Swot Analysis of "PPG: Developing a Self-Directed Work Force (B)" written by David A. Garvin, Norman Klein includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ppg Directed facing as an external strategic factors. Some of the topics covered in PPG: Developing a Self-Directed Work Force (B) case study are - Strategic Management Strategies, Motivating people and Technology & Operations.
Some of the macro environment factors that can be used to understand the PPG: Developing a Self-Directed Work Force (B) casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, increasing household debt because of falling income levels, increasing commodity prices, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
technology disruption, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of PPG: Developing a Self-Directed Work Force (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PPG: Developing a Self-Directed Work Force (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ppg Directed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ppg Directed 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 PPG: Developing a Self-Directed Work Force (B) can be done for the following purposes –
1. Strategic planning using facts provided in PPG: Developing a Self-Directed Work Force (B) case study
2. Improving business portfolio management of Ppg Directed
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 Ppg Directed
Strengths PPG: Developing a Self-Directed Work Force (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ppg Directed in PPG: Developing a Self-Directed Work Force (B) Harvard Business Review case study are -
Highly skilled collaborators
– Ppg Directed 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 PPG: Developing a Self-Directed Work Force (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Ppg Directed in the sector have low bargaining power. PPG: Developing a Self-Directed Work Force (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ppg Directed to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Ppg Directed is one of the most innovative firm in sector. Manager in PPG: Developing a Self-Directed Work Force (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Ppg Directed 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 Ppg Directed is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PPG: Developing a Self-Directed Work Force (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Ppg Directed is one of the leading recruiters in the industry. Managers in the PPG: Developing a Self-Directed Work Force (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Ppg Directed has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PPG: Developing a Self-Directed Work Force (B) 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.
Strong track record of project management
– Ppg Directed is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Technology & Operations industry
– PPG: Developing a Self-Directed Work Force (B) firm has clearly differentiated products in the market place. This has enabled Ppg Directed to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ppg Directed to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Ppg Directed in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Ppg Directed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ppg Directed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Ppg Directed 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 Ppg Directed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Ppg Directed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ppg Directed 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 PPG: Developing a Self-Directed Work Force (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PPG: Developing a Self-Directed Work Force (B) are -
Skills based hiring
– The stress on hiring functional specialists at Ppg Directed 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.
Lack of clear differentiation of Ppg Directed products
– To increase the profitability and margins on the products, Ppg Directed needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Ppg Directed is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ppg Directed needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ppg Directed to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study PPG: Developing a Self-Directed Work Force (B), 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ppg Directed 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.
High operating costs
– Compare to the competitors, firm in the HBR case study PPG: Developing a Self-Directed Work Force (B) 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 Ppg Directed 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Ppg Directed has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the PPG: Developing a Self-Directed Work Force (B) 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 Ppg Directed has relatively successful track record of launching new products.
High cash cycle compare to competitors
Ppg Directed 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.
Low market penetration in new markets
– Outside its home market of Ppg Directed, firm in the HBR case study PPG: Developing a Self-Directed Work Force (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PPG: Developing a Self-Directed Work Force (B), in the dynamic environment Ppg Directed has struggled to respond to the nimble upstart competition. Ppg Directed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities PPG: Developing a Self-Directed Work Force (B) | 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 PPG: Developing a Self-Directed Work Force (B) are -
Better consumer reach
– The expansion of the 5G network will help Ppg Directed to increase its market reach. Ppg Directed 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.
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 Ppg Directed 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ppg Directed is facing challenges because of the dominance of functional experts in the organization. PPG: Developing a Self-Directed Work Force (B) 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.
Building a culture of innovation
– managers at Ppg Directed 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.
Loyalty marketing
– Ppg Directed 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ppg Directed 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.
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 Ppg Directed in the consumer business. Now Ppg Directed can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Ppg Directed 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 PPG: Developing a Self-Directed Work Force (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ppg Directed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Ppg Directed 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ppg Directed can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Ppg Directed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Ppg Directed 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. Ppg Directed 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.
Developing new processes and practices
– Ppg Directed 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.
Threats PPG: Developing a Self-Directed Work Force (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PPG: Developing a Self-Directed Work Force (B) are -
Technology acceleration in Forth Industrial Revolution
– Ppg Directed has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ppg Directed 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PPG: Developing a Self-Directed Work Force (B), Ppg Directed 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 Ppg Directed 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.
Shortening product life cycle
– it is one of the major threat that Ppg Directed is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ppg Directed 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 Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ppg Directed can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Ppg Directed can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High dependence on third party suppliers
– Ppg Directed high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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. Ppg Directed needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
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 Ppg Directed business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Ppg Directed 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. Ppg Directed can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Ppg Directed 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.
Weighted SWOT Analysis of PPG: Developing a Self-Directed Work Force (B) 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 PPG: Developing a Self-Directed Work Force (B) 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 PPG: Developing a Self-Directed Work Force (B) 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 PPG: Developing a Self-Directed Work Force (B) 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 PPG: Developing a Self-Directed Work Force (B) 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 Ppg Directed needs to make to build a sustainable competitive advantage.
