Swot Analysis of "General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C)" 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 Corporation: Outsourcing the IS Function (C) case study are - Strategic Management Strategies, IT, Negotiations, 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 Corporation: Outsourcing the IS Function (C) casestudy better are - – challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing energy prices,
wage bills are increasing, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C)
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 Corporation: Outsourcing the IS Function (C) 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 Corporation: Outsourcing the IS Function (C) can be done for the following purposes –
1. Strategic planning using facts provided in General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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 Corporation: Outsourcing the IS Function (C) | 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 Corporation: Outsourcing the IS Function (C) Harvard Business Review case study are -
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.
Organizational Resilience of Outsourcing Sciences
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Outsourcing Sciences does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Effective Research and Development (R&D)
– Outsourcing 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 Corporation: Outsourcing the IS Function (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.
Cross disciplinary teams
– Horizontal connected teams at the Outsourcing Sciences 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.
Learning organization
- Outsourcing 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 Outsourcing Sciences is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 Corporation: Outsourcing the IS Function (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.
Ability to recruit top talent
– Outsourcing Sciences is one of the leading recruiters in the industry. Managers in the General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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.
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.
Innovation driven organization
– Outsourcing Sciences is one of the most innovative firm in sector. Manager in General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Outsourcing Sciences in the sector have low bargaining power. General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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.
Operational resilience
– The operational resilience strategy in the General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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.
Weaknesses General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) are -
Slow decision making process
– As mentioned earlier in the report, Outsourcing 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. Outsourcing 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.
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.
Slow to strategic competitive environment developments
– As General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) HBR case study mentions - Outsourcing 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C), it seems that the employees of Outsourcing Sciences don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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 Outsourcing Sciences has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Outsourcing 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.
High operating costs
– Compare to the competitors, firm in the HBR case study General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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 Outsourcing Sciences 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C), 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.
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.
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 Corporation: Outsourcing the IS Function (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 General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Outsourcing Sciences can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Outsourcing 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 Corporation: Outsourcing the IS Function (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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.
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 Corporation: Outsourcing the IS Function (C) - 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.
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.
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. Outsourcing Sciences can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Outsourcing Sciences can use these opportunities to build new business models that can help the communities that Outsourcing Sciences operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Outsourcing Sciences 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.
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 Corporation: Outsourcing the IS Function (C) case study. Outsourcing Sciences can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.
Threats General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (C) 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 Corporation: Outsourcing the IS Function (C) are -
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.
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.
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.
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 Outsourcing Sciences.
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.
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.
Consumer confidence and its impact on Outsourcing Sciences 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.
Technology acceleration in Forth Industrial Revolution
– Outsourcing Sciences has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Outsourcing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Outsourcing Sciences with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Corporation: Outsourcing the IS Function (C), 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 Corporation: Outsourcing the IS Function (C) .
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.
High dependence on third party suppliers
– Outsourcing Sciences 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.
Weighted SWOT Analysis of General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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 General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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 General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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 General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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 General Dynamics and Computer Sciences Corporation: Outsourcing the IS Function (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 Outsourcing Sciences needs to make to build a sustainable competitive advantage.
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