Dayton Hudson Corp.: Conscience and Control (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dayton Hudson Corp.: Conscience and Control (A)
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.Describes the initial response of a corporation to the news that it is the target of a hostile takeover attempt. In 1987 Dayton Hudson Corp. (DHC), a Minnesota corporation, was the fifth largest non-food retailer in the United States and a consistently strong performer. The previous year, however, the company had experienced its first decline in net earnings per share in 16 years. Because of this, and other factors, its stock price had dropped, and it became vulnerable to raiders. In late May 1987, DHC's management learned that the Dart Group Corp. of Maryland was acquiring large amounts of the company's stock and they began to deliberate about how to respond to the threat. A videotape (9-891-501) is available for use with this reprint. Not advertised -- 'reprint' -- per Case Records.
Swot Analysis of "Dayton Hudson Corp.: Conscience and Control (A)" written by On Council, Council On Foundations includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reprint Dayton facing as an external strategic factors. Some of the topics covered in Dayton Hudson Corp.: Conscience and Control (A) case study are - Strategic Management Strategies, Government, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Dayton Hudson Corp.: Conscience and Control (A) casestudy better are - – supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Dayton Hudson Corp.: Conscience and Control (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dayton Hudson Corp.: Conscience and Control (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reprint Dayton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reprint Dayton 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 Dayton Hudson Corp.: Conscience and Control (A) can be done for the following purposes –
1. Strategic planning using facts provided in Dayton Hudson Corp.: Conscience and Control (A) case study
2. Improving business portfolio management of Reprint Dayton
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 Reprint Dayton
Strengths Dayton Hudson Corp.: Conscience and Control (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reprint Dayton in Dayton Hudson Corp.: Conscience and Control (A) Harvard Business Review case study are -
Organizational Resilience of Reprint Dayton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Reprint Dayton does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Reprint Dayton is one of the leading recruiters in the industry. Managers in the Dayton Hudson Corp.: Conscience and Control (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Reprint Dayton has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dayton Hudson Corp.: Conscience and Control (A) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Dayton Hudson Corp.: Conscience and Control (A) firm has clearly differentiated products in the market place. This has enabled Reprint Dayton to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Reprint Dayton to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Reprint Dayton digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reprint Dayton 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.
Analytics focus
– Reprint Dayton 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 On Council, Council On Foundations 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 Reprint Dayton 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.
Effective Research and Development (R&D)
– Reprint Dayton 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 Dayton Hudson Corp.: Conscience and Control (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Reprint Dayton 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 Dayton Hudson Corp.: Conscience and Control (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Reprint Dayton 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 Reprint Dayton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dayton Hudson Corp.: Conscience and Control (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Reprint Dayton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Reprint Dayton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reprint Dayton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Dayton Hudson Corp.: Conscience and Control (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dayton Hudson Corp.: Conscience and Control (A) are -
No frontier risks strategy
– After analyzing the HBR case study Dayton Hudson Corp.: Conscience and Control (A), 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.
Interest costs
– Compare to the competition, Reprint Dayton 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.
Increasing silos among functional specialists
– The organizational structure of Reprint Dayton is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Reprint Dayton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reprint Dayton to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Dayton Hudson Corp.: Conscience and Control (A), it seems that the employees of Reprint Dayton 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.
Skills based hiring
– The stress on hiring functional specialists at Reprint Dayton 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.
Capital Spending Reduction
– Even during the low interest decade, Reprint Dayton 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.
Lack of clear differentiation of Reprint Dayton products
– To increase the profitability and margins on the products, Reprint Dayton 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 Reprint Dayton, firm in the HBR case study Dayton Hudson Corp.: Conscience and Control (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Reprint Dayton 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 - Dayton Hudson Corp.: Conscience and Control (A) should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Dayton Hudson Corp.: Conscience and Control (A) 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 Reprint Dayton 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Dayton Hudson Corp.: Conscience and Control (A) 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 Dayton Hudson Corp.: Conscience and Control (A) can leverage the sales team experience to cultivate customer relationships as Reprint Dayton is planning to shift buying processes online.
Opportunities Dayton Hudson Corp.: Conscience and Control (A) | 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 Dayton Hudson Corp.: Conscience and Control (A) are -
Building a culture of innovation
– managers at Reprint Dayton 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, Reprint Dayton is facing challenges because of the dominance of functional experts in the organization. Dayton Hudson Corp.: Conscience and Control (A) 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.
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 Reprint Dayton 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.
Loyalty marketing
– Reprint Dayton 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reprint Dayton 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 Reprint Dayton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Reprint Dayton to increase its market reach. Reprint Dayton 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
– Reprint Dayton 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.
Developing new processes and practices
– Reprint Dayton 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.
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 Reprint Dayton in the consumer business. Now Reprint Dayton can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reprint Dayton 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, Dayton Hudson Corp.: Conscience and Control (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Reprint Dayton has opened avenues for new revenue streams for the organization in the industry. This can help Reprint Dayton to build a more holistic ecosystem as suggested in the Dayton Hudson Corp.: Conscience and Control (A) case study. Reprint Dayton can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Reprint Dayton 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 Dayton Hudson Corp.: Conscience and Control (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Reprint Dayton to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Dayton Hudson Corp.: Conscience and Control (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dayton Hudson Corp.: Conscience and Control (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dayton Hudson Corp.: Conscience and Control (A), Reprint Dayton 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 .
Shortening product life cycle
– it is one of the major threat that Reprint Dayton is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Reprint Dayton 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
– Reprint Dayton 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.
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 Reprint Dayton in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Reprint Dayton 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. Reprint Dayton can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Reprint Dayton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Reprint Dayton 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.
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. Reprint Dayton needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reprint Dayton 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 Dayton Hudson Corp.: Conscience and Control (A) .
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.
Increasing wage structure of Reprint Dayton
– 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 Reprint Dayton.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Reprint Dayton business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Dayton Hudson Corp.: Conscience and Control (A) 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 Dayton Hudson Corp.: Conscience and Control (A) 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 Dayton Hudson Corp.: Conscience and Control (A) 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 Dayton Hudson Corp.: Conscience and Control (A) 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 Dayton Hudson Corp.: Conscience and Control (A) 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 Reprint Dayton needs to make to build a sustainable competitive advantage.
