Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview
Provides statistics and other factual information on the Department of Defense procurement process, DOD expenditures, market share segmentation, the variety of contract types, and the role of the Defense Contract Audit Agency.
Swot Analysis of "Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview" written by Robert L. Simons, Hilary A. Weston includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Defense Procurement facing as an external strategic factors. Some of the topics covered in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study are - Strategic Management Strategies, Costs, Government, Negotiations and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, technology disruption, central banks are concerned over increasing inflation, wage bills are increasing,
increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Defense Procurement, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Defense Procurement 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview can be done for the following purposes –
1. Strategic planning using facts provided in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study
2. Improving business portfolio management of Defense Procurement
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 Defense Procurement
Strengths Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Defense Procurement in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview Harvard Business Review case study are -
High switching costs
– The high switching costs that Defense Procurement 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.
Operational resilience
– The operational resilience strategy in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Low bargaining power of suppliers
– Suppliers of Defense Procurement in the sector have low bargaining power. Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Defense Procurement to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Defense Procurement 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 Defense Procurement is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Finance & Accounting field
– Defense Procurement 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 Defense Procurement 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 Finance & Accounting industry
– Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview firm has clearly differentiated products in the market place. This has enabled Defense Procurement to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Defense Procurement to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Defense Procurement is one of the leading recruiters in the industry. Managers in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Defense Procurement has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Defense Procurement to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Defense Procurement digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Defense Procurement 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.
Analytics focus
– Defense Procurement 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 Robert L. Simons, Hilary A. Weston 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.
Training and development
– Defense Procurement has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Diverse revenue streams
– Defense Procurement is present in almost all the verticals within the industry. This has provided firm in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Weaknesses Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
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 Defense Procurement supply chain. Even after few cautionary changes mentioned in the HBR case study - Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Defense Procurement vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Defense Procurement, firm in the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Defense Procurement 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.
High cash cycle compare to competitors
Defense Procurement 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Defense Procurement has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview HBR case study mentions - Defense Procurement 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.
Skills based hiring
– The stress on hiring functional specialists at Defense Procurement has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Defense Procurement 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.
Aligning sales with marketing
– It come across in the case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview can leverage the sales team experience to cultivate customer relationships as Defense Procurement is planning to shift buying processes online.
Interest costs
– Compare to the competition, Defense Procurement 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.
Opportunities Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
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 Defense Procurement 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.
Building a culture of innovation
– managers at Defense Procurement 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Defense Procurement 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.
Developing new processes and practices
– Defense Procurement 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. Defense Procurement can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Defense Procurement can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Defense Procurement 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. Defense Procurement can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Defense Procurement 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 Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Defense Procurement 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. Defense Procurement 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.
Loyalty marketing
– Defense Procurement 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Defense Procurement to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Defense Procurement to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Defense Procurement 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.
Threats Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
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. Defense Procurement needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, Defense Procurement 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 .
Technology acceleration in Forth Industrial Revolution
– Defense Procurement has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Defense Procurement 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
– Defense Procurement 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.
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. Defense Procurement can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Defense Procurement in the Finance & Accounting industry. The Finance & Accounting 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.
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 Defense Procurement.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Defense Procurement with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Defense Procurement business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Defense Procurement 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 Defense Procurement 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.
Environmental challenges
– Defense Procurement 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. Defense Procurement can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Defense Procurement 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.
Weighted SWOT Analysis of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Defense Procurement needs to make to build a sustainable competitive advantage.
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