Swot Analysis of "General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged)" written by F. Warren McFarlan, Katherine N. Seger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Outsourcing Sciences facing as an external strategic factors. Some of the topics covered in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) case study are - Strategic Management Strategies, Negotiations, Reorganization, 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 (A) and (B) (Abridged) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing energy prices,
competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged)
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 (A) and (B) (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Outsourcing Sciences, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Outsourcing 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 (A) and (B) (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) case study
2. Improving business portfolio management of Outsourcing 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 Outsourcing Sciences
Strengths General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Outsourcing Sciences in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) Harvard Business Review case study are -
Training and development
– Outsourcing 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 (A) and (B) (Abridged) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Outsourcing Sciences 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 F. Warren McFarlan, Katherine N. Seger 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.
Diverse revenue streams
– Outsourcing 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 (A) and (B) (Abridged) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Outsourcing Sciences digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Outsourcing 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.
High brand equity
– Outsourcing Sciences has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Outsourcing Sciences to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Outsourcing Sciences in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Outsourcing Sciences in the sector have low bargaining power. General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Outsourcing Sciences to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Outsourcing Sciences 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 Outsourcing Sciences in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Outsourcing Sciences is one of the most innovative firm in sector. Manager in General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Outsourcing Sciences 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
– General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) firm has clearly differentiated products in the market place. This has enabled Outsourcing Sciences to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Outsourcing Sciences to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Outsourcing Sciences is one of the leading recruiters in the industry. Managers in the General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) | 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 (A) and (B) (Abridged) are -
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 Outsourcing Sciences supply chain. Even after few cautionary changes mentioned in the HBR case study - General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Outsourcing Sciences vulnerable to further global disruptions in South East Asia.
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 (A) and (B) (Abridged), in the dynamic environment Outsourcing Sciences has struggled to respond to the nimble upstart competition. Outsourcing Sciences has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) 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 (A) and (B) (Abridged) can leverage the sales team experience to cultivate customer relationships as Outsourcing Sciences is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Outsourcing Sciences is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Outsourcing Sciences needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Outsourcing Sciences to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Outsourcing Sciences has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Outsourcing Sciences 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.
Lack of clear differentiation of Outsourcing Sciences products
– To increase the profitability and margins on the products, Outsourcing Sciences needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Outsourcing Sciences, firm in the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged), is just above the industry average. Outsourcing 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.
No frontier risks strategy
– After analyzing the HBR case study General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged), 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.
High bargaining power of channel partners
– Because of the regulatory requirements, F. Warren McFarlan, Katherine N. Seger suggests that, Outsourcing 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.
Opportunities General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) | 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 (A) and (B) (Abridged) are -
Developing new processes and practices
– Outsourcing Sciences 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.
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. Outsourcing 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. Outsourcing 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.
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 Outsourcing Sciences 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.
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. Outsourcing Sciences can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Outsourcing 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.
Leveraging digital technologies
– Outsourcing 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.
Manufacturing automation
– Outsourcing Sciences 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
– Outsourcing 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 (A) and (B) (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Outsourcing Sciences to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Outsourcing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Outsourcing Sciences is facing challenges because of the dominance of functional experts in the organization. General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Outsourcing 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 Outsourcing Sciences to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Outsourcing Sciences has opened avenues for new revenue streams for the organization in the industry. This can help Outsourcing Sciences to build a more holistic ecosystem as suggested in the General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) case study. Outsourcing Sciences can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Outsourcing 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.
Threats General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) 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 (A) and (B) (Abridged) 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. Outsourcing Sciences needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Outsourcing 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 Outsourcing Sciences is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Outsourcing Sciences can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Outsourcing Sciences business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Outsourcing 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 Outsourcing Sciences.
Regulatory challenges
– Outsourcing Sciences 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Outsourcing 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.
Environmental challenges
– Outsourcing 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. Outsourcing Sciences can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Outsourcing Sciences in the Technology & Operations sector and impact the bottomline 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 General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged), Outsourcing 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Outsourcing 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 (A) and (B) (Abridged) .
Weighted SWOT Analysis of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged) 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 (A) and (B) (Abridged) 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 (A) and (B) (Abridged) 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 (A) and (B) (Abridged) 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 (A) and (B) (Abridged) 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 Outsourcing Sciences needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of General Dynamics and Computer Sciences Corp.: Outsourcing the IS Function (A) and (B) (Abridged)
