Case Study Description of Hewlett-Packard: Queensferry Telecommunications Division
Queensferry Telecommunications Division has recently implemented an activity-based cost system. The case explores several issues. First, the role of variance analysis in an activity-based system. Second, the way to determine cost drive rates. Third, the evaluation of incremental business.
Swot Analysis of "Hewlett-Packard: Queensferry Telecommunications Division" written by Robin Cooper, Kiran Verma includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Queensferry Activity facing as an external strategic factors. Some of the topics covered in Hewlett-Packard: Queensferry Telecommunications Division case study are - Strategic Management Strategies, Costs, Financial analysis and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Hewlett-Packard: Queensferry Telecommunications Division casestudy better are - – supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing commodity prices, increasing energy prices, increasing household debt because of falling income levels,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Hewlett-Packard: Queensferry Telecommunications Division
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hewlett-Packard: Queensferry Telecommunications Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Queensferry Activity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Queensferry Activity 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 Hewlett-Packard: Queensferry Telecommunications Division can be done for the following purposes –
1. Strategic planning using facts provided in Hewlett-Packard: Queensferry Telecommunications Division case study
2. Improving business portfolio management of Queensferry Activity
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 Queensferry Activity
Strengths Hewlett-Packard: Queensferry Telecommunications Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Queensferry Activity in Hewlett-Packard: Queensferry Telecommunications Division Harvard Business Review case study are -
Diverse revenue streams
– Queensferry Activity is present in almost all the verticals within the industry. This has provided firm in Hewlett-Packard: Queensferry Telecommunications Division 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.
High switching costs
– The high switching costs that Queensferry Activity 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.
Learning organization
- Queensferry Activity 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 Queensferry Activity is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hewlett-Packard: Queensferry Telecommunications Division Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Queensferry Activity
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Queensferry Activity does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Queensferry Activity 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.
Ability to lead change in Finance & Accounting field
– Queensferry Activity 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 Queensferry Activity in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Queensferry Activity 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 Robin Cooper, Kiran Verma 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.
Successful track record of launching new products
– Queensferry Activity has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Queensferry Activity 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Queensferry Activity digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Queensferry Activity 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Hewlett-Packard: Queensferry Telecommunications Division firm has clearly differentiated products in the market place. This has enabled Queensferry Activity to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Queensferry Activity to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Queensferry Activity 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 Hewlett-Packard: Queensferry Telecommunications Division HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Queensferry Activity in the sector have low bargaining power. Hewlett-Packard: Queensferry Telecommunications Division has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Queensferry Activity to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Hewlett-Packard: Queensferry Telecommunications Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hewlett-Packard: Queensferry Telecommunications Division are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hewlett-Packard: Queensferry Telecommunications Division, in the dynamic environment Queensferry Activity has struggled to respond to the nimble upstart competition. Queensferry Activity has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Queensferry Activity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hewlett-Packard: Queensferry Telecommunications Division can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Queensferry Activity 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.
Aligning sales with marketing
– It come across in the case study Hewlett-Packard: Queensferry Telecommunications Division 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 Hewlett-Packard: Queensferry Telecommunications Division can leverage the sales team experience to cultivate customer relationships as Queensferry Activity is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Queensferry Activity 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.
No frontier risks strategy
– After analyzing the HBR case study Hewlett-Packard: Queensferry Telecommunications Division, 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.
Need for greater diversity
– Queensferry Activity 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.
Increasing silos among functional specialists
– The organizational structure of Queensferry Activity is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Queensferry Activity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Queensferry Activity to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hewlett-Packard: Queensferry Telecommunications Division, is just above the industry average. Queensferry Activity 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.
Lack of clear differentiation of Queensferry Activity products
– To increase the profitability and margins on the products, Queensferry Activity needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Queensferry Activity 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.
Opportunities Hewlett-Packard: Queensferry Telecommunications Division | 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 Hewlett-Packard: Queensferry Telecommunications Division are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Queensferry Activity 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, Hewlett-Packard: Queensferry Telecommunications Division, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Queensferry Activity 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 Finance & Accounting segment.
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. Queensferry Activity 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. Queensferry Activity 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.
Better consumer reach
– The expansion of the 5G network will help Queensferry Activity to increase its market reach. Queensferry Activity 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.
Developing new processes and practices
– Queensferry Activity 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.
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. Queensferry Activity can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Queensferry Activity 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.
Leveraging digital technologies
– Queensferry Activity 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.
Creating value in data economy
– The success of analytics program of Queensferry Activity has opened avenues for new revenue streams for the organization in the industry. This can help Queensferry Activity to build a more holistic ecosystem as suggested in the Hewlett-Packard: Queensferry Telecommunications Division case study. Queensferry Activity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Queensferry Activity can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hewlett-Packard: Queensferry Telecommunications Division 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.
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 Queensferry Activity in the consumer business. Now Queensferry Activity can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Queensferry Activity can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Using analytics as competitive advantage
– Queensferry Activity 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 Hewlett-Packard: Queensferry Telecommunications Division - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Queensferry Activity to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Hewlett-Packard: Queensferry Telecommunications Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hewlett-Packard: Queensferry Telecommunications Division are -
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. Queensferry Activity needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Regulatory challenges
– Queensferry Activity 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.
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. Queensferry Activity 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
– Queensferry Activity has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Queensferry Activity 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.
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 Queensferry Activity business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Queensferry Activity 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.
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. Queensferry Activity can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Queensferry Activity 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 Hewlett-Packard: Queensferry Telecommunications Division .
Shortening product life cycle
– it is one of the major threat that Queensferry Activity is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Queensferry Activity in the Finance & Accounting sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Hewlett-Packard: Queensferry Telecommunications Division, Queensferry Activity 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 .
Consumer confidence and its impact on Queensferry Activity 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Queensferry Activity 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 Hewlett-Packard: Queensferry Telecommunications Division 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 Hewlett-Packard: Queensferry Telecommunications Division 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 Hewlett-Packard: Queensferry Telecommunications Division 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 Hewlett-Packard: Queensferry Telecommunications Division 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 Hewlett-Packard: Queensferry Telecommunications Division 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 Queensferry Activity needs to make to build a sustainable competitive advantage.