Case Study Description of Bacardi Southampton (D): Analyzing Agile System Savings
A spreadsheet model, AgileSavins, was written to support the Bacardi Southampton cases (A), (B), and (C). The Excel model and model analyses can be obtained by contacting Professor Robert D. Landel at The Darden School, University of Virginia (phone 434 924 4832 or email: landelr@darden.virginia.edu). This spreadsheet model is useful for students evaluating multiyear cost consequences of three alternative production planning systems that follow from analyses of the "Bacardi Southampton (A): A New Paradigm of Agile Thinking," (UV3519). Users can identify the sources of costs and benefits of the alternative production-planning systems under consideration at the company and then analyze the seven operating scenarios presented in the case.
Swot Analysis of "Bacardi Southampton (D): Analyzing Agile System Savings" written by Robert D. Landel, Cheng Cui includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bacardi Southampton facing as an external strategic factors. Some of the topics covered in Bacardi Southampton (D): Analyzing Agile System Savings case study are - Strategic Management Strategies, Strategic planning, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Bacardi Southampton (D): Analyzing Agile System Savings casestudy better are - – increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Bacardi Southampton (D): Analyzing Agile System Savings
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bacardi Southampton (D): Analyzing Agile System Savings case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bacardi Southampton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bacardi Southampton 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 Bacardi Southampton (D): Analyzing Agile System Savings can be done for the following purposes –
1. Strategic planning using facts provided in Bacardi Southampton (D): Analyzing Agile System Savings case study
2. Improving business portfolio management of Bacardi Southampton
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bacardi Southampton
Strengths Bacardi Southampton (D): Analyzing Agile System Savings | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bacardi Southampton in Bacardi Southampton (D): Analyzing Agile System Savings Harvard Business Review case study are -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Bacardi Southampton digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bacardi Southampton 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.
Innovation driven organization
– Bacardi Southampton is one of the most innovative firm in sector. Manager in Bacardi Southampton (D): Analyzing Agile System Savings Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Bacardi Southampton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bacardi Southampton does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Bacardi Southampton 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.
Ability to recruit top talent
– Bacardi Southampton is one of the leading recruiters in the industry. Managers in the Bacardi Southampton (D): Analyzing Agile System Savings are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Bacardi Southampton 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 Robert D. Landel, Cheng Cui 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.
Low bargaining power of suppliers
– Suppliers of Bacardi Southampton in the sector have low bargaining power. Bacardi Southampton (D): Analyzing Agile System Savings has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bacardi Southampton to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Bacardi Southampton has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bacardi Southampton 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.
High brand equity
– Bacardi Southampton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bacardi Southampton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Bacardi Southampton 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.
Sustainable margins compare to other players in Technology & Operations industry
– Bacardi Southampton (D): Analyzing Agile System Savings firm has clearly differentiated products in the market place. This has enabled Bacardi Southampton to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bacardi Southampton to invest into research and development (R&D) and innovation.
Learning organization
- Bacardi Southampton 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 Bacardi Southampton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bacardi Southampton (D): Analyzing Agile System Savings Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Bacardi Southampton (D): Analyzing Agile System Savings | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bacardi Southampton (D): Analyzing Agile System Savings are -
No frontier risks strategy
– After analyzing the HBR case study Bacardi Southampton (D): Analyzing Agile System Savings, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Aligning sales with marketing
– It come across in the case study Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton (D): Analyzing Agile System Savings can leverage the sales team experience to cultivate customer relationships as Bacardi Southampton is planning to shift buying processes online.
Interest costs
– Compare to the competition, Bacardi Southampton 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 Bacardi Southampton, firm in the HBR case study Bacardi Southampton (D): Analyzing Agile System Savings needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert D. Landel, Cheng Cui suggests that, Bacardi Southampton 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, Bacardi Southampton 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.
Skills based hiring
– The stress on hiring functional specialists at Bacardi Southampton 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.
Slow to strategic competitive environment developments
– As Bacardi Southampton (D): Analyzing Agile System Savings HBR case study mentions - Bacardi Southampton 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.
Slow decision making process
– As mentioned earlier in the report, Bacardi Southampton 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. Bacardi Southampton 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 Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Bacardi Southampton is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Bacardi Southampton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bacardi Southampton to focus more on services rather than just following the product oriented approach.
Opportunities Bacardi Southampton (D): Analyzing Agile System Savings | 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 Bacardi Southampton (D): Analyzing Agile System Savings are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bacardi Southampton 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, Bacardi Southampton (D): Analyzing Agile System Savings, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Bacardi Southampton 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.
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. Bacardi Southampton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bacardi Southampton 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 Bacardi Southampton to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Bacardi Southampton can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bacardi Southampton in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bacardi Southampton 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. Bacardi Southampton 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bacardi Southampton 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.
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 Bacardi Southampton in the consumer business. Now Bacardi Southampton can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bacardi Southampton can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Bacardi Southampton can develop new processes and procedures in Technology & Operations 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 Technology & Operations industry, but it has also influenced the consumer preferences. Bacardi Southampton can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Bacardi Southampton 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 Technology & Operations segment.
Threats Bacardi Southampton (D): Analyzing Agile System Savings External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bacardi Southampton (D): Analyzing Agile System Savings are -
Regulatory challenges
– Bacardi Southampton 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 Technology & Operations industry regulations.
Consumer confidence and its impact on Bacardi Southampton 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bacardi Southampton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Bacardi Southampton is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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, Bacardi Southampton 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 Bacardi Southampton (D): Analyzing Agile System Savings .
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 Bacardi Southampton business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Bacardi Southampton will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Bacardi Southampton 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. Bacardi Southampton can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bacardi Southampton (D): Analyzing Agile System Savings, Bacardi Southampton may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing wage structure of Bacardi Southampton
– 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 Bacardi Southampton.
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. Bacardi Southampton needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton (D): Analyzing Agile System Savings 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 Bacardi Southampton needs to make to build a sustainable competitive advantage.