THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant
Accompanied by product #PON244Two-party or two-team, multi-issue, integrative/distributive negotiation between representatives of a new low-cost airline and a potential headquarters city over an incentives package and airport facilities. Fresh Air, a new low-cost airline, is looking for a headquarters city. It is negotiating with the city of Boston, its top choice for a headquarters location, over an incentive package and airport facilities. Fresh Air plans to build on the brand reputation of its parent airline, which stands for innovation, fun, unparalleled customer service, and empowered employees. It believes that a unique corporate culture and happy customers will allow it to charge lower prices, to fill its planes, and to run profitable operations. Boston seeks to reinvent itself as a center of American business after years of business decline. The opening of a low-cost carrier would be an important part of this effort. However, in these tight fiscal times, Boston is limited financially. This is a role play case.
Swot Analysis of "THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant" written by Duncan MacLaren includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Boston Headquarters facing as an external strategic factors. Some of the topics covered in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant case study are - Strategic Management Strategies, IT, Negotiations, Operations management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant casestudy better are - – talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, technology disruption, wage bills are increasing, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, geopolitical disruptions,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Boston Headquarters, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Boston Headquarters 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant can be done for the following purposes –
1. Strategic planning using facts provided in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant case study
2. Improving business portfolio management of Boston Headquarters
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 Boston Headquarters
Strengths THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Boston Headquarters in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant Harvard Business Review case study are -
Diverse revenue streams
– Boston Headquarters is present in almost all the verticals within the industry. This has provided firm in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 Boston Headquarters in the sector have low bargaining power. THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Boston Headquarters to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Boston Headquarters 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 Duncan MacLaren 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.
Cross disciplinary teams
– Horizontal connected teams at the Boston Headquarters 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 brand equity
– Boston Headquarters has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Boston Headquarters to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Boston Headquarters 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
– Boston Headquarters is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Boston Headquarters is one of the leading recruiters in the industry. Managers in the THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Boston Headquarters is one of the most innovative firm in sector. Manager in THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Boston Headquarters 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 Boston Headquarters in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Boston Headquarters digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Boston Headquarters 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.
Successful track record of launching new products
– Boston Headquarters has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Boston Headquarters 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant are -
Products dominated business model
– Even though Boston Headquarters 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 - THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant, in the dynamic environment Boston Headquarters has struggled to respond to the nimble upstart competition. Boston Headquarters has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Boston Headquarters 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. Boston Headquarters 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.
Slow to strategic competitive environment developments
– As THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant HBR case study mentions - Boston Headquarters 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant, is just above the industry average. Boston Headquarters needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Boston Headquarters is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant, 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.
Capital Spending Reduction
– Even during the low interest decade, Boston Headquarters has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 Boston Headquarters supply chain. Even after few cautionary changes mentioned in the HBR case study - THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Boston Headquarters vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 Boston Headquarters has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant can leverage the sales team experience to cultivate customer relationships as Boston Headquarters is planning to shift buying processes online.
Opportunities THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant | 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Boston Headquarters 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, THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant, 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
– Boston Headquarters 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.
Better consumer reach
– The expansion of the 5G network will help Boston Headquarters to increase its market reach. Boston Headquarters 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.
Manufacturing automation
– Boston Headquarters 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
– Boston Headquarters 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Boston Headquarters to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Boston Headquarters 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.
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 Boston Headquarters 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.
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 Boston Headquarters in the consumer business. Now Boston Headquarters can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Boston Headquarters 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Boston Headquarters 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 Boston Headquarters to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Boston Headquarters can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Boston Headquarters is facing challenges because of the dominance of functional experts in the organization. THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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.
Creating value in data economy
– The success of analytics program of Boston Headquarters has opened avenues for new revenue streams for the organization in the industry. This can help Boston Headquarters to build a more holistic ecosystem as suggested in the THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant case study. Boston Headquarters can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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. Boston Headquarters can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Boston Headquarters with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Boston Headquarters 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant .
Increasing wage structure of Boston Headquarters
– 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 Boston Headquarters.
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 Boston Headquarters.
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. Boston Headquarters needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Boston Headquarters has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Boston Headquarters 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.
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 Boston Headquarters in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Boston Headquarters 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.
Stagnating economy with rate increase
– Boston Headquarters 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.
Consumer confidence and its impact on Boston Headquarters 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
– Boston Headquarters 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. Boston Headquarters 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.
Weighted SWOT Analysis of THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 THE GE INTERNATIONAL CONTRACT - Confidential Instructions for the Computer Systems Consultant 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 Boston Headquarters needs to make to build a sustainable competitive advantage.
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