TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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 Engineering at AST
Confidential Instructions for the V.P. of Engineering at AST 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 Engineering at AST" written by Tracey Brenner, Lawrence Susskind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ast Tep facing as an external strategic factors. Some of the topics covered in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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 Engineering at AST casestudy better are - – increasing transportation and logistics costs, geopolitical disruptions, there is backlash against globalization, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST
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 Engineering at AST case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ast Tep, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ast Tep 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 Engineering at AST can be done for the following purposes –
1. Strategic planning using facts provided in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST case study
2. Improving business portfolio management of Ast Tep
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 Ast Tep
Strengths TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ast Tep in TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Ast Tep 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 Ast Tep in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Ast Tep has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ast Tep to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Ast Tep in the sector have low bargaining power. TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ast Tep to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Ast Tep 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.
Training and development
– Ast Tep 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 Engineering at AST 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.
Successful track record of launching new products
– Ast Tep has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ast Tep 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.
Effective Research and Development (R&D)
– Ast Tep 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Ast Tep 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 Tracey Brenner, Lawrence Susskind 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.
Organizational Resilience of Ast Tep
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ast Tep does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ast Tep digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ast Tep 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.
Learning organization
- Ast Tep 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 Ast Tep 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 Engineering at AST Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Ast Tep is one of the leading recruiters in the industry. Managers in the TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST | 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 Engineering at AST are -
Low market penetration in new markets
– Outside its home market of Ast Tep, firm in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Ast Tep 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. Ast Tep 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.
No frontier risks strategy
– After analyzing the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST, 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.
Lack of clear differentiation of Ast Tep products
– To increase the profitability and margins on the products, Ast Tep needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Ast Tep has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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 Ast Tep 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Tracey Brenner, Lawrence Susskind suggests that, Ast Tep 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.
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 Engineering at AST, in the dynamic environment Ast Tep has struggled to respond to the nimble upstart competition. Ast Tep has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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 TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST can leverage the sales team experience to cultivate customer relationships as Ast Tep is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST, it seems that the employees of Ast Tep 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.
Increasing silos among functional specialists
– The organizational structure of Ast Tep is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ast Tep needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ast Tep to focus more on services rather than just following the product oriented approach.
Opportunities TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST | 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 Engineering at AST are -
Leveraging digital technologies
– Ast Tep 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.
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 Ast Tep 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ast Tep 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ast Tep 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, TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ast Tep in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Ast Tep 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.
Using analytics as competitive advantage
– Ast Tep 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 Engineering at AST - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ast Tep to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ast Tep is facing challenges because of the dominance of functional experts in the organization. TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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.
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. Ast Tep 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. Ast Tep 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.
Developing new processes and practices
– Ast Tep can develop new processes and procedures in Strategy & Execution 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.
Buying journey improvements
– Ast Tep 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 Engineering at AST 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
– Ast Tep 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.
Creating value in data economy
– The success of analytics program of Ast Tep has opened avenues for new revenue streams for the organization in the industry. This can help Ast Tep to build a more holistic ecosystem as suggested in the TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST case study. Ast Tep can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST 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 Engineering at AST are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ast Tep 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 Engineering at AST .
Consumer confidence and its impact on Ast Tep 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.
Environmental challenges
– Ast Tep 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. Ast Tep can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Engineering at AST, Ast Tep 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 Ast Tep in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Ast Tep 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.
Increasing wage structure of Ast Tep
– 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 Ast Tep.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ast Tep can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Ast Tep has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ast Tep 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ast Tep with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Ast Tep needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ast Tep 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.
Shortening product life cycle
– it is one of the major threat that Ast Tep 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 Engineering at AST 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 Engineering at AST 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 Engineering at AST 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 Engineering at AST 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 Engineering at AST 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 Ast Tep needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of TECHNOLOGY EQUIPMENT PARTNERS - Confidential Instructions for the V.P. of Engineering at AST
