Case Study Description of Golf Fore Value: David Deluna
This case-and its related case (UV3898)-examine both sides of a two-party negotiation, in which students are asked to find the net value of the deal. These cases fit well in negotiations courses and are suitable for both undergraduate and MBA students. This case is from the perspective of David Deluna, who was looking forward to acquiring and using a new putter from Golf Fore Value-for which he would trade one or more of his used clubs. Deluna had appraised the value of each of the three clubs that could be included in the trade and had also considered their resale value to the store. His objective was to maximize the net value of the clubs that remained in his golf bag less the clubs given up in trade with adjustments for any small cash payment that might be made or received. He hoped that he could leverage his long-standing relationship with Robert Johnston, the owner of Golf Fore Value, to negotiate a favorable deal.
Swot Analysis of "Golf Fore Value: David Deluna" written by Sherwood C. Frey, Lucien Bass includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Deluna Clubs facing as an external strategic factors. Some of the topics covered in Golf Fore Value: David Deluna case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Golf Fore Value: David Deluna casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing commodity prices, wage bills are increasing, there is backlash against globalization, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings,
increasing energy prices, geopolitical disruptions, etc
Introduction to SWOT Analysis of Golf Fore Value: David Deluna
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Golf Fore Value: David Deluna case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Deluna Clubs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Deluna Clubs 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 Golf Fore Value: David Deluna can be done for the following purposes –
1. Strategic planning using facts provided in Golf Fore Value: David Deluna case study
2. Improving business portfolio management of Deluna Clubs
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 Deluna Clubs
Strengths Golf Fore Value: David Deluna | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Deluna Clubs in Golf Fore Value: David Deluna Harvard Business Review case study are -
Effective Research and Development (R&D)
– Deluna Clubs 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 Golf Fore Value: David Deluna - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Deluna Clubs 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 Golf Fore Value: David Deluna HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Golf Fore Value: David Deluna 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
– Golf Fore Value: David Deluna firm has clearly differentiated products in the market place. This has enabled Deluna Clubs to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Deluna Clubs to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Deluna Clubs 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.
Training and development
– Deluna Clubs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Golf Fore Value: David Deluna Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Deluna Clubs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Deluna Clubs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Deluna Clubs 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 Deluna Clubs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Deluna Clubs is one of the leading recruiters in the industry. Managers in the Golf Fore Value: David Deluna are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Deluna Clubs is present in almost all the verticals within the industry. This has provided firm in Golf Fore Value: David Deluna case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Low bargaining power of suppliers
– Suppliers of Deluna Clubs in the sector have low bargaining power. Golf Fore Value: David Deluna has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Deluna Clubs to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Deluna Clubs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Deluna Clubs 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.
Weaknesses Golf Fore Value: David Deluna | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Golf Fore Value: David Deluna are -
Slow decision making process
– As mentioned earlier in the report, Deluna Clubs 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. Deluna Clubs 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.
Aligning sales with marketing
– It come across in the case study Golf Fore Value: David Deluna 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 Golf Fore Value: David Deluna can leverage the sales team experience to cultivate customer relationships as Deluna Clubs is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Deluna Clubs, firm in the HBR case study Golf Fore Value: David Deluna needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Deluna Clubs 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.
No frontier risks strategy
– After analyzing the HBR case study Golf Fore Value: David Deluna, 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.
Increasing silos among functional specialists
– The organizational structure of Deluna Clubs is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Deluna Clubs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Deluna Clubs to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Golf Fore Value: David Deluna, it seems that the employees of Deluna Clubs 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.
Lack of clear differentiation of Deluna Clubs products
– To increase the profitability and margins on the products, Deluna Clubs needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Golf Fore Value: David Deluna has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Deluna Clubs 's lucrative customers.
Slow to strategic competitive environment developments
– As Golf Fore Value: David Deluna HBR case study mentions - Deluna Clubs 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 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 Deluna Clubs supply chain. Even after few cautionary changes mentioned in the HBR case study - Golf Fore Value: David Deluna, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Deluna Clubs vulnerable to further global disruptions in South East Asia.
Opportunities Golf Fore Value: David Deluna | 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 Golf Fore Value: David Deluna are -
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. Deluna Clubs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Deluna Clubs 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 Deluna Clubs to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Deluna Clubs 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
– Deluna Clubs 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.
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 Deluna Clubs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Deluna Clubs 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.
Loyalty marketing
– Deluna Clubs has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Deluna Clubs can use these opportunities to build new business models that can help the communities that Deluna Clubs operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Deluna Clubs in the consumer business. Now Deluna Clubs can target international markets with far fewer capital restrictions requirements than the existing system.
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. Deluna Clubs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Deluna Clubs is facing challenges because of the dominance of functional experts in the organization. Golf Fore Value: David Deluna 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.
Developing new processes and practices
– Deluna Clubs 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.
Buying journey improvements
– Deluna Clubs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Golf Fore Value: David Deluna 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.
Threats Golf Fore Value: David Deluna External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Golf Fore Value: David Deluna are -
Stagnating economy with rate increase
– Deluna Clubs 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.
High dependence on third party suppliers
– Deluna Clubs 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.
Increasing wage structure of Deluna Clubs
– 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 Deluna Clubs.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Deluna Clubs 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Deluna Clubs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Deluna Clubs 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.
Technology acceleration in Forth Industrial Revolution
– Deluna Clubs has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Deluna Clubs 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 Golf Fore Value: David Deluna, Deluna Clubs 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 .
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 Deluna Clubs business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Deluna Clubs is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Deluna Clubs 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 Golf Fore Value: David Deluna .
Weighted SWOT Analysis of Golf Fore Value: David Deluna 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 Golf Fore Value: David Deluna 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 Golf Fore Value: David Deluna 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 Golf Fore Value: David Deluna 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 Golf Fore Value: David Deluna 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 Deluna Clubs needs to make to build a sustainable competitive advantage.