Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B)
The case reveals that Ford decided to open its own e-coating plant in Gujarat, India, and details how the decision was made at different organizational levels.
Swot Analysis of "Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B)" written by Juan Alcacer, Nancy Hua Dai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Coating Gujarat facing as an external strategic factors. Some of the topics covered in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) case study are - Strategic Management Strategies, Communication, Decision making, Global strategy, Motivating people, Organizational structure, Strategy, Supply chain and Organizational Development.
Some of the macro environment factors that can be used to understand the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) casestudy better are - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coating Gujarat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coating Gujarat 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) can be done for the following purposes –
1. Strategic planning using facts provided in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) case study
2. Improving business portfolio management of Coating Gujarat
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Coating Gujarat
Strengths Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coating Gujarat in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) Harvard Business Review case study are -
High brand equity
– Coating Gujarat has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Coating Gujarat to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Coating Gujarat is one of the leading recruiters in the industry. Managers in the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Organizational Development field
– Coating Gujarat 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 Coating Gujarat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Coating Gujarat 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.
High switching costs
– The high switching costs that Coating Gujarat 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.
Learning organization
- Coating Gujarat 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 Coating Gujarat is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Coating Gujarat 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 Juan Alcacer, Nancy Hua Dai 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.
Diverse revenue streams
– Coating Gujarat is present in almost all the verticals within the industry. This has provided firm in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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
– Coating Gujarat is one of the most innovative firm in sector. Manager in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Organizational Development segment
- digital transformation varies from industry to industry. For Coating Gujarat digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Coating Gujarat 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.
Low bargaining power of suppliers
– Suppliers of Coating Gujarat in the sector have low bargaining power. Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Coating Gujarat to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) are -
Lack of clear differentiation of Coating Gujarat products
– To increase the profitability and margins on the products, Coating Gujarat needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Coating Gujarat is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Coating Gujarat needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Coating Gujarat to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Coating Gujarat 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B), in the dynamic environment Coating Gujarat has struggled to respond to the nimble upstart competition. Coating Gujarat has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Coating Gujarat 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.
Products dominated business model
– Even though Coating Gujarat 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 - Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Coating Gujarat, firm in the HBR case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Coating Gujarat 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Coating Gujarat is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Coating Gujarat 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. Coating Gujarat 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Coating Gujarat has relatively successful track record of launching new products.
Opportunities Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) | 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Coating Gujarat 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, Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Coating Gujarat can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Coating Gujarat has opened avenues for new revenue streams for the organization in the industry. This can help Coating Gujarat to build a more holistic ecosystem as suggested in the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) case study. Coating Gujarat 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 Coating Gujarat 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Coating Gujarat is facing challenges because of the dominance of functional experts in the organization. Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Coating Gujarat can use these opportunities to build new business models that can help the communities that Coating Gujarat operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Developing new processes and practices
– Coating Gujarat can develop new processes and procedures in Organizational Development 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.
Manufacturing automation
– Coating Gujarat can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Coating Gujarat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Coating Gujarat 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. Coating Gujarat can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Coating Gujarat 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 Coating Gujarat to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Coating Gujarat 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.
Threats Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) are -
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 Coating Gujarat business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Coating Gujarat with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B), Coating Gujarat may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Technology acceleration in Forth Industrial Revolution
– Coating Gujarat has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Coating Gujarat needs to keep up with the evolution of technology in the Organizational Development 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.
Increasing wage structure of Coating Gujarat
– 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 Coating Gujarat.
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 Coating Gujarat.
High dependence on third party suppliers
– Coating Gujarat high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Coating Gujarat needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Regulatory challenges
– Coating Gujarat 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 Organizational Development industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Coating Gujarat 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) .
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. Coating Gujarat 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.
Shortening product life cycle
– it is one of the major threat that Coating Gujarat is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (B) 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 Coating Gujarat needs to make to build a sustainable competitive advantage.
