Ann Taylor Stores Corporation-Deferred Taxes SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ann Taylor Stores Corporation-Deferred Taxes
Students are presented with the income-taxes footnote from Ann Taylor Stores Corporation's 2004 Annual Report and are asked to respond to several questions regarding information in the footnote. Questions center around what can be inferred about income-tax expense, deferred-tax expense, and deferred-tax assets and liabilities from the footnote.
Swot Analysis of "Ann Taylor Stores Corporation-Deferred Taxes" written by Luann J. Lynch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Footnote Deferred facing as an external strategic factors. Some of the topics covered in Ann Taylor Stores Corporation-Deferred Taxes case study are - Strategic Management Strategies, Corporate governance, Financial management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Ann Taylor Stores Corporation-Deferred Taxes casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Ann Taylor Stores Corporation-Deferred Taxes
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ann Taylor Stores Corporation-Deferred Taxes case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Footnote Deferred, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Footnote Deferred 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 Ann Taylor Stores Corporation-Deferred Taxes can be done for the following purposes –
1. Strategic planning using facts provided in Ann Taylor Stores Corporation-Deferred Taxes case study
2. Improving business portfolio management of Footnote Deferred
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 Footnote Deferred
Strengths Ann Taylor Stores Corporation-Deferred Taxes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Footnote Deferred in Ann Taylor Stores Corporation-Deferred Taxes Harvard Business Review case study are -
Strong track record of project management
– Footnote Deferred 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 Footnote Deferred in the sector have low bargaining power. Ann Taylor Stores Corporation-Deferred Taxes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Footnote Deferred to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Ann Taylor Stores Corporation-Deferred Taxes 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.
Ability to lead change in Finance & Accounting field
– Footnote Deferred 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 Footnote Deferred in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Footnote Deferred 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
– Footnote Deferred has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Footnote Deferred to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Footnote Deferred 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 Ann Taylor Stores Corporation-Deferred Taxes HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Footnote Deferred 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 Footnote Deferred is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ann Taylor Stores Corporation-Deferred Taxes Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Footnote Deferred is present in almost all the verticals within the industry. This has provided firm in Ann Taylor Stores Corporation-Deferred Taxes 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Footnote Deferred digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Footnote Deferred 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.
Innovation driven organization
– Footnote Deferred is one of the most innovative firm in sector. Manager in Ann Taylor Stores Corporation-Deferred Taxes 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
– Footnote Deferred is one of the leading recruiters in the industry. Managers in the Ann Taylor Stores Corporation-Deferred Taxes are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Ann Taylor Stores Corporation-Deferred Taxes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ann Taylor Stores Corporation-Deferred Taxes are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ann Taylor Stores Corporation-Deferred Taxes, is just above the industry average. Footnote Deferred 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ann Taylor Stores Corporation-Deferred Taxes, in the dynamic environment Footnote Deferred has struggled to respond to the nimble upstart competition. Footnote Deferred has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Footnote Deferred 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Ann Taylor Stores Corporation-Deferred Taxes 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 Footnote Deferred 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Ann Taylor Stores Corporation-Deferred Taxes, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Footnote Deferred is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ann Taylor Stores Corporation-Deferred Taxes can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Luann J. Lynch suggests that, Footnote Deferred is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Footnote Deferred 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ann Taylor Stores Corporation-Deferred Taxes 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 Footnote Deferred has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Ann Taylor Stores Corporation-Deferred Taxes HBR case study mentions - Footnote Deferred 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.
Products dominated business model
– Even though Footnote Deferred 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 - Ann Taylor Stores Corporation-Deferred Taxes should strive to include more intangible value offerings along with its core products and services.
Opportunities Ann Taylor Stores Corporation-Deferred Taxes | 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 Ann Taylor Stores Corporation-Deferred Taxes are -
Manufacturing automation
– Footnote Deferred 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.
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 Footnote Deferred 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.
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. Footnote Deferred 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. Footnote Deferred 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.
Leveraging digital technologies
– Footnote Deferred 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 Footnote Deferred 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.
Creating value in data economy
– The success of analytics program of Footnote Deferred has opened avenues for new revenue streams for the organization in the industry. This can help Footnote Deferred to build a more holistic ecosystem as suggested in the Ann Taylor Stores Corporation-Deferred Taxes case study. Footnote Deferred can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Footnote Deferred can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ann Taylor Stores Corporation-Deferred Taxes 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.
Loyalty marketing
– Footnote Deferred 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.
Developing new processes and practices
– Footnote Deferred 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.
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. Footnote Deferred can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Footnote Deferred is facing challenges because of the dominance of functional experts in the organization. Ann Taylor Stores Corporation-Deferred Taxes 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Footnote Deferred can use these opportunities to build new business models that can help the communities that Footnote Deferred operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Building a culture of innovation
– managers at Footnote Deferred 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.
Threats Ann Taylor Stores Corporation-Deferred Taxes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ann Taylor Stores Corporation-Deferred Taxes are -
High dependence on third party suppliers
– Footnote Deferred 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.
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. Footnote Deferred needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Regulatory challenges
– Footnote Deferred 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.
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.
Environmental challenges
– Footnote Deferred 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. Footnote Deferred can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Shortening product life cycle
– it is one of the major threat that Footnote Deferred is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Footnote Deferred 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 Footnote Deferred business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Footnote Deferred 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.
Consumer confidence and its impact on Footnote Deferred 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 Ann Taylor Stores Corporation-Deferred Taxes, Footnote Deferred may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Footnote Deferred.
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. Footnote Deferred can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Ann Taylor Stores Corporation-Deferred Taxes 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 Ann Taylor Stores Corporation-Deferred Taxes 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 Ann Taylor Stores Corporation-Deferred Taxes 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 Ann Taylor Stores Corporation-Deferred Taxes 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 Ann Taylor Stores Corporation-Deferred Taxes 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 Footnote Deferred needs to make to build a sustainable competitive advantage.