Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 (A)
In April 2013, Ford Asia Pacific & Africa (FAPA) was examining its options for e-coating service metal parts for the Ford Customer Service Division in Sanand, Gujarat, India. Randy Creel, Director of Parts Supply & Logistics, FAPA, worked with his colleagues in the US, UK, China, and India to conduct analysis and develop three options: outsourcing e-coating to a third party in Sanand, outsourcing e-coating to a third-party in Chennai and transporting the parts to Sanand, or building a stand-alone facility in Sanand. Factors like cost, quality, speed, and risk needed to be considered for this decision which had impact on profitability and customer satisfaction. Which option should FAPA choose?
Swot Analysis of "Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A)" written by Juan Alcacer, Nancy Hua Dai includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sanand Coating facing as an external strategic factors. Some of the topics covered in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) case study are - Strategic Management Strategies, 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 (A) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A)
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 (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sanand Coating, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sanand Coating 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 (A) 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 (A) case study
2. Improving business portfolio management of Sanand Coating
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 Sanand Coating
Strengths Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sanand Coating in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Sanand Coating 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.
Strong track record of project management
– Sanand Coating is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Sanand Coating 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
- Sanand Coating 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 Sanand Coating 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 (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Sanand Coating 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Sanand Coating 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Organizational Development field
– Sanand Coating 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 Sanand Coating in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Sanand Coating is one of the most innovative firm in sector. Manager in Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 Sanand Coating
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sanand Coating does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Sanand Coating in the sector have low bargaining power. Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sanand Coating to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Sanand Coating digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sanand Coating 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.
Operational resilience
– The operational resilience strategy in the Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) | 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 (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A), is just above the industry average. Sanand Coating 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 cash cycle compare to competitors
Sanand Coating 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 (A), in the dynamic environment Sanand Coating has struggled to respond to the nimble upstart competition. Sanand Coating has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Sanand Coating supply chain. Even after few cautionary changes mentioned in the HBR case study - Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sanand Coating vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Sanand Coating 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 Sanand Coating 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 (A) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Juan Alcacer, Nancy Hua Dai suggests that, Sanand Coating 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 Sanand Coating 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Sanand Coating 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. Sanand Coating 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sanand Coating needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sanand Coating 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 (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) | 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 (A) are -
Developing new processes and practices
– Sanand Coating 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.
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 Sanand Coating 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sanand Coating 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sanand Coating in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sanand Coating can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Sanand Coating in the consumer business. Now Sanand Coating can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Sanand Coating 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.
Building a culture of innovation
– managers at Sanand Coating 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 Organizational Development segment.
Manufacturing automation
– Sanand Coating 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sanand Coating 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 (A) 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.
Better consumer reach
– The expansion of the 5G network will help Sanand Coating to increase its market reach. Sanand Coating 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.
Learning at scale
– Online learning technologies has now opened space for Sanand Coating 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 Organizational Development industry, but it has also influenced the consumer preferences. Sanand Coating can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 (A) are -
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 Sanand Coating.
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. Sanand Coating needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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 Sanand Coating in the Organizational Development sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sanand Coating can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sanand Coating in the Organizational Development industry. The Organizational Development 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
– Sanand Coating 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.
Increasing wage structure of Sanand Coating
– 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 Sanand Coating.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sanand Coating with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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, Sanand Coating 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 (A) .
Stagnating economy with rate increase
– Sanand Coating 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.
Consumer confidence and its impact on Sanand Coating 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.
Regulatory challenges
– Sanand Coating 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.
Weighted SWOT Analysis of Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A) 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 (A) 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 (A) 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 (A) 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 (A) 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 Sanand Coating needs to make to build a sustainable competitive advantage.