Leading in the Age of Super-Transparency SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Leading in the Age of Super-Transparency
This is an MIT Sloan Management Review article. When Martha Payne, a 9-year-old student in Argyll, Scotland, started a blog in April 2012 to photograph and rate her school lunches, she had no idea of the stir she would cause. The blog logged 2 million hits in its first six weeks. When the local area council asked her to stop, an online firestorm ensued and the council reversed its decision. It's a familiar story -every day, images or events with the potential to incite passions get captured digitally, posted to the Web, and "go viral."With social media, people share their experiences with friends or followers, who share with more people. Seemingly insignificant occurrences can strike a nerve with a nascent virtual community, and unsuspecting parties must respond to a dicey new problem. The capacity to generate causes and controversies almost instantly may be the most salient aspect of what authors Robert D. Austin and David M. Upton call the "super-transparent society." Historically, the authors explain, people in a particular community were the only ones who paid attention to the local goings-on. When information moved outside of that environment, it was due to deliberate action: some identifiable person or organization moving it. If you wanted to guard information, you built a barrier. Many things have changed, particularly the volume of information. The article suggests several steps that can help managers meet the new expectations for transparency, including the following: Examine your assumptions about how you can keep information contained. Review your strategy for dealing with vulnerability to unintended transparency. Review operations for issues that might be problematic if revealed. Assume that others will put out information about your organization for their own reasons and that you won't be able to prevent it. Recognize that new information flows change what people consider to be fair.
Swot Analysis of "Leading in the Age of Super-Transparency" written by Robert Austin, David M. Upton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Transparency Information facing as an external strategic factors. Some of the topics covered in Leading in the Age of Super-Transparency case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Leading in the Age of Super-Transparency casestudy better are - – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Leading in the Age of Super-Transparency
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leading in the Age of Super-Transparency case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Transparency Information, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Transparency Information 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 Leading in the Age of Super-Transparency can be done for the following purposes –
1. Strategic planning using facts provided in Leading in the Age of Super-Transparency case study
2. Improving business portfolio management of Transparency Information
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 Transparency Information
Strengths Leading in the Age of Super-Transparency | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Transparency Information in Leading in the Age of Super-Transparency Harvard Business Review case study are -
Successful track record of launching new products
– Transparency Information has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Transparency Information 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.
Low bargaining power of suppliers
– Suppliers of Transparency Information in the sector have low bargaining power. Leading in the Age of Super-Transparency has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Transparency Information to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Transparency Information is one of the leading recruiters in the industry. Managers in the Leading in the Age of Super-Transparency are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Transparency Information is present in almost all the verticals within the industry. This has provided firm in Leading in the Age of Super-Transparency 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.
High switching costs
– The high switching costs that Transparency Information 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.
Superior customer experience
– The customer experience strategy of Transparency Information in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Transparency Information has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Transparency Information to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Transparency Information 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 Transparency Information in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Transparency Information is one of the most innovative firm in sector. Manager in Leading in the Age of Super-Transparency 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
– Transparency Information 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 Leading in the Age of Super-Transparency HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Transparency Information
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Transparency Information does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Transparency Information is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Leading in the Age of Super-Transparency | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leading in the Age of Super-Transparency are -
Slow decision making process
– As mentioned earlier in the report, Transparency Information 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. Transparency Information 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.
High cash cycle compare to competitors
Transparency Information 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 Leading in the Age of Super-Transparency 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 Transparency Information 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Leading in the Age of Super-Transparency 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 Transparency Information has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Transparency Information 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.
Low market penetration in new markets
– Outside its home market of Transparency Information, firm in the HBR case study Leading in the Age of Super-Transparency needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Transparency Information 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 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 Transparency Information supply chain. Even after few cautionary changes mentioned in the HBR case study - Leading in the Age of Super-Transparency, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Transparency Information vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Leading in the Age of Super-Transparency HBR case study mentions - Transparency Information 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.
Increasing silos among functional specialists
– The organizational structure of Transparency Information is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Transparency Information needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Transparency Information to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Leading in the Age of Super-Transparency, in the dynamic environment Transparency Information has struggled to respond to the nimble upstart competition. Transparency Information has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Leading in the Age of Super-Transparency | 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 Leading in the Age of Super-Transparency are -
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. Transparency Information can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Transparency Information can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Transparency Information 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.
Better consumer reach
– The expansion of the 5G network will help Transparency Information to increase its market reach. Transparency Information will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Using analytics as competitive advantage
– Transparency Information 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 Leading in the Age of Super-Transparency - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Transparency Information to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Transparency Information is facing challenges because of the dominance of functional experts in the organization. Leading in the Age of Super-Transparency 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Transparency Information can use these opportunities to build new business models that can help the communities that Transparency Information operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Transparency Information 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Transparency Information 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 Transparency Information to hire the very best people irrespective of their geographical location.
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. Transparency Information 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. Transparency Information 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.
Buying journey improvements
– Transparency Information can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Leading in the Age of Super-Transparency 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.
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. Transparency Information can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Transparency Information 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.
Threats Leading in the Age of Super-Transparency External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leading in the Age of Super-Transparency are -
Consumer confidence and its impact on Transparency Information 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
– Transparency Information has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Transparency Information 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.
Regulatory challenges
– Transparency Information 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.
Shortening product life cycle
– it is one of the major threat that Transparency Information is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Transparency Information 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. Transparency Information can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Transparency Information.
Stagnating economy with rate increase
– Transparency Information 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.
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. Transparency Information needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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. Transparency Information 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.
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 Transparency Information in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Transparency Information business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Transparency Information 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 Leading in the Age of Super-Transparency 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 Leading in the Age of Super-Transparency 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 Leading in the Age of Super-Transparency 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 Leading in the Age of Super-Transparency 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 Leading in the Age of Super-Transparency 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 Transparency Information needs to make to build a sustainable competitive advantage.