Volvo Construction Equipment: Managing a Plant Closure (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Volvo Construction Equipment: Managing a Plant Closure (A)
The vice-president and general manager of the Canadian operations of a multinational vehicle manufacturer learns that the plant he supervises will be shut down in 15 months. In the months leading up to the shutdown announcement and subsequent winding down, he needs to manage the communications and followup with several stakeholder groups. The vice-president and general manager needs to balance several issues, including the need to keep production high and waste down, while preparing to lay off the workers who will be contributing to the plant's short-term success. To be used with supplemental cases (9B13M019, 9B13M020).
Swot Analysis of "Volvo Construction Equipment: Managing a Plant Closure (A)" written by Mary Weil, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 9b13m019 9b13m020 facing as an external strategic factors. Some of the topics covered in Volvo Construction Equipment: Managing a Plant Closure (A) case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Volvo Construction Equipment: Managing a Plant Closure (A) casestudy better are - – challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, geopolitical disruptions, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Volvo Construction Equipment: Managing a Plant Closure (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Volvo Construction Equipment: Managing a Plant Closure (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 9b13m019 9b13m020, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 9b13m019 9b13m020 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 Volvo Construction Equipment: Managing a Plant Closure (A) can be done for the following purposes –
1. Strategic planning using facts provided in Volvo Construction Equipment: Managing a Plant Closure (A) case study
2. Improving business portfolio management of 9b13m019 9b13m020
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 9b13m019 9b13m020
Strengths Volvo Construction Equipment: Managing a Plant Closure (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 9b13m019 9b13m020 in Volvo Construction Equipment: Managing a Plant Closure (A) Harvard Business Review case study are -
Highly skilled collaborators
– 9b13m019 9b13m020 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 Volvo Construction Equipment: Managing a Plant Closure (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- 9b13m019 9b13m020 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 9b13m019 9b13m020 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Volvo Construction Equipment: Managing a Plant Closure (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– 9b13m019 9b13m020 is one of the leading recruiters in the industry. Managers in the Volvo Construction Equipment: Managing a Plant Closure (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– 9b13m019 9b13m020 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For 9b13m019 9b13m020 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 9b13m019 9b13m020 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.
Ability to lead change in Leadership & Managing People field
– 9b13m019 9b13m020 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 9b13m019 9b13m020 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Volvo Construction Equipment: Managing a Plant Closure (A) 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 switching costs
– The high switching costs that 9b13m019 9b13m020 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.
Training and development
– 9b13m019 9b13m020 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Volvo Construction Equipment: Managing a Plant Closure (A) 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.
Effective Research and Development (R&D)
– 9b13m019 9b13m020 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 Volvo Construction Equipment: Managing a Plant Closure (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– 9b13m019 9b13m020 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 9b13m019 9b13m020 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.
Diverse revenue streams
– 9b13m019 9b13m020 is present in almost all the verticals within the industry. This has provided firm in Volvo Construction Equipment: Managing a Plant Closure (A) 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.
Weaknesses Volvo Construction Equipment: Managing a Plant Closure (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Volvo Construction Equipment: Managing a Plant Closure (A) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Volvo Construction Equipment: Managing a Plant Closure (A), it seems that the employees of 9b13m019 9b13m020 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.
No frontier risks strategy
– After analyzing the HBR case study Volvo Construction Equipment: Managing a Plant Closure (A), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Workers concerns about automation
– As automation is fast increasing in the segment, 9b13m019 9b13m020 needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– 9b13m019 9b13m020 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.
Aligning sales with marketing
– It come across in the case study Volvo Construction Equipment: Managing a Plant Closure (A) 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 Volvo Construction Equipment: Managing a Plant Closure (A) can leverage the sales team experience to cultivate customer relationships as 9b13m019 9b13m020 is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Volvo Construction Equipment: Managing a Plant Closure (A) 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 9b13m019 9b13m020 has relatively successful track record of launching new products.
Lack of clear differentiation of 9b13m019 9b13m020 products
– To increase the profitability and margins on the products, 9b13m019 9b13m020 needs to provide more differentiated products than what it is currently offering in the marketplace.
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 9b13m019 9b13m020 supply chain. Even after few cautionary changes mentioned in the HBR case study - Volvo Construction Equipment: Managing a Plant Closure (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 9b13m019 9b13m020 vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Volvo Construction Equipment: Managing a Plant Closure (A) HBR case study mentions - 9b13m019 9b13m020 takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Low market penetration in new markets
– Outside its home market of 9b13m019 9b13m020, firm in the HBR case study Volvo Construction Equipment: Managing a Plant Closure (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, 9b13m019 9b13m020 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. 9b13m019 9b13m020 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 Volvo Construction Equipment: Managing a Plant Closure (A) | 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 Volvo Construction Equipment: Managing a Plant Closure (A) are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. 9b13m019 9b13m020 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. 9b13m019 9b13m020 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, 9b13m019 9b13m020 is facing challenges because of the dominance of functional experts in the organization. Volvo Construction Equipment: Managing a Plant Closure (A) 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.
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 9b13m019 9b13m020 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.
Learning at scale
– Online learning technologies has now opened space for 9b13m019 9b13m020 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.
Creating value in data economy
– The success of analytics program of 9b13m019 9b13m020 has opened avenues for new revenue streams for the organization in the industry. This can help 9b13m019 9b13m020 to build a more holistic ecosystem as suggested in the Volvo Construction Equipment: Managing a Plant Closure (A) case study. 9b13m019 9b13m020 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. 9b13m019 9b13m020 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at 9b13m019 9b13m020 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 Leadership & Managing People segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 9b13m019 9b13m020 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, Volvo Construction Equipment: Managing a Plant Closure (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 9b13m019 9b13m020 can use these opportunities to build new business models that can help the communities that 9b13m019 9b13m020 operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– 9b13m019 9b13m020 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 Volvo Construction Equipment: Managing a Plant Closure (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 9b13m019 9b13m020 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, 9b13m019 9b13m020 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.
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 9b13m019 9b13m020 in the consumer business. Now 9b13m019 9b13m020 can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– 9b13m019 9b13m020 can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Threats Volvo Construction Equipment: Managing a Plant Closure (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Volvo Construction Equipment: Managing a Plant Closure (A) are -
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. 9b13m019 9b13m020 needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 9b13m019 9b13m020 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Volvo Construction Equipment: Managing a Plant Closure (A), 9b13m019 9b13m020 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Technology acceleration in Forth Industrial Revolution
– 9b13m019 9b13m020 has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, 9b13m019 9b13m020 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 9b13m019 9b13m020 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. 9b13m019 9b13m020 will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
High dependence on third party suppliers
– 9b13m019 9b13m020 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.
Consumer confidence and its impact on 9b13m019 9b13m020 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.
Regulatory challenges
– 9b13m019 9b13m020 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.
Environmental challenges
– 9b13m019 9b13m020 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. 9b13m019 9b13m020 can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– 9b13m019 9b13m020 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.
Shortening product life cycle
– it is one of the major threat that 9b13m019 9b13m020 is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Volvo Construction Equipment: Managing a Plant Closure (A) 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 Volvo Construction Equipment: Managing a Plant Closure (A) 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 Volvo Construction Equipment: Managing a Plant Closure (A) 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 Volvo Construction Equipment: Managing a Plant Closure (A) 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 Volvo Construction Equipment: Managing a Plant Closure (A) 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 9b13m019 9b13m020 needs to make to build a sustainable competitive advantage.
