Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A)
In November 1977, U.S. Air Force officials expressed mounting concern about the restrictions on their tactical capabilities that resulted from a string of problems with the new F100 engine in F-15 and F-16 fighter jets. The F100 engine, produced by Pratt and Whitney Aircraft, was a powerful new engine that played a critical role in the U.S. air-defense system. Development of the engine had started in the late 1960s, and its performance specifications pushed the envelope of the technological possibilities. Although setbacks had to be expected, there had long been a growing concern about the unreliability of the F100 engine in combat situations. The Air Force felt that Pratt had been largely unresponsive in prior discussions of these problems and was now reviewing its options.
Swot Analysis of "Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A)" written by Matthias Hild, Keith J. Crocker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Engine F100 facing as an external strategic factors. Some of the topics covered in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) case study are - Strategic Management Strategies, Negotiations, Risk management, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) casestudy better are - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, technology disruption,
increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Engine F100, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Engine F100 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) can be done for the following purposes –
1. Strategic planning using facts provided in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) case study
2. Improving business portfolio management of Engine F100
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 Engine F100
Strengths Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Engine F100 in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) Harvard Business Review case study are -
Innovation driven organization
– Engine F100 is one of the most innovative firm in sector. Manager in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Engine F100 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Engine F100 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 Matthias Hild, Keith J. Crocker 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.
Learning organization
- Engine F100 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 Engine F100 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Engine F100 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) 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.
High switching costs
– The high switching costs that Engine F100 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.
Highly skilled collaborators
– Engine F100 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Engine F100 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Engine F100 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) firm has clearly differentiated products in the market place. This has enabled Engine F100 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Engine F100 to invest into research and development (R&D) and innovation.
High brand equity
– Engine F100 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Engine F100 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Engine F100 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Engine F100 is present in almost all the verticals within the industry. This has provided firm in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) 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.
Weaknesses Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A), is just above the industry average. Engine F100 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.
Interest costs
– Compare to the competition, Engine F100 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.
Low market penetration in new markets
– Outside its home market of Engine F100, firm in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Engine F100 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A), in the dynamic environment Engine F100 has struggled to respond to the nimble upstart competition. Engine F100 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, Engine F100 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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.
Increasing silos among functional specialists
– The organizational structure of Engine F100 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Engine F100 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Engine F100 to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Matthias Hild, Keith J. Crocker suggests that, Engine F100 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.
Capital Spending Reduction
– Even during the low interest decade, Engine F100 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.
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 Engine F100 supply chain. Even after few cautionary changes mentioned in the HBR case study - Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Engine F100 vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Engine F100 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.
Opportunities Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) are -
Buying journey improvements
– Engine F100 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Engine F100 can use these opportunities to build new business models that can help the communities that Engine F100 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Engine F100 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Engine F100 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Engine F100 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Engine F100 to increase its market reach. Engine F100 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
– Engine F100 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.
Building a culture of innovation
– managers at Engine F100 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Engine F100 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.
Leveraging digital technologies
– Engine F100 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 Engine F100 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Engine F100 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, Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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.
Learning at scale
– Online learning technologies has now opened space for Engine F100 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.
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. Engine F100 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Engine F100 in the Strategy & Execution sector and impact the bottomline 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 Engine F100 business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Engine F100
– 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 Engine F100.
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 Engine F100.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A), Engine F100 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 .
Consumer confidence and its impact on Engine F100 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. Engine F100 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
– Engine F100 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Engine F100 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (A) .
Technology acceleration in Forth Industrial Revolution
– Engine F100 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Engine F100 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.
Stagnating economy with rate increase
– Engine F100 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.
Weighted SWOT Analysis of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (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 Engine F100 needs to make to build a sustainable competitive advantage.
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