Boeing: No Nerds, No Birds (B): Company Loyalty SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Boeing: No Nerds, No Birds (B): Company Loyalty
This series of six cases (labeled A through F) presents the various dilemmas that arose in the spring of 2001 when engineers at the Seattle-based Boeing Company, unhappy with management decisions, contemplated and undertook a strike, the first "white-collar" work stoppage in the history of American business.
Authors :: Pat Werhane, Michael Gorman, Jenny Mead, Mary L Cummings
Swot Analysis of "Boeing: No Nerds, No Birds (B): Company Loyalty" written by Pat Werhane, Michael Gorman, Jenny Mead, Mary L Cummings includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Boeing Nerds facing as an external strategic factors. Some of the topics covered in Boeing: No Nerds, No Birds (B): Company Loyalty case study are - Strategic Management Strategies, Ethics, Labor and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Boeing: No Nerds, No Birds (B): Company Loyalty casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, central banks are concerned over increasing inflation, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs,
cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Boeing: No Nerds, No Birds (B): Company Loyalty
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boeing: No Nerds, No Birds (B): Company Loyalty case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Boeing Nerds, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Boeing Nerds 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 Boeing: No Nerds, No Birds (B): Company Loyalty can be done for the following purposes –
1. Strategic planning using facts provided in Boeing: No Nerds, No Birds (B): Company Loyalty case study
2. Improving business portfolio management of Boeing Nerds
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 Boeing Nerds
Strengths Boeing: No Nerds, No Birds (B): Company Loyalty | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Boeing Nerds in Boeing: No Nerds, No Birds (B): Company Loyalty Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Boeing Nerds digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Boeing Nerds 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
– Boeing Nerds 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 Boeing: No Nerds, No Birds (B): Company Loyalty HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Boeing Nerds has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Boeing: No Nerds, No Birds (B): Company Loyalty 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.
Diverse revenue streams
– Boeing Nerds is present in almost all the verticals within the industry. This has provided firm in Boeing: No Nerds, No Birds (B): Company Loyalty 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.
Operational resilience
– The operational resilience strategy in the Boeing: No Nerds, No Birds (B): Company Loyalty 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.
Effective Research and Development (R&D)
– Boeing Nerds 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 Boeing: No Nerds, No Birds (B): Company Loyalty - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Boeing Nerds in the sector have low bargaining power. Boeing: No Nerds, No Birds (B): Company Loyalty has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Boeing Nerds to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Boeing Nerds
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Boeing Nerds does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Boeing Nerds has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Boeing Nerds to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Boeing Nerds 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 Pat Werhane, Michael Gorman, Jenny Mead, Mary L Cummings 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
– Boeing Nerds has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Boeing Nerds 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.
Cross disciplinary teams
– Horizontal connected teams at the Boeing Nerds 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.
Weaknesses Boeing: No Nerds, No Birds (B): Company Loyalty | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boeing: No Nerds, No Birds (B): Company Loyalty are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Boeing: No Nerds, No Birds (B): Company Loyalty, is just above the industry average. Boeing Nerds needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing Nerds 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Pat Werhane, Michael Gorman, Jenny Mead, Mary L Cummings suggests that, Boeing Nerds 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.
Increasing silos among functional specialists
– The organizational structure of Boeing Nerds is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Boeing Nerds needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Boeing Nerds to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Boeing: No Nerds, No Birds (B): Company Loyalty HBR case study mentions - Boeing Nerds 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Boeing Nerds is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Boeing: No Nerds, No Birds (B): Company Loyalty can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Boeing Nerds 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 cash cycle compare to competitors
Boeing Nerds 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 Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing Nerds has relatively successful track record of launching new products.
Products dominated business model
– Even though Boeing Nerds 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 - Boeing: No Nerds, No Birds (B): Company Loyalty should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Boeing Nerds 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. Boeing Nerds 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.
Opportunities Boeing: No Nerds, No Birds (B): Company Loyalty | 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 Boeing: No Nerds, No Birds (B): Company Loyalty are -
Learning at scale
– Online learning technologies has now opened space for Boeing Nerds to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Boeing Nerds can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Boeing Nerds can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Boeing Nerds to increase its market reach. Boeing Nerds 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.
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 Boeing Nerds in the consumer business. Now Boeing Nerds can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Boeing Nerds has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Boeing Nerds can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Boeing: No Nerds, No Birds (B): Company Loyalty 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.
Manufacturing automation
– Boeing Nerds 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Boeing Nerds 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, Boeing: No Nerds, No Birds (B): Company Loyalty, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Boeing Nerds can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Boeing Nerds 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.
Leveraging digital technologies
– Boeing Nerds 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Boeing Nerds is facing challenges because of the dominance of functional experts in the organization. Boeing: No Nerds, No Birds (B): Company Loyalty case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Boeing: No Nerds, No Birds (B): Company Loyalty External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boeing: No Nerds, No Birds (B): Company Loyalty are -
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. Boeing Nerds needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Stagnating economy with rate increase
– Boeing Nerds 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 Boeing Nerds
– 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 Boeing Nerds.
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 Boeing Nerds in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Boeing Nerds has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Boeing Nerds 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.
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. Boeing Nerds 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.
Regulatory challenges
– Boeing Nerds 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.
Shortening product life cycle
– it is one of the major threat that Boeing Nerds is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Boeing Nerds 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 Boeing Nerds.
High dependence on third party suppliers
– Boeing Nerds 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.
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 Boeing Nerds business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing: No Nerds, No Birds (B): Company Loyalty 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 Boeing Nerds needs to make to build a sustainable competitive advantage.