Hamilton's Electronics Services, Inc.: The Second Year SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hamilton's Electronics Services, Inc.: The Second Year
The owner of Hamilton's has provided his CPA with all the company's invoices, bank statements, and a lot of other miscellaneous business-related information for the company's second year. He has asked the CPA to reconstruct, in summary form, all the company's second-year transactions and to create an income statement for its second year of operations and a balance sheet at the end of that year.
Swot Analysis of "Hamilton's Electronics Services, Inc.: The Second Year" written by Luann J. Lynch, Mary Margaret Frank includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hamilton's Cpa facing as an external strategic factors. Some of the topics covered in Hamilton's Electronics Services, Inc.: The Second Year case study are - Strategic Management Strategies, Budgeting and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Hamilton's Electronics Services, Inc.: The Second Year casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing commodity prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Hamilton's Electronics Services, Inc.: The Second Year
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hamilton's Electronics Services, Inc.: The Second Year case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hamilton's Cpa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hamilton's Cpa 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 Hamilton's Electronics Services, Inc.: The Second Year can be done for the following purposes –
1. Strategic planning using facts provided in Hamilton's Electronics Services, Inc.: The Second Year case study
2. Improving business portfolio management of Hamilton's Cpa
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hamilton's Cpa
Strengths Hamilton's Electronics Services, Inc.: The Second Year | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hamilton's Cpa in Hamilton's Electronics Services, Inc.: The Second Year Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Hamilton's Cpa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hamilton's Cpa 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 Finance & Accounting industry
– Hamilton's Electronics Services, Inc.: The Second Year firm has clearly differentiated products in the market place. This has enabled Hamilton's Cpa to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Hamilton's Cpa to invest into research and development (R&D) and innovation.
Strong track record of project management
– Hamilton's Cpa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Hamilton's Cpa is one of the leading recruiters in the industry. Managers in the Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Cpa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hamilton's Cpa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Hamilton's Cpa in the sector have low bargaining power. Hamilton's Electronics Services, Inc.: The Second Year has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hamilton's Cpa to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Hamilton's Cpa 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.
Analytics focus
– Hamilton's Cpa 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 Luann J. Lynch, Mary Margaret Frank 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.
Superior customer experience
– The customer experience strategy of Hamilton's Cpa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Hamilton's Cpa 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.
High brand equity
– Hamilton's Cpa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hamilton's Cpa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Hamilton's Cpa 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 Hamilton's Cpa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hamilton's Electronics Services, Inc.: The Second Year Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Hamilton's Electronics Services, Inc.: The Second Year | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hamilton's Electronics Services, Inc.: The Second Year are -
Lack of clear differentiation of Hamilton's Cpa products
– To increase the profitability and margins on the products, Hamilton's Cpa needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hamilton's Electronics Services, Inc.: The Second Year, it seems that the employees of Hamilton's Cpa 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.
Need for greater diversity
– Hamilton's Cpa has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hamilton's Cpa supply chain. Even after few cautionary changes mentioned in the HBR case study - Hamilton's Electronics Services, Inc.: The Second Year, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hamilton's Cpa vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Hamilton's Cpa 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.
Aligning sales with marketing
– It come across in the case study Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Electronics Services, Inc.: The Second Year can leverage the sales team experience to cultivate customer relationships as Hamilton's Cpa is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Hamilton's Cpa 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 Hamilton's Cpa is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Hamilton's Cpa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hamilton's Cpa to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Hamilton's Electronics Services, Inc.: The Second Year, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Products dominated business model
– Even though Hamilton's Cpa 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 - Hamilton's Electronics Services, Inc.: The Second Year should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Hamilton's Cpa 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 Hamilton's Electronics Services, Inc.: The Second Year | 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 Hamilton's Electronics Services, Inc.: The Second Year are -
Better consumer reach
– The expansion of the 5G network will help Hamilton's Cpa to increase its market reach. Hamilton's Cpa 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.
Creating value in data economy
– The success of analytics program of Hamilton's Cpa has opened avenues for new revenue streams for the organization in the industry. This can help Hamilton's Cpa to build a more holistic ecosystem as suggested in the Hamilton's Electronics Services, Inc.: The Second Year case study. Hamilton's Cpa can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Hamilton's Cpa 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hamilton's Cpa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Hamilton's Cpa 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 Finance & Accounting segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hamilton's Cpa is facing challenges because of the dominance of functional experts in the organization. Hamilton's Electronics Services, Inc.: The Second Year 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.
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. Hamilton's Cpa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Hamilton's Cpa can develop new processes and procedures in Finance & Accounting 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hamilton's Cpa can use these opportunities to build new business models that can help the communities that Hamilton's Cpa operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Manufacturing automation
– Hamilton's Cpa can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Hamilton's Cpa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hamilton's Cpa 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. Hamilton's Cpa 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.
Using analytics as competitive advantage
– Hamilton's Cpa 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 Hamilton's Electronics Services, Inc.: The Second Year - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hamilton's Cpa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Hamilton's Electronics Services, Inc.: The Second Year External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hamilton's Electronics Services, Inc.: The Second Year are -
Increasing wage structure of Hamilton's Cpa
– 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 Hamilton's Cpa.
Regulatory challenges
– Hamilton's Cpa 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 Finance & Accounting industry regulations.
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. Hamilton's Cpa 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.
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 Hamilton's Cpa business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Hamilton's Cpa 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hamilton's Cpa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Hamilton's Cpa has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Hamilton's Cpa needs to keep up with the evolution of technology in the Finance & Accounting 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
– Hamilton's Cpa 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.
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. Hamilton's Cpa needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hamilton's Cpa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Hamilton's Cpa is facing in Finance & Accounting 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 Hamilton's Cpa.
Weighted SWOT Analysis of Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Electronics Services, Inc.: The Second Year 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 Hamilton's Cpa needs to make to build a sustainable competitive advantage.
