Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice
The long-term trend of manufacturing management to adopt "best practice" has had an expressed preference for Japanese production systems as a means of generating industrial success. While commentators have noted the lack of correlation between imitation and competitive advantage, one of the reasons for this failure--namely, the very range of operating methods among Japanese producers--has not been so fully explored. This article uses evidence from the U.K. automobile industry to illustrate the disappointing impact of Japanization and best practice, and it suggests that managers should concentrate on the development of strategic competencies and the aligning of manufacturing with corporate strategy.
Swot Analysis of "Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice" written by Alan Pilkington includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Practice Manufacturing facing as an external strategic factors. Some of the topics covered in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice case study are - Strategic Management Strategies, Manufacturing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice casestudy better are - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, there is backlash against globalization, wage bills are increasing, increasing government debt because of Covid-19 spendings,
increasing energy prices, technology disruption, etc
Introduction to SWOT Analysis of Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Practice Manufacturing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Practice Manufacturing 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice can be done for the following purposes –
1. Strategic planning using facts provided in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice case study
2. Improving business portfolio management of Practice Manufacturing
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 Practice Manufacturing
Strengths Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Practice Manufacturing in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice Harvard Business Review case study are -
Highly skilled collaborators
– Practice Manufacturing 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Practice Manufacturing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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.
Strong track record of project management
– Practice Manufacturing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Practice Manufacturing 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 Practice Manufacturing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Practice Manufacturing is present in almost all the verticals within the industry. This has provided firm in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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.
Sustainable margins compare to other players in Technology & Operations industry
– Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice firm has clearly differentiated products in the market place. This has enabled Practice Manufacturing to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Practice Manufacturing to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Practice Manufacturing 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Practice Manufacturing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Practice Manufacturing 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.
Superior customer experience
– The customer experience strategy of Practice Manufacturing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Practice Manufacturing in the sector have low bargaining power. Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Practice Manufacturing to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Practice Manufacturing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Practice Manufacturing 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.
Innovation driven organization
– Practice Manufacturing is one of the most innovative firm in sector. Manager in Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice are -
Low market penetration in new markets
– Outside its home market of Practice Manufacturing, firm in the HBR case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Practice Manufacturing 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.
High cash cycle compare to competitors
Practice Manufacturing 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Practice Manufacturing 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Practice Manufacturing 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice, is just above the industry average. Practice Manufacturing 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.
Interest costs
– Compare to the competition, Practice Manufacturing 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Practice Manufacturing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice can leverage the sales team experience to cultivate customer relationships as Practice Manufacturing is planning to shift buying processes online.
Lack of clear differentiation of Practice Manufacturing products
– To increase the profitability and margins on the products, Practice Manufacturing needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice, 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.
Opportunities Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice | 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice are -
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 Practice Manufacturing 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.
Manufacturing automation
– Practice Manufacturing 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.
Learning at scale
– Online learning technologies has now opened space for Practice Manufacturing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Practice Manufacturing 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.
Loyalty marketing
– Practice Manufacturing 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.
Better consumer reach
– The expansion of the 5G network will help Practice Manufacturing to increase its market reach. Practice Manufacturing 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.
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. Practice Manufacturing 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. Practice Manufacturing 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Practice Manufacturing can use these opportunities to build new business models that can help the communities that Practice Manufacturing 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 Practice Manufacturing has opened avenues for new revenue streams for the organization in the industry. This can help Practice Manufacturing to build a more holistic ecosystem as suggested in the Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice case study. Practice Manufacturing 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 Practice Manufacturing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Practice Manufacturing is facing challenges because of the dominance of functional experts in the organization. Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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.
Buying journey improvements
– Practice Manufacturing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Practice Manufacturing 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.
Threats Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice are -
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 Practice Manufacturing.
Stagnating economy with rate increase
– Practice Manufacturing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Practice Manufacturing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Practice Manufacturing business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice, Practice Manufacturing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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 Practice Manufacturing in the Technology & Operations sector and impact the bottomline of the organization.
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. Practice Manufacturing 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.
Increasing wage structure of Practice Manufacturing
– 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 Practice Manufacturing.
Consumer confidence and its impact on Practice Manufacturing 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.
High dependence on third party suppliers
– Practice Manufacturing 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.
Environmental challenges
– Practice Manufacturing 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. Practice Manufacturing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Practice Manufacturing is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice 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 Practice Manufacturing needs to make to build a sustainable competitive advantage.