Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A)
Describes a decision that SMD management made to implement an MRP II system in its 38 plants. Raises the issues that needed to be addressed to enable the implementation, and is positioned so the students can develop a detailed implementation plan.
Swot Analysis of "Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A)" written by Donna B. Stoddard, Maryellen Costello includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mcs Smd facing as an external strategic factors. Some of the topics covered in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) case study are - Strategic Management Strategies, IT, Manufacturing, Strategic planning, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing commodity prices, increasing energy prices, challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, technology disruption, etc
Introduction to SWOT Analysis of Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mcs Smd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mcs Smd 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) can be done for the following purposes –
1. Strategic planning using facts provided in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) case study
2. Improving business portfolio management of Mcs Smd
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 Mcs Smd
Strengths Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mcs Smd in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Mcs Smd in the sector have low bargaining power. Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mcs Smd to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Mcs Smd has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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.
High switching costs
– The high switching costs that Mcs Smd has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Mcs Smd is one of the leading recruiters in the industry. Managers in the Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Mcs Smd
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mcs Smd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Mcs Smd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mcs Smd 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.
Cross disciplinary teams
– Horizontal connected teams at the Mcs Smd 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.
Superior customer experience
– The customer experience strategy of Mcs Smd in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Technology & Operations field
– Mcs Smd 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 Mcs Smd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Mcs Smd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Mcs Smd 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Mcs Smd digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mcs Smd 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) are -
Products dominated business model
– Even though Mcs Smd 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 - Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Mcs Smd 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A), in the dynamic environment Mcs Smd has struggled to respond to the nimble upstart competition. Mcs Smd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Mcs Smd 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.
Lack of clear differentiation of Mcs Smd products
– To increase the profitability and margins on the products, Mcs Smd needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Mcs Smd 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.
Slow to strategic competitive environment developments
– As Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) HBR case study mentions - Mcs Smd 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Mcs Smd 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Donna B. Stoddard, Maryellen Costello suggests that, Mcs Smd 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mcs Smd is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Mcs Smd is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Mcs Smd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mcs Smd to focus more on services rather than just following the product oriented approach.
Opportunities Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) | 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) are -
Building a culture of innovation
– managers at Mcs Smd 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mcs Smd 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mcs Smd 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 Mcs Smd to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Mcs Smd 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.
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 Mcs Smd 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mcs Smd 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, Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Mcs Smd in the consumer business. Now Mcs Smd can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mcs Smd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Mcs Smd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mcs Smd is facing challenges because of the dominance of functional experts in the organization. Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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.
Using analytics as competitive advantage
– Mcs Smd 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mcs Smd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Mcs Smd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Mcs Smd 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.
Threats Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Mcs Smd.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mcs Smd business can come under increasing regulations regarding data privacy, data security, etc.
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 Mcs Smd in the Technology & Operations sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mcs Smd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Mcs Smd needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Regulatory challenges
– Mcs Smd 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 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.
Stagnating economy with rate increase
– Mcs Smd 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.
Environmental challenges
– Mcs Smd 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. Mcs Smd can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Mcs Smd 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
– Mcs Smd 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.
Technology acceleration in Forth Industrial Revolution
– Mcs Smd has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Mcs Smd 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.
Weighted SWOT Analysis of Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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 Mcs Smd needs to make to build a sustainable competitive advantage.