Transforming Companies Into Respected Institutions: A More Holistic View of the Firm SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm
Respect for business has fallen. This article suggests how to make companies respected institutions in society once again. The author starts by arguing that a firm's heterogeneous goals cannot be limited to short-term economic performance. Instead, top managers need to embrace a much more holistic view of the firm and its goals. Then, he outlines the qualities that make a firm a respected institution and he presents a framework to assess the firm's performance in this regard. Finally, he offers some pointers for CEOs to help restore their credibility as leaders.
Swot Analysis of "Transforming Companies Into Respected Institutions: A More Holistic View of the Firm" written by Jordi Canals Margalef includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Respected Holistic facing as an external strategic factors. Some of the topics covered in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study are - Strategic Management Strategies, Social responsibility, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm casestudy better are - – increasing commodity prices, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing energy prices, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Respected Holistic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm can be done for the following purposes –
1. Strategic planning using facts provided in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study
2. Improving business portfolio management of Respected Holistic
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 Respected Holistic
Strengths Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Respected Holistic in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Respected Holistic 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
– Respected Holistic is present in almost all the verticals within the industry. This has provided firm in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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.
Innovation driven organization
– Respected Holistic is one of the most innovative firm in sector. Manager in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Respected Holistic 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 Respected Holistic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Respected Holistic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Respected Holistic 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.
Successful track record of launching new products
– Respected Holistic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Respected Holistic 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.
Training and development
– Respected Holistic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 brand equity
– Respected Holistic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Respected Holistic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Transforming Companies Into Respected Institutions: A More Holistic View of the Firm firm has clearly differentiated products in the market place. This has enabled Respected Holistic to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Respected Holistic to invest into research and development (R&D) and innovation.
Learning organization
- Respected Holistic 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 Respected Holistic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transforming Companies Into Respected Institutions: A More Holistic View of the Firm Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Respected Holistic has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Respected Holistic products
– To increase the profitability and margins on the products, Respected Holistic needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Respected Holistic is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Respected Holistic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Respected Holistic to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Respected Holistic 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.
Need for greater diversity
– Respected Holistic 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.
Aligning sales with marketing
– It come across in the case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm can leverage the sales team experience to cultivate customer relationships as Respected Holistic is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, it seems that the employees of Respected Holistic 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.
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 Respected Holistic supply chain. Even after few cautionary changes mentioned in the HBR case study - Transforming Companies Into Respected Institutions: A More Holistic View of the Firm, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Respected Holistic vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Respected Holistic 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 - Transforming Companies Into Respected Institutions: A More Holistic View of the Firm should strive to include more intangible value offerings along with its core products and services.
Opportunities Transforming Companies Into Respected Institutions: A More Holistic View of the Firm | 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Respected Holistic is facing challenges because of the dominance of functional experts in the organization. Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Respected Holistic 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.
Manufacturing automation
– Respected Holistic 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.
Learning at scale
– Online learning technologies has now opened space for Respected Holistic 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Respected Holistic 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.
Building a culture of innovation
– managers at Respected Holistic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Respected Holistic can use these opportunities to build new business models that can help the communities that Respected Holistic operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Respected Holistic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Respected Holistic in the consumer business. Now Respected Holistic can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Respected Holistic to increase its market reach. Respected Holistic 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.
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. Respected Holistic 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. Respected Holistic 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 Respected Holistic has opened avenues for new revenue streams for the organization in the industry. This can help Respected Holistic to build a more holistic ecosystem as suggested in the Transforming Companies Into Respected Institutions: A More Holistic View of the Firm case study. Respected Holistic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Respected Holistic 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.
Threats Transforming Companies Into Respected Institutions: A More Holistic View of the Firm External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transforming Companies Into Respected Institutions: A More Holistic View of the Firm are -
Consumer confidence and its impact on Respected Holistic 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Respected Holistic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Respected Holistic 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 Respected Holistic.
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
– Respected Holistic 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. Respected Holistic can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Respected Holistic 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 Respected Holistic 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Respected Holistic 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm .
Technology acceleration in Forth Industrial Revolution
– Respected Holistic has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Respected Holistic 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.
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.
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. Respected Holistic needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Respected Holistic business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Transforming Companies Into Respected Institutions: A More Holistic View of the Firm 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 Respected Holistic needs to make to build a sustainable competitive advantage.
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