Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A)
The chief executive officer (CEO) of Fortune Motors, the largest Mitsubishi dealership in Taiwan, has to consider his vision for the survival of the company. Fortune Motors' sales in 2003 had fallen below 50,000 units for the first time in 10 years, and market share had been falling for several years. The CEO had a plan to enter the business of financing used-car purchases. He thought that the "balanced scorecard" would be a useful tool to help him implement this change. The first step was to construct a corporate scorecard.
Swot Analysis of "Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A)" written by David J. Sharp, Anne Wu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Scorecard Fortune facing as an external strategic factors. Some of the topics covered in Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) case study are - Strategic Management Strategies, Competitive strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) casestudy better are - – geopolitical disruptions, increasing household debt because of falling income levels, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Scorecard Fortune, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Scorecard Fortune 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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) can be done for the following purposes –
1. Strategic planning using facts provided in Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) case study
2. Improving business portfolio management of Scorecard Fortune
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 Scorecard Fortune
Strengths Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Scorecard Fortune in Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) Harvard Business Review case study are -
Organizational Resilience of Scorecard Fortune
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Scorecard Fortune does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Scorecard Fortune 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 David J. Sharp, Anne Wu 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.
Strong track record of project management
– Scorecard Fortune is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Scorecard Fortune is one of the most innovative firm in sector. Manager in Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Scorecard Fortune is one of the leading recruiters in the industry. Managers in the Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Scorecard Fortune in the sector have low bargaining power. Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Scorecard Fortune to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Scorecard Fortune in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Scorecard Fortune 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Scorecard Fortune digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Scorecard Fortune 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
– Scorecard Fortune has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Scorecard Fortune to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Scorecard Fortune 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 lead change in Strategy & Execution field
– Scorecard Fortune 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 Scorecard Fortune in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) are -
Increasing silos among functional specialists
– The organizational structure of Scorecard Fortune is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Scorecard Fortune needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Scorecard Fortune to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Scorecard Fortune 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 Scorecard Fortune, firm in the HBR case study Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Scorecard Fortune is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) HBR case study mentions - Scorecard Fortune 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Scorecard Fortune has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Scorecard Fortune has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Scorecard Fortune 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. Scorecard Fortune 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, Scorecard Fortune 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A), in the dynamic environment Scorecard Fortune has struggled to respond to the nimble upstart competition. Scorecard Fortune has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Scorecard Fortune supply chain. Even after few cautionary changes mentioned in the HBR case study - Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Scorecard Fortune vulnerable to further global disruptions in South East Asia.
Opportunities Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Scorecard Fortune 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 Scorecard Fortune to hire the very best people irrespective of their geographical location.
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. Scorecard Fortune can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Scorecard Fortune 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.
Manufacturing automation
– Scorecard Fortune 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, Scorecard Fortune can use these opportunities to build new business models that can help the communities that Scorecard Fortune operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Scorecard Fortune 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, Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Scorecard Fortune 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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Scorecard Fortune to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Scorecard Fortune 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. Scorecard Fortune 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Scorecard Fortune 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.
Building a culture of innovation
– managers at Scorecard Fortune 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.
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 Scorecard Fortune in the consumer business. Now Scorecard Fortune can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Scorecard Fortune is facing challenges because of the dominance of functional experts in the organization. Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Scorecard Fortune can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Scorecard Fortune 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. Scorecard Fortune can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Scorecard Fortune 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Scorecard Fortune 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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A) .
Shortening product life cycle
– it is one of the major threat that Scorecard Fortune is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Stagnating economy with rate increase
– Scorecard Fortune 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.
Regulatory challenges
– Scorecard Fortune 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.
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 Scorecard Fortune.
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 Scorecard Fortune in the Strategy & Execution sector and impact the bottomline of the organization.
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. Scorecard Fortune needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Scorecard Fortune
– 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 Scorecard Fortune.
Weighted SWOT Analysis of Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (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 Scorecard Fortune needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Fortune Motors (Taiwan): Implementing Strategy Change Using the Balanced Scorecard (A)