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 - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, technology disruption,
increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Cross disciplinary teams
– Horizontal connected teams at the Aggregate Burgelman 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.
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.
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.
Diverse revenue streams
– Aggregate Burgelman is present in almost all the verticals within the industry. This has provided firm in Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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.
High brand equity
– Aggregate Burgelman has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Aggregate Burgelman to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Low bargaining power of suppliers
– Suppliers of Aggregate Burgelman in the sector have low bargaining power. Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aggregate Burgelman to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
Ability to lead change in Technology & Operations field
– Aggregate Burgelman 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 Aggregate Burgelman 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
– 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.
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 -
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.
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 cash cycle compare to competitors
Aggregate Burgelman 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.
Lack of clear differentiation of Aggregate Burgelman products
– To increase the profitability and margins on the products, Aggregate Burgelman needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, is just above the industry average. Aggregate Burgelman 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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aggregate Burgelman is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Aggregate Burgelman supply chain. Even after few cautionary changes mentioned in the HBR case study - Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Aggregate Burgelman vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process 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 Aggregate Burgelman 's lucrative customers.
Slow to strategic competitive environment developments
– As Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process HBR case study mentions - Aggregate Burgelman 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, 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.
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 -
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.
Using analytics as competitive advantage
– Aggregate Burgelman 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aggregate Burgelman to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aggregate Burgelman 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aggregate Burgelman can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Aggregate Burgelman 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. Aggregate Burgelman 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.
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.
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.
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.
Leveraging digital technologies
– Aggregate Burgelman can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 -
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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Aggregate Burgelman 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, Aggregate Burgelman 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 Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process .
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.
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.
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 Aggregate Burgelman business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Using Aggregate Project Planning to Link Strategy, Innovation, and the Resource Allocation Process