Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives

Focuses on the compensation plan for Fieldcrest sales representatives. Management is reviewing the structure of the plan and must decide how to establish compensation goals and guidelines for the following year so that sales efforts are allocated among products and/or accounts in the best manner. Provides information about the industry, the competitive environment, recent market developments, and the details of the compensation plan as well as comments by managers and salespeople.

Authors :: Frank V. Cespedes

Topics :: Sales & Marketing

Tags :: Marketing, Sales, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives" written by Frank V. Cespedes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fieldcrest Compensation facing as an external strategic factors. Some of the topics covered in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives case study are - Strategic Management Strategies, Marketing, Sales and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives casestudy better are - – increasing transportation and logistics costs, geopolitical disruptions, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , etc

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Introduction to SWOT Analysis of Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fieldcrest Compensation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fieldcrest Compensation 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives can be done for the following purposes –
1. Strategic planning using facts provided in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives case study
2. Improving business portfolio management of Fieldcrest Compensation
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 Fieldcrest Compensation

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Strengths Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Fieldcrest Compensation in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives Harvard Business Review case study are -

Ability to recruit top talent

– Fieldcrest Compensation is one of the leading recruiters in the industry. Managers in the Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 switching costs

– The high switching costs that Fieldcrest Compensation 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.

Highly skilled collaborators

– Fieldcrest Compensation 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Operational resilience

– The operational resilience strategy in the Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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.

Superior customer experience

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

Diverse revenue streams

– Fieldcrest Compensation is present in almost all the verticals within the industry. This has provided firm in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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.

Low bargaining power of suppliers

– Suppliers of Fieldcrest Compensation in the sector have low bargaining power. Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fieldcrest Compensation to manage not only supply disruptions but also source products at highly competitive prices.

Ability to lead change in Sales & Marketing field

– Fieldcrest Compensation 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 Fieldcrest Compensation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Analytics focus

– Fieldcrest Compensation 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 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.

Learning organization

- Fieldcrest Compensation 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 Fieldcrest Compensation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Successful track record of launching new products

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

Digital Transformation in Sales & Marketing segment

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

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Weaknesses Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives are -

Need for greater diversity

– Fieldcrest Compensation 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.

Interest costs

– Compare to the competition, Fieldcrest Compensation 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Frank V. Cespedes suggests that, Fieldcrest Compensation 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.

Aligning sales with marketing

– It come across in the case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives can leverage the sales team experience to cultivate customer relationships as Fieldcrest Compensation is planning to shift buying processes online.

High operating costs

– Compare to the competitors, firm in the HBR case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Compensation 's lucrative customers.

Workers concerns about automation

– As automation is fast increasing in the segment, Fieldcrest Compensation 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.

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 Fieldcrest Compensation supply chain. Even after few cautionary changes mentioned in the HBR case study - Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fieldcrest Compensation vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

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

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fieldcrest Compensation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Lack of clear differentiation of Fieldcrest Compensation products

– To increase the profitability and margins on the products, Fieldcrest Compensation needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

– Outside its home market of Fieldcrest Compensation, firm in the HBR case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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Opportunities Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives | 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives are -

Developing new processes and practices

– Fieldcrest Compensation 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fieldcrest Compensation 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 Fieldcrest Compensation to hire the very best people irrespective of their geographical location.

Using analytics as competitive advantage

– Fieldcrest Compensation 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fieldcrest Compensation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Better consumer reach

– The expansion of the 5G network will help Fieldcrest Compensation to increase its market reach. Fieldcrest Compensation 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.

Leveraging digital technologies

– Fieldcrest Compensation 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.

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. Fieldcrest Compensation can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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. Fieldcrest Compensation 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. Fieldcrest Compensation 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

– Fieldcrest Compensation can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Learning at scale

– Online learning technologies has now opened space for Fieldcrest Compensation 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Fieldcrest Compensation 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, Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives, 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

– Fieldcrest Compensation 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.

Building a culture of innovation

– managers at Fieldcrest Compensation 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fieldcrest Compensation can use these opportunities to build new business models that can help the communities that Fieldcrest Compensation operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

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Threats Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives are -

Stagnating economy with rate increase

– Fieldcrest Compensation 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.

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 Fieldcrest Compensation in the Sales & Marketing sector and impact the bottomline of the organization.

Increasing wage structure of Fieldcrest Compensation

– 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 Fieldcrest Compensation.

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 Fieldcrest Compensation 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 Fieldcrest Compensation.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fieldcrest Compensation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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. Fieldcrest Compensation 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives, Fieldcrest Compensation 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

– Fieldcrest Compensation 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.

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. Fieldcrest Compensation 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

– Fieldcrest Compensation 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.

Environmental challenges

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

Technology acceleration in Forth Industrial Revolution

– Fieldcrest Compensation has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Fieldcrest Compensation 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.

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Weighted SWOT Analysis of Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives 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 Fieldcrest Compensation needs to make to build a sustainable competitive advantage.

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