Case Study Description of Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma
Spark Publishing and Printing House is a comprehensive case on relevant costs analysis for short run alternative choice decisions. It stresses the importance of future differential cash flow analysis and highlights the irrelevance of past and non differential costs for managerial decisions. SPPH is a reputed publishing and printing house. It has two departments: Publishing and Printing and Distribution. SPPH has received a proposal from Fine Printing Press to take up its printing and distribution work for initial period of one year. The managerial decision involved is whether to outsource or to maintain status quo. Relevant cost analysis is to be used to determine which alternative is cost effective.
Swot Analysis of "Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma" written by Shruti Dave includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Printing Publishing facing as an external strategic factors. Some of the topics covered in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma case study are - Strategic Management Strategies, Costs and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma casestudy better are - – increasing household debt because of falling income levels, there is backlash against globalization, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
technology disruption, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Printing Publishing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Printing Publishing 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma can be done for the following purposes –
1. Strategic planning using facts provided in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma case study
2. Improving business portfolio management of Printing Publishing
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Printing Publishing
Strengths Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Printing Publishing in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Printing Publishing in the sector have low bargaining power. Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Printing Publishing to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Printing Publishing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Printing Publishing 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.
Diverse revenue streams
– Printing Publishing is present in almost all the verticals within the industry. This has provided firm in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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.
Successful track record of launching new products
– Printing Publishing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Printing Publishing 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.
Learning organization
- Printing Publishing 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 Printing Publishing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Printing Publishing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Printing Publishing 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma firm has clearly differentiated products in the market place. This has enabled Printing Publishing to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Printing Publishing to invest into research and development (R&D) and innovation.
Ability to lead change in Finance & Accounting field
– Printing Publishing 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 Printing Publishing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Printing Publishing is one of the most innovative firm in sector. Manager in Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Printing Publishing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Printing Publishing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Printing Publishing 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma are -
High cash cycle compare to competitors
Printing Publishing 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.
Lack of clear differentiation of Printing Publishing products
– To increase the profitability and margins on the products, Printing Publishing needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Printing Publishing 's lucrative customers.
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 Printing Publishing supply chain. Even after few cautionary changes mentioned in the HBR case study - Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Printing Publishing 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma, in the dynamic environment Printing Publishing has struggled to respond to the nimble upstart competition. Printing Publishing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Printing Publishing 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.
Aligning sales with marketing
– It come across in the case study Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma can leverage the sales team experience to cultivate customer relationships as Printing Publishing is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Printing Publishing, firm in the HBR case study Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Printing Publishing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Printing Publishing 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 - Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Printing Publishing 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. Printing Publishing 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.
Opportunities Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma | 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Printing Publishing can use these opportunities to build new business models that can help the communities that Printing Publishing operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Leveraging digital technologies
– Printing Publishing 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.
Manufacturing automation
– Printing Publishing can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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. Printing Publishing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Printing Publishing 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 Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Printing Publishing 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. Printing Publishing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Printing Publishing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Printing Publishing 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 Finance & Accounting segment.
Developing new processes and practices
– Printing Publishing can develop new processes and procedures in Finance & Accounting 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.
Better consumer reach
– The expansion of the 5G network will help Printing Publishing to increase its market reach. Printing Publishing 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 Printing Publishing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Loyalty marketing
– Printing Publishing 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.
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 Printing Publishing 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.
Threats Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Printing Publishing business can come under increasing regulations regarding data privacy, data security, etc.
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. Printing Publishing needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Printing Publishing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Printing Publishing 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Printing Publishing in the Finance & Accounting industry. The Finance & Accounting 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.
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 Printing Publishing.
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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Printing Publishing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Printing Publishing 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 Finance & Accounting industry regulations.
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. Printing Publishing 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.
Consumer confidence and its impact on Printing Publishing 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 Printing Publishing
– 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 Printing Publishing.
Weighted SWOT Analysis of Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Spark Publishing and Printing House: Short-Run Managerial Decision Raises A 'Hamlet-Like' Dilemma 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 Printing Publishing needs to make to build a sustainable competitive advantage.
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