Strategic Performance Measurement of Suppliers at HTC SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Strategic Performance Measurement of Suppliers at HTC
The case introduces students to the concept of supplier management with scorecard and other performance measures and the concept of Total Cost of Ownership The purpose of this case is to enhance the student's understanding of the role of performance measures in the inter organizational setting - buyer supplier partnerships. In particular their role in managing the purchase allocation decision made by the buyer. a?? The role of management accounting information in the purchase allocation decision is explained by the total cost of ownership concept. a?? Purchase allocation decisions are made with respect to various factors including past performance, strategic importance and inventory requirements a?? Understanding the extent to which these factors are in play in the purchase allocation decision by buyers is important to the development of modern management systems in settings where there is increased outsourcing of non-core value added activities. As more parts of the global supply chain are being located in China, greater responsibility falls on the management to adopt systems that can help them to manage and satisfy international standards for delivery and quality.
Authors :: Neale O'Connor, Anne Wu, Shannon Anderson, Yu Chen
Swot Analysis of "Strategic Performance Measurement of Suppliers at HTC" written by Neale O'Connor, Anne Wu, Shannon Anderson, Yu Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Allocation Purchase facing as an external strategic factors. Some of the topics covered in Strategic Performance Measurement of Suppliers at HTC case study are - Strategic Management Strategies, Balanced scorecard, Risk management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Strategic Performance Measurement of Suppliers at HTC casestudy better are - – talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Strategic Performance Measurement of Suppliers at HTC
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategic Performance Measurement of Suppliers at HTC case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Allocation Purchase, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Allocation Purchase 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 Strategic Performance Measurement of Suppliers at HTC can be done for the following purposes –
1. Strategic planning using facts provided in Strategic Performance Measurement of Suppliers at HTC case study
2. Improving business portfolio management of Allocation Purchase
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 Allocation Purchase
Strengths Strategic Performance Measurement of Suppliers at HTC | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Allocation Purchase in Strategic Performance Measurement of Suppliers at HTC Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Allocation Purchase digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Allocation Purchase 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.
Organizational Resilience of Allocation Purchase
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Allocation Purchase does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Allocation Purchase is one of the leading recruiters in the industry. Managers in the Strategic Performance Measurement of Suppliers at HTC 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
– Allocation Purchase has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Strategic Performance Measurement of Suppliers at HTC Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Allocation Purchase has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Allocation Purchase 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Strategic Performance Measurement of Suppliers at HTC firm has clearly differentiated products in the market place. This has enabled Allocation Purchase to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Allocation Purchase to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Allocation Purchase in the sector have low bargaining power. Strategic Performance Measurement of Suppliers at HTC has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Allocation Purchase to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Allocation Purchase 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.
High brand equity
– Allocation Purchase has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Allocation Purchase to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Strategic Performance Measurement of Suppliers at HTC Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Allocation Purchase 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 Allocation Purchase is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategic Performance Measurement of Suppliers at HTC Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Allocation Purchase is one of the most innovative firm in sector. Manager in Strategic Performance Measurement of Suppliers at HTC Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Strategic Performance Measurement of Suppliers at HTC | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Strategic Performance Measurement of Suppliers at HTC are -
Need for greater diversity
– Allocation Purchase 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.
Slow decision making process
– As mentioned earlier in the report, Allocation Purchase 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. Allocation Purchase even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Strategic Performance Measurement of Suppliers at HTC, 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.
Products dominated business model
– Even though Allocation Purchase 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 - Strategic Performance Measurement of Suppliers at HTC should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Allocation Purchase products
– To increase the profitability and margins on the products, Allocation Purchase needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Allocation Purchase is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Strategic Performance Measurement of Suppliers at HTC can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Strategic Performance Measurement of Suppliers at HTC, it seems that the employees of Allocation Purchase 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.
High cash cycle compare to competitors
Allocation Purchase 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Strategic Performance Measurement of Suppliers at HTC, in the dynamic environment Allocation Purchase has struggled to respond to the nimble upstart competition. Allocation Purchase has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Allocation Purchase 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.
Low market penetration in new markets
– Outside its home market of Allocation Purchase, firm in the HBR case study Strategic Performance Measurement of Suppliers at HTC needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Strategic Performance Measurement of Suppliers at HTC | 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 Strategic Performance Measurement of Suppliers at HTC are -
Loyalty marketing
– Allocation Purchase 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Allocation Purchase can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Allocation Purchase 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.
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 Allocation Purchase in the consumer business. Now Allocation Purchase can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Allocation Purchase can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Allocation Purchase 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 Allocation Purchase to hire the very best people irrespective of their geographical location.
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 Allocation Purchase 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.
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. Allocation Purchase 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. Allocation Purchase 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.
Better consumer reach
– The expansion of the 5G network will help Allocation Purchase to increase its market reach. Allocation Purchase 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Allocation Purchase 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.
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. Allocation Purchase can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Allocation Purchase can use these opportunities to build new business models that can help the communities that Allocation Purchase operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Allocation Purchase 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.
Threats Strategic Performance Measurement of Suppliers at HTC External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Strategic Performance Measurement of Suppliers at HTC are -
Regulatory challenges
– Allocation Purchase 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.
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.
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 Allocation Purchase.
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. Allocation Purchase can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Allocation Purchase in the Strategy & Execution sector and impact the bottomline of the organization.
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. Allocation Purchase 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.
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 Allocation Purchase business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Allocation Purchase 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.
Environmental challenges
– Allocation Purchase 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. Allocation Purchase can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategic Performance Measurement of Suppliers at HTC, Allocation Purchase 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 .
Consumer confidence and its impact on Allocation Purchase 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.
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 Allocation Purchase
– 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 Allocation Purchase.
Weighted SWOT Analysis of Strategic Performance Measurement of Suppliers at HTC 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 Strategic Performance Measurement of Suppliers at HTC 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 Strategic Performance Measurement of Suppliers at HTC 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 Strategic Performance Measurement of Suppliers at HTC 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 Strategic Performance Measurement of Suppliers at HTC 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 Allocation Purchase needs to make to build a sustainable competitive advantage.