Case Study Description of Intergroup Relations at Atlantica's Flight Centers
In this case, a new director of flight operations for a global firm growing by acquisition must manage a series of problems in both its West- and East-coast flight centers, which were reorganized following a recent merger. Problems include new computer systems, jealousies, intergroup conflicts, weak leadership, and the need to manage change.
Swot Analysis of "Intergroup Relations at Atlantica's Flight Centers" written by Greg Bevan, James G. Clawson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Flight Intergroup facing as an external strategic factors. Some of the topics covered in Intergroup Relations at Atlantica's Flight Centers case study are - Strategic Management Strategies, Change management, Conflict, IT, Leadership, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Intergroup Relations at Atlantica's Flight Centers casestudy better are - – central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing energy prices,
increasing commodity prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Intergroup Relations at Atlantica's Flight Centers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intergroup Relations at Atlantica's Flight Centers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Flight Intergroup, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Flight Intergroup 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 Intergroup Relations at Atlantica's Flight Centers can be done for the following purposes –
1. Strategic planning using facts provided in Intergroup Relations at Atlantica's Flight Centers case study
2. Improving business portfolio management of Flight Intergroup
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 Flight Intergroup
Strengths Intergroup Relations at Atlantica's Flight Centers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Flight Intergroup in Intergroup Relations at Atlantica's Flight Centers Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Flight Intergroup 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 Flight Intergroup in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Flight Intergroup is one of the most innovative firm in sector. Manager in Intergroup Relations at Atlantica's Flight Centers 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 Flight Intergroup
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Flight Intergroup 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 Flight Intergroup in the sector have low bargaining power. Intergroup Relations at Atlantica's Flight Centers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Flight Intergroup to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Flight Intergroup is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Flight Intergroup has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Flight Intergroup 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.
High brand equity
– Flight Intergroup has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Flight Intergroup to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Flight Intergroup 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 Intergroup Relations at Atlantica's Flight Centers - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Flight Intergroup is present in almost all the verticals within the industry. This has provided firm in Intergroup Relations at Atlantica's Flight Centers 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Flight Intergroup digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Flight Intergroup 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.
Sustainable margins compare to other players in Organizational Development industry
– Intergroup Relations at Atlantica's Flight Centers firm has clearly differentiated products in the market place. This has enabled Flight Intergroup to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Flight Intergroup to invest into research and development (R&D) and innovation.
Analytics focus
– Flight Intergroup 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 Greg Bevan, James G. Clawson 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.
Weaknesses Intergroup Relations at Atlantica's Flight Centers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intergroup Relations at Atlantica's Flight Centers are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Intergroup Relations at Atlantica's Flight Centers, in the dynamic environment Flight Intergroup has struggled to respond to the nimble upstart competition. Flight Intergroup has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Intergroup Relations at Atlantica's Flight Centers, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Flight Intergroup is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Flight Intergroup needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Flight Intergroup to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Flight Intergroup 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.
Need for greater diversity
– Flight Intergroup 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 operating costs
– Compare to the competitors, firm in the HBR case study Intergroup Relations at Atlantica's Flight Centers 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 Flight Intergroup 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Greg Bevan, James G. Clawson suggests that, Flight Intergroup 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.
Interest costs
– Compare to the competition, Flight Intergroup has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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 Flight Intergroup supply chain. Even after few cautionary changes mentioned in the HBR case study - Intergroup Relations at Atlantica's Flight Centers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Flight Intergroup vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Flight Intergroup 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 strategic competitive environment developments
– As Intergroup Relations at Atlantica's Flight Centers HBR case study mentions - Flight Intergroup 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.
Opportunities Intergroup Relations at Atlantica's Flight Centers | 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 Intergroup Relations at Atlantica's Flight Centers are -
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 Flight Intergroup in the consumer business. Now Flight Intergroup can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Flight Intergroup 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Flight Intergroup can use these opportunities to build new business models that can help the communities that Flight Intergroup operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Flight Intergroup 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 Flight Intergroup 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 Flight Intergroup has opened avenues for new revenue streams for the organization in the industry. This can help Flight Intergroup to build a more holistic ecosystem as suggested in the Intergroup Relations at Atlantica's Flight Centers case study. Flight Intergroup can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Flight Intergroup 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 Flight Intergroup 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Flight Intergroup 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.
Buying journey improvements
– Flight Intergroup can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Intergroup Relations at Atlantica's Flight Centers 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.
Developing new processes and practices
– Flight Intergroup 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.
Learning at scale
– Online learning technologies has now opened space for Flight Intergroup 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.
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. Flight Intergroup can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Intergroup Relations at Atlantica's Flight Centers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intergroup Relations at Atlantica's Flight Centers are -
Regulatory challenges
– Flight Intergroup 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.
Technology acceleration in Forth Industrial Revolution
– Flight Intergroup has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Flight Intergroup 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.
Environmental challenges
– Flight Intergroup 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. Flight Intergroup can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Increasing wage structure of Flight Intergroup
– 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 Flight Intergroup.
Shortening product life cycle
– it is one of the major threat that Flight Intergroup is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Flight Intergroup needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Intergroup Relations at Atlantica's Flight Centers, Flight Intergroup 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Flight Intergroup 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 Intergroup Relations at Atlantica's Flight Centers .
Stagnating economy with rate increase
– Flight Intergroup 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.
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 Flight Intergroup business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Flight Intergroup with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Flight Intergroup.
Weighted SWOT Analysis of Intergroup Relations at Atlantica's Flight Centers 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 Intergroup Relations at Atlantica's Flight Centers 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 Intergroup Relations at Atlantica's Flight Centers 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 Intergroup Relations at Atlantica's Flight Centers 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 Intergroup Relations at Atlantica's Flight Centers 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 Flight Intergroup needs to make to build a sustainable competitive advantage.
