Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version
In mid-2005, Intel is examining its options for where to locate its next assembly and test plant. On its short list of potential sites includes locations in China, India, Thailand, and Vietnam. Each country has its own unique benefits and risks related to infrastructure, governance, education, business culture, intellectual property protection, labor markets, experience working with Western firms, and tax breaks and other incentives. Intel's General Manager for Assembly and Test, Brian Krzanich, has to consider all of these factors as well as Intel's criteria for its new facility's location and make his recommendation to the company's board of directors. Which country and location should Intel choose?
Swot Analysis of "Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version" written by Juan Alcacer, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Assembly Intel facing as an external strategic factors. Some of the topics covered in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version case study are - Strategic Management Strategies, International business, Marketing, Strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, technology disruption, central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Assembly Intel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Assembly Intel 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version case study
2. Improving business portfolio management of Assembly Intel
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 Assembly Intel
Strengths Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Assembly Intel in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version Harvard Business Review case study are -
Effective Research and Development (R&D)
– Assembly Intel 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Assembly Intel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Assembly Intel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Assembly Intel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Assembly Intel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Assembly Intel 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 Assembly Intel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Assembly Intel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Assembly Intel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Assembly Intel 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.
Ability to recruit top talent
– Assembly Intel is one of the leading recruiters in the industry. Managers in the Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Assembly Intel 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 Assembly Intel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Assembly Intel in the sector have low bargaining power. Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Assembly Intel to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Assembly Intel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Assembly Intel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Assembly Intel is one of the most innovative firm in sector. Manager in Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version are -
Interest costs
– Compare to the competition, Assembly Intel 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version, is just above the industry average. Assembly Intel 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, Assembly Intel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version HBR case study mentions - Assembly Intel 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version, it seems that the employees of Assembly Intel 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.
Capital Spending Reduction
– Even during the low interest decade, Assembly Intel 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 cash cycle compare to competitors
Assembly Intel 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Assembly Intel has relatively successful track record of launching new products.
Lack of clear differentiation of Assembly Intel products
– To increase the profitability and margins on the products, Assembly Intel needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Assembly Intel 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 - Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version can leverage the sales team experience to cultivate customer relationships as Assembly Intel is planning to shift buying processes online.
Opportunities Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version | 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version are -
Loyalty marketing
– Assembly Intel 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Assembly Intel 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, Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Assembly Intel 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. Assembly Intel 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Assembly Intel 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.
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 Assembly Intel 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.
Learning at scale
– Online learning technologies has now opened space for Assembly Intel 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.
Manufacturing automation
– Assembly Intel 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Assembly Intel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Assembly Intel 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.
Building a culture of innovation
– managers at Assembly Intel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Assembly Intel is facing challenges because of the dominance of functional experts in the organization. Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Assembly Intel can use these opportunities to build new business models that can help the communities that Assembly Intel operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Assembly Intel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version are -
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 Assembly Intel.
Regulatory challenges
– Assembly Intel 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version, Assembly Intel 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Assembly Intel 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 dependence on third party suppliers
– Assembly Intel 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Assembly Intel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Assembly Intel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Assembly Intel 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. Assembly Intel can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Assembly Intel needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Assembly Intel is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Consumer confidence and its impact on Assembly Intel 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.
Weighted SWOT Analysis of Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Intel: Strategic Decisions in Locating a New Assembly and Test Plant (A), Chinese Version 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 Assembly Intel needs to make to build a sustainable competitive advantage.
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