Boise Automation Canada Ltd.: The Lost Order at Northern Paper SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Boise Automation Canada Ltd.: The Lost Order at Northern Paper
A senior account manager at Boise Automation Canada Ltd. was disappointed with the news that he had just lost the $1.2 million opportunity with Northern Paper Inc. (Northern), a paper mill in Rocky Falls, Ontario.The opportunity was to design, supply and install an automated control system for Northern's wood-chip handling system. With over 20 years experience selling automation systems in heavy industry, had he won the order, it would have easily put him over his target quota for 2011 and significantly boosted his incentive payout. Now, with less than 3 months before the end of the year, he was unlikely to meet his target for the year. The senior account manager wanted to understand what had gone wrong, and to learn from the experience, to avoid repeating it. What should he have done differently?
Swot Analysis of "Boise Automation Canada Ltd.: The Lost Order at Northern Paper" written by Michael Taylor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Boise Automation facing as an external strategic factors. Some of the topics covered in Boise Automation Canada Ltd.: The Lost Order at Northern Paper case study are - Strategic Management Strategies, Organizational culture, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Boise Automation Canada Ltd.: The Lost Order at Northern Paper casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing commodity prices, increasing transportation and logistics costs,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Boise Automation Canada Ltd.: The Lost Order at Northern Paper
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boise Automation Canada Ltd.: The Lost Order at Northern Paper case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Boise Automation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Boise Automation 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper can be done for the following purposes –
1. Strategic planning using facts provided in Boise Automation Canada Ltd.: The Lost Order at Northern Paper case study
2. Improving business portfolio management of Boise Automation
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 Boise Automation
Strengths Boise Automation Canada Ltd.: The Lost Order at Northern Paper | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Boise Automation in Boise Automation Canada Ltd.: The Lost Order at Northern Paper Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Boise Automation 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 Boise Automation 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.
Organizational Resilience of Boise Automation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Boise Automation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Boise Automation 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 Boise Automation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Boise Automation Canada Ltd.: The Lost Order at Northern Paper Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Boise Automation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Boise Automation in the sector have low bargaining power. Boise Automation Canada Ltd.: The Lost Order at Northern Paper has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Boise Automation to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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.
Diverse revenue streams
– Boise Automation is present in almost all the verticals within the industry. This has provided firm in Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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.
Ability to recruit top talent
– Boise Automation is one of the leading recruiters in the industry. Managers in the Boise Automation Canada Ltd.: The Lost Order at Northern Paper are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Boise Automation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Boise Automation 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Boise Automation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Boise Automation 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.
Weaknesses Boise Automation Canada Ltd.: The Lost Order at Northern Paper | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boise Automation Canada Ltd.: The Lost Order at Northern Paper are -
Lack of clear differentiation of Boise Automation products
– To increase the profitability and margins on the products, Boise Automation needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Boise Automation 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 - Boise Automation Canada Ltd.: The Lost Order at Northern Paper should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper can leverage the sales team experience to cultivate customer relationships as Boise Automation is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Boise Automation 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. Boise Automation 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.
Slow to strategic competitive environment developments
– As Boise Automation Canada Ltd.: The Lost Order at Northern Paper HBR case study mentions - Boise Automation 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.
No frontier risks strategy
– After analyzing the HBR case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper, it seems that company is thinking about the frontier risks that can impact Sales & Marketing 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.
Skills based hiring
– The stress on hiring functional specialists at Boise Automation has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Boise Automation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Boise Automation, firm in the HBR case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Boise Automation 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper | 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Boise Automation 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Boise Automation can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Boise Automation can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Boise Automation can use these opportunities to build new business models that can help the communities that Boise Automation operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Creating value in data economy
– The success of analytics program of Boise Automation has opened avenues for new revenue streams for the organization in the industry. This can help Boise Automation to build a more holistic ecosystem as suggested in the Boise Automation Canada Ltd.: The Lost Order at Northern Paper case study. Boise Automation 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 Boise Automation 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, Boise Automation is facing challenges because of the dominance of functional experts in the organization. Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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.
Building a culture of innovation
– managers at Boise Automation 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.
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. Boise Automation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Boise Automation has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Boise Automation 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Boise Automation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Boise Automation 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.
Learning at scale
– Online learning technologies has now opened space for Boise Automation 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Boise Automation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Boise Automation Canada Ltd.: The Lost Order at Northern Paper External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation business can come under increasing regulations regarding data privacy, data security, etc.
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. Boise Automation 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.
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. Boise Automation needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Environmental challenges
– Boise Automation 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. Boise Automation can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Shortening product life cycle
– it is one of the major threat that Boise Automation 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 Boise Automation
– 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 Boise Automation.
Stagnating economy with rate increase
– Boise Automation 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Boise Automation in the Sales & Marketing industry. The Sales & Marketing 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.
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 Boise Automation in the Sales & Marketing sector and impact the bottomline of the organization.
Consumer confidence and its impact on Boise Automation 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 dependence on third party suppliers
– Boise Automation 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.
Regulatory challenges
– Boise Automation 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 Sales & Marketing industry regulations.
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.
Weighted SWOT Analysis of Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation Canada Ltd.: The Lost Order at Northern Paper 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 Boise Automation needs to make to build a sustainable competitive advantage.
