Air Products and Chemicals, Inc.: MIS Reorganization (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Air Products and Chemicals, Inc.: MIS Reorganization (A)
As a part of the Management Information Services (MIS) Division's evolution, it was planned to distribute all systems development and applications (SD&S) activities and resources (assets and personnel) from the central MIS Division to the operating areas by October 1990. However, unexpected changes at senior management levels precipitated a request, in January 1989, by a new operating area vice president to distribute the resources immediately. The VP of MIS must decide if it is wise to proceed with the transfer 12 to 18 months ahead of schedule--with many issues unresolved. Class discussion may focus on the following issues: organization of the MIS function in a decentralized corporation, MIS staffing and career planning, MIS partnerships with line operations, and the establishment of architectural principles and guidelines. The case closes with the VP of MIS wondering: How should he proceed? Upon what conditions or prerequisites should he agree to this change?
Swot Analysis of "Air Products and Chemicals, Inc.: MIS Reorganization (A)" written by Nancy S. Balaguer, John W. Preuninger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mis Distribute facing as an external strategic factors. Some of the topics covered in Air Products and Chemicals, Inc.: MIS Reorganization (A) case study are - Strategic Management Strategies, IT, Organizational structure, Reorganization and Technology & Operations.
Some of the macro environment factors that can be used to understand the Air Products and Chemicals, Inc.: MIS Reorganization (A) casestudy better are - – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of Air Products and Chemicals, Inc.: MIS Reorganization (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Air Products and Chemicals, Inc.: MIS Reorganization (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mis Distribute, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mis Distribute 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 Air Products and Chemicals, Inc.: MIS Reorganization (A) can be done for the following purposes –
1. Strategic planning using facts provided in Air Products and Chemicals, Inc.: MIS Reorganization (A) case study
2. Improving business portfolio management of Mis Distribute
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 Mis Distribute
Strengths Air Products and Chemicals, Inc.: MIS Reorganization (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mis Distribute in Air Products and Chemicals, Inc.: MIS Reorganization (A) Harvard Business Review case study are -
Training and development
– Mis Distribute has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Air Products and Chemicals, Inc.: MIS Reorganization (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
– Mis Distribute 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 Nancy S. Balaguer, John W. Preuninger 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.
Strong track record of project management
– Mis Distribute is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Mis Distribute digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mis Distribute 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.
Highly skilled collaborators
– Mis Distribute 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 Air Products and Chemicals, Inc.: MIS Reorganization (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Technology & Operations field
– Mis Distribute 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 Mis Distribute in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Technology & Operations industry
– Air Products and Chemicals, Inc.: MIS Reorganization (A) firm has clearly differentiated products in the market place. This has enabled Mis Distribute to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Mis Distribute to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Mis Distribute 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.
Effective Research and Development (R&D)
– Mis Distribute 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 Air Products and Chemicals, Inc.: MIS Reorganization (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.
Ability to recruit top talent
– Mis Distribute is one of the leading recruiters in the industry. Managers in the Air Products and Chemicals, Inc.: MIS Reorganization (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.
Successful track record of launching new products
– Mis Distribute has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mis Distribute 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.
Low bargaining power of suppliers
– Suppliers of Mis Distribute in the sector have low bargaining power. Air Products and Chemicals, Inc.: MIS Reorganization (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mis Distribute to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Air Products and Chemicals, Inc.: MIS Reorganization (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Air Products and Chemicals, Inc.: MIS Reorganization (A) are -
Workers concerns about automation
– As automation is fast increasing in the segment, Mis Distribute 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.
Low market penetration in new markets
– Outside its home market of Mis Distribute, firm in the HBR case study Air Products and Chemicals, Inc.: MIS Reorganization (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Air Products and Chemicals, Inc.: MIS Reorganization (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.
Products dominated business model
– Even though Mis Distribute 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 - Air Products and Chemicals, Inc.: MIS Reorganization (A) should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Air Products and Chemicals, Inc.: MIS Reorganization (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 Mis Distribute 's lucrative customers.
Lack of clear differentiation of Mis Distribute products
– To increase the profitability and margins on the products, Mis Distribute needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Mis Distribute 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. Mis Distribute 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.
Aligning sales with marketing
– It come across in the case study Air Products and Chemicals, Inc.: MIS Reorganization (A) 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 Air Products and Chemicals, Inc.: MIS Reorganization (A) can leverage the sales team experience to cultivate customer relationships as Mis Distribute is planning to shift buying processes online.
High cash cycle compare to competitors
Mis Distribute 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, Mis Distribute 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.
Need for greater diversity
– Mis Distribute 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.
Opportunities Air Products and Chemicals, Inc.: MIS Reorganization (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 Air Products and Chemicals, Inc.: MIS Reorganization (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mis Distribute is facing challenges because of the dominance of functional experts in the organization. Air Products and Chemicals, Inc.: MIS Reorganization (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.
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 Mis Distribute in the consumer business. Now Mis Distribute can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mis Distribute 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, Air Products and Chemicals, Inc.: MIS Reorganization (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.
Developing new processes and practices
– Mis Distribute 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.
Learning at scale
– Online learning technologies has now opened space for Mis Distribute 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.
Using analytics as competitive advantage
– Mis Distribute 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 Air Products and Chemicals, Inc.: MIS Reorganization (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mis Distribute 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. Mis Distribute can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mis Distribute can use these opportunities to build new business models that can help the communities that Mis Distribute operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Loyalty marketing
– Mis Distribute 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mis Distribute 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 Mis Distribute to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Mis Distribute can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Air Products and Chemicals, Inc.: MIS Reorganization (A) 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.
Better consumer reach
– The expansion of the 5G network will help Mis Distribute to increase its market reach. Mis Distribute 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mis Distribute can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Air Products and Chemicals, Inc.: MIS Reorganization (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Air Products and Chemicals, Inc.: MIS Reorganization (A) are -
Stagnating economy with rate increase
– Mis Distribute 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.
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. Mis Distribute can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Mis Distribute business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Mis Distribute 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. Mis Distribute can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Mis Distribute in the Technology & Operations sector and impact the bottomline 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 Mis Distribute.
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. Mis Distribute needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Mis Distribute
– 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 Mis Distribute.
Technology acceleration in Forth Industrial Revolution
– Mis Distribute has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Mis Distribute 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mis Distribute with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mis Distribute will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Mis Distribute is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Air Products and Chemicals, Inc.: MIS Reorganization (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 Air Products and Chemicals, Inc.: MIS Reorganization (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 Air Products and Chemicals, Inc.: MIS Reorganization (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 Air Products and Chemicals, Inc.: MIS Reorganization (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 Air Products and Chemicals, Inc.: MIS Reorganization (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 Mis Distribute needs to make to build a sustainable competitive advantage.
