Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring
A company nears the end of a long multiyear turnaround and now must consider how to "cash out" so its management can realize a financial return on investment. The privately held company has several options, including a leveraged ESOP and a leveraged recapitalization.
Authors :: Stuart C. Gilson, Joel T. Schwartz, Steven M. Silver, David I. Stemerman
Swot Analysis of "Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring" written by Stuart C. Gilson, Joel T. Schwartz, Steven M. Silver, David I. Stemerman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Leveraged Preemptive facing as an external strategic factors. Some of the topics covered in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring case study are - Strategic Management Strategies, Budgeting, Compensation, Costs, Crisis management, Marketing, Reorganization and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , geopolitical disruptions, cloud computing is disrupting traditional business models, increasing energy prices, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, technology disruption, etc
Introduction to SWOT Analysis of Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Leveraged Preemptive, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Leveraged Preemptive 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring can be done for the following purposes –
1. Strategic planning using facts provided in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring case study
2. Improving business portfolio management of Leveraged Preemptive
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 Leveraged Preemptive
Strengths Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Leveraged Preemptive in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Leveraged Preemptive digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Leveraged Preemptive 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.
Organizational Resilience of Leveraged Preemptive
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Leveraged Preemptive does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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.
Effective Research and Development (R&D)
– Leveraged Preemptive 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Leveraged Preemptive in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Leveraged Preemptive 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 Stuart C. Gilson, Joel T. Schwartz, Steven M. Silver, David I. Stemerman 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.
Highly skilled collaborators
– Leveraged Preemptive 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Leveraged Preemptive has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Leveraged Preemptive 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.
Ability to recruit top talent
– Leveraged Preemptive is one of the leading recruiters in the industry. Managers in the Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Leveraged Preemptive 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 Leveraged Preemptive is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Leveraged Preemptive is present in almost all the verticals within the industry. This has provided firm in Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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.
High brand equity
– Leveraged Preemptive has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Leveraged Preemptive to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring are -
Aligning sales with marketing
– It come across in the case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring can leverage the sales team experience to cultivate customer relationships as Leveraged Preemptive is planning to shift buying processes online.
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 Leveraged Preemptive supply chain. Even after few cautionary changes mentioned in the HBR case study - Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Leveraged Preemptive vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, is just above the industry average. Leveraged Preemptive 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Leveraged Preemptive has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Leveraged Preemptive, firm in the HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Leveraged Preemptive is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, in the dynamic environment Leveraged Preemptive has struggled to respond to the nimble upstart competition. Leveraged Preemptive has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, it seems that the employees of Leveraged Preemptive 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.
No frontier risks strategy
– After analyzing the HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring HBR case study mentions - Leveraged Preemptive 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 bargaining power of channel partners
– Because of the regulatory requirements, Stuart C. Gilson, Joel T. Schwartz, Steven M. Silver, David I. Stemerman suggests that, Leveraged Preemptive 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.
Opportunities Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring | 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Leveraged Preemptive 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, Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Leveraged Preemptive 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, Leveraged Preemptive is facing challenges because of the dominance of functional experts in the organization. Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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.
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. Leveraged Preemptive 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. Leveraged Preemptive 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
– Leveraged Preemptive 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Leveraged Preemptive 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Leveraged Preemptive can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Leveraged Preemptive in the consumer business. Now Leveraged Preemptive can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Leveraged Preemptive to increase its market reach. Leveraged Preemptive 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.
Using analytics as competitive advantage
– Leveraged Preemptive 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Leveraged Preemptive to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Leveraged Preemptive 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.
Loyalty marketing
– Leveraged Preemptive 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 Leveraged Preemptive 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 Leveraged Preemptive to hire the very best people irrespective of their geographical location.
Threats Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring are -
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 Leveraged Preemptive.
High dependence on third party suppliers
– Leveraged Preemptive 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.
Technology acceleration in Forth Industrial Revolution
– Leveraged Preemptive has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Leveraged Preemptive 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Leveraged Preemptive can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring .
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 Leveraged Preemptive 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 Leveraged Preemptive 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.
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 Leveraged Preemptive in the Finance & Accounting sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Leveraged Preemptive 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. Leveraged Preemptive 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.
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. Leveraged Preemptive needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Leveraged Preemptive 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. Leveraged Preemptive can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring, Leveraged Preemptive 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 .
Weighted SWOT Analysis of Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Transportation Displays, Inc. (C): The Case for a Preemptive Restructuring 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 Leveraged Preemptive needs to make to build a sustainable competitive advantage.
