Activity Based Management at W.S. Industries (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Activity Based Management at W.S. Industries (B)
Describes activity-based budgeting at W.S. Industries. Also describes target costing-led product redesign, and product, customer, and order profitability.
Swot Analysis of "Activity Based Management at W.S. Industries (B)" written by V.G. Narayanan, Jeremy Cott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W.s Activity facing as an external strategic factors. Some of the topics covered in Activity Based Management at W.S. Industries (B) case study are - Strategic Management Strategies, Costs, Performance measurement and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Activity Based Management at W.S. Industries (B) casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, technology disruption,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Activity Based Management at W.S. Industries (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Activity Based Management at W.S. Industries (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W.s Activity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W.s Activity 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 Activity Based Management at W.S. Industries (B) can be done for the following purposes –
1. Strategic planning using facts provided in Activity Based Management at W.S. Industries (B) case study
2. Improving business portfolio management of W.s Activity
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 W.s Activity
Strengths Activity Based Management at W.S. Industries (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W.s Activity in Activity Based Management at W.S. Industries (B) Harvard Business Review case study are -
Ability to lead change in Finance & Accounting field
– W.s Activity 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 W.s Activity in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– W.s Activity is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– W.s Activity 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 Activity Based Management at W.S. Industries (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of W.s Activity in the sector have low bargaining power. Activity Based Management at W.S. Industries (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W.s Activity to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– W.s Activity 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 Activity Based Management at W.S. Industries (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of W.s Activity in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– W.s Activity has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Activity Based Management at W.S. Industries (B) 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.
Ability to recruit top talent
– W.s Activity is one of the leading recruiters in the industry. Managers in the Activity Based Management at W.S. Industries (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Finance & Accounting industry
– Activity Based Management at W.S. Industries (B) firm has clearly differentiated products in the market place. This has enabled W.s Activity to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped W.s Activity to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– W.s Activity has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. W.s Activity 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
– W.s Activity is one of the most innovative firm in sector. Manager in Activity Based Management at W.S. Industries (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– W.s Activity has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W.s Activity to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Activity Based Management at W.S. Industries (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Activity Based Management at W.S. Industries (B) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, W.s Activity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Activity Based Management at W.S. Industries (B) 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 operating costs
– Compare to the competitors, firm in the HBR case study Activity Based Management at W.S. Industries (B) 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 W.s Activity 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Activity Based Management at W.S. Industries (B), is just above the industry average. W.s Activity 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.
Low market penetration in new markets
– Outside its home market of W.s Activity, firm in the HBR case study Activity Based Management at W.S. Industries (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Activity Based Management at W.S. Industries (B) 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 W.s Activity has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Activity Based Management at W.S. Industries (B), in the dynamic environment W.s Activity has struggled to respond to the nimble upstart competition. W.s Activity 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
W.s Activity 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.
Need for greater diversity
– W.s Activity has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, W.s Activity 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.
Increasing silos among functional specialists
– The organizational structure of W.s Activity is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. W.s Activity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help W.s Activity to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, W.s Activity 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 Activity Based Management at W.S. Industries (B) | 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 Activity Based Management at W.S. Industries (B) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects W.s Activity can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– W.s Activity 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.
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. W.s Activity 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. W.s Activity 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.
Creating value in data economy
– The success of analytics program of W.s Activity has opened avenues for new revenue streams for the organization in the industry. This can help W.s Activity to build a more holistic ecosystem as suggested in the Activity Based Management at W.S. Industries (B) case study. W.s Activity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– W.s Activity 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.
Better consumer reach
– The expansion of the 5G network will help W.s Activity to increase its market reach. W.s Activity 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.
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 W.s Activity 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for W.s Activity in the consumer business. Now W.s Activity can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– W.s Activity 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
– W.s Activity can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Activity Based Management at W.S. Industries (B) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W.s Activity 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 W.s Activity to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for W.s Activity 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, W.s Activity 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.
Threats Activity Based Management at W.S. Industries (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Activity Based Management at W.S. Industries (B) are -
Technology acceleration in Forth Industrial Revolution
– W.s Activity has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, W.s Activity 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.
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.
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 W.s Activity business can come under increasing regulations regarding data privacy, data security, etc.
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 W.s Activity.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents W.s Activity with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on W.s Activity 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 Activity Based Management at W.S. Industries (B), W.s Activity 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 .
High dependence on third party suppliers
– W.s Activity 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.
Environmental challenges
– W.s Activity 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. W.s Activity can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing wage structure of W.s Activity
– 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 W.s Activity.
Stagnating economy with rate increase
– W.s Activity 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 W.s Activity 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. W.s Activity 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 Activity Based Management at W.S. Industries (B) 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 Activity Based Management at W.S. Industries (B) 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 Activity Based Management at W.S. Industries (B) 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 Activity Based Management at W.S. Industries (B) 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 Activity Based Management at W.S. Industries (B) 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 W.s Activity needs to make to build a sustainable competitive advantage.