Swot Analysis of "Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version" written by Robert J. Dolan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Black Decker's facing as an external strategic factors. Some of the topics covered in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version case study are - Strategic Management Strategies, Competition, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version casestudy better are - – geopolitical disruptions, there is backlash against globalization, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing commodity prices,
increasing transportation and logistics costs, technology disruption, etc
Introduction to SWOT Analysis of Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Black Decker's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Black Decker'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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version case study
2. Improving business portfolio management of Black Decker'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 Black Decker's
Strengths Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Black Decker's in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version Harvard Business Review case study are -
High switching costs
– The high switching costs that Black Decker'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.
High brand equity
– Black Decker's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Black Decker's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Black Decker's is one of the most innovative firm in sector. Manager in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Black Decker'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.
Ability to recruit top talent
– Black Decker's is one of the leading recruiters in the industry. Managers in the Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Black Decker's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Black Decker'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.
Low bargaining power of suppliers
– Suppliers of Black Decker's in the sector have low bargaining power. Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Black Decker's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Black Decker's 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 Black Decker's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Black Decker's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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.
Effective Research and Development (R&D)
– Black Decker'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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Black Decker's 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
- Black Decker's 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 Black Decker's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version are -
Skills based hiring
– The stress on hiring functional specialists at Black Decker's 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.
Lack of clear differentiation of Black Decker's products
– To increase the profitability and margins on the products, Black Decker's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Black Decker's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Black Decker'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 - Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version, it seems that the employees of Black Decker'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 bargaining power of channel partners
– Because of the regulatory requirements, Robert J. Dolan suggests that, Black Decker'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.
Increasing silos among functional specialists
– The organizational structure of Black Decker's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Black Decker's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Black Decker's to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version, in the dynamic environment Black Decker's has struggled to respond to the nimble upstart competition. Black Decker's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version, is just above the industry average. Black Decker's 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.
Aligning sales with marketing
– It come across in the case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version can leverage the sales team experience to cultivate customer relationships as Black Decker's is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version, 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.
Opportunities Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version | 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version are -
Creating value in data economy
– The success of analytics program of Black Decker's has opened avenues for new revenue streams for the organization in the industry. This can help Black Decker's to build a more holistic ecosystem as suggested in the Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version case study. Black Decker's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Black Decker'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, Black Decker'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.
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. Black Decker's 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. Black Decker's 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.
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. Black Decker's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Black Decker'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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Black Decker's is facing challenges because of the dominance of functional experts in the organization. Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Black Decker's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Black Decker's in the consumer business. Now Black Decker's can target international markets with far fewer capital restrictions requirements than the existing system.
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 Black Decker's 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.
Better consumer reach
– The expansion of the 5G network will help Black Decker's to increase its market reach. Black Decker's 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.
Buying journey improvements
– Black Decker's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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.
Leveraging digital technologies
– Black Decker'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.
Threats Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version are -
Regulatory challenges
– Black Decker's 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.
Consumer confidence and its impact on Black Decker'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.
Increasing wage structure of Black Decker'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 Black Decker's.
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 Black Decker's.
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. Black Decker'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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Black Decker's 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Black Decker'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. Black Decker's can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Black Decker's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Black Decker's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Black Decker'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.
Technology acceleration in Forth Industrial Revolution
– Black Decker's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Black Decker's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version, Black Decker's 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 .
Weighted SWOT Analysis of Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black & Decker Corp. (C): "Operation Sudden Impact" Results--1992-94, Spanish Version 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 Black Decker's needs to make to build a sustainable competitive advantage.
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