BAE Automated Systems (A): Denver International Airport Baggage-Handling System SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of BAE Automated Systems (A): Denver International Airport Baggage-Handling System
Describes the events surrounding the construction of the BAE baggage-handling system at the Denver International Airport. It looks specifically at project management, including decisions regarding budget, scheduling, and the overall management structure. Also examines the airport's attempt to work with a great number of outside contractors, including BAE, and coordinate them into a productive whole, while under considerable political pressures. Approaches the project from the point of view of BAE's management, which struggles to fulfill its contract, work well with project management and other contractors, and deal with supply, scheduling, and engineering difficulties.
Authors :: Lynda M. Applegate, Ramiro Montealegre, H. James Nelson, Carin-Isabel Knoop
Swot Analysis of "BAE Automated Systems (A): Denver International Airport Baggage-Handling System" written by Lynda M. Applegate, Ramiro Montealegre, H. James Nelson, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bae Baggage facing as an external strategic factors. Some of the topics covered in BAE Automated Systems (A): Denver International Airport Baggage-Handling System case study are - Strategic Management Strategies, Communication, Decision making, Design, Government, Negotiations, Project management, Time management and Technology & Operations.
Some of the macro environment factors that can be used to understand the BAE Automated Systems (A): Denver International Airport Baggage-Handling System casestudy better are - – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy,
talent flight as more people leaving formal jobs, geopolitical disruptions, etc
Introduction to SWOT Analysis of BAE Automated Systems (A): Denver International Airport Baggage-Handling System
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BAE Automated Systems (A): Denver International Airport Baggage-Handling System case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bae Baggage, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System can be done for the following purposes –
1. Strategic planning using facts provided in BAE Automated Systems (A): Denver International Airport Baggage-Handling System case study
2. Improving business portfolio management of Bae Baggage
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 Bae Baggage
Strengths BAE Automated Systems (A): Denver International Airport Baggage-Handling System | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bae Baggage in BAE Automated Systems (A): Denver International Airport Baggage-Handling System Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Bae Baggage 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 Bae Baggage in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Bae Baggage in the sector have low bargaining power. BAE Automated Systems (A): Denver International Airport Baggage-Handling System has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bae Baggage to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Bae Baggage
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bae Baggage does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Bae Baggage is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Bae Baggage has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bae Baggage to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Bae Baggage 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.
Successful track record of launching new products
– Bae Baggage has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bae Baggage 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.
Sustainable margins compare to other players in Technology & Operations industry
– BAE Automated Systems (A): Denver International Airport Baggage-Handling System firm has clearly differentiated products in the market place. This has enabled Bae Baggage to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bae Baggage to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Bae Baggage 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.
Diverse revenue streams
– Bae Baggage is present in almost all the verticals within the industry. This has provided firm in BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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.
Effective Research and Development (R&D)
– Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses BAE Automated Systems (A): Denver International Airport Baggage-Handling System | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BAE Automated Systems (A): Denver International Airport Baggage-Handling System are -
Lack of clear differentiation of Bae Baggage products
– To increase the profitability and margins on the products, Bae Baggage needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Bae Baggage is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Bae Baggage needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bae Baggage to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 Bae Baggage 's lucrative customers.
High cash cycle compare to competitors
Bae Baggage has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Bae Baggage 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bae Baggage 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.
Skills based hiring
– The stress on hiring functional specialists at Bae Baggage has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As BAE Automated Systems (A): Denver International Airport Baggage-Handling System HBR case study mentions - Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 Bae Baggage has relatively successful track record of launching new products.
Need for greater diversity
– Bae Baggage 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.
Interest costs
– Compare to the competition, Bae Baggage 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.
Opportunities BAE Automated Systems (A): Denver International Airport Baggage-Handling System | 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System are -
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. Bae Baggage can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Bae Baggage 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.
Creating value in data economy
– The success of analytics program of Bae Baggage has opened avenues for new revenue streams for the organization in the industry. This can help Bae Baggage to build a more holistic ecosystem as suggested in the BAE Automated Systems (A): Denver International Airport Baggage-Handling System case study. Bae Baggage can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Bae Baggage 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. Bae Baggage 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. Bae Baggage can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bae Baggage can use these opportunities to build new business models that can help the communities that Bae Baggage operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Bae Baggage 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bae Baggage can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bae Baggage 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 Bae Baggage to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Bae Baggage can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Bae Baggage 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.
Better consumer reach
– The expansion of the 5G network will help Bae Baggage to increase its market reach. Bae Baggage 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.
Loyalty marketing
– Bae Baggage 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.
Threats BAE Automated Systems (A): Denver International Airport Baggage-Handling System External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System, Bae Baggage 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 .
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 Bae Baggage.
Regulatory challenges
– Bae Baggage 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System .
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.
Stagnating economy with rate increase
– Bae Baggage 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 dependence on third party suppliers
– Bae Baggage 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.
Technology acceleration in Forth Industrial Revolution
– Bae Baggage has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Bae Baggage needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bae Baggage with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Bae Baggage can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Bae Baggage needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Bae Baggage
– 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 Bae Baggage.
Weighted SWOT Analysis of BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 Bae Baggage needs to make to build a sustainable competitive advantage.