Swot Analysis of "General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D)" written by F. Warren McFarlan, Katherine N. Seger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Handed Sciences facing as an external strategic factors. Some of the topics covered in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) case study are - Strategic Management Strategies, IT, Strategy execution, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) casestudy better are - – technology disruption, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing transportation and logistics costs, increasing commodity prices,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Handed Sciences, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Handed Sciences 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) can be done for the following purposes –
1. Strategic planning using facts provided in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) case study
2. Improving business portfolio management of Handed Sciences
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 Handed Sciences
Strengths General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Handed Sciences in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) Harvard Business Review case study are -
Training and development
– Handed Sciences has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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.
Low bargaining power of suppliers
– Suppliers of Handed Sciences in the sector have low bargaining power. General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Handed Sciences to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) firm has clearly differentiated products in the market place. This has enabled Handed Sciences to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Handed Sciences to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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.
Highly skilled collaborators
– Handed Sciences 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Handed Sciences 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Handed Sciences in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Handed Sciences has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Handed Sciences to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Handed Sciences is present in almost all the verticals within the industry. This has provided firm in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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.
Successful track record of launching new products
– Handed Sciences has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Handed Sciences 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.
Learning organization
- Handed Sciences 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 Handed Sciences is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Handed Sciences digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Handed Sciences 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.
Weaknesses General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) are -
Products dominated business model
– Even though Handed Sciences 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 - General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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, F. Warren McFarlan, Katherine N. Seger suggests that, Handed Sciences 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.
No frontier risks strategy
– After analyzing the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), in the dynamic environment Handed Sciences has struggled to respond to the nimble upstart competition. Handed Sciences has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Handed Sciences supply chain. Even after few cautionary changes mentioned in the HBR case study - General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Handed Sciences vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) HBR case study mentions - Handed Sciences takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring
– The stress on hiring functional specialists at Handed Sciences 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.
Aligning sales with marketing
– It come across in the case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) can leverage the sales team experience to cultivate customer relationships as Handed Sciences is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Handed Sciences 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. Handed Sciences 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), is just above the industry average. Handed Sciences 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Handed Sciences 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.
Opportunities General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) | 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) are -
Learning at scale
– Online learning technologies has now opened space for Handed Sciences 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.
Buying journey improvements
– Handed Sciences can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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.
Using analytics as competitive advantage
– Handed Sciences 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Handed Sciences to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Handed Sciences 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 Handed Sciences has opened avenues for new revenue streams for the organization in the industry. This can help Handed Sciences to build a more holistic ecosystem as suggested in the General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) case study. Handed Sciences can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Handed Sciences 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 Handed Sciences to hire the very best people irrespective of their geographical location.
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. Handed Sciences 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. Handed Sciences 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.
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. Handed Sciences can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Handed Sciences to increase its market reach. Handed Sciences 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.
Leveraging digital technologies
– Handed Sciences 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.
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 Handed Sciences in the consumer business. Now Handed Sciences can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Handed Sciences 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Handed Sciences 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, General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) are -
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. Handed Sciences needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Handed Sciences business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Handed Sciences 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Handed Sciences 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) .
Stagnating economy with rate increase
– Handed Sciences 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.
Shortening product life cycle
– it is one of the major threat that Handed Sciences is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Handed Sciences has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Handed Sciences 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.
Increasing wage structure of Handed Sciences
– 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 Handed Sciences.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D), Handed Sciences 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 .
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.
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. Handed Sciences can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Handed Sciences 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.
Environmental challenges
– Handed Sciences 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. Handed Sciences can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (D) 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 Handed Sciences needs to make to build a sustainable competitive advantage.
