Distribution Management at World Peace Industrial Group SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Distribution Management at World Peace Industrial Group
In November 2005, World Peace Industrial Group was at an important milestone as it prepared to join two other major electronics components distributors to form the WPG Holdings and become a dominant player in its industry. As its chief executive officer prepared for the merger, it became apparent that the company's financial position was threatened by inventory management and forecasting problems. Although sales and market share were increasing, profit margins were dropping as a result of increasing inventory costs. The chief executive officer asked the director of the Business Effective Promotion Group to resolve the worsening problem. How would the director identify the sources of weakness and recommend a plan of action as soon as possible?
Swot Analysis of "Distribution Management at World Peace Industrial Group" written by Chris J. Piper, Shwu-Min Horng includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Peace Prepared facing as an external strategic factors. Some of the topics covered in Distribution Management at World Peace Industrial Group case study are - Strategic Management Strategies, Managing organizations, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the Distribution Management at World Peace Industrial Group casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Distribution Management at World Peace Industrial Group
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Distribution Management at World Peace Industrial Group case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Peace Prepared, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Peace Prepared 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 Distribution Management at World Peace Industrial Group can be done for the following purposes –
1. Strategic planning using facts provided in Distribution Management at World Peace Industrial Group case study
2. Improving business portfolio management of Peace Prepared
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Peace Prepared
Strengths Distribution Management at World Peace Industrial Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Peace Prepared in Distribution Management at World Peace Industrial Group Harvard Business Review case study are -
Effective Research and Development (R&D)
– Peace Prepared 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 Distribution Management at World Peace Industrial Group - 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 Peace Prepared in the sector have low bargaining power. Distribution Management at World Peace Industrial Group has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Peace Prepared to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Peace Prepared 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.
Sustainable margins compare to other players in Global Business industry
– Distribution Management at World Peace Industrial Group firm has clearly differentiated products in the market place. This has enabled Peace Prepared to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Peace Prepared to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Peace Prepared is present in almost all the verticals within the industry. This has provided firm in Distribution Management at World Peace Industrial Group 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.
Training and development
– Peace Prepared has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Distribution Management at World Peace Industrial Group 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.
Organizational Resilience of Peace Prepared
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Peace Prepared does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Peace Prepared is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Global Business field
– Peace Prepared 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 Peace Prepared in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Peace Prepared 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 Peace Prepared is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Distribution Management at World Peace Industrial Group Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Peace Prepared is one of the most innovative firm in sector. Manager in Distribution Management at World Peace Industrial Group Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Peace Prepared digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Peace Prepared 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.
Weaknesses Distribution Management at World Peace Industrial Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Distribution Management at World Peace Industrial Group are -
No frontier risks strategy
– After analyzing the HBR case study Distribution Management at World Peace Industrial Group, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Distribution Management at World Peace Industrial Group, in the dynamic environment Peace Prepared has struggled to respond to the nimble upstart competition. Peace Prepared has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Peace Prepared, firm in the HBR case study Distribution Management at World Peace Industrial Group needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Peace Prepared 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Chris J. Piper, Shwu-Min Horng suggests that, Peace Prepared 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Distribution Management at World Peace Industrial Group 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 Peace Prepared 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Peace Prepared 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. Peace Prepared 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.
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 Peace Prepared supply chain. Even after few cautionary changes mentioned in the HBR case study - Distribution Management at World Peace Industrial Group, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Peace Prepared vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Peace Prepared 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.
Interest costs
– Compare to the competition, Peace Prepared 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Distribution Management at World Peace Industrial Group 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 Peace Prepared has relatively successful track record of launching new products.
Opportunities Distribution Management at World Peace Industrial Group | 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 Distribution Management at World Peace Industrial Group are -
Learning at scale
– Online learning technologies has now opened space for Peace Prepared 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Peace Prepared can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Peace Prepared 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Peace Prepared 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 Global Business industry, but it has also influenced the consumer preferences. Peace Prepared can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Peace Prepared 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Peace Prepared in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Peace Prepared to increase its market reach. Peace Prepared 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.
Buying journey improvements
– Peace Prepared can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Distribution Management at World Peace Industrial Group 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.
Using analytics as competitive advantage
– Peace Prepared 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 Distribution Management at World Peace Industrial Group - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Peace Prepared 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
– Peace Prepared can develop new processes and procedures in Global Business 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Peace Prepared can use these opportunities to build new business models that can help the communities that Peace Prepared operates in. Secondly it can use opportunities from government spending in Global Business sector.
Building a culture of innovation
– managers at Peace Prepared 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 Global Business segment.
Threats Distribution Management at World Peace Industrial Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Distribution Management at World Peace Industrial Group are -
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 Peace Prepared business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Peace Prepared
– 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 Peace Prepared.
Technology acceleration in Forth Industrial Revolution
– Peace Prepared has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Peace Prepared needs to keep up with the evolution of technology in the Global Business 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, Peace Prepared 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 Distribution Management at World Peace Industrial Group .
Environmental challenges
– Peace Prepared 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. Peace Prepared can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Peace Prepared 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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Peace Prepared can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Peace Prepared in the Global Business industry. The Global Business 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.
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. Peace Prepared needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Peace Prepared is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Peace Prepared with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Peace Prepared 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.
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 Peace Prepared in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Distribution Management at World Peace Industrial Group 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 Distribution Management at World Peace Industrial Group 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 Distribution Management at World Peace Industrial Group 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 Distribution Management at World Peace Industrial Group 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 Distribution Management at World Peace Industrial Group 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 Peace Prepared needs to make to build a sustainable competitive advantage.
