution

– Contempo Sievers has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Contempo Sievers needs to keep up with the evolution of technology in the Finance & Accounting 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.

Shortening product life cycle

– it is one of the major threat that Contempo Sievers is facing in Finance & Accounting 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 Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Contempo Sievers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

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 Contempo Sievers in the Finance & Accounting sector and impact the bottomline of the organization.

Regulatory challenges

– Contempo Sievers 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 Finance & Accounting industry regulations.

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. Contempo Sievers 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.

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 Contempo Sievers business can come under increasing regulations regarding data privacy, data security, etc.

Increasing wage structure of Contempo Sievers

– 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 Contempo Sievers.

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.

High dependence on third party suppliers

– Contempo Sievers 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Contempo Sievers in the Finance & Accounting industry. The Finance & Accounting 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.

Consumer confidence and its impact on Contempo Sievers 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.

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Weighted SWOT Analysis of Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Technologies, Inc. and Betty Sievers: A Clash of Interests in an Uncertain Time 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 Contempo Sievers needs to make to build a sustainable competitive advantage.

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