Process Management Strategy for XYZ Limited - KLTD Division SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Process Management Strategy for XYZ Limited - KLTD Division
The case describes the situation faced by the vice-president of operations at Konkan Leaf Tobacco Development, the tobacco processing unit of XYZ Limited. This unit is in charge of procurement and processing of different varieties and grades of tobacco grown in southern India. The tobacco leaves are categorized into different varieties on the basis of quality and location of the crop. The company has two processing plants with varying processing capacities. Due to the seasonal and agricultural nature of the commodity, the company is finding it difficult to maintain efficiencies between the inflow of the tobacco and the requirement of the processing line capacity, resulting in frequent start-stop situations for the processing lines. This case enables students to develop strategies for the process management to achieve the optimum process schedule, which will result in the fewest stoppages of the process lines and optimization of both the utilization of the processing lines and the inflow patterns among the processing units.
Swot Analysis of "Process Management Strategy for XYZ Limited - KLTD Division" written by Srinivasan Maheswaran includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Processing Tobacco facing as an external strategic factors. Some of the topics covered in Process Management Strategy for XYZ Limited - KLTD Division case study are - Strategic Management Strategies, Forecasting, Manufacturing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Process Management Strategy for XYZ Limited - KLTD Division casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Process Management Strategy for XYZ Limited - KLTD Division
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Process Management Strategy for XYZ Limited - KLTD Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Processing Tobacco, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Processing Tobacco 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 Process Management Strategy for XYZ Limited - KLTD Division can be done for the following purposes –
1. Strategic planning using facts provided in Process Management Strategy for XYZ Limited - KLTD Division case study
2. Improving business portfolio management of Processing Tobacco
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 Processing Tobacco
Strengths Process Management Strategy for XYZ Limited - KLTD Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Processing Tobacco in Process Management Strategy for XYZ Limited - KLTD Division Harvard Business Review case study are -
Innovation driven organization
– Processing Tobacco is one of the most innovative firm in sector. Manager in Process Management Strategy for XYZ Limited - KLTD Division Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Processing Tobacco 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 Process Management Strategy for XYZ Limited - KLTD Division - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Processing Tobacco has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Processing Tobacco 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.
Ability to recruit top talent
– Processing Tobacco is one of the leading recruiters in the industry. Managers in the Process Management Strategy for XYZ Limited - KLTD Division are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Processing Tobacco 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 Process Management Strategy for XYZ Limited - KLTD Division HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Process Management Strategy for XYZ Limited - KLTD Division 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.
Cross disciplinary teams
– Horizontal connected teams at the Processing Tobacco 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.
High brand equity
– Processing Tobacco has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Processing Tobacco to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Processing Tobacco
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Processing Tobacco does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Processing Tobacco in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Processing Tobacco 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 Srinivasan Maheswaran 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
– Processing Tobacco is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Process Management Strategy for XYZ Limited - KLTD Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Process Management Strategy for XYZ Limited - KLTD Division are -
Lack of clear differentiation of Processing Tobacco products
– To increase the profitability and margins on the products, Processing Tobacco needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Process Management Strategy for XYZ Limited - KLTD Division 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 Process Management Strategy for XYZ Limited - KLTD Division can leverage the sales team experience to cultivate customer relationships as Processing Tobacco is planning to shift buying processes online.
Products dominated business model
– Even though Processing Tobacco 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 - Process Management Strategy for XYZ Limited - KLTD Division should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Process Management Strategy for XYZ Limited - KLTD Division, it seems that the employees of Processing Tobacco 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Processing Tobacco 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.
Increasing silos among functional specialists
– The organizational structure of Processing Tobacco is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Processing Tobacco needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Processing Tobacco to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Process Management Strategy for XYZ Limited - KLTD Division, in the dynamic environment Processing Tobacco has struggled to respond to the nimble upstart competition. Processing Tobacco has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Process Management Strategy for XYZ Limited - KLTD Division HBR case study mentions - Processing Tobacco 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Process Management Strategy for XYZ Limited - KLTD Division HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Processing Tobacco has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Process Management Strategy for XYZ Limited - KLTD Division 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 Processing Tobacco 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Processing Tobacco, firm in the HBR case study Process Management Strategy for XYZ Limited - KLTD Division needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Process Management Strategy for XYZ Limited - KLTD Division | 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 Process Management Strategy for XYZ Limited - KLTD Division are -
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. Processing Tobacco 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. Processing Tobacco 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Processing Tobacco can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Processing Tobacco 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Processing Tobacco is facing challenges because of the dominance of functional experts in the organization. Process Management Strategy for XYZ Limited - KLTD Division 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Processing Tobacco 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 Processing Tobacco to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Processing Tobacco can use these opportunities to build new business models that can help the communities that Processing Tobacco 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 Processing Tobacco has opened avenues for new revenue streams for the organization in the industry. This can help Processing Tobacco to build a more holistic ecosystem as suggested in the Process Management Strategy for XYZ Limited - KLTD Division case study. Processing Tobacco can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Processing Tobacco to increase its market reach. Processing Tobacco 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.
Buying journey improvements
– Processing Tobacco can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Process Management Strategy for XYZ Limited - KLTD Division 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.
Learning at scale
– Online learning technologies has now opened space for Processing Tobacco to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Processing Tobacco 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.
Developing new processes and practices
– Processing Tobacco 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Processing Tobacco 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.
Threats Process Management Strategy for XYZ Limited - KLTD Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Process Management Strategy for XYZ Limited - KLTD Division 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.
Regulatory challenges
– Processing Tobacco 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.
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. Processing Tobacco can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Processing Tobacco 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Processing Tobacco 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 Process Management Strategy for XYZ Limited - KLTD Division .
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. Processing Tobacco 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.
Consumer confidence and its impact on Processing Tobacco 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.
Technology acceleration in Forth Industrial Revolution
– Processing Tobacco has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Processing Tobacco 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.
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 Processing Tobacco in the Technology & Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Process Management Strategy for XYZ Limited - KLTD Division, Processing Tobacco 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 .
Shortening product life cycle
– it is one of the major threat that Processing Tobacco is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Processing Tobacco business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Processing Tobacco 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. Processing Tobacco can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Process Management Strategy for XYZ Limited - KLTD Division 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 Process Management Strategy for XYZ Limited - KLTD Division 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 Process Management Strategy for XYZ Limited - KLTD Division 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 Process Management Strategy for XYZ Limited - KLTD Division 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 Process Management Strategy for XYZ Limited - KLTD Division 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 Processing Tobacco needs to make to build a sustainable competitive advantage.
