Case Study Description of Wilkins, A Zurn Company: Demand Forecasting
The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting sales demand. Currently, forecasts are based on the plant manager's, sales/marketing manager's, and inventory manager's knowledge of industry trends, competitive strategies, and sales history. The inventory manager must decide if using statistical forecasting methods would ease the forecasting process and make the forecasts more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression, and time series. The data characteristics include seasonality, trend, and random fluctuations.
Swot Analysis of "Wilkins, A Zurn Company: Demand Forecasting" written by Carol Prahinski, Eric Olsen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Forecasting Manager's facing as an external strategic factors. Some of the topics covered in Wilkins, A Zurn Company: Demand Forecasting case study are - Strategic Management Strategies, Forecasting, Managing uncertainty, Manufacturing, Strategic planning and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Wilkins, A Zurn Company: Demand Forecasting casestudy better are - – there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing transportation and logistics costs,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Wilkins, A Zurn Company: Demand Forecasting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wilkins, A Zurn Company: Demand Forecasting case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Forecasting Manager's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Forecasting Manager's 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 Wilkins, A Zurn Company: Demand Forecasting can be done for the following purposes –
1. Strategic planning using facts provided in Wilkins, A Zurn Company: Demand Forecasting case study
2. Improving business portfolio management of Forecasting Manager's
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Forecasting Manager's
Strengths Wilkins, A Zurn Company: Demand Forecasting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Forecasting Manager's in Wilkins, A Zurn Company: Demand Forecasting Harvard Business Review case study are -
High brand equity
– Forecasting Manager's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Forecasting Manager's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Forecasting Manager's 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Forecasting Manager's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Forecasting Manager's 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
– Forecasting Manager's 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 Wilkins, A Zurn Company: Demand Forecasting HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Forecasting Manager's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Wilkins, A Zurn Company: Demand Forecasting 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.
Ability to recruit top talent
– Forecasting Manager's is one of the leading recruiters in the industry. Managers in the Wilkins, A Zurn Company: Demand Forecasting are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Forecasting Manager's is present in almost all the verticals within the industry. This has provided firm in Wilkins, A Zurn Company: Demand Forecasting 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.
High switching costs
– The high switching costs that Forecasting Manager's 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.
Successful track record of launching new products
– Forecasting Manager's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Forecasting Manager's 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.
Effective Research and Development (R&D)
– Forecasting Manager's 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 Wilkins, A Zurn Company: Demand Forecasting - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Forecasting Manager's is one of the most innovative firm in sector. Manager in Wilkins, A Zurn Company: Demand Forecasting Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Forecasting Manager's in the sector have low bargaining power. Wilkins, A Zurn Company: Demand Forecasting has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Forecasting Manager's to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Wilkins, A Zurn Company: Demand Forecasting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wilkins, A Zurn Company: Demand Forecasting are -
Need for greater diversity
– Forecasting Manager's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Forecasting Manager's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wilkins, A Zurn Company: Demand Forecasting can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Wilkins, A Zurn Company: Demand Forecasting that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Wilkins, A Zurn Company: Demand Forecasting can leverage the sales team experience to cultivate customer relationships as Forecasting Manager's is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Forecasting Manager's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Forecasting Manager's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Forecasting Manager's to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Carol Prahinski, Eric Olsen suggests that, Forecasting Manager's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Wilkins, A Zurn Company: Demand Forecasting, it seems that the employees of Forecasting Manager's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Wilkins, A Zurn Company: Demand Forecasting 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 Forecasting Manager's has relatively successful track record of launching new products.
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 Forecasting Manager's supply chain. Even after few cautionary changes mentioned in the HBR case study - Wilkins, A Zurn Company: Demand Forecasting, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Forecasting Manager's vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Forecasting Manager's 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 - Wilkins, A Zurn Company: Demand Forecasting should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Forecasting Manager's 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.
Interest costs
– Compare to the competition, Forecasting Manager's 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.
Opportunities Wilkins, A Zurn Company: Demand Forecasting | 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 Wilkins, A Zurn Company: Demand Forecasting are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Forecasting Manager's 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 Forecasting Manager's 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 Forecasting Manager's has opened avenues for new revenue streams for the organization in the industry. This can help Forecasting Manager's to build a more holistic ecosystem as suggested in the Wilkins, A Zurn Company: Demand Forecasting case study. Forecasting Manager's can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Forecasting Manager's can use these opportunities to build new business models that can help the communities that Forecasting Manager's operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Forecasting Manager's is facing challenges because of the dominance of functional experts in the organization. Wilkins, A Zurn Company: Demand Forecasting 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Forecasting Manager's 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 Forecasting Manager's to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Forecasting Manager's can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Using analytics as competitive advantage
– Forecasting Manager's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Wilkins, A Zurn Company: Demand Forecasting - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Forecasting Manager's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Forecasting Manager's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Forecasting Manager's 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.
Developing new processes and practices
– Forecasting Manager's can develop new processes and procedures in Sales & Marketing 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Forecasting Manager's 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.
Building a culture of innovation
– managers at Forecasting Manager's 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 Sales & Marketing segment.
Threats Wilkins, A Zurn Company: Demand Forecasting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wilkins, A Zurn Company: Demand Forecasting are -
Shortening product life cycle
– it is one of the major threat that Forecasting Manager's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Forecasting Manager's
– 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 Forecasting Manager's.
Stagnating economy with rate increase
– Forecasting Manager's 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.
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.
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 Forecasting Manager's.
Consumer confidence and its impact on Forecasting Manager's 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.
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. Forecasting Manager's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Forecasting Manager's 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.
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 Forecasting Manager's business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Forecasting Manager's 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. Forecasting Manager's can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Forecasting Manager's 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 Wilkins, A Zurn Company: Demand Forecasting .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Forecasting Manager's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Forecasting Manager's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Wilkins, A Zurn Company: Demand Forecasting 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 Wilkins, A Zurn Company: Demand Forecasting 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 Wilkins, A Zurn Company: Demand Forecasting 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 Wilkins, A Zurn Company: Demand Forecasting 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 Wilkins, A Zurn Company: Demand Forecasting 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 Forecasting Manager's needs to make to build a sustainable competitive advantage.