Michelle Rhee and the Washington D.C. Public Schools SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Michelle Rhee and the Washington D.C. Public Schools
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.The case opens in 2007, when the Washington, D.C. public school system was failing. Parents, politicians, labor unions and activists all agreed that reform was necessary due to abysmal student test scores, attendance records and safety concerns. But stakeholders disagreed sharply on how to achieve their shared goal of providing a good education to the city's children. Reformers wanted to close failing schools, parents wanted to choose where their children attended school, and the teachers' union wanted more compensation for teachers. Michelle Rhee, a former teacher and "outsider," was hired by Mayor Adrian Fenty to institute sweeping and speedy reforms. As Chancellor, Rhee came under fire by teachers and their union, parents and the public for her swift move to close underperforming schools and, controversially, to fire teachers rated as "ineffective" by IMPACT, a value-added evaluation system designed to isolate each teacher's unique contribution to their student's educational achievement based on student test scores. The case discusses the steps Rhee took to reform the D.C. public schools and the support and opposition she encountered along the way, culminating with her November 2010 resignation. HKS Case Number 1957.0.
Authors :: Laura Winig, Steve Kelman, Patricia Garcia-Rios
Swot Analysis of "Michelle Rhee and the Washington D.C. Public Schools" written by Laura Winig, Steve Kelman, Patricia Garcia-Rios includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rhee Teachers facing as an external strategic factors. Some of the topics covered in Michelle Rhee and the Washington D.C. Public Schools case study are - Strategic Management Strategies, Decision making, Government, Innovation, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Michelle Rhee and the Washington D.C. Public Schools casestudy better are - – technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is increasing trade war between United States & China, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Michelle Rhee and the Washington D.C. Public Schools
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Michelle Rhee and the Washington D.C. Public Schools case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rhee Teachers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rhee Teachers 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 Michelle Rhee and the Washington D.C. Public Schools can be done for the following purposes –
1. Strategic planning using facts provided in Michelle Rhee and the Washington D.C. Public Schools case study
2. Improving business portfolio management of Rhee Teachers
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 Rhee Teachers
Strengths Michelle Rhee and the Washington D.C. Public Schools | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rhee Teachers in Michelle Rhee and the Washington D.C. Public Schools Harvard Business Review case study are -
Analytics focus
– Rhee Teachers 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 Laura Winig, Steve Kelman, Patricia Garcia-Rios 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.
Successful track record of launching new products
– Rhee Teachers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rhee Teachers has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Michelle Rhee and the Washington D.C. Public Schools 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.
Cross disciplinary teams
– Horizontal connected teams at the Rhee Teachers 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.
Diverse revenue streams
– Rhee Teachers is present in almost all the verticals within the industry. This has provided firm in Michelle Rhee and the Washington D.C. Public Schools 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Rhee Teachers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rhee Teachers 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.
Highly skilled collaborators
– Rhee Teachers 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 Michelle Rhee and the Washington D.C. Public Schools HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Rhee Teachers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rhee Teachers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Rhee Teachers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rhee Teachers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Rhee Teachers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Michelle Rhee and the Washington D.C. Public Schools 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.
High switching costs
– The high switching costs that Rhee Teachers 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.
Innovation driven organization
– Rhee Teachers is one of the most innovative firm in sector. Manager in Michelle Rhee and the Washington D.C. Public Schools Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Michelle Rhee and the Washington D.C. Public Schools | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Michelle Rhee and the Washington D.C. Public Schools are -
High cash cycle compare to competitors
Rhee Teachers 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.
No frontier risks strategy
– After analyzing the HBR case study Michelle Rhee and the Washington D.C. Public Schools, 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 Rhee Teachers 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 - Michelle Rhee and the Washington D.C. Public Schools should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Rhee Teachers 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 bargaining power of channel partners
– Because of the regulatory requirements, Laura Winig, Steve Kelman, Patricia Garcia-Rios suggests that, Rhee Teachers is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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 Rhee Teachers supply chain. Even after few cautionary changes mentioned in the HBR case study - Michelle Rhee and the Washington D.C. Public Schools, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rhee Teachers vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rhee Teachers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Michelle Rhee and the Washington D.C. Public Schools can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Rhee Teachers, firm in the HBR case study Michelle Rhee and the Washington D.C. Public Schools needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Rhee Teachers 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 Rhee Teachers is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Rhee Teachers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rhee Teachers to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Michelle Rhee and the Washington D.C. Public Schools 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 Rhee Teachers has relatively successful track record of launching new products.
Opportunities Michelle Rhee and the Washington D.C. Public Schools | 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 Michelle Rhee and the Washington D.C. Public Schools are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rhee Teachers can use these opportunities to build new business models that can help the communities that Rhee Teachers operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Rhee Teachers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Michelle Rhee and the Washington D.C. Public Schools 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rhee Teachers 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, Michelle Rhee and the Washington D.C. Public Schools, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Rhee Teachers 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.
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 Rhee Teachers 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.
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. Rhee Teachers 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. Rhee Teachers 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 Rhee Teachers has opened avenues for new revenue streams for the organization in the industry. This can help Rhee Teachers to build a more holistic ecosystem as suggested in the Michelle Rhee and the Washington D.C. Public Schools case study. Rhee Teachers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rhee Teachers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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. Rhee Teachers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rhee Teachers is facing challenges because of the dominance of functional experts in the organization. Michelle Rhee and the Washington D.C. Public Schools 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.
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 Rhee Teachers in the consumer business. Now Rhee Teachers can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Rhee Teachers can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Rhee Teachers 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.
Threats Michelle Rhee and the Washington D.C. Public Schools External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Michelle Rhee and the Washington D.C. Public Schools are -
High dependence on third party suppliers
– Rhee Teachers 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.
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. Rhee Teachers 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.
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.
Environmental challenges
– Rhee Teachers 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. Rhee Teachers can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rhee Teachers 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 Michelle Rhee and the Washington D.C. Public Schools .
Regulatory challenges
– Rhee Teachers 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rhee Teachers 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.
Technology acceleration in Forth Industrial Revolution
– Rhee Teachers has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Rhee Teachers 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 Rhee Teachers in the Leadership & Managing People sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Rhee Teachers 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.
Increasing wage structure of Rhee Teachers
– 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 Rhee Teachers.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rhee Teachers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Michelle Rhee and the Washington D.C. Public Schools 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 Michelle Rhee and the Washington D.C. Public Schools 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 Michelle Rhee and the Washington D.C. Public Schools 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 Michelle Rhee and the Washington D.C. Public Schools 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 Michelle Rhee and the Washington D.C. Public Schools 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 Rhee Teachers needs to make to build a sustainable competitive advantage.
