Case Study Description of Pacific Dunlop China (A): Beijing
Describes the predicament of an overworked Western plant manager in a Chinese joint venture. The fourth in a line of such managers, he must deal with the combined problems of an inability to delegate, different customs and practices, and difficulties in information technology and plant control.
Swot Analysis of "Pacific Dunlop China (A): Beijing" written by David M. Upton, Richard Seet includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Overworked Dunlop facing as an external strategic factors. Some of the topics covered in Pacific Dunlop China (A): Beijing case study are - Strategic Management Strategies, Manufacturing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Pacific Dunlop China (A): Beijing casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing commodity prices, technology disruption, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, geopolitical disruptions, etc
Introduction to SWOT Analysis of Pacific Dunlop China (A): Beijing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pacific Dunlop China (A): Beijing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Overworked Dunlop, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Overworked Dunlop 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 Pacific Dunlop China (A): Beijing can be done for the following purposes –
1. Strategic planning using facts provided in Pacific Dunlop China (A): Beijing case study
2. Improving business portfolio management of Overworked Dunlop
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 Overworked Dunlop
Strengths Pacific Dunlop China (A): Beijing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Overworked Dunlop in Pacific Dunlop China (A): Beijing Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– Pacific Dunlop China (A): Beijing firm has clearly differentiated products in the market place. This has enabled Overworked Dunlop to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Overworked Dunlop to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Overworked Dunlop in the sector have low bargaining power. Pacific Dunlop China (A): Beijing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Overworked Dunlop to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Overworked Dunlop 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 David M. Upton, Richard Seet 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.
Successful track record of launching new products
– Overworked Dunlop has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Overworked Dunlop has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Overworked Dunlop in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Overworked Dunlop has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Overworked Dunlop to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Overworked Dunlop is one of the most innovative firm in sector. Manager in Pacific Dunlop China (A): Beijing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Overworked Dunlop is one of the leading recruiters in the industry. Managers in the Pacific Dunlop China (A): Beijing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Overworked Dunlop 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 Overworked Dunlop is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pacific Dunlop China (A): Beijing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Technology & Operations field
– Overworked Dunlop 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 Overworked Dunlop in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Pacific Dunlop China (A): Beijing 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Overworked Dunlop digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Overworked Dunlop has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Pacific Dunlop China (A): Beijing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pacific Dunlop China (A): Beijing are -
Slow decision making process
– As mentioned earlier in the report, Overworked Dunlop 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. Overworked Dunlop 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.
High cash cycle compare to competitors
Overworked Dunlop 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.
Capital Spending Reduction
– Even during the low interest decade, Overworked Dunlop 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pacific Dunlop China (A): Beijing, it seems that the employees of Overworked Dunlop 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Overworked Dunlop is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pacific Dunlop China (A): Beijing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Pacific Dunlop China (A): Beijing 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 Pacific Dunlop China (A): Beijing can leverage the sales team experience to cultivate customer relationships as Overworked Dunlop is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Pacific Dunlop China (A): Beijing 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 Overworked Dunlop 's lucrative customers.
Products dominated business model
– Even though Overworked Dunlop 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 - Pacific Dunlop China (A): Beijing should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Overworked Dunlop, firm in the HBR case study Pacific Dunlop China (A): Beijing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Overworked Dunlop supply chain. Even after few cautionary changes mentioned in the HBR case study - Pacific Dunlop China (A): Beijing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Overworked Dunlop vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, David M. Upton, Richard Seet suggests that, Overworked Dunlop 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 Pacific Dunlop China (A): Beijing | 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 Pacific Dunlop China (A): Beijing are -
Better consumer reach
– The expansion of the 5G network will help Overworked Dunlop to increase its market reach. Overworked Dunlop 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Overworked Dunlop 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 Overworked Dunlop to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Overworked Dunlop 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.
Using analytics as competitive advantage
– Overworked Dunlop 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 Pacific Dunlop China (A): Beijing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Overworked Dunlop to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Overworked Dunlop can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pacific Dunlop China (A): Beijing 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.
Creating value in data economy
– The success of analytics program of Overworked Dunlop has opened avenues for new revenue streams for the organization in the industry. This can help Overworked Dunlop to build a more holistic ecosystem as suggested in the Pacific Dunlop China (A): Beijing case study. Overworked Dunlop can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Overworked Dunlop in the consumer business. Now Overworked Dunlop can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Overworked Dunlop 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
– Overworked Dunlop 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.
Leveraging digital technologies
– Overworked Dunlop 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.
Developing new processes and practices
– Overworked Dunlop 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, Overworked Dunlop 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.
Building a culture of innovation
– managers at Overworked Dunlop 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 Pacific Dunlop China (A): Beijing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pacific Dunlop China (A): Beijing are -
Environmental challenges
– Overworked Dunlop 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. Overworked Dunlop can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Overworked Dunlop can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Overworked Dunlop in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Overworked Dunlop 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Overworked Dunlop with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Overworked Dunlop 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 Pacific Dunlop China (A): Beijing .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Overworked Dunlop 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pacific Dunlop China (A): Beijing, Overworked Dunlop 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 .
Regulatory challenges
– Overworked Dunlop 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.
Technology acceleration in Forth Industrial Revolution
– Overworked Dunlop has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Overworked Dunlop 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.
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.
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. Overworked Dunlop needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Pacific Dunlop China (A): Beijing 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 Pacific Dunlop China (A): Beijing 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 Pacific Dunlop China (A): Beijing 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 Pacific Dunlop China (A): Beijing 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 Pacific Dunlop China (A): Beijing 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 Overworked Dunlop needs to make to build a sustainable competitive advantage.