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 - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing transportation and logistics costs, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, 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 -
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.
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.
Diverse revenue streams
– Mcs Smd is present in almost all the verticals within the industry. This has provided firm in Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) 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.
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.
Analytics focus
– Mcs Smd 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 Donna B. Stoddard, Maryellen Costello 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.
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.
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.
Sustainable margins compare to other players in Technology & Operations industry
– Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) firm has clearly differentiated products in the market place. This has enabled Mcs Smd to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Mcs Smd to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Mcs Smd has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Mcs Smd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mcs Smd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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 -
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.
Need for greater diversity
– Mcs Smd 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.
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.
Slow decision making process
– As mentioned earlier in the report, Mcs Smd 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. Mcs Smd 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, 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 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.
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.
No frontier risks strategy
– After analyzing the HBR case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A), it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A), is just above the industry average. Mcs Smd 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.
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.
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 -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mcs Smd 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.
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.
Manufacturing automation
– Mcs Smd 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.
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.
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.
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Mcs Smd has opened avenues for new revenue streams for the organization in the industry. This can help Mcs Smd to build a more holistic ecosystem as suggested in the Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) case study. Mcs Smd can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Mcs Smd 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. Mcs Smd 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.
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.
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 -
Increasing wage structure of Mcs Smd
– 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 Mcs Smd.
Consumer confidence and its impact on Mcs Smd 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mcs Smd 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 Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A) .
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Safeway Manufacturing Division: The Manufacturing Control System (MCS) (A), Mcs Smd 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 .
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mcs Smd 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. Mcs Smd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
