Fly Ash Brick Project: Feasibility Study Using CVP Analysis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fly Ash Brick Project: Feasibility Study Using CVP Analysis
A budding entrepreneur in India is planning to set up a fly ash brick manufacturing plant near a thermal power plant. Not only does making bricks out of the residue of coal power generation reduce the amount of fly ash waste dumped on the ground, but the government is actively supporting the fly ash brick industry as a way to meet the increasing demands for construction materials that are environmentally sustainable. On the basis of preliminary analysis, the entrepreneur decides to set up a plant that will have the capacity to manufacture four million bricks. Though actual production will depend on market demand, he and his potential partner estimate that 2.4 million bricks can be sold per year at an average Rs 7,000 per 1,000 bricks. He wants to ascertain the feasibility of the project using a cost-volume-profit analysis. S.K. Mitra is affiliated with Institute of Management Technology and Shubhra Hajela is affiliated with Institute of Management, Raipur.
Swot Analysis of "Fly Ash Brick Project: Feasibility Study Using CVP Analysis" written by S.K. Mitra, Hajela Shubhra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ash Bricks facing as an external strategic factors. Some of the topics covered in Fly Ash Brick Project: Feasibility Study Using CVP Analysis case study are - Strategic Management Strategies, Entrepreneurship and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Fly Ash Brick Project: Feasibility Study Using CVP Analysis casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing energy prices, there is increasing trade war between United States & China, technology disruption, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, etc
Introduction to SWOT Analysis of Fly Ash Brick Project: Feasibility Study Using CVP Analysis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fly Ash Brick Project: Feasibility Study Using CVP Analysis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ash Bricks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ash Bricks 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis can be done for the following purposes –
1. Strategic planning using facts provided in Fly Ash Brick Project: Feasibility Study Using CVP Analysis case study
2. Improving business portfolio management of Ash Bricks
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 Ash Bricks
Strengths Fly Ash Brick Project: Feasibility Study Using CVP Analysis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ash Bricks in Fly Ash Brick Project: Feasibility Study Using CVP Analysis Harvard Business Review case study are -
Learning organization
- Ash Bricks 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 Ash Bricks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fly Ash Brick Project: Feasibility Study Using CVP Analysis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Ash Bricks 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.
Effective Research and Development (R&D)
– Ash Bricks 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Ash Bricks 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.
Highly skilled collaborators
– Ash Bricks 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Ash Bricks 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 S.K. Mitra, Hajela Shubhra 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Ash Bricks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ash Bricks 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.
Operational resilience
– The operational resilience strategy in the Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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.
High brand equity
– Ash Bricks has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ash Bricks to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Ash Bricks is present in almost all the verticals within the industry. This has provided firm in Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Fly Ash Brick Project: Feasibility Study Using CVP Analysis firm has clearly differentiated products in the market place. This has enabled Ash Bricks to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Ash Bricks to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Ash Bricks in the sector have low bargaining power. Fly Ash Brick Project: Feasibility Study Using CVP Analysis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ash Bricks to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Fly Ash Brick Project: Feasibility Study Using CVP Analysis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fly Ash Brick Project: Feasibility Study Using CVP Analysis are -
Increasing silos among functional specialists
– The organizational structure of Ash Bricks is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Ash Bricks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ash Bricks to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Fly Ash Brick Project: Feasibility Study Using CVP Analysis, 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, S.K. Mitra, Hajela Shubhra suggests that, Ash Bricks 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.
Need for greater diversity
– Ash Bricks 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Fly Ash Brick Project: Feasibility Study Using CVP Analysis, in the dynamic environment Ash Bricks has struggled to respond to the nimble upstart competition. Ash Bricks has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Ash Bricks supply chain. Even after few cautionary changes mentioned in the HBR case study - Fly Ash Brick Project: Feasibility Study Using CVP Analysis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ash Bricks vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Ash Bricks has relatively successful track record of launching new products.
High cash cycle compare to competitors
Ash Bricks 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.
Products dominated business model
– Even though Ash Bricks 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 - Fly Ash Brick Project: Feasibility Study Using CVP Analysis should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Ash Bricks has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ash Bricks even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ash Bricks is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fly Ash Brick Project: Feasibility Study Using CVP Analysis can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Fly Ash Brick Project: Feasibility Study Using CVP Analysis | 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis are -
Developing new processes and practices
– Ash Bricks 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ash Bricks 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 Ash Bricks to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ash Bricks 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.
Using analytics as competitive advantage
– Ash Bricks 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ash Bricks 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. Ash Bricks 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. Ash Bricks 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ash Bricks is facing challenges because of the dominance of functional experts in the organization. Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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.
Building a culture of innovation
– managers at Ash Bricks 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.
Creating value in data economy
– The success of analytics program of Ash Bricks has opened avenues for new revenue streams for the organization in the industry. This can help Ash Bricks to build a more holistic ecosystem as suggested in the Fly Ash Brick Project: Feasibility Study Using CVP Analysis case study. Ash Bricks can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Ash Bricks can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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.
Leveraging digital technologies
– Ash Bricks 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.
Better consumer reach
– The expansion of the 5G network will help Ash Bricks to increase its market reach. Ash Bricks 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ash Bricks can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ash Bricks can use these opportunities to build new business models that can help the communities that Ash Bricks operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Fly Ash Brick Project: Feasibility Study Using CVP Analysis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fly Ash Brick Project: Feasibility Study Using CVP Analysis are -
Regulatory challenges
– Ash Bricks 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.
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. Ash Bricks needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Ash Bricks 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. Ash Bricks can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Ash Bricks in the Finance & Accounting sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Ash Bricks 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ash Bricks 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Fly Ash Brick Project: Feasibility Study Using CVP Analysis, Ash Bricks 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 .
Consumer confidence and its impact on Ash Bricks 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.
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 Ash Bricks.
High dependence on third party suppliers
– Ash Bricks 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.
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 Ash Bricks business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
Weighted SWOT Analysis of Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Fly Ash Brick Project: Feasibility Study Using CVP Analysis 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 Ash Bricks needs to make to build a sustainable competitive advantage.
