Connecticut Spring and Stamping Corp. (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Connecticut Spring and Stamping Corp. (C)
Andy Youmans, executive vice president of CSSC, joins a group of U.S. executives on a tour of Japanese factories that practice the TPS. Three of the factories produce products similar to CSSC's, and even though they use similar equipment, they are significantly more productive. Once he returns to the United States, Youmans needs a plan to dramatically change his company, knowing that the three Japanese firms have significantly better performance (more than four times the revenues per employee). How can he replicate the Japanese companies' capabilities?
Authors :: H. Kent Bowen, Massimo Russo, Steven J. Spear
Swot Analysis of "Connecticut Spring and Stamping Corp. (C)" written by H. Kent Bowen, Massimo Russo, Steven J. Spear includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Youmans Japanese facing as an external strategic factors. Some of the topics covered in Connecticut Spring and Stamping Corp. (C) case study are - Strategic Management Strategies, Customers, Developing employees, Manufacturing, Product development and Technology & Operations.
Some of the macro environment factors that can be used to understand the Connecticut Spring and Stamping Corp. (C) casestudy better are - – supply chains are disrupted by pandemic , there is backlash against globalization, increasing transportation and logistics costs, increasing energy prices, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing commodity prices,
central banks are concerned over increasing inflation, wage bills are increasing, etc
Introduction to SWOT Analysis of Connecticut Spring and Stamping Corp. (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Connecticut Spring and Stamping Corp. (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Youmans Japanese, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Youmans Japanese 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 Connecticut Spring and Stamping Corp. (C) can be done for the following purposes –
1. Strategic planning using facts provided in Connecticut Spring and Stamping Corp. (C) case study
2. Improving business portfolio management of Youmans Japanese
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 Youmans Japanese
Strengths Connecticut Spring and Stamping Corp. (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Youmans Japanese in Connecticut Spring and Stamping Corp. (C) Harvard Business Review case study are -
Successful track record of launching new products
– Youmans Japanese has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Youmans Japanese 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
– Youmans Japanese has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Youmans Japanese 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 Youmans Japanese digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Youmans Japanese 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.
Sustainable margins compare to other players in Technology & Operations industry
– Connecticut Spring and Stamping Corp. (C) firm has clearly differentiated products in the market place. This has enabled Youmans Japanese to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Youmans Japanese to invest into research and development (R&D) and innovation.
Analytics focus
– Youmans Japanese 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 H. Kent Bowen, Massimo Russo, Steven J. Spear 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.
Ability to lead change in Technology & Operations field
– Youmans Japanese 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 Youmans Japanese in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Youmans Japanese 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.
Effective Research and Development (R&D)
– Youmans Japanese has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Connecticut Spring and Stamping Corp. (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Youmans Japanese is present in almost all the verticals within the industry. This has provided firm in Connecticut Spring and Stamping Corp. (C) 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.
Learning organization
- Youmans Japanese 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 Youmans Japanese is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Connecticut Spring and Stamping Corp. (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Youmans Japanese is one of the leading recruiters in the industry. Managers in the Connecticut Spring and Stamping Corp. (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Youmans Japanese 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 Connecticut Spring and Stamping Corp. (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Connecticut Spring and Stamping Corp. (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Connecticut Spring and Stamping Corp. (C) are -
Increasing silos among functional specialists
– The organizational structure of Youmans Japanese is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Youmans Japanese needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Youmans Japanese to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Connecticut Spring and Stamping Corp. (C) 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 Connecticut Spring and Stamping Corp. (C) can leverage the sales team experience to cultivate customer relationships as Youmans Japanese is planning to shift buying processes online.
High cash cycle compare to competitors
Youmans Japanese 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.
Slow decision making process
– As mentioned earlier in the report, Youmans Japanese 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. Youmans Japanese 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.
Skills based hiring
– The stress on hiring functional specialists at Youmans Japanese 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.
Interest costs
– Compare to the competition, Youmans Japanese 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 Youmans Japanese, firm in the HBR case study Connecticut Spring and Stamping Corp. (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Youmans Japanese 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 - Connecticut Spring and Stamping Corp. (C) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Youmans Japanese 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Youmans Japanese is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Connecticut Spring and Stamping Corp. (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Youmans Japanese supply chain. Even after few cautionary changes mentioned in the HBR case study - Connecticut Spring and Stamping Corp. (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Youmans Japanese vulnerable to further global disruptions in South East Asia.
Opportunities Connecticut Spring and Stamping Corp. (C) | 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 Connecticut Spring and Stamping Corp. (C) are -
Buying journey improvements
– Youmans Japanese can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Connecticut Spring and Stamping Corp. (C) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Youmans Japanese 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.
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. Youmans Japanese can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Youmans Japanese can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Youmans Japanese 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. Youmans Japanese 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, Youmans Japanese is facing challenges because of the dominance of functional experts in the organization. Connecticut Spring and Stamping Corp. (C) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Youmans Japanese can use these opportunities to build new business models that can help the communities that Youmans Japanese operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Youmans Japanese 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 Youmans Japanese to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Youmans Japanese 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.
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. Youmans Japanese can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Youmans Japanese has opened avenues for new revenue streams for the organization in the industry. This can help Youmans Japanese to build a more holistic ecosystem as suggested in the Connecticut Spring and Stamping Corp. (C) case study. Youmans Japanese can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Youmans Japanese 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.
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 Youmans Japanese 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.
Threats Connecticut Spring and Stamping Corp. (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Connecticut Spring and Stamping Corp. (C) are -
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 Youmans Japanese business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Youmans Japanese 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 Connecticut Spring and Stamping Corp. (C) .
Regulatory challenges
– Youmans Japanese 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.
Shortening product life cycle
– it is one of the major threat that Youmans Japanese 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Connecticut Spring and Stamping Corp. (C), Youmans Japanese 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 .
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. Youmans Japanese 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.
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 Youmans Japanese.
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. Youmans Japanese needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Youmans Japanese with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Youmans Japanese 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.
Consumer confidence and its impact on Youmans Japanese 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.
Weighted SWOT Analysis of Connecticut Spring and Stamping Corp. (C) 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 Connecticut Spring and Stamping Corp. (C) 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 Connecticut Spring and Stamping Corp. (C) 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 Connecticut Spring and Stamping Corp. (C) 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 Connecticut Spring and Stamping Corp. (C) 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 Youmans Japanese needs to make to build a sustainable competitive advantage.
