Swot Analysis of "Boat Building Exercise: Four Modes of Propulsion" written by Steven C. Wheelwright, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Propulsion Canoes facing as an external strategic factors. Some of the topics covered in Boat Building Exercise: Four Modes of Propulsion case study are - Strategic Management Strategies, Decision making and Technology & Operations.
Some of the macro environment factors that can be used to understand the Boat Building Exercise: Four Modes of Propulsion casestudy better are - – geopolitical disruptions, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, technology disruption, increasing government debt because of Covid-19 spendings,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Boat Building Exercise: Four Modes of Propulsion
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boat Building Exercise: Four Modes of Propulsion case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Propulsion Canoes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Propulsion Canoes 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 Boat Building Exercise: Four Modes of Propulsion can be done for the following purposes –
1. Strategic planning using facts provided in Boat Building Exercise: Four Modes of Propulsion case study
2. Improving business portfolio management of Propulsion Canoes
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 Propulsion Canoes
Strengths Boat Building Exercise: Four Modes of Propulsion | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Propulsion Canoes in Boat Building Exercise: Four Modes of Propulsion Harvard Business Review case study are -
Diverse revenue streams
– Propulsion Canoes is present in almost all the verticals within the industry. This has provided firm in Boat Building Exercise: Four Modes of Propulsion 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.
Learning organization
- Propulsion Canoes 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 Propulsion Canoes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Boat Building Exercise: Four Modes of Propulsion Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Propulsion Canoes is one of the most innovative firm in sector. Manager in Boat Building Exercise: Four Modes of Propulsion 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
– Propulsion Canoes is one of the leading recruiters in the industry. Managers in the Boat Building Exercise: Four Modes of Propulsion are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Propulsion Canoes
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Propulsion Canoes does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Propulsion Canoes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Boat Building Exercise: Four Modes of Propulsion 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.
Low bargaining power of suppliers
– Suppliers of Propulsion Canoes in the sector have low bargaining power. Boat Building Exercise: Four Modes of Propulsion has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Propulsion Canoes to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Propulsion Canoes 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 Steven C. Wheelwright, Kerry Herman 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.
Successful track record of launching new products
– Propulsion Canoes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Propulsion Canoes 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.
Operational resilience
– The operational resilience strategy in the Boat Building Exercise: Four Modes of Propulsion 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.
Sustainable margins compare to other players in Technology & Operations industry
– Boat Building Exercise: Four Modes of Propulsion firm has clearly differentiated products in the market place. This has enabled Propulsion Canoes to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Propulsion Canoes to invest into research and development (R&D) and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Propulsion Canoes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Propulsion Canoes 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.
Weaknesses Boat Building Exercise: Four Modes of Propulsion | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boat Building Exercise: Four Modes of Propulsion are -
Capital Spending Reduction
– Even during the low interest decade, Propulsion Canoes 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.
Slow decision making process
– As mentioned earlier in the report, Propulsion Canoes 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. Propulsion Canoes 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.
Products dominated business model
– Even though Propulsion Canoes 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 - Boat Building Exercise: Four Modes of Propulsion should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Boat Building Exercise: Four Modes of Propulsion 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 Propulsion Canoes 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Boat Building Exercise: Four Modes of Propulsion, it seems that the employees of Propulsion Canoes 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.
Aligning sales with marketing
– It come across in the case study Boat Building Exercise: Four Modes of Propulsion 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 Boat Building Exercise: Four Modes of Propulsion can leverage the sales team experience to cultivate customer relationships as Propulsion Canoes is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Boat Building Exercise: Four Modes of Propulsion, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Propulsion Canoes products
– To increase the profitability and margins on the products, Propulsion Canoes needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Propulsion Canoes 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.
Increasing silos among functional specialists
– The organizational structure of Propulsion Canoes is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Propulsion Canoes needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Propulsion Canoes to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Boat Building Exercise: Four Modes of Propulsion 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 Propulsion Canoes has relatively successful track record of launching new products.
Opportunities Boat Building Exercise: Four Modes of Propulsion | 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 Boat Building Exercise: Four Modes of Propulsion are -
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. Propulsion Canoes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Propulsion Canoes 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Propulsion Canoes 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, Boat Building Exercise: Four Modes of Propulsion, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Propulsion Canoes can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Boat Building Exercise: Four Modes of Propulsion 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.
Developing new processes and practices
– Propulsion Canoes 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.
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 Propulsion Canoes in the consumer business. Now Propulsion Canoes can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Propulsion Canoes 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Propulsion Canoes to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Propulsion Canoes to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Propulsion Canoes has opened avenues for new revenue streams for the organization in the industry. This can help Propulsion Canoes to build a more holistic ecosystem as suggested in the Boat Building Exercise: Four Modes of Propulsion case study. Propulsion Canoes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Propulsion Canoes 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 Boat Building Exercise: Four Modes of Propulsion - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Propulsion Canoes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Propulsion Canoes can use these opportunities to build new business models that can help the communities that Propulsion Canoes operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Propulsion Canoes is facing challenges because of the dominance of functional experts in the organization. Boat Building Exercise: Four Modes of Propulsion 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.
Manufacturing automation
– Propulsion Canoes 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.
Threats Boat Building Exercise: Four Modes of Propulsion External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boat Building Exercise: Four Modes of Propulsion are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Propulsion Canoes 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 Propulsion Canoes in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Propulsion Canoes 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Propulsion Canoes 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 Propulsion Canoes 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 Propulsion Canoes.
Environmental challenges
– Propulsion Canoes 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. Propulsion Canoes can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
High dependence on third party suppliers
– Propulsion Canoes 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.
Regulatory challenges
– Propulsion Canoes needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Propulsion Canoes business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Propulsion Canoes 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.
Weighted SWOT Analysis of Boat Building Exercise: Four Modes of Propulsion 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 Boat Building Exercise: Four Modes of Propulsion 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 Boat Building Exercise: Four Modes of Propulsion 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 Boat Building Exercise: Four Modes of Propulsion 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 Boat Building Exercise: Four Modes of Propulsion 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 Propulsion Canoes needs to make to build a sustainable competitive advantage.