Michael Brown: Negotiating Slots at Foxwoods (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Michael Brown: Negotiating Slots at Foxwoods (A)
The issues of the impending negotiation between the CEO of Foxwoods and the governor of Connecticut over lifting the ban on slot machines at Foxwoods are presented. Reviews the gaming business in the United States, the special history of Indian gaming, the Pequot Tribe, the battle over casino gambling in Connecticut, and the early success of Foxwoods. A fiscal crisis sets the stage for a possible deal.
Swot Analysis of "Michael Brown: Negotiating Slots at Foxwoods (A)" written by James K. Sebenius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Foxwoods Connecticut facing as an external strategic factors. Some of the topics covered in Michael Brown: Negotiating Slots at Foxwoods (A) case study are - Strategic Management Strategies, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Michael Brown: Negotiating Slots at Foxwoods (A) casestudy better are - – supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, there is increasing trade war between United States & China, wage bills are increasing, technology disruption, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies,
increasing energy prices, increasing commodity prices, etc
Introduction to SWOT Analysis of Michael Brown: Negotiating Slots at Foxwoods (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Michael Brown: Negotiating Slots at Foxwoods (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Foxwoods Connecticut, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Foxwoods Connecticut 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 Michael Brown: Negotiating Slots at Foxwoods (A) can be done for the following purposes –
1. Strategic planning using facts provided in Michael Brown: Negotiating Slots at Foxwoods (A) case study
2. Improving business portfolio management of Foxwoods Connecticut
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 Foxwoods Connecticut
Strengths Michael Brown: Negotiating Slots at Foxwoods (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Foxwoods Connecticut in Michael Brown: Negotiating Slots at Foxwoods (A) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Foxwoods Connecticut in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Foxwoods Connecticut 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 Michael Brown: Negotiating Slots at Foxwoods (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Foxwoods Connecticut is one of the leading recruiters in the industry. Managers in the Michael Brown: Negotiating Slots at Foxwoods (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Foxwoods Connecticut 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Foxwoods Connecticut digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Foxwoods Connecticut 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.
Operational resilience
– The operational resilience strategy in the Michael Brown: Negotiating Slots at Foxwoods (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Strategy & Execution field
– Foxwoods Connecticut 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 Foxwoods Connecticut in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Michael Brown: Negotiating Slots at Foxwoods (A) firm has clearly differentiated products in the market place. This has enabled Foxwoods Connecticut to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Foxwoods Connecticut to invest into research and development (R&D) and innovation.
Analytics focus
– Foxwoods Connecticut 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 James K. Sebenius 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.
Innovation driven organization
– Foxwoods Connecticut is one of the most innovative firm in sector. Manager in Michael Brown: Negotiating Slots at Foxwoods (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Foxwoods Connecticut has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Foxwoods Connecticut 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.
Effective Research and Development (R&D)
– Foxwoods Connecticut 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 Michael Brown: Negotiating Slots at Foxwoods (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Michael Brown: Negotiating Slots at Foxwoods (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Michael Brown: Negotiating Slots at Foxwoods (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Michael Brown: Negotiating Slots at Foxwoods (A), is just above the industry average. Foxwoods Connecticut 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.
Need for greater diversity
– Foxwoods Connecticut 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.
Aligning sales with marketing
– It come across in the case study Michael Brown: Negotiating Slots at Foxwoods (A) 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 Michael Brown: Negotiating Slots at Foxwoods (A) can leverage the sales team experience to cultivate customer relationships as Foxwoods Connecticut is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Foxwoods Connecticut 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. Foxwoods Connecticut 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Michael Brown: Negotiating Slots at Foxwoods (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Foxwoods Connecticut has relatively successful track record of launching new products.
Lack of clear differentiation of Foxwoods Connecticut products
– To increase the profitability and margins on the products, Foxwoods Connecticut needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Foxwoods Connecticut 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.
Products dominated business model
– Even though Foxwoods Connecticut 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 - Michael Brown: Negotiating Slots at Foxwoods (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Foxwoods Connecticut 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Michael Brown: Negotiating Slots at Foxwoods (A) 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 Foxwoods Connecticut 's lucrative customers.
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 Foxwoods Connecticut supply chain. Even after few cautionary changes mentioned in the HBR case study - Michael Brown: Negotiating Slots at Foxwoods (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Foxwoods Connecticut vulnerable to further global disruptions in South East Asia.
Opportunities Michael Brown: Negotiating Slots at Foxwoods (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 Michael Brown: Negotiating Slots at Foxwoods (A) are -
Creating value in data economy
– The success of analytics program of Foxwoods Connecticut has opened avenues for new revenue streams for the organization in the industry. This can help Foxwoods Connecticut to build a more holistic ecosystem as suggested in the Michael Brown: Negotiating Slots at Foxwoods (A) case study. Foxwoods Connecticut can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Foxwoods Connecticut 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Foxwoods Connecticut can use these opportunities to build new business models that can help the communities that Foxwoods Connecticut operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Foxwoods Connecticut 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Foxwoods Connecticut 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Foxwoods Connecticut 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 Foxwoods Connecticut to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Foxwoods Connecticut 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.
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. Foxwoods Connecticut 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. Foxwoods Connecticut 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Foxwoods Connecticut is facing challenges because of the dominance of functional experts in the organization. Michael Brown: Negotiating Slots at Foxwoods (A) 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.
Loyalty marketing
– Foxwoods Connecticut has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Foxwoods Connecticut can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Michael Brown: Negotiating Slots at Foxwoods (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.
Learning at scale
– Online learning technologies has now opened space for Foxwoods Connecticut 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.
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 Foxwoods Connecticut in the consumer business. Now Foxwoods Connecticut can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Michael Brown: Negotiating Slots at Foxwoods (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Michael Brown: Negotiating Slots at Foxwoods (A) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Foxwoods Connecticut 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 Michael Brown: Negotiating Slots at Foxwoods (A) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Foxwoods Connecticut with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Foxwoods Connecticut can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Foxwoods Connecticut 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. Foxwoods Connecticut can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Foxwoods Connecticut 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.
Shortening product life cycle
– it is one of the major threat that Foxwoods Connecticut is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Foxwoods Connecticut business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Foxwoods Connecticut 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.
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 wage structure of Foxwoods Connecticut
– 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 Foxwoods Connecticut.
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. Foxwoods Connecticut needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Foxwoods Connecticut has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Foxwoods Connecticut 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.
Regulatory challenges
– Foxwoods Connecticut 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.
Weighted SWOT Analysis of Michael Brown: Negotiating Slots at Foxwoods (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 Michael Brown: Negotiating Slots at Foxwoods (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 Michael Brown: Negotiating Slots at Foxwoods (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 Michael Brown: Negotiating Slots at Foxwoods (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 Michael Brown: Negotiating Slots at Foxwoods (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 Foxwoods Connecticut needs to make to build a sustainable competitive advantage.