Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile

Mason Instruments has become a second source for the electronics guidance system for a Navy missile. The case decision involves bidding in the third-round competition.

Authors :: E. Raymond Corey

Topics :: Sales & Marketing

Tags :: Negotiations, Pricing, Research & development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile" written by E. Raymond Corey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Missile Mason facing as an external strategic factors. Some of the topics covered in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study are - Strategic Management Strategies, Negotiations, Pricing, Research & development and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile casestudy better are - – geopolitical disruptions, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing commodity prices, supply chains are disrupted by pandemic , there is backlash against globalization, technology disruption, etc

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Introduction to SWOT Analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Missile Mason, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Missile Mason 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile can be done for the following purposes –
1. Strategic planning using facts provided in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study
2. Improving business portfolio management of Missile Mason
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 Missile Mason

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Strengths Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Missile Mason in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Missile Mason in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy in the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

High switching costs

– The high switching costs that Missile Mason 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

– Missile Mason has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Missile Mason 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.

Analytics focus

– Missile Mason 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 E. Raymond Corey 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.

Innovation driven organization

– Missile Mason is one of the most innovative firm in sector. Manager in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Strong track record of project management

– Missile Mason is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Learning organization

- Missile Mason 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 Missile Mason is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Highly skilled collaborators

– Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Missile Mason digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Missile Mason 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.

High brand equity

– Missile Mason has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Missile Mason to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of Missile Mason in the sector have low bargaining power. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Missile Mason to manage not only supply disruptions but also source products at highly competitive prices.

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Weaknesses Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are -

Need for greater diversity

– Missile Mason 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, it seems that the employees of Missile Mason 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.

Slow decision making process

– As mentioned earlier in the report, Missile Mason 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. Missile Mason 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, is just above the industry average. Missile Mason 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

Missile Mason 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.

Skills based hiring

– The stress on hiring functional specialists at Missile Mason 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, in the dynamic environment Missile Mason has struggled to respond to the nimble upstart competition. Missile Mason has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Aligning sales with marketing

– It come across in the case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile can leverage the sales team experience to cultivate customer relationships as Missile Mason is planning to shift buying processes online.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Missile Mason is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Products dominated business model

– Even though Missile Mason 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 - Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile should strive to include more intangible value offerings along with its core products and services.

Increasing silos among functional specialists

– The organizational structure of Missile Mason is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Missile Mason needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Missile Mason to focus more on services rather than just following the product oriented approach.

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Opportunities Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are -

Low interest rates

– Even though inflation is raising its head in most developed economies, Missile Mason 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Missile Mason can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Loyalty marketing

– Missile Mason 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Missile Mason in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.

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. Missile Mason 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. Missile Mason 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.

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 Missile Mason in the consumer business. Now Missile Mason can target international markets with far fewer capital restrictions requirements than the existing system.

Leveraging digital technologies

– Missile Mason 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

– Missile Mason 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.

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 Missile Mason 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.

Learning at scale

– Online learning technologies has now opened space for Missile Mason 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.

Buying journey improvements

– Missile Mason can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

Using analytics as competitive advantage

– Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Missile Mason to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Missile Mason is facing challenges because of the dominance of functional experts in the organization. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

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Threats Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Missile Mason.

Shortening product life cycle

– it is one of the major threat that Missile Mason is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

High dependence on third party suppliers

– Missile Mason 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.

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 Missile Mason business can come under increasing regulations regarding data privacy, data security, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, Missile Mason may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .

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. Missile Mason 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.

Stagnating economy with rate increase

– Missile Mason 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.

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. Missile Mason can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Missile Mason in the Sales & Marketing sector and impact the bottomline of the organization.

Consumer confidence and its impact on Missile Mason 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. Missile Mason needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– Missile Mason has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Missile Mason needs to keep up with the evolution of technology in the Sales & Marketing 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

– Missile Mason 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. Missile Mason can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

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Weighted SWOT Analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Missile Mason needs to make to build a sustainable competitive advantage.

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