Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process
Links two very useful pieces of management research--resource allocation processes as studied by Bowen and Burgelman and the aggregate project plan expounded by Wheelwright and Clark.
Swot Analysis of "Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process" written by Clayton M. Christensen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aggregate Burgelman facing as an external strategic factors. Some of the topics covered in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process case study are - Strategic Management Strategies, Project management, Strategic planning and Technology & Operations.
Some of the macro environment factors that can be used to understand the Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process casestudy better are - – increasing government debt because of Covid-19 spendings, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, increasing commodity prices, etc
Introduction to SWOT Analysis of Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aggregate Burgelman, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aggregate Burgelman 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process can be done for the following purposes –
1. Strategic planning using facts provided in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process case study
2. Improving business portfolio management of Aggregate Burgelman
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 Aggregate Burgelman
Strengths Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aggregate Burgelman in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process Harvard Business Review case study are -
Analytics focus
– Aggregate Burgelman 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 Clayton M. Christensen 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.
Effective Research and Development (R&D)
– Aggregate Burgelman 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Aggregate Burgelman has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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.
Sustainable margins compare to other players in Technology & Operations industry
– Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process firm has clearly differentiated products in the market place. This has enabled Aggregate Burgelman to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Aggregate Burgelman to invest into research and development (R&D) and innovation.
Learning organization
- Aggregate Burgelman is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Aggregate Burgelman is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Aggregate Burgelman is one of the most innovative firm in sector. Manager in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Aggregate Burgelman in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Aggregate Burgelman 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
– Aggregate Burgelman is one of the leading recruiters in the industry. Managers in the Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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
– Aggregate Burgelman has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aggregate Burgelman 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.
Organizational Resilience of Aggregate Burgelman
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Aggregate Burgelman does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process are -
No frontier risks strategy
– After analyzing the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, 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.
Need for greater diversity
– Aggregate Burgelman 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Clayton M. Christensen suggests that, Aggregate Burgelman 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, in the dynamic environment Aggregate Burgelman has struggled to respond to the nimble upstart competition. Aggregate Burgelman has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process can leverage the sales team experience to cultivate customer relationships as Aggregate Burgelman is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, it seems that the employees of Aggregate Burgelman don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Aggregate Burgelman, firm in the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Aggregate Burgelman 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 decision making process
– As mentioned earlier in the report, Aggregate Burgelman 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. Aggregate Burgelman 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.
Increasing silos among functional specialists
– The organizational structure of Aggregate Burgelman is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Aggregate Burgelman needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aggregate Burgelman to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Aggregate Burgelman 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.
Opportunities Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process | 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Aggregate Burgelman 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, Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Aggregate Burgelman 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 Aggregate Burgelman 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 Aggregate Burgelman to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Aggregate Burgelman to increase its market reach. Aggregate Burgelman 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.
Manufacturing automation
– Aggregate Burgelman 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.
Buying journey improvements
– Aggregate Burgelman can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Aggregate Burgelman can use these opportunities to build new business models that can help the communities that Aggregate Burgelman operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Aggregate Burgelman has opened avenues for new revenue streams for the organization in the industry. This can help Aggregate Burgelman to build a more holistic ecosystem as suggested in the Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process case study. Aggregate Burgelman can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Aggregate Burgelman is facing challenges because of the dominance of functional experts in the organization. Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Aggregate Burgelman 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Aggregate Burgelman 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.
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 Aggregate Burgelman in the consumer business. Now Aggregate Burgelman can target international markets with far fewer capital restrictions requirements than the existing system.
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. Aggregate Burgelman can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process are -
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. Aggregate Burgelman 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 Aggregate Burgelman is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Aggregate Burgelman has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Aggregate Burgelman 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.
Consumer confidence and its impact on Aggregate Burgelman 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.
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 Aggregate Burgelman in the Technology & Operations sector and impact the bottomline of the organization.
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 Aggregate Burgelman 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.
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 Aggregate Burgelman.
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.
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. Aggregate Burgelman can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Aggregate Burgelman 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.
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. Aggregate Burgelman needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Regulatory challenges
– Aggregate Burgelman 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.
Weighted SWOT Analysis of Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Aggregate Burgelman needs to make to build a sustainable competitive advantage.
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