Loss Prevention at Mac's Convenience Stores (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Loss Prevention at Mac's Convenience Stores (A)
Faced with a persistent robbery problem at his convenience store company, Sean Sportun, security and loss prevention manager at Mac's of Central Canada, looked to standardize safety measures and devise a new way of preventing employee injury. But as a 32-year old with just one year on the job, Sportun had to tailor his message for change carefully to his colleagues, many of whom had worked for Mac's for decades. The case provides an overview of the convenience store industry and examines the challenges of crime prevention in a late-night retail environment.
Swot Analysis of "Loss Prevention at Mac's Convenience Stores (A)" written by Francesca Gino, Katherine DeCelles, Olivia Hull includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mac's Prevention facing as an external strategic factors. Some of the topics covered in Loss Prevention at Mac's Convenience Stores (A) case study are - Strategic Management Strategies, Change management, Ethics, Human resource management, Knowledge management, Public relations, Workspaces and Organizational Development.
Some of the macro environment factors that can be used to understand the Loss Prevention at Mac's Convenience Stores (A) casestudy better are - – technology disruption, wage bills are increasing, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Loss Prevention at Mac's Convenience Stores (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Loss Prevention at Mac's Convenience Stores (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mac's Prevention, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mac's Prevention 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 Loss Prevention at Mac's Convenience Stores (A) can be done for the following purposes –
1. Strategic planning using facts provided in Loss Prevention at Mac's Convenience Stores (A) case study
2. Improving business portfolio management of Mac's Prevention
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mac's Prevention
Strengths Loss Prevention at Mac's Convenience Stores (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mac's Prevention in Loss Prevention at Mac's Convenience Stores (A) Harvard Business Review case study are -
Organizational Resilience of Mac's Prevention
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mac's Prevention does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Mac's Prevention 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 Loss Prevention at Mac's Convenience Stores (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Mac's Prevention 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.
Superior customer experience
– The customer experience strategy of Mac's Prevention in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Mac's Prevention has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Loss Prevention at Mac's Convenience Stores (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Mac's Prevention 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 Mac's Prevention is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Loss Prevention at Mac's Convenience Stores (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Mac's Prevention digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mac's Prevention 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.
Cross disciplinary teams
– Horizontal connected teams at the Mac's Prevention 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.
Training and development
– Mac's Prevention has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Loss Prevention at Mac's Convenience Stores (A) 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
– Mac's Prevention is one of the leading recruiters in the industry. Managers in the Loss Prevention at Mac's Convenience Stores (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Mac's Prevention is one of the most innovative firm in sector. Manager in Loss Prevention at Mac's Convenience Stores (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Organizational Development industry
– Loss Prevention at Mac's Convenience Stores (A) firm has clearly differentiated products in the market place. This has enabled Mac's Prevention to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Mac's Prevention to invest into research and development (R&D) and innovation.
Weaknesses Loss Prevention at Mac's Convenience Stores (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Loss Prevention at Mac's Convenience Stores (A) are -
High cash cycle compare to competitors
Mac's Prevention 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.
Lack of clear differentiation of Mac's Prevention products
– To increase the profitability and margins on the products, Mac's Prevention needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Loss Prevention at Mac's Convenience Stores (A) 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 Mac's Prevention has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Loss Prevention at Mac's Convenience Stores (A) 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 Loss Prevention at Mac's Convenience Stores (A) can leverage the sales team experience to cultivate customer relationships as Mac's Prevention is planning to shift buying processes online.
Products dominated business model
– Even though Mac's Prevention 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 - Loss Prevention at Mac's Convenience Stores (A) should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Mac's Prevention 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.
Low market penetration in new markets
– Outside its home market of Mac's Prevention, firm in the HBR case study Loss Prevention at Mac's Convenience Stores (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Loss Prevention at Mac's Convenience Stores (A), it seems that the employees of Mac's Prevention 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.
Capital Spending Reduction
– Even during the low interest decade, Mac's Prevention 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.
Interest costs
– Compare to the competition, Mac's Prevention 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Loss Prevention at Mac's Convenience Stores (A), in the dynamic environment Mac's Prevention has struggled to respond to the nimble upstart competition. Mac's Prevention has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Loss Prevention at Mac's Convenience Stores (A) | 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 Loss Prevention at Mac's Convenience Stores (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mac's Prevention is facing challenges because of the dominance of functional experts in the organization. Loss Prevention at Mac's Convenience Stores (A) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Mac's Prevention can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mac's Prevention can use these opportunities to build new business models that can help the communities that Mac's Prevention operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Buying journey improvements
– Mac's Prevention can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Loss Prevention at Mac's Convenience Stores (A) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mac's Prevention 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, Loss Prevention at Mac's Convenience Stores (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Mac's Prevention 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mac's Prevention 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mac's Prevention 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. Mac's Prevention 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.
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 Mac's Prevention 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.
Developing new processes and practices
– Mac's Prevention can develop new processes and procedures in Organizational Development 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.
Better consumer reach
– The expansion of the 5G network will help Mac's Prevention to increase its market reach. Mac's Prevention 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mac's Prevention in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Manufacturing automation
– Mac's Prevention can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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 Loss Prevention at Mac's Convenience Stores (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Loss Prevention at Mac's Convenience Stores (A) are -
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mac's Prevention can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mac's Prevention 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 Loss Prevention at Mac's Convenience Stores (A) .
Regulatory challenges
– Mac's Prevention 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 Organizational Development industry regulations.
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 Mac's Prevention business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Mac's Prevention 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.
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 Mac's Prevention.
Stagnating economy with rate increase
– Mac's Prevention 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 Mac's Prevention in the Organizational Development industry. The Organizational Development 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.
Consumer confidence and its impact on Mac's Prevention 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.
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 Mac's Prevention in the Organizational Development sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Mac's Prevention has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Mac's Prevention needs to keep up with the evolution of technology in the Organizational Development 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.
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.
Weighted SWOT Analysis of Loss Prevention at Mac's Convenience Stores (A) 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 Loss Prevention at Mac's Convenience Stores (A) 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 Loss Prevention at Mac's Convenience Stores (A) 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 Loss Prevention at Mac's Convenience Stores (A) 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 Loss Prevention at Mac's Convenience Stores (A) 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 Mac's Prevention needs to make to build a sustainable competitive advantage.
