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, central banks are concerned over increasing inflation, wage bills are increasing, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
High switching costs
– The high switching costs that Simulations Inventory 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.
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.
Effective Research and Development (R&D)
– Simulations Inventory 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 Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Simulations Inventory has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Simulations Inventory to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Simulations Inventory is present in almost all the verticals within the industry. This has provided firm in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel 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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel firm has clearly differentiated products in the market place. This has enabled Simulations Inventory to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Simulations Inventory to invest into research and development (R&D) and innovation.
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.
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.
Low bargaining power of suppliers
– Suppliers of Simulations Inventory in the sector have low bargaining power. Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Simulations Inventory to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Simulations Inventory 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 Simulations Inventory is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 -
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.
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.
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.
Low market penetration in new markets
– Outside its home market of Simulations Inventory, firm in the HBR case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Simulations Inventory 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 - Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Simulations Inventory products
– To increase the profitability and margins on the products, Simulations Inventory needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, in the dynamic environment Simulations Inventory has struggled to respond to the nimble upstart competition. Simulations Inventory has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Process Control at Compaq Computer Corp. (B): Computer Simulations - Promodel, 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.
High cash cycle compare to competitors
Simulations Inventory 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.
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 -
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. Simulations Inventory 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. Simulations Inventory 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.
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. Simulations Inventory can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Simulations Inventory in the consumer business. Now Simulations Inventory can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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.
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.
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.
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.
Leveraging digital technologies
– Simulations Inventory 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.
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.
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.
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 -
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.
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.
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.
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.
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. Simulations Inventory 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 acceleration in Forth Industrial Revolution
– Simulations Inventory has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Simulations Inventory 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Simulations Inventory 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 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 .
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.
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.
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.
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.
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.
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.
