Pricing Police: An Activity-Based Costing Model of Police Services SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
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Case Study SWOT Analysis Solution
Case Study Description of Pricing Police: An Activity-Based Costing Model of Police Services
On January 17, 2015, the Ontario Provincial Police (OPP) released service cost estimates to all municipalities under its new municipal billing model. The new billing model, according to the recommendations of the auditor general, was designed to provide a more consistent, transparent, and accurate reflection of municipal servicing costs. Several mayors were not entirely sold on the new model and had their own opinion on how each municipality should be billed. Municipal officials needed consistent year-to-year service costs to accurately forecast their annual budgets. The OPP had to demonstrate the merit of the new billing model to ensure its adoption by all municipalities.
Authors :: Vaughan Radcliffe, Mitchell Stein, Adam Erickson
Swot Analysis of "Pricing Police: An Activity-Based Costing Model of Police Services" written by Vaughan Radcliffe, Mitchell Stein, Adam Erickson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Billing Opp facing as an external strategic factors. Some of the topics covered in Pricing Police: An Activity-Based Costing Model of Police Services case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Pricing Police: An Activity-Based Costing Model of Police Services casestudy better are - – challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing commodity prices, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Pricing Police: An Activity-Based Costing Model of Police Services
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pricing Police: An Activity-Based Costing Model of Police Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Billing Opp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Billing Opp 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 Pricing Police: An Activity-Based Costing Model of Police Services can be done for the following purposes –
1. Strategic planning using facts provided in Pricing Police: An Activity-Based Costing Model of Police Services case study
2. Improving business portfolio management of Billing Opp
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Billing Opp
Strengths Pricing Police: An Activity-Based Costing Model of Police Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Billing Opp in Pricing Police: An Activity-Based Costing Model of Police Services Harvard Business Review case study are -
Highly skilled collaborators
– Billing Opp 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 Pricing Police: An Activity-Based Costing Model of Police Services HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Finance & Accounting industry
– Pricing Police: An Activity-Based Costing Model of Police Services firm has clearly differentiated products in the market place. This has enabled Billing Opp to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Billing Opp to invest into research and development (R&D) and innovation.
Training and development
– Billing Opp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pricing Police: An Activity-Based Costing Model of Police Services Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Billing Opp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Billing Opp is one of the leading recruiters in the industry. Managers in the Pricing Police: An Activity-Based Costing Model of Police Services are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Billing Opp is present in almost all the verticals within the industry. This has provided firm in Pricing Police: An Activity-Based Costing Model of Police Services 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.
Innovation driven organization
– Billing Opp is one of the most innovative firm in sector. Manager in Pricing Police: An Activity-Based Costing Model of Police Services Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Billing Opp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Billing Opp 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.
Successful track record of launching new products
– Billing Opp has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Billing Opp 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.
High brand equity
– Billing Opp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Billing Opp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Finance & Accounting field
– Billing Opp 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 Billing Opp in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Billing Opp 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.
Weaknesses Pricing Police: An Activity-Based Costing Model of Police Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pricing Police: An Activity-Based Costing Model of Police Services are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pricing Police: An Activity-Based Costing Model of Police Services 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 Billing Opp has relatively successful track record of launching new products.
High cash cycle compare to competitors
Billing Opp 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Pricing Police: An Activity-Based Costing Model of Police Services 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 Billing Opp 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Billing Opp is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Billing Opp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Billing Opp to focus more on services rather than just following the product oriented approach.
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 Billing Opp supply chain. Even after few cautionary changes mentioned in the HBR case study - Pricing Police: An Activity-Based Costing Model of Police Services, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Billing Opp vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Billing Opp 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. Billing Opp 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.
Need for greater diversity
– Billing Opp 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.
Interest costs
– Compare to the competition, Billing Opp 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.
Skills based hiring
– The stress on hiring functional specialists at Billing Opp 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pricing Police: An Activity-Based Costing Model of Police Services, is just above the industry average. Billing Opp 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Billing Opp is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pricing Police: An Activity-Based Costing Model of Police Services can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Pricing Police: An Activity-Based Costing Model of Police Services | 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 Pricing Police: An Activity-Based Costing Model of Police Services are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Billing Opp can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Billing Opp can use these opportunities to build new business models that can help the communities that Billing Opp operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Loyalty marketing
– Billing Opp 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Billing Opp 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.
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. Billing Opp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Billing Opp 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.
Manufacturing automation
– Billing Opp can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Using analytics as competitive advantage
– Billing Opp 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 Pricing Police: An Activity-Based Costing Model of Police Services - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Billing Opp to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Billing Opp is facing challenges because of the dominance of functional experts in the organization. Pricing Police: An Activity-Based Costing Model of Police Services 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.
Building a culture of innovation
– managers at Billing Opp 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 Finance & Accounting segment.
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 Billing Opp 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.
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 Billing Opp in the consumer business. Now Billing Opp can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Billing Opp to increase its market reach. Billing Opp 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.
Threats Pricing Police: An Activity-Based Costing Model of Police Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pricing Police: An Activity-Based Costing Model of Police Services are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pricing Police: An Activity-Based Costing Model of Police Services, Billing Opp may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Regulatory challenges
– Billing Opp 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 Finance & Accounting industry regulations.
High dependence on third party suppliers
– Billing Opp 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.
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 Billing Opp business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Billing Opp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Billing Opp has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Billing Opp needs to keep up with the evolution of technology in the Finance & Accounting 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Billing Opp in the Finance & Accounting industry. The Finance & Accounting 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.
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.
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 Billing Opp.
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.
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 Billing Opp in the Finance & Accounting 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 Billing Opp with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Billing Opp
– 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 Billing Opp.
Weighted SWOT Analysis of Pricing Police: An Activity-Based Costing Model of Police Services 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 Pricing Police: An Activity-Based Costing Model of Police Services 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 Pricing Police: An Activity-Based Costing Model of Police Services 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 Pricing Police: An Activity-Based Costing Model of Police Services 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 Pricing Police: An Activity-Based Costing Model of Police Services 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 Billing Opp needs to make to build a sustainable competitive advantage.
