Group Process in the Challenger Launch Decision (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Group Process in the Challenger Launch Decision (A)
The night before the launch of the Challenger shuttle, officials from Morton Thiokol (Solid Rocket Booster manufacturer) and NASA participated in a teleconference to discuss whether to postpone the shuttle launch due to predicted low temperatures at Kennedy Space Center. This case provides background on the history of NASA's shuttle program, engineering firm Thiokol and Thiokol SRB, and O-ring expert Roger Boisjoly, who was adamant that the shuttle not be launched.
Swot Analysis of "Group Process in the Challenger Launch Decision (A)" written by Amy C. Edmondson, Laura R. Feldman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shuttle Thiokol facing as an external strategic factors. Some of the topics covered in Group Process in the Challenger Launch Decision (A) case study are - Strategic Management Strategies, Leading teams, Organizational culture and Technology & Operations.
Some of the macro environment factors that can be used to understand the Group Process in the Challenger Launch Decision (A) casestudy better are - – there is backlash against globalization, increasing household debt because of falling income levels, wage bills are increasing, increasing transportation and logistics costs, technology disruption, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%,
increasing energy prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Group Process in the Challenger Launch Decision (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Group Process in the Challenger Launch Decision (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shuttle Thiokol, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shuttle Thiokol 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 Group Process in the Challenger Launch Decision (A) can be done for the following purposes –
1. Strategic planning using facts provided in Group Process in the Challenger Launch Decision (A) case study
2. Improving business portfolio management of Shuttle Thiokol
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 Shuttle Thiokol
Strengths Group Process in the Challenger Launch Decision (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shuttle Thiokol in Group Process in the Challenger Launch Decision (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Shuttle Thiokol 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.
Operational resilience
– The operational resilience strategy in the Group Process in the Challenger Launch Decision (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.
Low bargaining power of suppliers
– Suppliers of Shuttle Thiokol in the sector have low bargaining power. Group Process in the Challenger Launch Decision (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shuttle Thiokol to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Shuttle Thiokol is one of the most innovative firm in sector. Manager in Group Process in the Challenger Launch Decision (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Shuttle Thiokol is present in almost all the verticals within the industry. This has provided firm in Group Process in the Challenger Launch Decision (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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Shuttle Thiokol digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shuttle Thiokol 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.
Superior customer experience
– The customer experience strategy of Shuttle Thiokol in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Shuttle Thiokol 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 Group Process in the Challenger Launch Decision (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Shuttle Thiokol has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Group Process in the Challenger Launch Decision (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.
Analytics focus
– Shuttle Thiokol 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 Amy C. Edmondson, Laura R. Feldman 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.
Organizational Resilience of Shuttle Thiokol
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shuttle Thiokol does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Shuttle Thiokol has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shuttle Thiokol 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.
Weaknesses Group Process in the Challenger Launch Decision (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Group Process in the Challenger Launch Decision (A) are -
Low market penetration in new markets
– Outside its home market of Shuttle Thiokol, firm in the HBR case study Group Process in the Challenger Launch Decision (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Shuttle Thiokol 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 - Group Process in the Challenger Launch Decision (A) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Amy C. Edmondson, Laura R. Feldman suggests that, Shuttle Thiokol 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Group Process in the Challenger Launch Decision (A), in the dynamic environment Shuttle Thiokol has struggled to respond to the nimble upstart competition. Shuttle Thiokol has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Group Process in the Challenger Launch Decision (A), is just above the industry average. Shuttle Thiokol 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Group Process in the Challenger Launch Decision (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 Shuttle Thiokol has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Group Process in the Challenger Launch Decision (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 Shuttle Thiokol 's lucrative customers.
Interest costs
– Compare to the competition, Shuttle Thiokol 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.
Increasing silos among functional specialists
– The organizational structure of Shuttle Thiokol is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Shuttle Thiokol needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shuttle Thiokol to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Shuttle Thiokol 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. Shuttle Thiokol 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.
No frontier risks strategy
– After analyzing the HBR case study Group Process in the Challenger Launch Decision (A), 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.
Opportunities Group Process in the Challenger Launch Decision (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 Group Process in the Challenger Launch Decision (A) are -
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. Shuttle Thiokol 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. Shuttle Thiokol 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, Shuttle Thiokol can use these opportunities to build new business models that can help the communities that Shuttle Thiokol operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shuttle Thiokol 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.
Using analytics as competitive advantage
– Shuttle Thiokol 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 Group Process in the Challenger Launch Decision (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shuttle Thiokol to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Shuttle Thiokol 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.
Learning at scale
– Online learning technologies has now opened space for Shuttle Thiokol 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shuttle Thiokol 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 Shuttle Thiokol to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Shuttle Thiokol can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Group Process in the Challenger Launch Decision (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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shuttle Thiokol 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, Group Process in the Challenger Launch Decision (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.
Leveraging digital technologies
– Shuttle Thiokol 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 Shuttle Thiokol has opened avenues for new revenue streams for the organization in the industry. This can help Shuttle Thiokol to build a more holistic ecosystem as suggested in the Group Process in the Challenger Launch Decision (A) case study. Shuttle Thiokol can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Shuttle Thiokol 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.
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 Shuttle Thiokol in the consumer business. Now Shuttle Thiokol can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Group Process in the Challenger Launch Decision (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Group Process in the Challenger Launch Decision (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 Shuttle Thiokol in the Technology & Operations sector and impact the bottomline of the organization.
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.
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. Shuttle Thiokol 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Shuttle Thiokol with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Shuttle Thiokol is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Shuttle Thiokol needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Shuttle Thiokol can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Shuttle Thiokol has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Shuttle Thiokol needs to keep up with the evolution of technology in the Technology & Operations 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shuttle Thiokol in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Shuttle Thiokol 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.
Environmental challenges
– Shuttle Thiokol 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. Shuttle Thiokol can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Shuttle Thiokol.
Weighted SWOT Analysis of Group Process in the Challenger Launch Decision (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 Group Process in the Challenger Launch Decision (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 Group Process in the Challenger Launch Decision (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 Group Process in the Challenger Launch Decision (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 Group Process in the Challenger Launch Decision (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 Shuttle Thiokol needs to make to build a sustainable competitive advantage.
