Clarence Hall University and the Donation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Clarence Hall University and the Donation
Annalisa McGann, chair of London's prestigious Clarence Hall University, together with the university's board must make a decision about whether to return a large monetary donation from the Natour Charitable Foundation, which was founded and run by a recent graduate who was also the son of the leader of a corrupt, authoritarian regime in an oil-rich region. Almost two-thirds of the money had already been invested in an innovative leukemia drug that could significantly increase patients' chances of survival; the remainder had been earmarked for an endowment fund for low-income students. Each course of action-keeping the money, giving back the entire sum, or returning the unspent money-had complex consequences, particularly in the current environment in which all British universities were suffering financially and there was nationwide student unrest over rising university costs. The British press, by uncovering the connection between Natour and Clarence Hall, had forced the administration's hand, and McGann and the board needed to make a quick decision after considering a number of complicating factors.
Swot Analysis of "Clarence Hall University and the Donation" written by Bidhan Parmar, Jenny Mead, Mallory Combemale includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clarence Hall facing as an external strategic factors. Some of the topics covered in Clarence Hall University and the Donation case study are - Strategic Management Strategies, Ethics, Leadership, Public relations, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Clarence Hall University and the Donation casestudy better are - – increasing commodity prices, cloud computing is disrupting traditional business models, increasing energy prices, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , technology disruption,
challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Clarence Hall University and the Donation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Clarence Hall University and the Donation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clarence Hall, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clarence Hall 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 Clarence Hall University and the Donation can be done for the following purposes –
1. Strategic planning using facts provided in Clarence Hall University and the Donation case study
2. Improving business portfolio management of Clarence Hall
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 Clarence Hall
Strengths Clarence Hall University and the Donation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clarence Hall in Clarence Hall University and the Donation Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Clarence Hall digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clarence Hall has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Clarence Hall 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 Clarence Hall University and the Donation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Clarence Hall University and the Donation firm has clearly differentiated products in the market place. This has enabled Clarence Hall to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Clarence Hall to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Clarence Hall 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.
Highly skilled collaborators
– Clarence Hall 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 Clarence Hall University and the Donation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Clarence Hall has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Clarence Hall to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Clarence Hall University and the Donation 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.
Superior customer experience
– The customer experience strategy of Clarence Hall in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Clarence Hall 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 Clarence Hall is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Clarence Hall University and the Donation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Clarence Hall
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Clarence Hall does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Clarence Hall 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.
Low bargaining power of suppliers
– Suppliers of Clarence Hall in the sector have low bargaining power. Clarence Hall University and the Donation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Clarence Hall to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Clarence Hall University and the Donation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Clarence Hall University and the Donation are -
Workers concerns about automation
– As automation is fast increasing in the segment, Clarence Hall 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.
Interest costs
– Compare to the competition, Clarence Hall 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.
Skills based hiring
– The stress on hiring functional specialists at Clarence Hall 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.
Increasing silos among functional specialists
– The organizational structure of Clarence Hall is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Clarence Hall needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clarence Hall 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 Clarence Hall University and the Donation, in the dynamic environment Clarence Hall has struggled to respond to the nimble upstart competition. Clarence Hall has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Clarence Hall University and the Donation, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though Clarence Hall 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 - Clarence Hall University and the Donation should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Clarence Hall University and the Donation, is just above the industry average. Clarence Hall needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Clarence Hall University and the Donation 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 Clarence Hall has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Clarence Hall University and the Donation 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 Clarence Hall University and the Donation can leverage the sales team experience to cultivate customer relationships as Clarence Hall is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Clarence Hall University and the Donation HBR case study mentions - Clarence Hall 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.
Opportunities Clarence Hall University and the Donation | 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 Clarence Hall University and the Donation are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clarence Hall 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, Clarence Hall University and the Donation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Clarence Hall has opened avenues for new revenue streams for the organization in the industry. This can help Clarence Hall to build a more holistic ecosystem as suggested in the Clarence Hall University and the Donation case study. Clarence Hall can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clarence Hall 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
– Clarence Hall 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.
Leveraging digital technologies
– Clarence Hall 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.
Loyalty marketing
– Clarence Hall 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.
Learning at scale
– Online learning technologies has now opened space for Clarence Hall 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.
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. Clarence Hall can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Clarence Hall can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Clarence Hall 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. Clarence Hall 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.
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 Clarence Hall in the consumer business. Now Clarence Hall can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Clarence Hall can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Clarence Hall University and the Donation 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, Clarence Hall is facing challenges because of the dominance of functional experts in the organization. Clarence Hall University and the Donation case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Clarence Hall University and the Donation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Clarence Hall University and the Donation are -
Increasing wage structure of Clarence Hall
– 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 Clarence Hall.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Clarence Hall with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Clarence Hall is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Clarence Hall.
Regulatory challenges
– Clarence Hall 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.
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 Clarence Hall in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Clarence Hall University and the Donation, Clarence Hall 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 .
Stagnating economy with rate increase
– Clarence Hall 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clarence Hall 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 Clarence Hall University and the Donation .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Clarence Hall 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.
Environmental challenges
– Clarence Hall 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. Clarence Hall can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Clarence Hall 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.
Weighted SWOT Analysis of Clarence Hall University and the Donation 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 Clarence Hall University and the Donation 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 Clarence Hall University and the Donation 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 Clarence Hall University and the Donation 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 Clarence Hall University and the Donation 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 Clarence Hall needs to make to build a sustainable competitive advantage.