Lott Industries: The CEO Fights for Survival SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lott Industries: The CEO Fights for Survival
In November 2009, a year after the U.S. economy began sliding into a deep recession, Joan Uhl Browne, the CEO of Lott Industries, faced a looming crisis. As financial losses mounted, would she be able to save the company she had led for two and a half years? Lott was a non-profit organization in Toledo, Ohio, that employed over 1200 adults with developmental disabilities when Browne took over in April 2007. The case traces Browne's steps as she tried to replace the loss of over 85 percent of the organization's revenues, build a management team and create new, innovative products. As Browne and her management team pursued a business model of diversification and business growth, they viewed the Lucas County Board of Developmental Disabilities, which hired the Lott staff and controlled Lott's financial resources, as an obstacle to implementing changes. The critical decision was which strategy was most likely to be successful in assuring the survival of Lott Industries: to keep doing what Lott had traditionally done, finding contracts geared to their current employee-consumers' skill levels as well as innovating, or to focus on securing long-term, higher margin contracts that require the flexibility to hire employees who do not have developmental disabilities, but who can do the jobs. The all-out effort to save Lott Industries through 2009 included restructuring the organization, searching for any and all kinds of contracts, and developing in-house innovations, including green cleaning products and gourmet dog treats. Browne pushed ahead, but she found that the crucial support from her most important stakeholder, the Lucas County Board of Developmental Disabilities, was weakening. As the frustrations of managing the changes necessary for survival in an increasingly poor economy accumulated, the case begins and ends with the CEO contemplating the next steps she needs to take, and the likelihood they will be successful.
Swot Analysis of "Lott Industries: The CEO Fights for Survival" written by Denise M. Tanguay, Mary E. Vielhaber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lott Browne facing as an external strategic factors. Some of the topics covered in Lott Industries: The CEO Fights for Survival case study are - Strategic Management Strategies, Influence, Organizational structure, Social enterprise and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Lott Industries: The CEO Fights for Survival casestudy better are - – challanges to central banks by blockchain based private currencies, wage bills are increasing, technology disruption, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Lott Industries: The CEO Fights for Survival
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lott Industries: The CEO Fights for Survival case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lott Browne, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lott Browne 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 Lott Industries: The CEO Fights for Survival can be done for the following purposes –
1. Strategic planning using facts provided in Lott Industries: The CEO Fights for Survival case study
2. Improving business portfolio management of Lott Browne
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 Lott Browne
Strengths Lott Industries: The CEO Fights for Survival | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lott Browne in Lott Industries: The CEO Fights for Survival Harvard Business Review case study are -
Effective Research and Development (R&D)
– Lott Browne 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 Lott Industries: The CEO Fights for Survival - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Strategy & Execution field
– Lott Browne 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 Lott Browne in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Lott Browne
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lott Browne does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Lott Browne is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Lott Browne 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 Lott Browne is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lott Industries: The CEO Fights for Survival Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Lott Industries: The CEO Fights for Survival firm has clearly differentiated products in the market place. This has enabled Lott Browne to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Lott Browne to invest into research and development (R&D) and innovation.
Innovation driven organization
– Lott Browne is one of the most innovative firm in sector. Manager in Lott Industries: The CEO Fights for Survival Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Lott Browne are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to recruit top talent
– Lott Browne is one of the leading recruiters in the industry. Managers in the Lott Industries: The CEO Fights for Survival are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Lott Browne 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 Lott Industries: The CEO Fights for Survival HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Lott Browne 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.
Superior customer experience
– The customer experience strategy of Lott Browne in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Lott Industries: The CEO Fights for Survival | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lott Industries: The CEO Fights for Survival are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lott Industries: The CEO Fights for Survival, in the dynamic environment Lott Browne has struggled to respond to the nimble upstart competition. Lott Browne has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Lott Browne 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.
Slow decision making process
– As mentioned earlier in the report, Lott Browne 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. Lott Browne 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 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 Lott Browne supply chain. Even after few cautionary changes mentioned in the HBR case study - Lott Industries: The CEO Fights for Survival, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lott Browne vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Lott Industries: The CEO Fights for Survival HBR case study mentions - Lott Browne 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lott Industries: The CEO Fights for Survival, it seems that the employees of Lott Browne 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.
Lack of clear differentiation of Lott Browne products
– To increase the profitability and margins on the products, Lott Browne 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 Lott Browne, firm in the HBR case study Lott Industries: The CEO Fights for Survival needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Lott Browne 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.
Products dominated business model
– Even though Lott Browne 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 - Lott Industries: The CEO Fights for Survival should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lott Browne is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lott Industries: The CEO Fights for Survival can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Lott Industries: The CEO Fights for Survival | 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 Lott Industries: The CEO Fights for Survival are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lott Browne 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 Lott Browne to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Lott Browne can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lott Industries: The CEO Fights for Survival 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.
Better consumer reach
– The expansion of the 5G network will help Lott Browne to increase its market reach. Lott Browne 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.
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 Lott Browne in the consumer business. Now Lott Browne can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Lott Browne 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 Lott Industries: The CEO Fights for Survival - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lott Browne to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lott Browne can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Lott Browne 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lott Browne can use these opportunities to build new business models that can help the communities that Lott Browne operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Lott Browne has opened avenues for new revenue streams for the organization in the industry. This can help Lott Browne to build a more holistic ecosystem as suggested in the Lott Industries: The CEO Fights for Survival case study. Lott Browne can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Lott Browne 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lott Browne is facing challenges because of the dominance of functional experts in the organization. Lott Industries: The CEO Fights for Survival 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.
Developing new processes and practices
– Lott Browne 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lott Browne 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.
Threats Lott Industries: The CEO Fights for Survival External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lott Industries: The CEO Fights for Survival are -
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. Lott Browne can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Lott Browne 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.
High dependence on third party suppliers
– Lott Browne 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.
Regulatory challenges
– Lott Browne 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.
Environmental challenges
– Lott Browne 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. Lott Browne can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Lott Browne 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.
Technology acceleration in Forth Industrial Revolution
– Lott Browne has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Lott Browne 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lott Browne 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 Lott Industries: The CEO Fights for Survival .
Shortening product life cycle
– it is one of the major threat that Lott Browne is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Lott Browne 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.
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 Lott Browne.
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.
Weighted SWOT Analysis of Lott Industries: The CEO Fights for Survival 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 Lott Industries: The CEO Fights for Survival 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 Lott Industries: The CEO Fights for Survival 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 Lott Industries: The CEO Fights for Survival 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 Lott Industries: The CEO Fights for Survival 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 Lott Browne needs to make to build a sustainable competitive advantage.