Adjusted Present Value Method for Capital Assets SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Adjusted Present Value Method for Capital Assets
This case provides an explanation of the adjusted present value method for valuing capital assets. The authors believe this approach is generally simple and better for the complicated and changing capital structure found in restructuring.
Swot Analysis of "Adjusted Present Value Method for Capital Assets" written by Steven R. Fenster, Stuart C. Gilson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Adjusted Method facing as an external strategic factors. Some of the topics covered in Adjusted Present Value Method for Capital Assets case study are - Strategic Management Strategies, Costs, Reorganization and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Adjusted Present Value Method for Capital Assets casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , geopolitical disruptions, increasing household debt because of falling income levels, wage bills are increasing, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion,
there is backlash against globalization, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Adjusted Present Value Method for Capital Assets
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Adjusted Present Value Method for Capital Assets case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Adjusted Method, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Adjusted Method 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 Adjusted Present Value Method for Capital Assets can be done for the following purposes –
1. Strategic planning using facts provided in Adjusted Present Value Method for Capital Assets case study
2. Improving business portfolio management of Adjusted Method
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 Adjusted Method
Strengths Adjusted Present Value Method for Capital Assets | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Adjusted Method in Adjusted Present Value Method for Capital Assets Harvard Business Review case study are -
Successful track record of launching new products
– Adjusted Method has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Adjusted Method has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Adjusted Method is one of the most innovative firm in sector. Manager in Adjusted Present Value Method for Capital Assets Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Adjusted Method is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Adjusted Method 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.
Training and development
– Adjusted Method has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Adjusted Present Value Method for Capital Assets 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.
Effective Research and Development (R&D)
– Adjusted Method 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 Adjusted Present Value Method for Capital Assets - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Adjusted Method is present in almost all the verticals within the industry. This has provided firm in Adjusted Present Value Method for Capital Assets 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.
Analytics focus
– Adjusted Method 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 Steven R. Fenster, Stuart C. Gilson 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.
Organizational Resilience of Adjusted Method
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Adjusted Method does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Finance & Accounting industry
– Adjusted Present Value Method for Capital Assets firm has clearly differentiated products in the market place. This has enabled Adjusted Method to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Adjusted Method to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Adjusted Method in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Adjusted Method in the sector have low bargaining power. Adjusted Present Value Method for Capital Assets has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Adjusted Method to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Adjusted Present Value Method for Capital Assets | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Adjusted Present Value Method for Capital Assets 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 Adjusted Method supply chain. Even after few cautionary changes mentioned in the HBR case study - Adjusted Present Value Method for Capital Assets, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Adjusted Method vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Adjusted Method 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.
Products dominated business model
– Even though Adjusted Method 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 - Adjusted Present Value Method for Capital Assets should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Adjusted Present Value Method for Capital Assets, in the dynamic environment Adjusted Method has struggled to respond to the nimble upstart competition. Adjusted Method has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Adjusted Present Value Method for Capital Assets 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 Adjusted Present Value Method for Capital Assets can leverage the sales team experience to cultivate customer relationships as Adjusted Method is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Adjusted Method, firm in the HBR case study Adjusted Present Value Method for Capital Assets needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Adjusted Method 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Adjusted Present Value Method for Capital Assets, is just above the industry average. Adjusted Method 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 Adjusted Method products
– To increase the profitability and margins on the products, Adjusted Method needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Steven R. Fenster, Stuart C. Gilson suggests that, Adjusted Method 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Adjusted Present Value Method for Capital Assets 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 Adjusted Method 's lucrative customers.
Opportunities Adjusted Present Value Method for Capital Assets | 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 Adjusted Present Value Method for Capital Assets are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Adjusted Method is facing challenges because of the dominance of functional experts in the organization. Adjusted Present Value Method for Capital Assets 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.
Creating value in data economy
– The success of analytics program of Adjusted Method has opened avenues for new revenue streams for the organization in the industry. This can help Adjusted Method to build a more holistic ecosystem as suggested in the Adjusted Present Value Method for Capital Assets case study. Adjusted Method can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Adjusted Method 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Adjusted Method 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, Adjusted Present Value Method for Capital Assets, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Adjusted Method 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 Adjusted Method to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Adjusted Method can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Adjusted Method 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 Adjusted Present Value Method for Capital Assets - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Adjusted Method to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Adjusted Method 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.
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. Adjusted Method can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Adjusted Method 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.
Loyalty marketing
– Adjusted Method 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
– Adjusted Method 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.
Buying journey improvements
– Adjusted Method can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Adjusted Present Value Method for Capital Assets 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.
Threats Adjusted Present Value Method for Capital Assets External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Adjusted Present Value Method for Capital Assets are -
Stagnating economy with rate increase
– Adjusted Method 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.
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 Adjusted Method in the Finance & Accounting sector and impact the bottomline 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 Adjusted Method.
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 Adjusted Method business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Adjusted Method needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Adjusted Method has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Adjusted Method 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.
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. Adjusted Method can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Adjusted Method with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Adjusted Method 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.
Increasing wage structure of Adjusted Method
– 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 Adjusted Method.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Adjusted Method 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.
Shortening product life cycle
– it is one of the major threat that Adjusted Method is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Adjusted Present Value Method for Capital Assets 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 Adjusted Present Value Method for Capital Assets 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 Adjusted Present Value Method for Capital Assets 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 Adjusted Present Value Method for Capital Assets 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 Adjusted Present Value Method for Capital Assets 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 Adjusted Method needs to make to build a sustainable competitive advantage.