Connecticut Spring and Stamping Corp. (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Connecticut Spring and Stamping Corp. (B)
Connecticut Spring and Stamping Corp. (CSSC), a 50-year-old spring manufacturing and metal stamping firm, is experiencing slow sales growth and feeling the impact of global competition. The company has over 800 customers but little understanding of those customers' needs. They must improve manufacturing efficiency and respond to customer demands for higher quality, lower cost, and shorter delivery lead times. The company has a rich history of trying many management fads and now is exploring different methods of achieving higher quality. Andy Youmans, executive vice president responsible for this quality initiative, is contacted by the Toyota Supplier Support Center (TSSC), a world leader in manufacturing methodology, who offers to educate the CSSC plant in the Toyota Production System (TPS). Although short-term improvements are made, quality and delivery times worsen. It seems employees do not understand the reasons behind the new production methods, and Youmans is concerned about how to transfer what he has learned. The TSSC consultants suggest that Youmans go to Japan to visit companies that are practicing TPS principles.
Authors :: H. Kent Bowen, Massimo Russo, Steven J. Spear
Swot Analysis of "Connecticut Spring and Stamping Corp. (B)" written by H. Kent Bowen, Massimo Russo, Steven J. Spear includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Youmans Stamping facing as an external strategic factors. Some of the topics covered in Connecticut Spring and Stamping Corp. (B) case study are - Strategic Management Strategies, Customers, Developing employees, Globalization, Manufacturing, Product development, Sales and Technology & Operations.
Some of the macro environment factors that can be used to understand the Connecticut Spring and Stamping Corp. (B) casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, increasing household debt because of falling income levels, increasing energy prices, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic ,
increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Connecticut Spring and Stamping Corp. (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Connecticut Spring and Stamping Corp. (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Youmans Stamping, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Youmans Stamping operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Connecticut Spring and Stamping Corp. (B) can be done for the following purposes –
1. Strategic planning using facts provided in Connecticut Spring and Stamping Corp. (B) case study
2. Improving business portfolio management of Youmans Stamping
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Youmans Stamping
Strengths Connecticut Spring and Stamping Corp. (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Youmans Stamping in Connecticut Spring and Stamping Corp. (B) Harvard Business Review case study are -
Innovation driven organization
– Youmans Stamping is one of the most innovative firm in sector. Manager in Connecticut Spring and Stamping Corp. (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Youmans Stamping is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Youmans Stamping is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Connecticut Spring and Stamping Corp. (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Youmans Stamping in the sector have low bargaining power. Connecticut Spring and Stamping Corp. (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Youmans Stamping to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Youmans Stamping has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Connecticut Spring and Stamping Corp. (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Youmans Stamping has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Connecticut Spring and Stamping Corp. (B) 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.
Cross disciplinary teams
– Horizontal connected teams at the Youmans Stamping 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.
Diverse revenue streams
– Youmans Stamping is present in almost all the verticals within the industry. This has provided firm in Connecticut Spring and Stamping Corp. (B) 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.
High brand equity
– Youmans Stamping has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Youmans Stamping to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Technology & Operations industry
– Connecticut Spring and Stamping Corp. (B) firm has clearly differentiated products in the market place. This has enabled Youmans Stamping to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Youmans Stamping to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Youmans Stamping in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Youmans Stamping is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by H. Kent Bowen, Massimo Russo, Steven J. Spear can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Youmans Stamping
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Youmans Stamping does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Connecticut Spring and Stamping Corp. (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Connecticut Spring and Stamping Corp. (B) are -
High bargaining power of channel partners
– Because of the regulatory requirements, H. Kent Bowen, Massimo Russo, Steven J. Spear suggests that, Youmans Stamping 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Connecticut Spring and Stamping Corp. (B) 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 Youmans Stamping 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Connecticut Spring and Stamping Corp. (B), in the dynamic environment Youmans Stamping has struggled to respond to the nimble upstart competition. Youmans Stamping has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Youmans Stamping 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.
Low market penetration in new markets
– Outside its home market of Youmans Stamping, firm in the HBR case study Connecticut Spring and Stamping Corp. (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Connecticut Spring and Stamping Corp. (B) HBR case study mentions - Youmans Stamping 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
– Youmans Stamping 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Connecticut Spring and Stamping Corp. (B) 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 Youmans Stamping has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Youmans Stamping is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Connecticut Spring and Stamping Corp. (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Youmans Stamping supply chain. Even after few cautionary changes mentioned in the HBR case study - Connecticut Spring and Stamping Corp. (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Youmans Stamping vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Youmans Stamping has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Connecticut Spring and Stamping Corp. (B) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Connecticut Spring and Stamping Corp. (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Youmans Stamping is facing challenges because of the dominance of functional experts in the organization. Connecticut Spring and Stamping Corp. (B) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Youmans Stamping 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, Youmans Stamping can use these opportunities to build new business models that can help the communities that Youmans Stamping operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Better consumer reach
– The expansion of the 5G network will help Youmans Stamping to increase its market reach. Youmans Stamping 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Youmans Stamping 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, Connecticut Spring and Stamping Corp. (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Youmans Stamping 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Youmans Stamping 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.
Developing new processes and practices
– Youmans Stamping 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.
Loyalty marketing
– Youmans Stamping 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.
Manufacturing automation
– Youmans Stamping 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Youmans Stamping can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Youmans Stamping 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.
Learning at scale
– Online learning technologies has now opened space for Youmans Stamping 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Youmans Stamping 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.
Threats Connecticut Spring and Stamping Corp. (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Connecticut Spring and Stamping Corp. (B) are -
Environmental challenges
– Youmans Stamping 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. Youmans Stamping 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 Youmans Stamping 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.
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. Youmans Stamping can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Youmans Stamping with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Youmans Stamping 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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Youmans Stamping needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Consumer confidence and its impact on Youmans Stamping 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
– Youmans Stamping has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Youmans Stamping 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.
Shortening product life cycle
– it is one of the major threat that Youmans Stamping is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Youmans Stamping 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 wage structure of Youmans Stamping
– 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 Youmans Stamping.
Stagnating economy with rate increase
– Youmans Stamping 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.
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.
Weighted SWOT Analysis of Connecticut Spring and Stamping Corp. (B) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Connecticut Spring and Stamping Corp. (B) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Connecticut Spring and Stamping Corp. (B) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Connecticut Spring and Stamping Corp. (B) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Connecticut Spring and Stamping Corp. (B) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Youmans Stamping needs to make to build a sustainable competitive advantage.
