Guardian Air: Planning a Decision Process for Helicopter Engines SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Guardian Air: Planning a Decision Process for Helicopter Engines
Facing operational constraints due to helicopter engines with sub-optimal power during hot weather at high altitudes, the program manager for an air-ambulance operator must plan for a decision process to consider upgrading the engines of any, many, or all of his program's seven helicopters. Long before putting the decision before his parent company's executives or board of directors, he needs to develop lists of relevant quantitative variables and what's known about them, qualitative factors and considerations, and stakeholders and their interests, all in order to methodically structure a process to better advance conversations with his colleagues toward a more efficient and effective outcome. Presented as a qualitative task of decision preparation, this case focuses on the early steps of rational decision-making processes, such as "define the problem" and "identify the criteria," without going further toward a decision recommendation. Intended for the first weeks of managerial-decision making courses, the case distinguishes the value of comprehensively considering the set-up of complex decision processes as pre-requisite to subsequent steps. Especially for students who see "making a decision" as actions taken with calculators and spreadsheets, this case is intended to demonstrate the value of prior steps in decision processes that include complexity, uncertainty, and colleagues who must be "on the same page" along the way. Further, the vivid overlap of the healthcare industry with aviation operations is intended to heighten student interest, with contextual information on how the medical-transport industry operates.
Swot Analysis of "Guardian Air: Planning a Decision Process for Helicopter Engines" written by Timothy S. Clark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Decision Engines facing as an external strategic factors. Some of the topics covered in Guardian Air: Planning a Decision Process for Helicopter Engines case study are - Strategic Management Strategies, Health, Managing organizations, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Guardian Air: Planning a Decision Process for Helicopter Engines casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing energy prices, central banks are concerned over increasing inflation, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Guardian Air: Planning a Decision Process for Helicopter Engines
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Guardian Air: Planning a Decision Process for Helicopter Engines case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Decision Engines, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Decision Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines can be done for the following purposes –
1. Strategic planning using facts provided in Guardian Air: Planning a Decision Process for Helicopter Engines case study
2. Improving business portfolio management of Decision Engines
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 Decision Engines
Strengths Guardian Air: Planning a Decision Process for Helicopter Engines | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Decision Engines in Guardian Air: Planning a Decision Process for Helicopter Engines Harvard Business Review case study are -
Highly skilled collaborators
– Decision Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Decision Engines has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Guardian Air: Planning a Decision Process for Helicopter Engines 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.
Superior customer experience
– The customer experience strategy of Decision Engines in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Decision Engines digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Decision Engines 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.
Strong track record of project management
– Decision Engines is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Decision Engines in the sector have low bargaining power. Guardian Air: Planning a Decision Process for Helicopter Engines has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Decision Engines to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Decision Engines 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.
High brand equity
– Decision Engines has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Decision Engines to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Decision Engines 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.
Ability to lead change in Technology & Operations field
– Decision Engines is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Decision Engines in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Technology & Operations industry
– Guardian Air: Planning a Decision Process for Helicopter Engines firm has clearly differentiated products in the market place. This has enabled Decision Engines to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Decision Engines to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Guardian Air: Planning a Decision Process for Helicopter Engines 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.
Weaknesses Guardian Air: Planning a Decision Process for Helicopter Engines | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Guardian Air: Planning a Decision Process for Helicopter Engines are -
Aligning sales with marketing
– It come across in the case study Guardian Air: Planning a Decision Process for Helicopter Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines can leverage the sales team experience to cultivate customer relationships as Decision Engines is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Guardian Air: Planning a Decision Process for Helicopter Engines, 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.
Slow to strategic competitive environment developments
– As Guardian Air: Planning a Decision Process for Helicopter Engines HBR case study mentions - Decision Engines takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Guardian Air: Planning a Decision Process for Helicopter Engines, it seems that the employees of Decision Engines 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.
High cash cycle compare to competitors
Decision Engines 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Decision Engines 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Decision Engines is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Guardian Air: Planning a Decision Process for Helicopter Engines can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Guardian Air: Planning a Decision Process for Helicopter Engines, is just above the industry average. Decision Engines 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.
Lack of clear differentiation of Decision Engines products
– To increase the profitability and margins on the products, Decision Engines needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Decision Engines 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. Decision Engines 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.
Capital Spending Reduction
– Even during the low interest decade, Decision Engines has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Guardian Air: Planning a Decision Process for Helicopter Engines | 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 Guardian Air: Planning a Decision Process for Helicopter Engines are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Decision Engines is facing challenges because of the dominance of functional experts in the organization. Guardian Air: Planning a Decision Process for Helicopter Engines 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.
Loyalty marketing
– Decision Engines 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.
Better consumer reach
– The expansion of the 5G network will help Decision Engines to increase its market reach. Decision Engines 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 Decision Engines has opened avenues for new revenue streams for the organization in the industry. This can help Decision Engines to build a more holistic ecosystem as suggested in the Guardian Air: Planning a Decision Process for Helicopter Engines case study. Decision Engines can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Decision Engines 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.
Using analytics as competitive advantage
– Decision Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Decision Engines to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Decision Engines can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Decision Engines can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Guardian Air: Planning a Decision Process for Helicopter Engines 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, Decision Engines 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, Guardian Air: Planning a Decision Process for Helicopter Engines, 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
– Decision Engines 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Decision Engines can use these opportunities to build new business models that can help the communities that Decision Engines operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Decision Engines in the consumer business. Now Decision Engines can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Decision Engines in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Threats Guardian Air: Planning a Decision Process for Helicopter Engines External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Guardian Air: Planning a Decision Process for Helicopter Engines are -
Technology acceleration in Forth Industrial Revolution
– Decision Engines has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Decision Engines 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.
Increasing wage structure of Decision Engines
– 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 Decision Engines.
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. Decision Engines needs to understand the core reasons impacting the Technology & Operations 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 Decision Engines 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 Decision Engines in the Technology & Operations sector and impact the bottomline of the organization.
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. Decision Engines can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Decision Engines 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Guardian Air: Planning a Decision Process for Helicopter Engines, Decision Engines may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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. Decision Engines will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Decision Engines 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
– Decision Engines 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.
Environmental challenges
– Decision Engines 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. Decision Engines can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Decision Engines.
Weighted SWOT Analysis of Guardian Air: Planning a Decision Process for Helicopter Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines 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 Guardian Air: Planning a Decision Process for Helicopter Engines 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 Decision Engines needs to make to build a sustainable competitive advantage.