Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version
Describes events occurring over a four-year period in one division of Graves Industries. The division goes through a business cycle and uses several methods of managing earnings to meet its budget targets. The purpose of the case is to allow the exploration of the causes of the unethical (or fraudulent) behaviors and ways in which they could have been prevented, or at least detected more effectively.
Swot Analysis of "Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version" written by Kenneth A. Merchant, Joseph P. Mulloy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Graves Division facing as an external strategic factors. Some of the topics covered in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version case study are - Strategic Management Strategies, Business law, Corporate governance, Ethics and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version casestudy better are - – increasing government debt because of Covid-19 spendings, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing energy prices,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Graves Division, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Graves Division 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version case study
2. Improving business portfolio management of Graves Division
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 Graves Division
Strengths Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Graves Division in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version Harvard Business Review case study are -
Training and development
– Graves Division has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Graves Division digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Graves Division 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.
Superior customer experience
– The customer experience strategy of Graves Division in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Graves Division
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Graves Division does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Graves Division 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.
Successful track record of launching new products
– Graves Division has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Graves Division 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.
Strong track record of project management
– Graves Division is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Graves Division is one of the leading recruiters in the industry. Managers in the Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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
– Graves Division has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Graves Division to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Graves Division is one of the most innovative firm in sector. Manager in Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Graves Division in the sector have low bargaining power. Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Graves Division to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Graves Division 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 Kenneth A. Merchant, Joseph P. Mulloy 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.
Weaknesses Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Division has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Graves Division 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Graves Division 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 strategic competitive environment developments
– As Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version HBR case study mentions - Graves Division 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.
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 Graves Division supply chain. Even after few cautionary changes mentioned in the HBR case study - Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Graves Division vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Graves Division 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 operating costs
– Compare to the competitors, firm in the HBR case study Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Division 's lucrative customers.
Products dominated business model
– Even though Graves Division 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 - Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version, it seems that the employees of Graves Division 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Graves Division is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Graves Division is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Graves Division needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Graves Division to focus more on services rather than just following the product oriented approach.
Opportunities Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version | 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version are -
Creating value in data economy
– The success of analytics program of Graves Division has opened avenues for new revenue streams for the organization in the industry. This can help Graves Division to build a more holistic ecosystem as suggested in the Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version case study. Graves Division can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Graves Division to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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 Graves Division 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Graves Division is facing challenges because of the dominance of functional experts in the organization. Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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.
Better consumer reach
– The expansion of the 5G network will help Graves Division to increase its market reach. Graves Division 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Graves Division can use these opportunities to build new business models that can help the communities that Graves Division operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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. Graves Division can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Graves Division can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Graves Division can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Graves Division 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
– Graves Division 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Graves Division to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Graves Division 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. Graves Division 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
– Graves Division 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version are -
Stagnating economy with rate increase
– Graves Division 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.
Shortening product life cycle
– it is one of the major threat that Graves Division is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Graves Division
– 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 Graves Division.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Graves Division 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.
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 Graves Division.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Graves Division with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Graves Division can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Graves Division 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.
Consumer confidence and its impact on Graves Division 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.
Regulatory challenges
– Graves Division 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.
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 Graves Division business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Industries, Inc. (B): Lohnes Marine Hardware Division, Spanish Version 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 Graves Division needs to make to build a sustainable competitive advantage.