Dallas Cowboys: Financing a New Stadium SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Dallas Cowboys: Financing a New Stadium
In 2003, the owner of the Dallas Cowboys football team wanted to build a new stadium complex. The team's existing stadium was aging, and a new stadium offered enhanced revenue potential for one of the NFL's premier teams. The team wanted taxpayer assistance in financing the stadium, and the state legislature voted to put the matter to voters. Discusses the arguments for and against taxpayer financing of sports facilities and the economics of professional football teams. Raises the question of how the Cowboys can persuade the public to support the plan, as well as what alternatives the team should consider if voters reject the proposal.
Swot Analysis of "Dallas Cowboys: Financing a New Stadium" written by George Foster, David W. Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Stadium Cowboys facing as an external strategic factors. Some of the topics covered in Dallas Cowboys: Financing a New Stadium case study are - Strategic Management Strategies, Operations management, Policy, Project management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Dallas Cowboys: Financing a New Stadium casestudy better are - – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, wage bills are increasing, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Dallas Cowboys: Financing a New Stadium
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dallas Cowboys: Financing a New Stadium case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Stadium Cowboys, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Stadium Cowboys 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 Dallas Cowboys: Financing a New Stadium can be done for the following purposes –
1. Strategic planning using facts provided in Dallas Cowboys: Financing a New Stadium case study
2. Improving business portfolio management of Stadium Cowboys
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 Stadium Cowboys
Strengths Dallas Cowboys: Financing a New Stadium | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Stadium Cowboys in Dallas Cowboys: Financing a New Stadium Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Stadium Cowboys in the sector have low bargaining power. Dallas Cowboys: Financing a New Stadium has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Stadium Cowboys to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Stadium Cowboys has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dallas Cowboys: Financing a New Stadium 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.
Analytics focus
– Stadium Cowboys 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 George Foster, David W. Hoyt 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 Stadium Cowboys
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Stadium Cowboys does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Stadium Cowboys is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Finance & Accounting industry
– Dallas Cowboys: Financing a New Stadium firm has clearly differentiated products in the market place. This has enabled Stadium Cowboys to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Stadium Cowboys to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Stadium Cowboys has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Stadium Cowboys 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Stadium Cowboys digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Stadium Cowboys 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.
High switching costs
– The high switching costs that Stadium Cowboys 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.
Effective Research and Development (R&D)
– Stadium Cowboys 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 Dallas Cowboys: Financing a New Stadium - 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
– Stadium Cowboys is present in almost all the verticals within the industry. This has provided firm in Dallas Cowboys: Financing a New Stadium 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.
Cross disciplinary teams
– Horizontal connected teams at the Stadium Cowboys are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses Dallas Cowboys: Financing a New Stadium | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dallas Cowboys: Financing a New Stadium are -
Low market penetration in new markets
– Outside its home market of Stadium Cowboys, firm in the HBR case study Dallas Cowboys: Financing a New Stadium needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dallas Cowboys: Financing a New Stadium, in the dynamic environment Stadium Cowboys has struggled to respond to the nimble upstart competition. Stadium Cowboys has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Dallas Cowboys: Financing a New Stadium, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, George Foster, David W. Hoyt suggests that, Stadium Cowboys 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.
Lack of clear differentiation of Stadium Cowboys products
– To increase the profitability and margins on the products, Stadium Cowboys needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Dallas Cowboys: Financing a New Stadium, it seems that the employees of Stadium Cowboys 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.
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 Stadium Cowboys supply chain. Even after few cautionary changes mentioned in the HBR case study - Dallas Cowboys: Financing a New Stadium, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Stadium Cowboys vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Dallas Cowboys: Financing a New Stadium HBR case study mentions - Stadium Cowboys 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.
Aligning sales with marketing
– It come across in the case study Dallas Cowboys: Financing a New Stadium 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 Dallas Cowboys: Financing a New Stadium can leverage the sales team experience to cultivate customer relationships as Stadium Cowboys is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Stadium Cowboys is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dallas Cowboys: Financing a New Stadium can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Stadium Cowboys 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.
Opportunities Dallas Cowboys: Financing a New Stadium | 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 Dallas Cowboys: Financing a New Stadium are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Stadium Cowboys 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Stadium Cowboys can use these opportunities to build new business models that can help the communities that Stadium Cowboys operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Stadium Cowboys 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, Dallas Cowboys: Financing a New Stadium, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Stadium Cowboys in the consumer business. Now Stadium Cowboys can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Stadium Cowboys 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.
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. Stadium Cowboys 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. Stadium Cowboys 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.
Building a culture of innovation
– managers at Stadium Cowboys can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Stadium Cowboys 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.
Using analytics as competitive advantage
– Stadium Cowboys 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 Dallas Cowboys: Financing a New Stadium - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Stadium Cowboys to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Stadium Cowboys can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Stadium Cowboys can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Stadium Cowboys is facing challenges because of the dominance of functional experts in the organization. Dallas Cowboys: Financing a New Stadium 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 Stadium Cowboys to increase its market reach. Stadium Cowboys 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.
Threats Dallas Cowboys: Financing a New Stadium External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dallas Cowboys: Financing a New Stadium are -
Consumer confidence and its impact on Stadium Cowboys 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.
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 Stadium Cowboys business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Stadium Cowboys 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.
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. Stadium Cowboys 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. Stadium Cowboys needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Stadium Cowboys 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dallas Cowboys: Financing a New Stadium, Stadium Cowboys 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 .
Environmental challenges
– Stadium Cowboys 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. Stadium Cowboys can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Stadium Cowboys 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.
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 Stadium Cowboys in the Finance & Accounting sector and impact the bottomline of the organization.
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.
Shortening product life cycle
– it is one of the major threat that Stadium Cowboys is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Stadium Cowboys has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Stadium Cowboys 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.
Weighted SWOT Analysis of Dallas Cowboys: Financing a New Stadium 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 Dallas Cowboys: Financing a New Stadium 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 Dallas Cowboys: Financing a New Stadium 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 Dallas Cowboys: Financing a New Stadium 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 Dallas Cowboys: Financing a New Stadium 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 Stadium Cowboys needs to make to build a sustainable competitive advantage.