SkillsForTomorrow: A Management Team in Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SkillsForTomorrow: A Management Team in Crisis
A management consultant has been hired to fix the morale issues at a branch of SkillsForTomorrow (SFT) in Pennsylvania, United States. SFT is a government-sponsored organization tasked with helping at-risk young adults gain vocational training toward preparing them for a successful career in one of several areas, including automotive and machine repair, construction, health care and information technology. The program provides support to students beyond technical training, including the development of interpersonal skills, problem-solving skills and skills in effectively conducting a job search and interview - all towards the goal of graduating individuals that are prepared to live independently and become productive citizens (and taxpayers). Several factors are influencing the morale of the SFT management team, some of which point directly to the sponsor of the consulting project, the executive director at SFT Harrisburg. The consultant must identify the root causes of the management discord and derive a solution that can help solve the various issues. The consultant will need to consider the political and interpersonal aspects of the consulting relationship between herself and the executive director. Steven D. Charlier is affiliated with Quinnipiac University
Swot Analysis of "SkillsForTomorrow: A Management Team in Crisis" written by Steven D. Charlier, Martin M. Brennan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sft Skillsfortomorrow facing as an external strategic factors. Some of the topics covered in SkillsForTomorrow: A Management Team in Crisis case study are - Strategic Management Strategies, Conflict, Leadership, Leading teams and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the SkillsForTomorrow: A Management Team in Crisis casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of SkillsForTomorrow: A Management Team in Crisis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SkillsForTomorrow: A Management Team in Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sft Skillsfortomorrow, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis can be done for the following purposes –
1. Strategic planning using facts provided in SkillsForTomorrow: A Management Team in Crisis case study
2. Improving business portfolio management of Sft Skillsfortomorrow
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 Sft Skillsfortomorrow
Strengths SkillsForTomorrow: A Management Team in Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sft Skillsfortomorrow in SkillsForTomorrow: A Management Team in Crisis Harvard Business Review case study are -
Strong track record of project management
– Sft Skillsfortomorrow is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Sft Skillsfortomorrow has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SkillsForTomorrow: A Management Team in Crisis 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.
Organizational Resilience of Sft Skillsfortomorrow
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sft Skillsfortomorrow does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Sft Skillsfortomorrow has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sft Skillsfortomorrow 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.
Superior customer experience
– The customer experience strategy of Sft Skillsfortomorrow in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Sft Skillsfortomorrow 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 Steven D. Charlier, Martin M. Brennan 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.
High switching costs
– The high switching costs that Sft Skillsfortomorrow 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.
High brand equity
– Sft Skillsfortomorrow has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sft Skillsfortomorrow to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Sft Skillsfortomorrow is one of the leading recruiters in the industry. Managers in the SkillsForTomorrow: A Management Team in Crisis are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– SkillsForTomorrow: A Management Team in Crisis firm has clearly differentiated products in the market place. This has enabled Sft Skillsfortomorrow to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sft Skillsfortomorrow to invest into research and development (R&D) and innovation.
Weaknesses SkillsForTomorrow: A Management Team in Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SkillsForTomorrow: A Management Team in Crisis are -
Low market penetration in new markets
– Outside its home market of Sft Skillsfortomorrow, firm in the HBR case study SkillsForTomorrow: A Management Team in Crisis needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sft Skillsfortomorrow is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SkillsForTomorrow: A Management Team in Crisis can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis can leverage the sales team experience to cultivate customer relationships as Sft Skillsfortomorrow is planning to shift buying processes online.
Interest costs
– Compare to the competition, Sft Skillsfortomorrow 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.
High cash cycle compare to competitors
Sft Skillsfortomorrow 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.
Increasing silos among functional specialists
– The organizational structure of Sft Skillsfortomorrow is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sft Skillsfortomorrow needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sft Skillsfortomorrow to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Sft Skillsfortomorrow 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.
Products dominated business model
– Even though Sft Skillsfortomorrow 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 - SkillsForTomorrow: A Management Team in Crisis should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As SkillsForTomorrow: A Management Team in Crisis HBR case study mentions - Sft Skillsfortomorrow 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study SkillsForTomorrow: A Management Team in Crisis, in the dynamic environment Sft Skillsfortomorrow has struggled to respond to the nimble upstart competition. Sft Skillsfortomorrow has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Sft Skillsfortomorrow products
– To increase the profitability and margins on the products, Sft Skillsfortomorrow needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities SkillsForTomorrow: A Management Team in Crisis | 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 SkillsForTomorrow: A Management Team in Crisis are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sft Skillsfortomorrow can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sft Skillsfortomorrow can use these opportunities to build new business models that can help the communities that Sft Skillsfortomorrow operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Sft Skillsfortomorrow 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. Sft Skillsfortomorrow 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.
Creating value in data economy
– The success of analytics program of Sft Skillsfortomorrow has opened avenues for new revenue streams for the organization in the industry. This can help Sft Skillsfortomorrow to build a more holistic ecosystem as suggested in the SkillsForTomorrow: A Management Team in Crisis case study. Sft Skillsfortomorrow 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 Sft Skillsfortomorrow can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sft Skillsfortomorrow is facing challenges because of the dominance of functional experts in the organization. SkillsForTomorrow: A Management Team in Crisis 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.
Buying journey improvements
– Sft Skillsfortomorrow can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SkillsForTomorrow: A Management Team in Crisis 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. Sft Skillsfortomorrow can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Sft Skillsfortomorrow 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 SkillsForTomorrow: A Management Team in Crisis - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sft Skillsfortomorrow to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Sft Skillsfortomorrow to increase its market reach. Sft Skillsfortomorrow 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.
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 Sft Skillsfortomorrow 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.
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 Sft Skillsfortomorrow in the consumer business. Now Sft Skillsfortomorrow 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, Sft Skillsfortomorrow 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, SkillsForTomorrow: A Management Team in Crisis, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats SkillsForTomorrow: A Management Team in Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SkillsForTomorrow: A Management Team in Crisis are -
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. Sft Skillsfortomorrow 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.
Shortening product life cycle
– it is one of the major threat that Sft Skillsfortomorrow is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Sft Skillsfortomorrow 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.
Technology acceleration in Forth Industrial Revolution
– Sft Skillsfortomorrow has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sft Skillsfortomorrow 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.
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 Sft Skillsfortomorrow in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Sft Skillsfortomorrow can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Sft Skillsfortomorrow.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sft Skillsfortomorrow 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.
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 Sft Skillsfortomorrow business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sft Skillsfortomorrow with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Sft Skillsfortomorrow 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SkillsForTomorrow: A Management Team in Crisis, Sft Skillsfortomorrow 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. Sft Skillsfortomorrow needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 SkillsForTomorrow: A Management Team in Crisis 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 Sft Skillsfortomorrow needs to make to build a sustainable competitive advantage.
