B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal
Should B&K Distributors implement a Web-based customer portal with an integrated marketing campaign? Asks readers to assist Jim Anfield, business development director for JDA Consulting, and Nancy O'Neil, B&K Distributor's sales VP, in determining the feasibility of this project. They must build the final ROI projections and develop recommendations for B&K's senior management team. Emphasizes the importance of assumptions and the range of possible outcomes. Based on a real-life management decision for a mid-size firm.
Authors :: Mark Jeffery, James Anfield, Tim Riitters
Swot Analysis of "B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal" written by Mark Jeffery, James Anfield, Tim Riitters includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Portal Distributors facing as an external strategic factors. Some of the topics covered in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal case study are - Strategic Management Strategies, Financial management, Internet, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Portal Distributors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Portal Distributors 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal can be done for the following purposes –
1. Strategic planning using facts provided in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal case study
2. Improving business portfolio management of Portal Distributors
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Portal Distributors
Strengths B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Portal Distributors in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal Harvard Business Review case study are -
Strong track record of project management
– Portal Distributors is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Portal Distributors 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 Portal Distributors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Portal Distributors 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal - 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 lead change in Finance & Accounting field
– Portal Distributors 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 Portal Distributors in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Portal Distributors 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.
Ability to recruit top talent
– Portal Distributors is one of the leading recruiters in the industry. Managers in the B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Finance & Accounting industry
– B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal firm has clearly differentiated products in the market place. This has enabled Portal Distributors to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Portal Distributors to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Portal Distributors in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Portal Distributors 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 Mark Jeffery, James Anfield, Tim Riitters 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Portal Distributors digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Portal Distributors 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.
High brand equity
– Portal Distributors has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Portal Distributors to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Portal Distributors is one of the most innovative firm in sector. Manager in B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal, it seems that the employees of Portal Distributors 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.
No frontier risks strategy
– After analyzing the HBR case study B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 decision making process
– As mentioned earlier in the report, Portal Distributors 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. Portal Distributors 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.
Need for greater diversity
– Portal Distributors 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 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 Portal Distributors supply chain. Even after few cautionary changes mentioned in the HBR case study - B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Portal Distributors vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Portal Distributors 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.
Increasing silos among functional specialists
– The organizational structure of Portal Distributors is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Portal Distributors needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Portal Distributors to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Portal Distributors 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 - B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Portal Distributors, firm in the HBR case study B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Portal Distributors 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.
Slow to strategic competitive environment developments
– As B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal HBR case study mentions - Portal Distributors takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal | 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal are -
Learning at scale
– Online learning technologies has now opened space for Portal Distributors 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Portal Distributors 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, B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Portal Distributors can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Portal Distributors 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 Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Portal Distributors 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. Portal Distributors 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.
Developing new processes and practices
– Portal Distributors can develop new processes and procedures in Finance & Accounting 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.
Better consumer reach
– The expansion of the 5G network will help Portal Distributors to increase its market reach. Portal Distributors 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.
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 Portal Distributors in the consumer business. Now Portal Distributors can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Portal Distributors can use these opportunities to build new business models that can help the communities that Portal Distributors operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Buying journey improvements
– Portal Distributors can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 Finance & Accounting industry, but it has also influenced the consumer preferences. Portal Distributors can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Portal Distributors 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Portal Distributors to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Portal Distributors 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 Portal Distributors in the Finance & Accounting sector and impact the bottomline of the organization.
Regulatory challenges
– Portal Distributors 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 Finance & Accounting industry regulations.
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. Portal Distributors needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Portal Distributors.
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. Portal Distributors 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal, Portal Distributors may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Portal Distributors can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Portal Distributors has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Portal Distributors needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Portal Distributors 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal .
Increasing wage structure of Portal Distributors
– 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 Portal Distributors.
Environmental challenges
– Portal Distributors 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. Portal Distributors can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Portal Distributors in the Finance & Accounting industry. The Finance & Accounting 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.
Weighted SWOT Analysis of B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal 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 Portal Distributors needs to make to build a sustainable competitive advantage.
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