Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams
This case focuses on a major manufacturing division ($1.2 billion sales; 5500 employees) of a global oilfield services company as it converts from a departmental organization with a "traditional" machine shop hierarchy to a team-based environment. During the conversion, roles and responsibilities change from a traditional foreman structure to a Self-Directed Work Team (SDWT) structure for the Radial Bearing Team. Individual behaviors and the dynamics of change influence how the team copes with new responsibilities, authority and problem solving as together, they manage equipment utilization and the day-to-day workflow, and control quality. Some dysfunction arises as the leaders of this organization manage the change process while trying to support the new roles and ideas. The team is successful, but everyone has to encourage innovation while adapting to the changing environment. The case also highlights specific techniques the team adopts for monitoring its performance as it assumes responsibility and accountability for quality improvement. Management had challenged the unit's leadership to produce results that justified the implementation of Self-Directed Work Teams (SDWTs). Now, George Smiley, the machine shop manager, and Shane Husky, the internal OD specialist, had to present evidence to help management decide if expansion of the SDWT program was warranted and the best practices learned from the RBT experience that would contribute to future success.
Authors :: Sean Wirth, Joseph K Kavanaugh, Victor Sower
Swot Analysis of "Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams" written by Sean Wirth, Joseph K Kavanaugh, Victor Sower includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Directed Sdwt facing as an external strategic factors. Some of the topics covered in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams case study are - Strategic Management Strategies, Leadership, Organizational structure, Product development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams casestudy better are - – wage bills are increasing, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing transportation and logistics costs, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Directed Sdwt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Directed Sdwt 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams can be done for the following purposes –
1. Strategic planning using facts provided in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams case study
2. Improving business portfolio management of Directed Sdwt
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 Directed Sdwt
Strengths Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Directed Sdwt in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Directed Sdwt 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.
Diverse revenue streams
– Directed Sdwt is present in almost all the verticals within the industry. This has provided firm in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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.
Innovation driven organization
– Directed Sdwt is one of the most innovative firm in sector. Manager in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Directed Sdwt
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Directed Sdwt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Directed Sdwt has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Directed Sdwt to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Directed Sdwt 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Directed Sdwt is one of the leading recruiters in the industry. Managers in the Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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
– Directed Sdwt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Directed Sdwt 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.
Training and development
– Directed Sdwt has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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.
Low bargaining power of suppliers
– Suppliers of Directed Sdwt in the sector have low bargaining power. Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Directed Sdwt to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Leadership & Managing People field
– Directed Sdwt 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 Directed Sdwt in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams are -
Interest costs
– Compare to the competition, Directed Sdwt has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Directed Sdwt 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 - Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Directed Sdwt 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Directed Sdwt has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Sean Wirth, Joseph K Kavanaugh, Victor Sower suggests that, Directed Sdwt is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Aligning sales with marketing
– It come across in the case study Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams can leverage the sales team experience to cultivate customer relationships as Directed Sdwt is planning to shift buying processes online.
Need for greater diversity
– Directed Sdwt 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams, is just above the industry average. Directed Sdwt 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams HBR case study mentions - Directed Sdwt 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.
Lack of clear differentiation of Directed Sdwt products
– To increase the profitability and margins on the products, Directed Sdwt needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Directed Sdwt 's lucrative customers.
Opportunities Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams | 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams are -
Building a culture of innovation
– managers at Directed Sdwt 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.
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. Directed Sdwt 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, Directed Sdwt can use these opportunities to build new business models that can help the communities that Directed Sdwt 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. Directed Sdwt can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Directed Sdwt 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Directed Sdwt to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Directed Sdwt 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Directed Sdwt 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.
Loyalty marketing
– Directed Sdwt has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Better consumer reach
– The expansion of the 5G network will help Directed Sdwt to increase its market reach. Directed Sdwt 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Directed Sdwt to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Directed Sdwt to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Directed Sdwt 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. Directed Sdwt 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. Directed Sdwt 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.
Creating value in data economy
– The success of analytics program of Directed Sdwt has opened avenues for new revenue streams for the organization in the industry. This can help Directed Sdwt to build a more holistic ecosystem as suggested in the Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams case study. Directed Sdwt can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Directed Sdwt 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams, Directed Sdwt 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 Directed Sdwt.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Directed Sdwt in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Directed Sdwt
– 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 Directed Sdwt.
Technology acceleration in Forth Industrial Revolution
– Directed Sdwt has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Directed Sdwt 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.
Consumer confidence and its impact on Directed Sdwt 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Directed Sdwt with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Directed Sdwt is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Directed Sdwt 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.
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. Directed Sdwt can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Directed Sdwt 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
– Directed Sdwt 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. Directed Sdwt can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Radial Bearing Team: A Manufacturing Group's Transformation to Self-Directed Work Teams 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 Directed Sdwt needs to make to build a sustainable competitive advantage.
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