Hardina Smythe and the Healthcare Investment Conundrum SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hardina Smythe and the Healthcare Investment Conundrum
Hardina Smythe, a recent MBA graduate, has just joined a top-tier venture capital firm in the difficult environment of late 2010. Her first assignment is to evaluate three different deals and make recommendations to the partners. Each potential investment has strengths and drawbacks for both the firm and Hardina.
Authors :: Matthew Rhodes-Kropf, Ann Leamon, Lisa Strope
Swot Analysis of "Hardina Smythe and the Healthcare Investment Conundrum" written by Matthew Rhodes-Kropf, Ann Leamon, Lisa Strope includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hardina Smythe facing as an external strategic factors. Some of the topics covered in Hardina Smythe and the Healthcare Investment Conundrum case study are - Strategic Management Strategies, Innovation, International business, Venture capital and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Hardina Smythe and the Healthcare Investment Conundrum casestudy better are - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, etc
Introduction to SWOT Analysis of Hardina Smythe and the Healthcare Investment Conundrum
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hardina Smythe and the Healthcare Investment Conundrum case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hardina Smythe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hardina Smythe 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 Hardina Smythe and the Healthcare Investment Conundrum can be done for the following purposes –
1. Strategic planning using facts provided in Hardina Smythe and the Healthcare Investment Conundrum case study
2. Improving business portfolio management of Hardina Smythe
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 Hardina Smythe
Strengths Hardina Smythe and the Healthcare Investment Conundrum | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hardina Smythe in Hardina Smythe and the Healthcare Investment Conundrum Harvard Business Review case study are -
Successful track record of launching new products
– Hardina Smythe has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hardina Smythe has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– Hardina Smythe is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Matthew Rhodes-Kropf, Ann Leamon, Lisa Strope can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Hardina Smythe
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hardina Smythe does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Hardina Smythe in the sector have low bargaining power. Hardina Smythe and the Healthcare Investment Conundrum has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hardina Smythe to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Hardina Smythe is one of the leading recruiters in the industry. Managers in the Hardina Smythe and the Healthcare Investment Conundrum are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Hardina Smythe 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.
Learning organization
- Hardina Smythe 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 Hardina Smythe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hardina Smythe and the Healthcare Investment Conundrum Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Hardina Smythe has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hardina Smythe to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Hardina Smythe is present in almost all the verticals within the industry. This has provided firm in Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Finance & Accounting field
– Hardina Smythe 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 Hardina Smythe 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 Hardina Smythe digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hardina Smythe 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.
Weaknesses Hardina Smythe and the Healthcare Investment Conundrum | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hardina Smythe and the Healthcare Investment Conundrum are -
High cash cycle compare to competitors
Hardina Smythe 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.
Slow to strategic competitive environment developments
– As Hardina Smythe and the Healthcare Investment Conundrum HBR case study mentions - Hardina Smythe 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.
Interest costs
– Compare to the competition, Hardina Smythe 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.
Increasing silos among functional specialists
– The organizational structure of Hardina Smythe is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Hardina Smythe needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hardina Smythe to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Hardina Smythe, firm in the HBR case study Hardina Smythe and the Healthcare Investment Conundrum needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe has relatively successful track record of launching new products.
Lack of clear differentiation of Hardina Smythe products
– To increase the profitability and margins on the products, Hardina Smythe needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe and the Healthcare Investment Conundrum can leverage the sales team experience to cultivate customer relationships as Hardina Smythe is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hardina Smythe and the Healthcare Investment Conundrum, it seems that the employees of Hardina Smythe 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hardina Smythe is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hardina Smythe and the Healthcare Investment Conundrum can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Hardina Smythe and the Healthcare Investment Conundrum | 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 Hardina Smythe and the Healthcare Investment Conundrum are -
Manufacturing automation
– Hardina Smythe 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.
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 Hardina Smythe in the consumer business. Now Hardina Smythe can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Hardina Smythe 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hardina Smythe is facing challenges because of the dominance of functional experts in the organization. Hardina Smythe and the Healthcare Investment Conundrum 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.
Using analytics as competitive advantage
– Hardina Smythe 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 Hardina Smythe and the Healthcare Investment Conundrum - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hardina Smythe to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Hardina Smythe has opened avenues for new revenue streams for the organization in the industry. This can help Hardina Smythe to build a more holistic ecosystem as suggested in the Hardina Smythe and the Healthcare Investment Conundrum case study. Hardina Smythe can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Hardina Smythe 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 Finance & Accounting segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hardina Smythe can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hardina Smythe 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. Hardina Smythe 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.
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 Hardina Smythe 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.
Buying journey improvements
– Hardina Smythe can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hardina Smythe and the Healthcare Investment Conundrum 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.
Learning at scale
– Online learning technologies has now opened space for Hardina Smythe 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hardina Smythe can use these opportunities to build new business models that can help the communities that Hardina Smythe operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Hardina Smythe and the Healthcare Investment Conundrum External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hardina Smythe and the Healthcare Investment Conundrum are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hardina Smythe 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.
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
– Hardina Smythe 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.
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 Hardina Smythe business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Hardina Smythe
– 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 Hardina Smythe.
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 Hardina Smythe.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Hardina Smythe and the Healthcare Investment Conundrum, Hardina Smythe may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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. Hardina Smythe needs to understand the core reasons impacting the Finance & Accounting 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 Hardina Smythe in the Finance & Accounting sector and impact the bottomline of the organization.
Regulatory challenges
– Hardina Smythe 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hardina Smythe 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 Hardina Smythe and the Healthcare Investment Conundrum .
Technology acceleration in Forth Industrial Revolution
– Hardina Smythe has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Hardina Smythe 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.
Weighted SWOT Analysis of Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe and the Healthcare Investment Conundrum 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 Hardina Smythe needs to make to build a sustainable competitive advantage.
