Albert Dunlap and Corporate Transformation (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Albert Dunlap and Corporate Transformation (A)
After restructuring Scott Paper with a 34% reduction in head count and successfully selling the company to Kimberly Clark, Al Dunlap is hired as CEO by Sunbeam. This case describes the management principles of this corporate turnaround expert and his actions at Sunbeam.
Authors :: Ross Petty, Virginia Soybel, Phyllis Schlesinger, Sam Perkins
Swot Analysis of "Albert Dunlap and Corporate Transformation (A)" written by Ross Petty, Virginia Soybel, Phyllis Schlesinger, Sam Perkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dunlap Sunbeam facing as an external strategic factors. Some of the topics covered in Albert Dunlap and Corporate Transformation (A) case study are - Strategic Management Strategies, Ethics, Regulation, Reorganization and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Albert Dunlap and Corporate Transformation (A) casestudy better are - – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, wage bills are increasing, increasing energy prices, geopolitical disruptions, there is backlash against globalization, increasing household debt because of falling income levels,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Albert Dunlap and Corporate Transformation (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Albert Dunlap and Corporate Transformation (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dunlap Sunbeam, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dunlap Sunbeam 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 Albert Dunlap and Corporate Transformation (A) can be done for the following purposes –
1. Strategic planning using facts provided in Albert Dunlap and Corporate Transformation (A) case study
2. Improving business portfolio management of Dunlap Sunbeam
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 Dunlap Sunbeam
Strengths Albert Dunlap and Corporate Transformation (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dunlap Sunbeam in Albert Dunlap and Corporate Transformation (A) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Dunlap Sunbeam 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 Albert Dunlap and Corporate Transformation (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.
Superior customer experience
– The customer experience strategy of Dunlap Sunbeam in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Dunlap Sunbeam in the sector have low bargaining power. Albert Dunlap and Corporate Transformation (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dunlap Sunbeam to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Dunlap Sunbeam 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.
Analytics focus
– Dunlap Sunbeam 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 Ross Petty, Virginia Soybel, Phyllis Schlesinger, Sam Perkins 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 Dunlap Sunbeam 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.
Learning organization
- Dunlap Sunbeam 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 Dunlap Sunbeam is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Albert Dunlap and Corporate Transformation (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Albert Dunlap and Corporate Transformation (A) firm has clearly differentiated products in the market place. This has enabled Dunlap Sunbeam to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dunlap Sunbeam to invest into research and development (R&D) and innovation.
High brand equity
– Dunlap Sunbeam has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dunlap Sunbeam to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Dunlap Sunbeam has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dunlap Sunbeam 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.
Operational resilience
– The operational resilience strategy in the Albert Dunlap and Corporate Transformation (A) 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.
Strong track record of project management
– Dunlap Sunbeam is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Albert Dunlap and Corporate Transformation (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Albert Dunlap and Corporate Transformation (A) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Albert Dunlap and Corporate Transformation (A), in the dynamic environment Dunlap Sunbeam has struggled to respond to the nimble upstart competition. Dunlap Sunbeam has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Dunlap Sunbeam, firm in the HBR case study Albert Dunlap and Corporate Transformation (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Dunlap Sunbeam products
– To increase the profitability and margins on the products, Dunlap Sunbeam needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (A) can leverage the sales team experience to cultivate customer relationships as Dunlap Sunbeam is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Albert Dunlap and Corporate Transformation (A) 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 Dunlap Sunbeam has relatively successful track record of launching new products.
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 Dunlap Sunbeam supply chain. Even after few cautionary changes mentioned in the HBR case study - Albert Dunlap and Corporate Transformation (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dunlap Sunbeam vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Dunlap Sunbeam 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.
Need for greater diversity
– Dunlap Sunbeam 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.
High cash cycle compare to competitors
Dunlap Sunbeam 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Dunlap Sunbeam needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Albert Dunlap and Corporate Transformation (A), it seems that the employees of Dunlap Sunbeam 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.
Opportunities Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (A) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dunlap Sunbeam 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 Dunlap Sunbeam to hire the very best people irrespective of their geographical location.
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. Dunlap Sunbeam 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. Dunlap Sunbeam 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dunlap Sunbeam can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Dunlap Sunbeam has opened avenues for new revenue streams for the organization in the industry. This can help Dunlap Sunbeam to build a more holistic ecosystem as suggested in the Albert Dunlap and Corporate Transformation (A) case study. Dunlap Sunbeam can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Dunlap Sunbeam 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.
Building a culture of innovation
– managers at Dunlap Sunbeam 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.
Leveraging digital technologies
– Dunlap Sunbeam 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.
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. Dunlap Sunbeam can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Dunlap Sunbeam 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dunlap Sunbeam can use these opportunities to build new business models that can help the communities that Dunlap Sunbeam operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Dunlap Sunbeam can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Albert Dunlap and Corporate Transformation (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Dunlap Sunbeam 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 Dunlap Sunbeam to increase its market reach. Dunlap Sunbeam 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.
Threats Albert Dunlap and Corporate Transformation (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Albert Dunlap and Corporate Transformation (A) are -
Increasing wage structure of Dunlap Sunbeam
– 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 Dunlap Sunbeam.
Technology acceleration in Forth Industrial Revolution
– Dunlap Sunbeam has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dunlap Sunbeam 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.
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. Dunlap Sunbeam 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 dependence on third party suppliers
– Dunlap Sunbeam 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.
Environmental challenges
– Dunlap Sunbeam 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. Dunlap Sunbeam can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dunlap Sunbeam 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 Albert Dunlap and Corporate Transformation (A) .
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 Dunlap Sunbeam.
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 Dunlap Sunbeam in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Dunlap Sunbeam 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dunlap Sunbeam with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Dunlap Sunbeam can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Albert Dunlap and Corporate Transformation (A), Dunlap Sunbeam 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 .
Weighted SWOT Analysis of Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (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 Albert Dunlap and Corporate Transformation (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 Dunlap Sunbeam needs to make to build a sustainable competitive advantage.
