Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel
Compaq Computer Corp., like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (e.g., flow) and tactical inventory (e.g., finished goods). Tradeoffs in inventory management and customer response time are explored in the context of a firm that is changing from a push manufacturing to a customer-oriented pull system. Optional computer simulations (B case) visually display the dynamics of push and pull systems, kanban squares, and their effect on inventory requirements and customer response times. The simulations require the ProModel simulation software tool (not included, to be purchased separately) and computer simulation model files (available from the authors' website: http://faculty.insead.edu/stephen-chick/simulations).
Swot Analysis of "Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel" written by Michael T. Pich, Stephen E. Chick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Simulations Inventory facing as an external strategic factors. Some of the topics covered in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel case study are - Strategic Management Strategies, IT, Operations management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel casestudy better are - – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions,
there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Simulations Inventory, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Simulations Inventory 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel can be done for the following purposes –
1. Strategic planning using facts provided in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel case study
2. Improving business portfolio management of Simulations Inventory
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 Simulations Inventory
Strengths Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Simulations Inventory in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel Harvard Business Review case study are -
Successful track record of launching new products
– Simulations Inventory has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Simulations Inventory 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.
Ability to recruit top talent
– Simulations Inventory is one of the leading recruiters in the industry. Managers in the Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Simulations Inventory 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 Simulations Inventory in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Simulations Inventory 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 Simulations Inventory digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Simulations Inventory 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.
Training and development
– Simulations Inventory has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Simulations Inventory
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Simulations Inventory does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Simulations Inventory 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Simulations Inventory is one of the most innovative firm in sector. Manager in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Simulations Inventory 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 T. Pich, Stephen E. Chick 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.
Operational resilience
– The operational resilience strategy in the Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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.
Cross disciplinary teams
– Horizontal connected teams at the Simulations Inventory are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel are -
Workers concerns about automation
– As automation is fast increasing in the segment, Simulations Inventory 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, is just above the industry average. Simulations Inventory 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.
Slow to strategic competitive environment developments
– As Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel HBR case study mentions - Simulations Inventory 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.
Capital Spending Reduction
– Even during the low interest decade, Simulations Inventory 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Simulations Inventory has relatively successful track record of launching new products.
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 Simulations Inventory supply chain. Even after few cautionary changes mentioned in the HBR case study - Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Simulations Inventory vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, it seems that the employees of Simulations Inventory 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.
Aligning sales with marketing
– It come across in the case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel can leverage the sales team experience to cultivate customer relationships as Simulations Inventory is planning to shift buying processes online.
Need for greater diversity
– Simulations Inventory 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.
Increasing silos among functional specialists
– The organizational structure of Simulations Inventory is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Simulations Inventory needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Simulations Inventory to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Simulations Inventory 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.
Opportunities Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel | 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel are -
Buying journey improvements
– Simulations Inventory can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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.
Learning at scale
– Online learning technologies has now opened space for Simulations Inventory 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.
Manufacturing automation
– Simulations Inventory 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Simulations Inventory 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Simulations Inventory is facing challenges because of the dominance of functional experts in the organization. Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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.
Developing new processes and practices
– Simulations Inventory 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.
Using analytics as competitive advantage
– Simulations Inventory 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Simulations Inventory to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Simulations Inventory has opened avenues for new revenue streams for the organization in the industry. This can help Simulations Inventory to build a more holistic ecosystem as suggested in the Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel case study. Simulations Inventory can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Simulations Inventory 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.
Better consumer reach
– The expansion of the 5G network will help Simulations Inventory to increase its market reach. Simulations Inventory will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Simulations Inventory 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, Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Simulations Inventory can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Simulations Inventory 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.
Threats Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel are -
High dependence on third party suppliers
– Simulations Inventory 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.
Stagnating economy with rate increase
– Simulations Inventory 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 Simulations Inventory is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Simulations Inventory 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.
Consumer confidence and its impact on Simulations Inventory 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, Simulations Inventory 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 .
Increasing wage structure of Simulations Inventory
– 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 Simulations Inventory.
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. Simulations Inventory can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– Simulations Inventory 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. Simulations Inventory can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Simulations Inventory.
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. Simulations Inventory needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Simulations Inventory business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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 Simulations Inventory needs to make to build a sustainable competitive advantage.