BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer
Confidential Instructions for B. Archer, Value Engineer for product #PON093.Five-party, four-issue internal negotiation among employees of a major engine manufacturer to agree on procurement guidelines in preparation for external negotiations with suppliers. Eagle Aircraft Engines, a manufacturer of engines for military and commercial aircraft, is preparing to negotiate a major five-year procurement for over 1000 parts from its suppliers. Its Airfoils and Casting Division (A&C) is responsible for purchasing roughly 100 of these parts. In preparation for the negotiations with suppliers, the five key personnel within A&C need to generate a "Business-Managed Procurement" policy in which A&C personnel must unanimously agree on four schedule and quality programs. The key personnel involved in the internal negotiation include three engineers, a buyer, and a financial analyst. They have all been sent a memo from the Purchasing Director outlining the overall procurement strategy. The Purchasing Director is putting pressure on them for consensus, emphasizing the importance of certain issues over others in preparation for his/her own negotiations with suppliers. This is a role play case.
Authors :: Paddy Moore, Hallam Movius, Lawrence Susskind
Swot Analysis of "BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer" written by Paddy Moore, Hallam Movius, Lawrence Susskind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Procurement Suppliers facing as an external strategic factors. Some of the topics covered in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer case study are - Strategic Management Strategies, Design, Negotiations, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, there is backlash against globalization,
increasing transportation and logistics costs, wage bills are increasing, etc
Introduction to SWOT Analysis of BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Procurement Suppliers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Procurement Suppliers 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer can be done for the following purposes –
1. Strategic planning using facts provided in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer case study
2. Improving business portfolio management of Procurement Suppliers
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 Procurement Suppliers
Strengths BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Procurement Suppliers in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer Harvard Business Review case study are -
Diverse revenue streams
– Procurement Suppliers is present in almost all the verticals within the industry. This has provided firm in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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.
Strong track record of project management
– Procurement Suppliers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Procurement Suppliers 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 Procurement Suppliers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Procurement Suppliers 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.
Organizational Resilience of Procurement Suppliers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Procurement Suppliers 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
– Procurement Suppliers 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 Procurement Suppliers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Procurement Suppliers 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer firm has clearly differentiated products in the market place. This has enabled Procurement Suppliers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Procurement Suppliers to invest into research and development (R&D) and innovation.
Innovation driven organization
– Procurement Suppliers is one of the most innovative firm in sector. Manager in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Procurement Suppliers 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 Procurement Suppliers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Procurement Suppliers 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Procurement Suppliers is one of the leading recruiters in the industry. Managers in the BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer are -
Low market penetration in new markets
– Outside its home market of Procurement Suppliers, firm in the HBR case study BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Paddy Moore, Hallam Movius, Lawrence Susskind suggests that, Procurement Suppliers is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Workers concerns about automation
– As automation is fast increasing in the segment, Procurement Suppliers 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.
Slow decision making process
– As mentioned earlier in the report, Procurement Suppliers 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. Procurement Suppliers 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Procurement Suppliers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Procurement Suppliers 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 - BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Procurement Suppliers 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.
Slow to strategic competitive environment developments
– As BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer HBR case study mentions - Procurement Suppliers 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.
Interest costs
– Compare to the competition, Procurement Suppliers has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer, is just above the industry average. Procurement Suppliers 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.
Skills based hiring
– The stress on hiring functional specialists at Procurement Suppliers 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.
Opportunities BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer | 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer are -
Better consumer reach
– The expansion of the 5G network will help Procurement Suppliers to increase its market reach. Procurement Suppliers 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Procurement Suppliers is facing challenges because of the dominance of functional experts in the organization. BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Procurement Suppliers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Procurement Suppliers 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.
Building a culture of innovation
– managers at Procurement Suppliers 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.
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. Procurement Suppliers 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. Procurement Suppliers 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.
Leveraging digital technologies
– Procurement Suppliers 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.
Developing new processes and practices
– Procurement Suppliers 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.
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. Procurement Suppliers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Procurement Suppliers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Procurement Suppliers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Procurement Suppliers 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, BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer, 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
– Procurement Suppliers 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Procurement Suppliers to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Procurement Suppliers 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.
Environmental challenges
– Procurement Suppliers 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. Procurement Suppliers can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Procurement Suppliers.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Procurement Suppliers 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer .
Stagnating economy with rate increase
– Procurement Suppliers 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.
Consumer confidence and its impact on Procurement Suppliers 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.
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. Procurement Suppliers needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Procurement Suppliers 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.
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.
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 Procurement Suppliers in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Procurement Suppliers 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.
Shortening product life cycle
– it is one of the major threat that Procurement Suppliers is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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 BMP POLICY MEETING - Confidential Instructions for B. Archer, Value Engineer 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 Procurement Suppliers needs to make to build a sustainable competitive advantage.