Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China
Lean manufacturing is a production approach whereby expending resources for any goal other than the creation of value for the end customer is considered wasteful, and thus a target for elimination. The case discusses the deployment of lean principles at FCI, a global manufacturer of electronic connectors, as the principal catalyst in achieving a worldwide turnaround in two short years. Case (A) focuses on the global launch of the lean initiative from the corporate headquarters while Case (B) provides the details of local deployment at FCI's manufacturing site in Nantong, China.
Swot Analysis of "Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China" written by Cynthia Laumuno, Enver Yucesan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lean Fci facing as an external strategic factors. Some of the topics covered in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China case study are - Strategic Management Strategies, Operations management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, increasing energy prices, etc
Introduction to SWOT Analysis of Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lean Fci, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China can be done for the following purposes –
1. Strategic planning using facts provided in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China case study
2. Improving business portfolio management of Lean Fci
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 Lean Fci
Strengths Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lean Fci in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China firm has clearly differentiated products in the market place. This has enabled Lean Fci to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Lean Fci to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Lean Fci is present in almost all the verticals within the industry. This has provided firm in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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.
Learning organization
- Lean Fci 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 Lean Fci is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Lean Fci has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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.
Analytics focus
– Lean Fci 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 Cynthia Laumuno, Enver Yucesan can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Lean Fci digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lean Fci 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.
Highly skilled collaborators
– Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Lean Fci is one of the leading recruiters in the industry. Managers in the Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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
– Lean Fci has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lean Fci 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.
Effective Research and Development (R&D)
– Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Lean Fci in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Lean Fci in the sector have low bargaining power. Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lean Fci to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China are -
Products dominated business model
– Even though Lean Fci has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Lean Fci 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.
Skills based hiring
– The stress on hiring functional specialists at Lean Fci 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China, is just above the industry average. Lean Fci 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.
Lack of clear differentiation of Lean Fci products
– To increase the profitability and margins on the products, Lean Fci needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lean Fci is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China, in the dynamic environment Lean Fci has struggled to respond to the nimble upstart competition. Lean Fci has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China, it seems that the employees of Lean Fci 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.
Slow decision making process
– As mentioned earlier in the report, Lean Fci 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. Lean Fci 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.
Capital Spending Reduction
– Even during the low interest decade, Lean Fci 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.
Opportunities Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China | 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China are -
Creating value in data economy
– The success of analytics program of Lean Fci has opened avenues for new revenue streams for the organization in the industry. This can help Lean Fci to build a more holistic ecosystem as suggested in the Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China case study. Lean Fci can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Lean Fci 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.
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. Lean Fci 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. Lean Fci 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, Lean Fci is facing challenges because of the dominance of functional experts in the organization. Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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.
Leveraging digital technologies
– Lean Fci 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.
Learning at scale
– Online learning technologies has now opened space for Lean Fci 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.
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. Lean Fci can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lean Fci can use these opportunities to build new business models that can help the communities that Lean Fci operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Lean Fci can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lean Fci 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.
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 Lean Fci 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.
Using analytics as competitive advantage
– Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lean Fci to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Lean Fci 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.
Threats Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lean Fci 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China .
Shortening product life cycle
– it is one of the major threat that Lean Fci is facing in Leadership & Managing People 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 Lean Fci with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Lean Fci needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lean Fci can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Lean Fci has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Lean Fci 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.
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 Lean Fci business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Lean Fci 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lean Fci 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.
High dependence on third party suppliers
– Lean Fci 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China, Lean Fci 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 .
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 Lean Fci.
Consumer confidence and its impact on Lean Fci 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.
Weighted SWOT Analysis of Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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 Lean Manufacturing at FCI (B): Deploying Lean at Nantong, China 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 Lean Fci needs to make to build a sustainable competitive advantage.