Note on Decision Making, Emotions and Entrepreneurship SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Note on Decision Making, Emotions and Entrepreneurship
This is part of the subset of Ivey cases and technical notes written for Introductory-Level courses.The students will learn the role of emotion in decision making and understand the specific implications of emotion in entrepreneurship.
Swot Analysis of "Note on Decision Making, Emotions and Entrepreneurship" written by Colleen Sharen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Emotion Entrepreneurship facing as an external strategic factors. Some of the topics covered in Note on Decision Making, Emotions and Entrepreneurship case study are - Strategic Management Strategies, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Note on Decision Making, Emotions and Entrepreneurship casestudy better are - – central banks are concerned over increasing inflation, increasing energy prices, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , technology disruption, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Note on Decision Making, Emotions and Entrepreneurship
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on Decision Making, Emotions and Entrepreneurship case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Emotion Entrepreneurship, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Emotion Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship can be done for the following purposes –
1. Strategic planning using facts provided in Note on Decision Making, Emotions and Entrepreneurship case study
2. Improving business portfolio management of Emotion Entrepreneurship
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 Emotion Entrepreneurship
Strengths Note on Decision Making, Emotions and Entrepreneurship | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Emotion Entrepreneurship in Note on Decision Making, Emotions and Entrepreneurship Harvard Business Review case study are -
Effective Research and Development (R&D)
– Emotion Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Emotion Entrepreneurship 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 Colleen Sharen 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 brand equity
– Emotion Entrepreneurship has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Emotion Entrepreneurship to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Emotion Entrepreneurship has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Note on Decision Making, Emotions and Entrepreneurship 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.
Ability to recruit top talent
– Emotion Entrepreneurship is one of the leading recruiters in the industry. Managers in the Note on Decision Making, Emotions and Entrepreneurship are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Emotion Entrepreneurship is one of the most innovative firm in sector. Manager in Note on Decision Making, Emotions and Entrepreneurship Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Emotion Entrepreneurship
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Emotion Entrepreneurship 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
– Emotion Entrepreneurship has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Emotion Entrepreneurship 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 Emotion Entrepreneurship in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Emotion Entrepreneurship 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 Emotion Entrepreneurship is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on Decision Making, Emotions and Entrepreneurship Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Emotion Entrepreneurship in the sector have low bargaining power. Note on Decision Making, Emotions and Entrepreneurship has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Emotion Entrepreneurship to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Note on Decision Making, Emotions and Entrepreneurship 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.
Weaknesses Note on Decision Making, Emotions and Entrepreneurship | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on Decision Making, Emotions and Entrepreneurship are -
Increasing silos among functional specialists
– The organizational structure of Emotion Entrepreneurship is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Emotion Entrepreneurship needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Emotion Entrepreneurship to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Note on Decision Making, Emotions and Entrepreneurship HBR case study mentions - Emotion Entrepreneurship 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Note on Decision Making, Emotions and Entrepreneurship 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 Emotion Entrepreneurship 's lucrative customers.
Interest costs
– Compare to the competition, Emotion Entrepreneurship 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.
Low market penetration in new markets
– Outside its home market of Emotion Entrepreneurship, firm in the HBR case study Note on Decision Making, Emotions and Entrepreneurship needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Emotion Entrepreneurship 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 - Note on Decision Making, Emotions and Entrepreneurship should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Emotion Entrepreneurship 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Emotion Entrepreneurship is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Note on Decision Making, Emotions and Entrepreneurship can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Note on Decision Making, Emotions and Entrepreneurship, is just above the industry average. Emotion Entrepreneurship 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.
Skills based hiring
– The stress on hiring functional specialists at Emotion Entrepreneurship 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Note on Decision Making, Emotions and Entrepreneurship 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 Emotion Entrepreneurship has relatively successful track record of launching new products.
Opportunities Note on Decision Making, Emotions and Entrepreneurship | 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 Note on Decision Making, Emotions and Entrepreneurship are -
Leveraging digital technologies
– Emotion Entrepreneurship 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Emotion Entrepreneurship can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Emotion Entrepreneurship 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.
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. Emotion Entrepreneurship 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, Emotion Entrepreneurship is facing challenges because of the dominance of functional experts in the organization. Note on Decision Making, Emotions and Entrepreneurship 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.
Building a culture of innovation
– managers at Emotion Entrepreneurship 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.
Using analytics as competitive advantage
– Emotion Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Emotion Entrepreneurship to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Emotion Entrepreneurship can use these opportunities to build new business models that can help the communities that Emotion Entrepreneurship operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Emotion Entrepreneurship to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Emotion Entrepreneurship to hire the very best people irrespective of their geographical location.
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 Emotion Entrepreneurship in the consumer business. Now Emotion Entrepreneurship can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Emotion Entrepreneurship 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.
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. Emotion Entrepreneurship can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Emotion Entrepreneurship 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, Note on Decision Making, Emotions and Entrepreneurship, 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 Note on Decision Making, Emotions and Entrepreneurship External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on Decision Making, Emotions and Entrepreneurship are -
Stagnating economy with rate increase
– Emotion Entrepreneurship 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.
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 Emotion Entrepreneurship in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Emotion Entrepreneurship 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Note on Decision Making, Emotions and Entrepreneurship, Emotion Entrepreneurship 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 .
Consumer confidence and its impact on Emotion Entrepreneurship 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.
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. Emotion Entrepreneurship needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Emotion Entrepreneurship 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. Emotion Entrepreneurship can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Emotion Entrepreneurship can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Emotion Entrepreneurship 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 Emotion Entrepreneurship is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Emotion Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship .
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 Emotion Entrepreneurship business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Note on Decision Making, Emotions and Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship 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 Note on Decision Making, Emotions and Entrepreneurship 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 Emotion Entrepreneurship needs to make to build a sustainable competitive advantage.