Swot Analysis of "US Office Products (B): Operational and Financial Restructuring" written by Roger Hallowell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Restructuring Operational facing as an external strategic factors. Some of the topics covered in US Office Products (B): Operational and Financial Restructuring case study are - Strategic Management Strategies, Strategy execution, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the US Office Products (B): Operational and Financial Restructuring casestudy better are - – increasing energy prices, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels,
there is backlash against globalization, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of US Office Products (B): Operational and Financial Restructuring
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in US Office Products (B): Operational and Financial Restructuring case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Restructuring Operational, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Restructuring Operational 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 US Office Products (B): Operational and Financial Restructuring can be done for the following purposes –
1. Strategic planning using facts provided in US Office Products (B): Operational and Financial Restructuring case study
2. Improving business portfolio management of Restructuring Operational
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 Restructuring Operational
Strengths US Office Products (B): Operational and Financial Restructuring | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Restructuring Operational in US Office Products (B): Operational and Financial Restructuring Harvard Business Review case study are -
Training and development
– Restructuring Operational has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in US Office Products (B): Operational and Financial Restructuring 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.
Superior customer experience
– The customer experience strategy of Restructuring Operational in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Restructuring Operational digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Restructuring Operational 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.
Highly skilled collaborators
– Restructuring Operational 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 US Office Products (B): Operational and Financial Restructuring HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Restructuring Operational is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Restructuring Operational in the sector have low bargaining power. US Office Products (B): Operational and Financial Restructuring has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Restructuring Operational to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Restructuring Operational 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 Roger Hallowell 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.
Sustainable margins compare to other players in Technology & Operations industry
– US Office Products (B): Operational and Financial Restructuring firm has clearly differentiated products in the market place. This has enabled Restructuring Operational to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Restructuring Operational to invest into research and development (R&D) and innovation.
Learning organization
- Restructuring Operational 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 Restructuring Operational is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in US Office Products (B): Operational and Financial Restructuring Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Restructuring Operational
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Restructuring Operational does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Restructuring Operational 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.
High brand equity
– Restructuring Operational has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Restructuring Operational to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses US Office Products (B): Operational and Financial Restructuring | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of US Office Products (B): Operational and Financial Restructuring are -
High operating costs
– Compare to the competitors, firm in the HBR case study US Office Products (B): Operational and Financial Restructuring 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 Restructuring Operational 's lucrative customers.
Slow to strategic competitive environment developments
– As US Office Products (B): Operational and Financial Restructuring HBR case study mentions - Restructuring Operational 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study US Office Products (B): Operational and Financial Restructuring, it seems that the employees of Restructuring Operational 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.
Lack of clear differentiation of Restructuring Operational products
– To increase the profitability and margins on the products, Restructuring Operational needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study US Office Products (B): Operational and Financial Restructuring, is just above the industry average. Restructuring Operational 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.
Capital Spending Reduction
– Even during the low interest decade, Restructuring Operational has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Restructuring Operational 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.
Slow decision making process
– As mentioned earlier in the report, Restructuring Operational 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. Restructuring Operational 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Restructuring Operational 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.
Products dominated business model
– Even though Restructuring Operational 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 - US Office Products (B): Operational and Financial Restructuring should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Restructuring Operational is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study US Office Products (B): Operational and Financial Restructuring can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities US Office Products (B): Operational and Financial Restructuring | 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 US Office Products (B): Operational and Financial Restructuring are -
Developing new processes and practices
– Restructuring Operational 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Restructuring Operational 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, Restructuring Operational 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, US Office Products (B): Operational and Financial Restructuring, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Restructuring Operational is facing challenges because of the dominance of functional experts in the organization. US Office Products (B): Operational and Financial Restructuring 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.
Buying journey improvements
– Restructuring Operational can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. US Office Products (B): Operational and Financial Restructuring 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Restructuring Operational can use these opportunities to build new business models that can help the communities that Restructuring Operational operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– Restructuring Operational 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.
Better consumer reach
– The expansion of the 5G network will help Restructuring Operational to increase its market reach. Restructuring Operational 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.
Using analytics as competitive advantage
– Restructuring Operational 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 US Office Products (B): Operational and Financial Restructuring - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Restructuring Operational 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. Restructuring Operational 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. Restructuring Operational 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.
Creating value in data economy
– The success of analytics program of Restructuring Operational has opened avenues for new revenue streams for the organization in the industry. This can help Restructuring Operational to build a more holistic ecosystem as suggested in the US Office Products (B): Operational and Financial Restructuring case study. Restructuring Operational can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Restructuring Operational 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.
Building a culture of innovation
– managers at Restructuring Operational can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Threats US Office Products (B): Operational and Financial Restructuring External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study US Office Products (B): Operational and Financial Restructuring are -
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 Restructuring Operational.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Restructuring Operational with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Restructuring Operational 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.
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. Restructuring Operational 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.
Consumer confidence and its impact on Restructuring Operational 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.
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. Restructuring Operational can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Restructuring Operational is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Restructuring Operational 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study US Office Products (B): Operational and Financial Restructuring, Restructuring Operational 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 .
Technology acceleration in Forth Industrial Revolution
– Restructuring Operational has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Restructuring Operational 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.
Environmental challenges
– Restructuring Operational 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. Restructuring Operational can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Restructuring Operational 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.
Stagnating economy with rate increase
– Restructuring Operational 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.
Weighted SWOT Analysis of US Office Products (B): Operational and Financial Restructuring 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 US Office Products (B): Operational and Financial Restructuring 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 US Office Products (B): Operational and Financial Restructuring 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 US Office Products (B): Operational and Financial Restructuring 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 US Office Products (B): Operational and Financial Restructuring 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 Restructuring Operational needs to make to build a sustainable competitive advantage.