Case Study Description of Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne
This is a 1-on-1 first interaction negotiation between John, a senior sales manager of high-end, state-of-the-art laptops (Boost computers), and Cindy, a procurement manager of a business consulting firm. Cindy has invited John to discuss his proposal to sell 50 of the latest technology computers.
Swot Analysis of "Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne" written by Horacio Falcao, Kriti Jain, Heather Grover includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cindy John facing as an external strategic factors. Some of the topics covered in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne case study are - Strategic Management Strategies, Growth strategy, IT, Negotiations, Pricing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne casestudy better are - – geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing energy prices,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cindy John, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cindy John 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne can be done for the following purposes –
1. Strategic planning using facts provided in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne case study
2. Improving business portfolio management of Cindy John
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cindy John
Strengths Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cindy John in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne Harvard Business Review case study are -
Diverse revenue streams
– Cindy John is present in almost all the verticals within the industry. This has provided firm in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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.
Innovation driven organization
– Cindy John is one of the most innovative firm in sector. Manager in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Cindy John is one of the leading recruiters in the industry. Managers in the Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Cindy John has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cindy John 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 Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Cindy John digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cindy John 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 brand equity
– Cindy John has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cindy John to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne firm has clearly differentiated products in the market place. This has enabled Cindy John to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Cindy John to invest into research and development (R&D) and innovation.
Training and development
– Cindy John has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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.
Low bargaining power of suppliers
– Suppliers of Cindy John in the sector have low bargaining power. Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cindy John to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Cindy John 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.
Strong track record of project management
– Cindy John is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Cindy John 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne are -
High operating costs
– Compare to the competitors, firm in the HBR case study Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Cindy John 's lucrative customers.
High cash cycle compare to competitors
Cindy John 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Cindy John has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Cindy John has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Cindy John 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.
Need for greater diversity
– Cindy John 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne, it seems that the employees of Cindy John 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 Cindy John supply chain. Even after few cautionary changes mentioned in the HBR case study - Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cindy John vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Cindy John 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Horacio Falcao, Kriti Jain, Heather Grover suggests that, Cindy John 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne, is just above the industry average. Cindy John 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.
Opportunities Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne | 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne are -
Leveraging digital technologies
– Cindy John 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 Cindy John in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cindy John 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. Cindy John 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cindy John can use these opportunities to build new business models that can help the communities that Cindy John operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cindy John 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.
Buying journey improvements
– Cindy John can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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.
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 Cindy John to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cindy John in the consumer business. Now Cindy John can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cindy John 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, Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Cindy John can develop new processes and procedures in Innovation & Entrepreneurship 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cindy John is facing challenges because of the dominance of functional experts in the organization. Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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.
Manufacturing automation
– Cindy John can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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. Cindy John can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cindy John with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cindy John in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Stagnating economy with rate increase
– Cindy John 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.
Technology acceleration in Forth Industrial Revolution
– Cindy John has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Cindy John needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Regulatory challenges
– Cindy John 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 Innovation & Entrepreneurship industry regulations.
Consumer confidence and its impact on Cindy John 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne, Cindy John may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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.
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 Cindy John in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing wage structure of Cindy John
– 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 Cindy John.
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. Cindy John needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cindy John 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne .
Weighted SWOT Analysis of Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Boost M6700 (A): Buyer Seller Negotiation - Confidential Instructions for John Payne 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 Cindy John needs to make to build a sustainable competitive advantage.
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