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 - – technology disruption, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, wage bills are increasing, increasing energy prices, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, 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 -
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.
Training and development
– Bae Baggage has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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.
Operational resilience
– The operational resilience strategy in the BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 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.
Learning organization
- Bae Baggage 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 Bae Baggage is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BAE Automated Systems (A): Denver International Airport Baggage-Handling System Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
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.
Ability to recruit top talent
– Bae Baggage is one of the leading recruiters in the industry. Managers in the BAE Automated Systems (A): Denver International Airport Baggage-Handling System are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Superior customer experience
– The customer experience strategy of Bae Baggage in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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 -
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 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.
Aligning sales with marketing
– It come across in the case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System can leverage the sales team experience to cultivate customer relationships as Bae Baggage is planning to shift buying processes online.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Lynda M. Applegate, Ramiro Montealegre, H. James Nelson, Carin-Isabel Knoop suggests that, Bae Baggage is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
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.
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.
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 Bae Baggage supply chain. Even after few cautionary changes mentioned in the HBR case study - BAE Automated Systems (A): Denver International Airport Baggage-Handling System, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bae Baggage vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bae Baggage is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study BAE Automated Systems (A): Denver International Airport Baggage-Handling System, it seems that the employees of Bae Baggage 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.
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 -
Using analytics as competitive advantage
– Bae Baggage 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 BAE Automated Systems (A): Denver International Airport Baggage-Handling System - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bae Baggage to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Building a culture of innovation
– managers at Bae Baggage can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bae Baggage is facing challenges because of the dominance of functional experts in the organization. BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bae Baggage in the consumer business. Now Bae Baggage can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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.
Buying journey improvements
– Bae Baggage can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BAE Automated Systems (A): Denver International Airport Baggage-Handling System 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bae Baggage 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.
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.
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.
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 -
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 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.
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.
Consumer confidence and its impact on Bae Baggage 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.
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.
Shortening product life cycle
– it is one of the major threat that Bae Baggage is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– 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.
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.
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.
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. Bae Baggage 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.
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 .
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.
