Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged)
The Computer-Aided Manufacturing (CAM) Services Division of John Deere has just received approval to sell their software and computer systems to external customers. These tools, initially developed for internal use, have been widely used throughout Deere. Still, selling software represents a major departure from the John Deere tradition of heavy equipment manufacturing. Can the technologically focused group adjust to the new demands of external customers without destroying its momentum in developing new products for internal use? What are the potential benefits and costs of this new venture, both for the division and the company as a whole?
Swot Analysis of "Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged)" written by Robert H. Hayes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Deere Aided facing as an external strategic factors. Some of the topics covered in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) case study are - Strategic Management Strategies, Marketing, Operations management, Product development and Technology & Operations.
Some of the macro environment factors that can be used to understand the Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) casestudy better are - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, technology disruption, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, wage bills are increasing, increasing energy prices,
increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Deere Aided, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Deere Aided 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) case study
2. Improving business portfolio management of Deere Aided
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 Deere Aided
Strengths Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Deere Aided in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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.
Analytics focus
– Deere Aided is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Robert H. Hayes can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Deere Aided 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.
Successful track record of launching new products
– Deere Aided has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Deere Aided 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.
Effective Research and Development (R&D)
– Deere Aided 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Deere Aided 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 Deere Aided is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Deere Aided 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
– Deere Aided has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Deere Aided to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Deere Aided is one of the most innovative firm in sector. Manager in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Deere Aided is one of the leading recruiters in the industry. Managers in the Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Deere Aided digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Deere Aided 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.
Training and development
– Deere Aided has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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.
Weaknesses Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere Aided 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged), in the dynamic environment Deere Aided has struggled to respond to the nimble upstart competition. Deere Aided has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Deere Aided 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 - Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Deere Aided is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Deere Aided needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Deere Aided to focus more on services rather than just following the product oriented approach.
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 Deere Aided supply chain. Even after few cautionary changes mentioned in the HBR case study - Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Deere Aided vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Deere Aided products
– To increase the profitability and margins on the products, Deere Aided needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged), is just above the industry average. Deere Aided 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.
Interest costs
– Compare to the competition, Deere Aided 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged), it seems that the employees of Deere Aided 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.
Low market penetration in new markets
– Outside its home market of Deere Aided, firm in the HBR case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Deere Aided 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.
Opportunities Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) | 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Deere Aided can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Deere Aided 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.
Using analytics as competitive advantage
– Deere Aided 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Deere Aided to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Deere Aided 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. Deere Aided 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.
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 Deere Aided in the consumer business. Now Deere Aided can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Deere Aided can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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.
Building a culture of innovation
– managers at Deere Aided 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.
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. Deere Aided can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Deere Aided has opened avenues for new revenue streams for the organization in the industry. This can help Deere Aided to build a more holistic ecosystem as suggested in the Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) case study. Deere Aided can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Deere Aided 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Deere Aided 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.
Leveraging digital technologies
– Deere Aided 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.
Loyalty marketing
– Deere Aided 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Deere Aided with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Deere Aided in the Technology & Operations sector and impact the bottomline of the organization.
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 Deere Aided business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Deere Aided 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.
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.
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. Deere Aided needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Deere Aided 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.
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. Deere Aided can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Deere Aided in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Deere Aided is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Deere Aided.
Regulatory challenges
– Deere Aided 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 acceleration in Forth Industrial Revolution
– Deere Aided has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Deere Aided 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.
Weighted SWOT Analysis of Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere & Co. (A): The Computer Aided Manufacturing Services Division - A Window to the World (Abridged) 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 Deere Aided needs to make to build a sustainable competitive advantage.
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