Transformation of Pratt & Whitney North Haven (D) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transformation of Pratt & Whitney North Haven (D)
Because of conflicts between the vapor coat and pack coat cells over the decision to purchase new grit blast equipment, Business Unit Manager Tom Hutton has decided to form a second capital purchase team that will represent the pack coat cell. Meanwhile, the first capital purchase team has decided to purchase MacCormick equipment, traditionally considered less reliable than other equipment. Hutton is having misgivings about his decision to empower workers to purchase equipment, and wonders whether he should approve the purchase.
Authors :: H. Kent Bowen, Linda A. Hill, Andrew Burtis, Sylvie Ryckebusch
Swot Analysis of "Transformation of Pratt & Whitney North Haven (D)" 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 Coat Purchase facing as an external strategic factors. Some of the topics covered in Transformation of Pratt & Whitney North Haven (D) case study are - Strategic Management Strategies, Business processes, Decision making, Labor, Reorganization and Technology & Operations.
Some of the macro environment factors that can be used to understand the Transformation of Pratt & Whitney North Haven (D) casestudy better are - – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of Transformation of Pratt & Whitney North Haven (D)
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 (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coat Purchase, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coat Purchase 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 Transformation of Pratt & Whitney North Haven (D) can be done for the following purposes –
1. Strategic planning using facts provided in Transformation of Pratt & Whitney North Haven (D) case study
2. Improving business portfolio management of Coat Purchase
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 Coat Purchase
Strengths Transformation of Pratt & Whitney North Haven (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coat Purchase in Transformation of Pratt & Whitney North Haven (D) Harvard Business Review case study are -
High brand equity
– Coat Purchase has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Coat Purchase to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Coat Purchase 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 Coat Purchase in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Coat Purchase digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Coat Purchase has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Technology & Operations industry
– Transformation of Pratt & Whitney North Haven (D) firm has clearly differentiated products in the market place. This has enabled Coat Purchase to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Coat Purchase to invest into research and development (R&D) and innovation.
Learning organization
- Coat Purchase 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 Coat Purchase is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transformation of Pratt & Whitney North Haven (D) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Coat Purchase in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Coat Purchase is one of the most innovative firm in sector. Manager in Transformation of Pratt & Whitney North Haven (D) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Coat Purchase has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Coat Purchase 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.
Organizational Resilience of Coat Purchase
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Coat Purchase does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Coat Purchase 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
– Coat Purchase 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 (D) 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 recruit top talent
– Coat Purchase is one of the leading recruiters in the industry. Managers in the Transformation of Pratt & Whitney North Haven (D) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Transformation of Pratt & Whitney North Haven (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transformation of Pratt & Whitney North Haven (D) are -
Lack of clear differentiation of Coat Purchase products
– To increase the profitability and margins on the products, Coat Purchase needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Transformation of Pratt & Whitney North Haven (D) HBR case study mentions - Coat Purchase 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.
Aligning sales with marketing
– It come across in the case study Transformation of Pratt & Whitney North Haven (D) 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 (D) can leverage the sales team experience to cultivate customer relationships as Coat Purchase is planning to shift buying processes online.
Interest costs
– Compare to the competition, Coat Purchase 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Transformation of Pratt & Whitney North Haven (D) 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 Coat Purchase 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Coat Purchase 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 Coat Purchase is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Coat Purchase needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Coat Purchase to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Coat Purchase, firm in the HBR case study Transformation of Pratt & Whitney North Haven (D) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Coat Purchase is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Transformation of Pratt & Whitney North Haven (D) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Transformation of Pratt & Whitney North Haven (D), in the dynamic environment Coat Purchase has struggled to respond to the nimble upstart competition. Coat Purchase has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Coat Purchase 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.
Opportunities Transformation of Pratt & Whitney North Haven (D) | 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 (D) are -
Learning at scale
– Online learning technologies has now opened space for Coat Purchase 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.
Developing new processes and practices
– Coat Purchase 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.
Leveraging digital technologies
– Coat Purchase 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Coat Purchase is facing challenges because of the dominance of functional experts in the organization. Transformation of Pratt & Whitney North Haven (D) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Coat Purchase can use these opportunities to build new business models that can help the communities that Coat Purchase operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Coat Purchase can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Coat Purchase to increase its market reach. Coat Purchase 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.
Using analytics as competitive advantage
– Coat Purchase 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 Transformation of Pratt & Whitney North Haven (D) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Coat Purchase to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Coat Purchase 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Coat Purchase 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 Coat Purchase has opened avenues for new revenue streams for the organization in the industry. This can help Coat Purchase to build a more holistic ecosystem as suggested in the Transformation of Pratt & Whitney North Haven (D) case study. Coat Purchase can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Coat Purchase can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Coat Purchase can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Transformation of Pratt & Whitney North Haven (D) 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 (D) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Coat Purchase with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Coat Purchase 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.
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. Coat Purchase needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Coat Purchase is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Coat Purchase 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 Transformation of Pratt & Whitney North Haven (D) .
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 Coat Purchase business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Coat Purchase has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Coat Purchase 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.
Environmental challenges
– Coat Purchase 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. Coat Purchase can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High dependence on third party suppliers
– Coat Purchase 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.
Consumer confidence and its impact on Coat Purchase 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.
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.
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 Coat Purchase in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Coat Purchase 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.
Weighted SWOT Analysis of Transformation of Pratt & Whitney North Haven (D) 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 (D) 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 (D) 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 (D) 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 (D) 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 Coat Purchase needs to make to build a sustainable competitive advantage.
