Swot Analysis of "Becton Dickinson & Co.: Multidivisional Marketing Programs" written by Frank V. Cespedes, Laura Goode includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Multidivisional Becton facing as an external strategic factors. Some of the topics covered in Becton Dickinson & Co.: Multidivisional Marketing Programs case study are - Strategic Management Strategies, Marketing, Sales, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Becton Dickinson & Co.: Multidivisional Marketing Programs casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , increasing commodity prices, increasing household debt because of falling income levels,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Becton Dickinson & Co.: Multidivisional Marketing Programs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Becton Dickinson & Co.: Multidivisional Marketing Programs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Multidivisional Becton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Multidivisional Becton 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 Becton Dickinson & Co.: Multidivisional Marketing Programs can be done for the following purposes –
1. Strategic planning using facts provided in Becton Dickinson & Co.: Multidivisional Marketing Programs case study
2. Improving business portfolio management of Multidivisional Becton
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 Multidivisional Becton
Strengths Becton Dickinson & Co.: Multidivisional Marketing Programs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Multidivisional Becton in Becton Dickinson & Co.: Multidivisional Marketing Programs Harvard Business Review case study are -
Strong track record of project management
– Multidivisional Becton is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Multidivisional Becton is one of the leading recruiters in the industry. Managers in the Becton Dickinson & Co.: Multidivisional Marketing Programs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Multidivisional Becton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Multidivisional Becton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Multidivisional Becton 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 Multidivisional Becton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Becton Dickinson & Co.: Multidivisional Marketing Programs Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Multidivisional Becton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Multidivisional Becton 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.
Ability to lead change in Sales & Marketing field
– Multidivisional Becton 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 Multidivisional Becton in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Multidivisional Becton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Multidivisional Becton 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 Multidivisional Becton in the sector have low bargaining power. Becton Dickinson & Co.: Multidivisional Marketing Programs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Multidivisional Becton to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Multidivisional Becton is one of the most innovative firm in sector. Manager in Becton Dickinson & Co.: Multidivisional Marketing Programs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Multidivisional Becton is present in almost all the verticals within the industry. This has provided firm in Becton Dickinson & Co.: Multidivisional Marketing Programs 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.
Analytics focus
– Multidivisional Becton 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 Frank V. Cespedes, Laura Goode 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 Becton Dickinson & Co.: Multidivisional Marketing Programs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Becton Dickinson & Co.: Multidivisional Marketing Programs are -
Interest costs
– Compare to the competition, Multidivisional Becton 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.
Aligning sales with marketing
– It come across in the case study Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Becton Dickinson & Co.: Multidivisional Marketing Programs can leverage the sales team experience to cultivate customer relationships as Multidivisional Becton is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Multidivisional Becton has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Multidivisional Becton 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 bargaining power of channel partners
– Because of the regulatory requirements, Frank V. Cespedes, Laura Goode suggests that, Multidivisional Becton 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Multidivisional Becton is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Becton Dickinson & Co.: Multidivisional Marketing Programs can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Multidivisional Becton is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Multidivisional Becton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Multidivisional Becton to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Becton Dickinson & Co.: Multidivisional Marketing Programs, 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.
Low market penetration in new markets
– Outside its home market of Multidivisional Becton, firm in the HBR case study Becton Dickinson & Co.: Multidivisional Marketing Programs needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Multidivisional Becton supply chain. Even after few cautionary changes mentioned in the HBR case study - Becton Dickinson & Co.: Multidivisional Marketing Programs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Multidivisional Becton vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Becton Dickinson & Co.: Multidivisional Marketing Programs, in the dynamic environment Multidivisional Becton has struggled to respond to the nimble upstart competition. Multidivisional Becton has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Becton Dickinson & Co.: Multidivisional Marketing Programs | 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 Becton Dickinson & Co.: Multidivisional Marketing Programs are -
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. Multidivisional Becton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Multidivisional Becton has opened avenues for new revenue streams for the organization in the industry. This can help Multidivisional Becton to build a more holistic ecosystem as suggested in the Becton Dickinson & Co.: Multidivisional Marketing Programs case study. Multidivisional Becton 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, Multidivisional Becton can use these opportunities to build new business models that can help the communities that Multidivisional Becton operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Multidivisional Becton 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 Multidivisional Becton to hire the very best people irrespective of their geographical location.
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 Multidivisional Becton 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, Multidivisional Becton is facing challenges because of the dominance of functional experts in the organization. Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Multidivisional Becton 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.
Developing new processes and practices
– Multidivisional Becton 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.
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. Multidivisional Becton 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. Multidivisional Becton 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.
Manufacturing automation
– Multidivisional Becton 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.
Better consumer reach
– The expansion of the 5G network will help Multidivisional Becton to increase its market reach. Multidivisional Becton will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Multidivisional Becton 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Multidivisional Becton can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Becton Dickinson & Co.: Multidivisional Marketing Programs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Becton Dickinson & Co.: Multidivisional Marketing Programs are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Becton Dickinson & Co.: Multidivisional Marketing Programs, Multidivisional Becton 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 .
High dependence on third party suppliers
– Multidivisional Becton 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.
Consumer confidence and its impact on Multidivisional Becton 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.
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 Multidivisional Becton business can come under increasing regulations regarding data privacy, data security, etc.
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 Multidivisional Becton.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Multidivisional Becton with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Multidivisional Becton in the Sales & Marketing sector and impact the bottomline of the organization.
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. Multidivisional Becton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Multidivisional Becton 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. Multidivisional Becton can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Multidivisional Becton needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing wage structure of Multidivisional Becton
– 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 Multidivisional Becton.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Multidivisional Becton 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 Becton Dickinson & Co.: Multidivisional Marketing Programs .
Weighted SWOT Analysis of Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Becton Dickinson & Co.: Multidivisional Marketing Programs 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 Multidivisional Becton needs to make to build a sustainable competitive advantage.
