Swot Analysis of "Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future"" written by Michael Beer, Russell A. Eisenstat includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Becton Dickinson facing as an external strategic factors. Some of the topics covered in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" case study are - Strategic Management Strategies, Collaboration, Competitive strategy, Corporate governance, Ethics, Human resource management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Becton Dickinson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Becton Dickinson 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" can be done for the following purposes –
1. Strategic planning using facts provided in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" case study
2. Improving business portfolio management of Becton Dickinson
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Becton Dickinson
Strengths Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Becton Dickinson in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Becton Dickinson 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 Becton Dickinson in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Becton Dickinson 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 Michael Beer, Russell A. Eisenstat 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.
High brand equity
– Becton Dickinson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Becton Dickinson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" firm has clearly differentiated products in the market place. This has enabled Becton Dickinson to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Becton Dickinson to invest into research and development (R&D) and innovation.
Innovation driven organization
– Becton Dickinson is one of the most innovative firm in sector. Manager in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Becton Dickinson 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.
Successful track record of launching new products
– Becton Dickinson has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Becton Dickinson 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.
Learning organization
- Becton Dickinson 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 Becton Dickinson is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Becton Dickinson 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Becton Dickinson digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Becton Dickinson 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.
Diverse revenue streams
– Becton Dickinson is present in almost all the verticals within the industry. This has provided firm in Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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.
Effective Research and Development (R&D)
– Becton Dickinson 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" - 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" are -
Need for greater diversity
– Becton Dickinson 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.
High cash cycle compare to competitors
Becton Dickinson 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.
Lack of clear differentiation of Becton Dickinson products
– To increase the profitability and margins on the products, Becton Dickinson needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Becton Dickinson is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Becton Dickinson needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Becton Dickinson to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future", in the dynamic environment Becton Dickinson has struggled to respond to the nimble upstart competition. Becton Dickinson 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 Becton Dickinson supply chain. Even after few cautionary changes mentioned in the HBR case study - Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future", it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Becton Dickinson vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Becton Dickinson, firm in the HBR case study Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future", it seems that the employees of Becton Dickinson 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.
Interest costs
– Compare to the competition, Becton Dickinson 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.
Aligning sales with marketing
– It come across in the case study Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" can leverage the sales team experience to cultivate customer relationships as Becton Dickinson is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Becton Dickinson 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. Becton Dickinson 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.
Opportunities Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" | 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Becton Dickinson 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, Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Becton Dickinson 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Becton Dickinson 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, Becton Dickinson can use these opportunities to build new business models that can help the communities that Becton Dickinson operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Becton Dickinson in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Becton Dickinson 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 Becton Dickinson to hire the very best people irrespective of their geographical location.
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. Becton Dickinson can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Becton Dickinson can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Becton Dickinson 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Becton Dickinson 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.
Developing new processes and practices
– Becton Dickinson can develop new processes and procedures in Leadership & Managing People 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, Becton Dickinson is facing challenges because of the dominance of functional experts in the organization. Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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.
Creating value in data economy
– The success of analytics program of Becton Dickinson has opened avenues for new revenue streams for the organization in the industry. This can help Becton Dickinson to build a more holistic ecosystem as suggested in the Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" case study. Becton Dickinson can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" are -
Consumer confidence and its impact on Becton Dickinson 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 Becton Dickinson business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Becton Dickinson high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Becton Dickinson has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Becton Dickinson needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Becton Dickinson is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Becton Dickinson in the Leadership & Managing People industry. The Leadership & Managing People 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
– Becton Dickinson 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 Becton Dickinson in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Becton Dickinson.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Becton Dickinson with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Becton Dickinson 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" .
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.
Regulatory challenges
– Becton Dickinson 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 Leadership & Managing People industry regulations.
Weighted SWOT Analysis of Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson: Opportunities and Challenges on the Road to the "Envisioned Future" 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 Becton Dickinson needs to make to build a sustainable competitive advantage.
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