Dayton Hudson Corp.: Conscience and Control (E) 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 (E)
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.Reports the result of the second acquisition attempt. While Dayton Hudson Corp. filed suit against the Dart Group, and the Dart Group filed a counter-suit, events overtook both parties. The stock market crash of October 19, 1987 effectively brought an end to the acquisition attempt. 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 (E)" written by On Council, Council On Foundations includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dart Reprint facing as an external strategic factors. Some of the topics covered in Dayton Hudson Corp.: Conscience and Control (E) 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 (E) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is backlash against globalization, wage bills are increasing, etc
Introduction to SWOT Analysis of Dayton Hudson Corp.: Conscience and Control (E)
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 (E) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dart Reprint, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dart Reprint 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 (E) can be done for the following purposes –
1. Strategic planning using facts provided in Dayton Hudson Corp.: Conscience and Control (E) case study
2. Improving business portfolio management of Dart Reprint
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 Dart Reprint
Strengths Dayton Hudson Corp.: Conscience and Control (E) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dart Reprint in Dayton Hudson Corp.: Conscience and Control (E) Harvard Business Review case study are -
Organizational Resilience of Dart Reprint
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dart Reprint does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dart Reprint digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dart Reprint 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.
Innovation driven organization
– Dart Reprint is one of the most innovative firm in sector. Manager in Dayton Hudson Corp.: Conscience and Control (E) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Dayton Hudson Corp.: Conscience and Control (E) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Dayton Hudson Corp.: Conscience and Control (E) firm has clearly differentiated products in the market place. This has enabled Dart Reprint to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dart Reprint to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Dart Reprint in the sector have low bargaining power. Dayton Hudson Corp.: Conscience and Control (E) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dart Reprint to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Dart Reprint 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 (E) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Dart Reprint is one of the leading recruiters in the industry. Managers in the Dayton Hudson Corp.: Conscience and Control (E) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Dart Reprint has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dart Reprint 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.
High brand equity
– Dart Reprint has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dart Reprint to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Dart Reprint 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 (E) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Dart Reprint 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 Dart Reprint in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Dayton Hudson Corp.: Conscience and Control (E) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dayton Hudson Corp.: Conscience and Control (E) are -
Slow decision making process
– As mentioned earlier in the report, Dart Reprint 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. Dart Reprint 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Dart Reprint 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.
Interest costs
– Compare to the competition, Dart Reprint 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.
Capital Spending Reduction
– Even during the low interest decade, Dart Reprint 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Dayton Hudson Corp.: Conscience and Control (E), is just above the industry average. Dart Reprint 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.
High cash cycle compare to competitors
Dart Reprint 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 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 Dart Reprint supply chain. Even after few cautionary changes mentioned in the HBR case study - Dayton Hudson Corp.: Conscience and Control (E), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dart Reprint vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Dayton Hudson Corp.: Conscience and Control (E), 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dart Reprint is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dayton Hudson Corp.: Conscience and Control (E) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Dayton Hudson Corp.: Conscience and Control (E) 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 Dart Reprint has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, On Council, Council On Foundations suggests that, Dart Reprint is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Dayton Hudson Corp.: Conscience and Control (E) | 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 (E) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dart Reprint is facing challenges because of the dominance of functional experts in the organization. Dayton Hudson Corp.: Conscience and Control (E) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dart Reprint can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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. Dart Reprint can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Dart Reprint 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dart Reprint 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 Dart Reprint to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dart Reprint 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.
Using analytics as competitive advantage
– Dart Reprint 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 (E) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dart Reprint to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Dart Reprint 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dart Reprint 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 (E), 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 Dart Reprint has opened avenues for new revenue streams for the organization in the industry. This can help Dart Reprint to build a more holistic ecosystem as suggested in the Dayton Hudson Corp.: Conscience and Control (E) case study. Dart Reprint can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Dart Reprint can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dayton Hudson Corp.: Conscience and Control (E) 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.
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. Dart Reprint can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Dart Reprint 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.
Threats Dayton Hudson Corp.: Conscience and Control (E) 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 (E) are -
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 Dart Reprint in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dart Reprint 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 (E) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dart Reprint 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
– Dart Reprint 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.
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.
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 Dart Reprint business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Dart Reprint has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dart Reprint 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.
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 (E), Dart Reprint 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 .
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 Dart Reprint.
Consumer confidence and its impact on Dart Reprint 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.
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. Dart Reprint 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.
Increasing wage structure of Dart Reprint
– 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 Dart Reprint.
Shortening product life cycle
– it is one of the major threat that Dart Reprint is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Dayton Hudson Corp.: Conscience and Control (E) 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 (E) 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 (E) 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 (E) 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 (E) 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 Dart Reprint needs to make to build a sustainable competitive advantage.
