Case Study Description of Dynatrol Corp.: Andover Assembly Division
While grappling with glitches in the design and operation of its production system, Andover Assembly must also launch a new sensor product line to meet ultimatums issued by frustrated Signatron vice presidents. The financial returns of the division are not meeting corporate's expectations and plant manager Jan Havel has been sent in to turn around the plant's operations under 2 (6- and 12-month) deadlines. To turn the unhappy customers into cooperating customers, the Andover division is faced with the challenge of reaching nearly 100% ontime delivery performance within weeks. The introduction of the new product line, which requires some of the same resources, compounds the team's problems.
Authors :: H. Kent Bowen, Janice H. Hammond, Ramchandran Jaikumar
Swot Analysis of "Dynatrol Corp.: Andover Assembly Division" written by H. Kent Bowen, Janice H. Hammond, Ramchandran Jaikumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Andover Assembly facing as an external strategic factors. Some of the topics covered in Dynatrol Corp.: Andover Assembly Division case study are - Strategic Management Strategies, Marketing, Product development, Productivity and Technology & Operations.
Some of the macro environment factors that can be used to understand the Dynatrol Corp.: Andover Assembly Division casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Dynatrol Corp.: Andover Assembly Division
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dynatrol Corp.: Andover Assembly Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Andover Assembly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Andover Assembly 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 Dynatrol Corp.: Andover Assembly Division can be done for the following purposes –
1. Strategic planning using facts provided in Dynatrol Corp.: Andover Assembly Division case study
2. Improving business portfolio management of Andover Assembly
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 Andover Assembly
Strengths Dynatrol Corp.: Andover Assembly Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Andover Assembly in Dynatrol Corp.: Andover Assembly Division Harvard Business Review case study are -
Training and development
– Andover Assembly has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dynatrol Corp.: Andover Assembly Division 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.
Successful track record of launching new products
– Andover Assembly has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Andover Assembly 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
– Andover Assembly has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Andover Assembly to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Andover Assembly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Andover Assembly 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.
Diverse revenue streams
– Andover Assembly is present in almost all the verticals within the industry. This has provided firm in Dynatrol Corp.: Andover Assembly Division 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.
Strong track record of project management
– Andover Assembly is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Andover Assembly 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 Andover Assembly is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dynatrol Corp.: Andover Assembly Division Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Andover Assembly in the sector have low bargaining power. Dynatrol Corp.: Andover Assembly Division has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Andover Assembly to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Andover Assembly is one of the leading recruiters in the industry. Managers in the Dynatrol Corp.: Andover Assembly Division are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Technology & Operations industry
– Dynatrol Corp.: Andover Assembly Division firm has clearly differentiated products in the market place. This has enabled Andover Assembly to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Andover Assembly to invest into research and development (R&D) and innovation.
Innovation driven organization
– Andover Assembly is one of the most innovative firm in sector. Manager in Dynatrol Corp.: Andover Assembly Division Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Andover Assembly 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.
Weaknesses Dynatrol Corp.: Andover Assembly Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dynatrol Corp.: Andover Assembly Division are -
Low market penetration in new markets
– Outside its home market of Andover Assembly, firm in the HBR case study Dynatrol Corp.: Andover Assembly Division needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Andover Assembly 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Dynatrol Corp.: Andover Assembly Division 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 Andover Assembly has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Dynatrol Corp.: Andover Assembly Division 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 Andover Assembly 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Andover Assembly 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.
High bargaining power of channel partners
– Because of the regulatory requirements, H. Kent Bowen, Janice H. Hammond, Ramchandran Jaikumar suggests that, Andover Assembly 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.
High cash cycle compare to competitors
Andover Assembly 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Andover Assembly 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Dynatrol Corp.: Andover Assembly Division, is just above the industry average. Andover Assembly 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.
Slow decision making process
– As mentioned earlier in the report, Andover Assembly 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. Andover Assembly 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.
Increasing silos among functional specialists
– The organizational structure of Andover Assembly is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Andover Assembly needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Andover Assembly to focus more on services rather than just following the product oriented approach.
Opportunities Dynatrol Corp.: Andover Assembly Division | 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 Dynatrol Corp.: Andover Assembly Division are -
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. Andover Assembly can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Andover Assembly 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Andover Assembly 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, Dynatrol Corp.: Andover Assembly Division, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Andover Assembly 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.
Better consumer reach
– The expansion of the 5G network will help Andover Assembly to increase its market reach. Andover Assembly will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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. Andover Assembly 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. Andover Assembly 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, Andover Assembly is facing challenges because of the dominance of functional experts in the organization. Dynatrol Corp.: Andover Assembly Division 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.
Manufacturing automation
– Andover Assembly 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.
Using analytics as competitive advantage
– Andover Assembly 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 Dynatrol Corp.: Andover Assembly Division - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Andover Assembly to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Andover Assembly 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 Andover Assembly to hire the very best people irrespective of their geographical location.
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. Andover Assembly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Andover Assembly 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.
Creating value in data economy
– The success of analytics program of Andover Assembly has opened avenues for new revenue streams for the organization in the industry. This can help Andover Assembly to build a more holistic ecosystem as suggested in the Dynatrol Corp.: Andover Assembly Division case study. Andover Assembly can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Dynatrol Corp.: Andover Assembly Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dynatrol Corp.: Andover Assembly Division are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Andover Assembly with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Andover Assembly 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Andover Assembly 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 Dynatrol Corp.: Andover Assembly Division .
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 Andover Assembly in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Andover Assembly has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Andover Assembly 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.
Shortening product life cycle
– it is one of the major threat that Andover Assembly is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dynatrol Corp.: Andover Assembly Division, Andover Assembly 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 .
Consumer confidence and its impact on Andover Assembly demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Andover Assembly needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Andover Assembly
– 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 Andover Assembly.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Andover Assembly 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.
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.
Weighted SWOT Analysis of Dynatrol Corp.: Andover Assembly Division 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 Dynatrol Corp.: Andover Assembly Division 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 Dynatrol Corp.: Andover Assembly Division 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 Dynatrol Corp.: Andover Assembly Division 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 Dynatrol Corp.: Andover Assembly Division 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 Andover Assembly needs to make to build a sustainable competitive advantage.
