TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP
Confidential Instructions for the V.P. of Sales at TEP for product #PON453.Two-team, six-party, four-issue negotiation between representatives of two corporations setting up a simultaneous high-tech joint venture and purchasing agreement. Advanced Sensor Technologies (AST) is a leading manufacturer of chemical sensors. Technology Equipment Partners (TEP) manufactures the type of equipment AST uses to produce its sensors. AST and TEP are meeting to set the terms of a potential joint development and purchasing agreement. Three senior executives from each company will negotiate. They will try to reach agreement on four issues: tool price, order schedule, payment schedule, and intellectual property. This is a role play case.
Swot Analysis of "TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP" written by Tracey Brenner, Lawrence Susskind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tep Ast facing as an external strategic factors. Some of the topics covered in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP case study are - Strategic Management Strategies, Negotiations, Pricing, Technology, Time management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, increasing household debt because of falling income levels, there is increasing trade war between United States & China, geopolitical disruptions, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc
Introduction to SWOT Analysis of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tep Ast, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tep Ast 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP can be done for the following purposes –
1. Strategic planning using facts provided in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP case study
2. Improving business portfolio management of Tep Ast
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tep Ast
Strengths TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tep Ast in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Tep Ast digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tep Ast 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.
Cross disciplinary teams
– Horizontal connected teams at the Tep Ast 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.
High switching costs
– The high switching costs that Tep Ast 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.
Strong track record of project management
– Tep Ast is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Tep Ast is one of the most innovative firm in sector. Manager in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 Tep Ast
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tep Ast does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Tep Ast 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 Tep Ast in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Tep Ast has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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.
Learning organization
- Tep Ast 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 Tep Ast is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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.
Sustainable margins compare to other players in Strategy & Execution industry
– TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP firm has clearly differentiated products in the market place. This has enabled Tep Ast to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tep Ast to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Tep Ast has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tep Ast 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.
Weaknesses TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP are -
Interest costs
– Compare to the competition, Tep Ast 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.
Skills based hiring
– The stress on hiring functional specialists at Tep Ast 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.
No frontier risks strategy
– After analyzing the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Slow decision making process
– As mentioned earlier in the report, Tep Ast 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. Tep Ast 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 Tep Ast has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Tep Ast is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tep Ast needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tep Ast to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP, it seems that the employees of Tep Ast 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.
Low market penetration in new markets
– Outside its home market of Tep Ast, firm in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 Tep Ast supply chain. Even after few cautionary changes mentioned in the HBR case study - TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tep Ast 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP, in the dynamic environment Tep Ast has struggled to respond to the nimble upstart competition. Tep Ast has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP HBR case study mentions - Tep Ast takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP | 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP are -
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 Tep Ast 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tep Ast can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tep Ast 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. Tep Ast 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.
Learning at scale
– Online learning technologies has now opened space for Tep Ast 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.
Better consumer reach
– The expansion of the 5G network will help Tep Ast to increase its market reach. Tep Ast 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.
Building a culture of innovation
– managers at Tep Ast 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 Strategy & Execution segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Tep Ast can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tep Ast is facing challenges because of the dominance of functional experts in the organization. TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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.
Buying journey improvements
– Tep Ast can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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.
Manufacturing automation
– Tep Ast can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Using analytics as competitive advantage
– Tep Ast 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tep Ast to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tep Ast 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 Tep Ast to hire the very best people irrespective of their geographical location.
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 Tep Ast in the consumer business. Now Tep Ast can target international markets with far fewer capital restrictions requirements than the existing system.
Threats TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP are -
Technology acceleration in Forth Industrial Revolution
– Tep Ast has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tep Ast needs to keep up with the evolution of technology in the Strategy & Execution 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP, Tep Ast may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Tep Ast in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tep Ast 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP .
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. Tep Ast 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 Tep Ast 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tep Ast in the Strategy & Execution industry. The Strategy & Execution 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.
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. Tep Ast needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Tep Ast 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 Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tep Ast with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Tep Ast 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. Tep Ast can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Tep Ast is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Sales at TEP 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 Tep Ast needs to make to build a sustainable competitive advantage.
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