Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview
Provides statistics and other factual information on the Department of Defense procurement process, DOD expenditures, market share segmentation, the variety of contract types, and the role of the Defense Contract Audit Agency.
Swot Analysis of "Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview" written by Robert L. Simons, Hilary A. Weston includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Defense Procurement facing as an external strategic factors. Some of the topics covered in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study are - Strategic Management Strategies, Costs, Government, Negotiations and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview casestudy better are - – technology disruption, increasing energy prices, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Defense Procurement, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Defense Procurement 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview can be done for the following purposes –
1. Strategic planning using facts provided in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study
2. Improving business portfolio management of Defense Procurement
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Defense Procurement
Strengths Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Defense Procurement in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview Harvard Business Review case study are -
Analytics focus
– Defense Procurement 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 Robert L. Simons, Hilary A. Weston 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview firm has clearly differentiated products in the market place. This has enabled Defense Procurement to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Defense Procurement to invest into research and development (R&D) and innovation.
Learning organization
- Defense Procurement 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 Defense Procurement is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Defense Procurement is one of the most innovative firm in sector. Manager in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Defense Procurement has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Defense Procurement 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
– Defense Procurement is one of the leading recruiters in the industry. Managers in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Defense Procurement digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Defense Procurement 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.
Strong track record of project management
– Defense Procurement is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Organizational Resilience of Defense Procurement
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Defense Procurement does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Defense Procurement is present in almost all the verticals within the industry. This has provided firm in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Training and development
– Defense Procurement has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Weaknesses Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
Low market penetration in new markets
– Outside its home market of Defense Procurement, firm in the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Defense Procurement 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, it seems that the employees of Defense Procurement 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.
Need for greater diversity
– Defense Procurement 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.
No frontier risks strategy
– After analyzing the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Defense Procurement is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Defense Procurement is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Defense Procurement needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Defense Procurement to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Defense Procurement has relatively successful track record of launching new products.
High cash cycle compare to competitors
Defense Procurement 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.
Interest costs
– Compare to the competition, Defense Procurement 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert L. Simons, Hilary A. Weston suggests that, Defense Procurement 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.
Opportunities Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview | 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Defense Procurement 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 Defense Procurement to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Defense Procurement can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Defense Procurement in the consumer business. Now Defense Procurement can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Defense Procurement 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.
Developing new processes and practices
– Defense Procurement can develop new processes and procedures in Finance & Accounting 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Defense Procurement can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Defense Procurement 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Defense Procurement can use these opportunities to build new business models that can help the communities that Defense Procurement operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Defense Procurement can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Defense Procurement 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, Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Defense Procurement to increase its market reach. Defense Procurement 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.
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 Defense Procurement 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.
Buying journey improvements
– Defense Procurement can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
Threats Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview are -
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 Defense Procurement business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Defense Procurement can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Defense Procurement.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Defense Procurement 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview .
Environmental challenges
– Defense Procurement 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. Defense Procurement can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Defense Procurement 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.
Stagnating economy with rate increase
– Defense Procurement 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
– Defense Procurement 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 Finance & Accounting industry regulations.
Technology acceleration in Forth Industrial Revolution
– Defense Procurement has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Defense Procurement needs to keep up with the evolution of technology in the Finance & Accounting 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.
Increasing wage structure of Defense Procurement
– 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 Defense Procurement.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, Defense Procurement may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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. Defense Procurement needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Defense Procurement in the Finance & Accounting industry. The Finance & Accounting 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.
Weighted SWOT Analysis of Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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 Defense Procurement needs to make to build a sustainable competitive advantage.
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