Cisco Switches in China: The Year of the Manager SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cisco Switches in China: The Year of the Manager
Jan Gronski, managing director of the Cisco China Research and Development Center (CRDC), and Ivo Raznjevic, engineering director, set out to establish a new R&D facility in Shanghai, China. This case focuses on the building of a culture through human-resource practices while describing such steps as securing an appropriate building, assembling a workforce, seeking appropriate projects, developing managers, building teams, evaluating performance, protecting intellectual property, and managing growth. The case presents specific challenges that arise regarding talent management: How does a manager overcome dramatic cultural differences within a diverse workgroup? Should a local female employee be promoted from a test engineer to a development manager? How should Raznjevic help his newest manager through his first encounter with Cisco's ranking system? What action, if any, should Raznjevic take regarding a senior engineer who sent out a controversial e-mail? This material highlights organizational culture and offers an opportunity for students to learn to recognize and manage difference. The case could be taught near the end of a term to serve as a review of organizational behavior at a graduate level or in an executive education program focusing on issues of team-building, growing managers from within, and related talent-management issues in a global context.
Swot Analysis of "Cisco Switches in China: The Year of the Manager" written by Lynn Isabella, Gerry Yemen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Raznjevic Engineer facing as an external strategic factors. Some of the topics covered in Cisco Switches in China: The Year of the Manager case study are - Strategic Management Strategies, Motivating people, Negotiations, Organizational culture, Talent management, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Cisco Switches in China: The Year of the Manager casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing energy prices, increasing transportation and logistics costs, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Cisco Switches in China: The Year of the Manager
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cisco Switches in China: The Year of the Manager case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Raznjevic Engineer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Raznjevic Engineer 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 Cisco Switches in China: The Year of the Manager can be done for the following purposes –
1. Strategic planning using facts provided in Cisco Switches in China: The Year of the Manager case study
2. Improving business portfolio management of Raznjevic Engineer
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 Raznjevic Engineer
Strengths Cisco Switches in China: The Year of the Manager | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Raznjevic Engineer in Cisco Switches in China: The Year of the Manager Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Raznjevic Engineer 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.
Highly skilled collaborators
– Raznjevic Engineer 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 Cisco Switches in China: The Year of the Manager HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Raznjevic Engineer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Raznjevic Engineer 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.
High brand equity
– Raznjevic Engineer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Raznjevic Engineer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Raznjevic Engineer has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cisco Switches in China: The Year of the Manager 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Cisco Switches in China: The Year of the Manager firm has clearly differentiated products in the market place. This has enabled Raznjevic Engineer to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Raznjevic Engineer to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Raznjevic Engineer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Raznjevic Engineer 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.
Low bargaining power of suppliers
– Suppliers of Raznjevic Engineer in the sector have low bargaining power. Cisco Switches in China: The Year of the Manager has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Raznjevic Engineer to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Raznjevic Engineer 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 Lynn Isabella, Gerry Yemen 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.
Ability to lead change in Leadership & Managing People field
– Raznjevic Engineer 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 Raznjevic Engineer in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Raznjevic Engineer 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 Raznjevic Engineer is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cisco Switches in China: The Year of the Manager Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Cisco Switches in China: The Year of the Manager | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cisco Switches in China: The Year of the Manager are -
High cash cycle compare to competitors
Raznjevic Engineer 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cisco Switches in China: The Year of the Manager 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 Raznjevic Engineer has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Raznjevic Engineer 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cisco Switches in China: The Year of the Manager, in the dynamic environment Raznjevic Engineer has struggled to respond to the nimble upstart competition. Raznjevic Engineer has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Raznjevic Engineer is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Raznjevic Engineer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Raznjevic Engineer to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Lynn Isabella, Gerry Yemen suggests that, Raznjevic Engineer 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.
Slow to strategic competitive environment developments
– As Cisco Switches in China: The Year of the Manager HBR case study mentions - Raznjevic Engineer 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.
Slow decision making process
– As mentioned earlier in the report, Raznjevic Engineer has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Raznjevic Engineer even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Raznjevic Engineer 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 - Cisco Switches in China: The Year of the Manager should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cisco Switches in China: The Year of the Manager, it seems that the employees of Raznjevic Engineer 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.
Lack of clear differentiation of Raznjevic Engineer products
– To increase the profitability and margins on the products, Raznjevic Engineer needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Cisco Switches in China: The Year of the Manager | 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 Cisco Switches in China: The Year of the Manager are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Raznjevic Engineer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Raznjevic Engineer 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.
Manufacturing automation
– Raznjevic Engineer 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.
Better consumer reach
– The expansion of the 5G network will help Raznjevic Engineer to increase its market reach. Raznjevic Engineer 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Raznjevic Engineer is facing challenges because of the dominance of functional experts in the organization. Cisco Switches in China: The Year of the Manager 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, Raznjevic Engineer 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.
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. Raznjevic Engineer 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. Raznjevic Engineer 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. Raznjevic Engineer 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.
Buying journey improvements
– Raznjevic Engineer can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cisco Switches in China: The Year of the Manager 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.
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 Raznjevic Engineer to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Raznjevic Engineer in the consumer business. Now Raznjevic Engineer can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Raznjevic Engineer can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Raznjevic Engineer 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 Cisco Switches in China: The Year of the Manager - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Raznjevic Engineer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Cisco Switches in China: The Year of the Manager External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cisco Switches in China: The Year of the Manager are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Raznjevic Engineer 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.
High dependence on third party suppliers
– Raznjevic Engineer 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.
Stagnating economy with rate increase
– Raznjevic Engineer 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.
Shortening product life cycle
– it is one of the major threat that Raznjevic Engineer is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Raznjevic Engineer will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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. Raznjevic Engineer needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Raznjevic Engineer.
Technology acceleration in Forth Industrial Revolution
– Raznjevic Engineer has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Raznjevic Engineer 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.
Regulatory challenges
– Raznjevic Engineer 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.
Environmental challenges
– Raznjevic Engineer 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. Raznjevic Engineer can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Raznjevic Engineer in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Raznjevic Engineer
– 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 Raznjevic Engineer.
Weighted SWOT Analysis of Cisco Switches in China: The Year of the Manager 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 Cisco Switches in China: The Year of the Manager 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 Cisco Switches in China: The Year of the Manager 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 Cisco Switches in China: The Year of the Manager 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 Cisco Switches in China: The Year of the Manager 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 Raznjevic Engineer needs to make to build a sustainable competitive advantage.
