BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality Engineer
Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality Engineer casestudy better are - – increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality Engineer can be done for the following purposes –
1. Strategic planning using facts provided in BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality Engineer Harvard Business Review case study are -
High switching costs
– The high switching costs that Procurement Suppliers 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.
Successful track record of launching new products
– Procurement Suppliers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Procurement Suppliers 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.
Low bargaining power of suppliers
– Suppliers of Procurement Suppliers in the sector have low bargaining power. BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Procurement Suppliers to manage not only supply disruptions but also source products at highly competitive prices.
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.
Analytics focus
– Procurement Suppliers 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 Paddy Moore, Hallam Movius, Lawrence Susskind 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.
Superior customer experience
– The customer experience strategy of Procurement Suppliers in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Training and development
– Procurement Suppliers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer 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.
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 to C. Roberts, Quality 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.
High brand equity
– Procurement Suppliers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Procurement Suppliers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Weaknesses BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer are -
Slow to strategic competitive environment developments
– As BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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.
Aligning sales with marketing
– It come across in the case study BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer 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 BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer can leverage the sales team experience to cultivate customer relationships as Procurement Suppliers is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer 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 Procurement Suppliers 's lucrative customers.
Need for greater diversity
– Procurement Suppliers 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.
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 Procurement Suppliers supply chain. Even after few cautionary changes mentioned in the HBR case study - BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Procurement Suppliers vulnerable to further global disruptions in South East Asia.
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.
Increasing silos among functional specialists
– The organizational structure of Procurement Suppliers is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Procurement Suppliers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Procurement Suppliers to focus more on services rather than just following the product oriented approach.
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.
High cash cycle compare to competitors
Procurement Suppliers 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.
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.
Opportunities BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality Engineer 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. 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.
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 to C. Roberts, Quality 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Procurement Suppliers can use these opportunities to build new business models that can help the communities that Procurement Suppliers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Procurement Suppliers 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 Procurement Suppliers to hire the very best people irrespective of their geographical location.
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 Procurement Suppliers in the consumer business. Now Procurement Suppliers can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Creating value in data economy
– The success of analytics program of Procurement Suppliers has opened avenues for new revenue streams for the organization in the industry. This can help Procurement Suppliers to build a more holistic ecosystem as suggested in the BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer case study. Procurement Suppliers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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 to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality Engineer are -
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 to C. Roberts, Quality Engineer .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality Engineer, Procurement Suppliers 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 .
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Procurement Suppliers 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.
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.
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.
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 Procurement Suppliers business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
Weighted SWOT Analysis of BMP POLICY MEETING - Confidential Instructions to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality 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 to C. Roberts, Quality 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.
