Transformation of Pratt & Whitney North Haven (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Transformation of Pratt & Whitney North Haven (C)

As part of the Pratt & Whitney North Haven restructuring effort, Ed Northern and his business unit managers are encouraging workers to make decisions and take an active role in improving the manufacturing process at North Haven. Business Unit Manager Tom Hutton has empowered a group of hourly workers to purchase grit blast equipment for two cells. The capital purchase decision runs into some problems when the two cells, the vapor coat and pack coat cells, fail to reach an agreement about which equipment to purchase.

Authors :: H. Kent Bowen, Linda A. Hill, Andrew Burtis, Sylvie Ryckebusch

Topics :: Technology & Operations

Tags :: Business processes, Decision making, Leadership, Leading teams, Manufacturing, Reorganization, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Transformation of Pratt & Whitney North Haven (C)" written by H. Kent Bowen, Linda A. Hill, Andrew Burtis, Sylvie Ryckebusch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Haven Cells facing as an external strategic factors. Some of the topics covered in Transformation of Pratt & Whitney North Haven (C) case study are - Strategic Management Strategies, Business processes, Decision making, Leadership, Leading teams, Manufacturing, Reorganization and Technology & Operations.

Some of the macro environment factors that can be used to understand the Transformation of Pratt & Whitney North Haven (C) casestudy better are - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc

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Introduction to SWOT Analysis of Transformation of Pratt & Whitney North Haven (C)

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transformation of Pratt & Whitney North Haven (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Haven Cells, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Haven Cells 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Transformation of Pratt & Whitney North Haven (C) can be done for the following purposes –
1. Strategic planning using facts provided in Transformation of Pratt & Whitney North Haven (C) case study
2. Improving business portfolio management of Haven Cells
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 Haven Cells

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Strengths Transformation of Pratt & Whitney North Haven (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Haven Cells in Transformation of Pratt & Whitney North Haven (C) Harvard Business Review case study are -

Training and development

– Haven Cells has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Transformation of Pratt & Whitney North Haven (C) 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.

Ability to lead change in Technology & Operations field

– Haven Cells 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 Haven Cells in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Superior customer experience

– The customer experience strategy of Haven Cells 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 Haven Cells in the sector have low bargaining power. Transformation of Pratt & Whitney North Haven (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Haven Cells to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Haven Cells 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.

Learning organization

- Haven Cells 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 Haven Cells is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transformation of Pratt & Whitney North Haven (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Strong track record of project management

– Haven Cells is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Haven Cells 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 Transformation of Pratt & Whitney North Haven (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Haven Cells 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 Transformation of Pratt & Whitney North Haven (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Haven Cells is present in almost all the verticals within the industry. This has provided firm in Transformation of Pratt & Whitney North Haven (C) 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

– Transformation of Pratt & Whitney North Haven (C) firm has clearly differentiated products in the market place. This has enabled Haven Cells to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Haven Cells to invest into research and development (R&D) and innovation.

High brand equity

– Haven Cells has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Haven Cells to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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Weaknesses Transformation of Pratt & Whitney North Haven (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Transformation of Pratt & Whitney North Haven (C) are -

Slow decision making process

– As mentioned earlier in the report, Haven Cells has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Haven Cells even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Slow to strategic competitive environment developments

– As Transformation of Pratt & Whitney North Haven (C) HBR case study mentions - Haven Cells 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Transformation of Pratt & Whitney North Haven (C), is just above the industry average. Haven Cells 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.

Lack of clear differentiation of Haven Cells products

– To increase the profitability and margins on the products, Haven Cells needs to provide more differentiated products than what it is currently offering in the marketplace.

Increasing silos among functional specialists

– The organizational structure of Haven Cells is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Haven Cells needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Haven Cells to focus more on services rather than just following the product oriented approach.

Aligning sales with marketing

– It come across in the case study Transformation of Pratt & Whitney North Haven (C) 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 Transformation of Pratt & Whitney North Haven (C) can leverage the sales team experience to cultivate customer relationships as Haven Cells is planning to shift buying processes online.

Products dominated business model

– Even though Haven Cells 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 - Transformation of Pratt & Whitney North Haven (C) should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Transformation of Pratt & Whitney North Haven (C), in the dynamic environment Haven Cells has struggled to respond to the nimble upstart competition. Haven Cells has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Transformation of Pratt & Whitney North Haven (C), it seems that the employees of Haven Cells 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.

Interest costs

– Compare to the competition, Haven Cells 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, Haven Cells 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.

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Opportunities Transformation of Pratt & Whitney North Haven (C) | 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 Transformation of Pratt & Whitney North Haven (C) are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Haven Cells is facing challenges because of the dominance of functional experts in the organization. Transformation of Pratt & Whitney North Haven (C) 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.

Leveraging digital technologies

– Haven Cells can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Haven Cells 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.

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 Haven Cells in the consumer business. Now Haven Cells can target international markets with far fewer capital restrictions requirements than the existing system.

Buying journey improvements

– Haven Cells can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Transformation of Pratt & Whitney North Haven (C) 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Haven Cells can use these opportunities to build new business models that can help the communities that Haven Cells operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

Building a culture of innovation

– managers at Haven Cells 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.

Learning at scale

– Online learning technologies has now opened space for Haven Cells 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 Haven Cells 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

– Haven Cells 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.

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. Haven Cells can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Manufacturing automation

– Haven Cells 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.

Better consumer reach

– The expansion of the 5G network will help Haven Cells to increase its market reach. Haven Cells 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.

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Threats Transformation of Pratt & Whitney North Haven (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Transformation of Pratt & Whitney North Haven (C) are -

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 Haven Cells.

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 Haven Cells business can come under increasing regulations regarding data privacy, data security, etc.

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.

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.

Increasing wage structure of Haven Cells

– 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 Haven Cells.

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. Haven Cells 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Haven Cells 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. Haven Cells can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Shortening product life cycle

– it is one of the major threat that Haven Cells is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Consumer confidence and its impact on Haven Cells 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

– Haven Cells has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Haven Cells 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.

High dependence on third party suppliers

– Haven Cells 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.

Stagnating economy with rate increase

– Haven Cells 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.

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Weighted SWOT Analysis of Transformation of Pratt & Whitney North Haven (C) 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 Transformation of Pratt & Whitney North Haven (C) 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 Transformation of Pratt & Whitney North Haven (C) 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 Transformation of Pratt & Whitney North Haven (C) 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 Transformation of Pratt & Whitney North Haven (C) 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 Haven Cells needs to make to build a sustainable competitive advantage.

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