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 - – geopolitical disruptions, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing energy prices,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, 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.
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.
High brand equity
– Defense Procurement has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Defense Procurement to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Defense Procurement in the sector have low bargaining power. Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Defense Procurement to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Defense Procurement 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.
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.
Ability to lead change in Finance & Accounting field
– Defense Procurement 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 Defense Procurement in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Superior customer experience
– The customer experience strategy of Defense Procurement in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous 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 -
Skills based hiring
– The stress on hiring functional specialists at Defense Procurement 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.
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.
Slow to strategic competitive environment developments
– As Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview HBR case study mentions - Defense Procurement 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.
Products dominated business model
– Even though Defense Procurement 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 - Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview should strive to include more intangible value offerings along with its core products and services.
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 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.
Slow decision making process
– As mentioned earlier in the report, Defense Procurement has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Defense Procurement even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
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 Defense Procurement supply chain. Even after few cautionary changes mentioned in the HBR case study - Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Defense Procurement vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Defense Procurement products
– To increase the profitability and margins on the products, Defense Procurement needs to provide more differentiated products than what it is currently offering in the marketplace.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Defense Procurement in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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.
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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Defense Procurement is facing challenges because of the dominance of functional experts in the organization. Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview 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.
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.
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.
Creating value in data economy
– The success of analytics program of Defense Procurement has opened avenues for new revenue streams for the organization in the industry. This can help Defense Procurement to build a more holistic ecosystem as suggested in the Facts and Figures on Defense Procurement: The Department of Defense and Defense Procurement, An Overview case study. Defense Procurement can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Defense Procurement 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.
Building a culture of innovation
– managers at Defense Procurement 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 Finance & Accounting segment.
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.
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.
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 -
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 .
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.
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 Defense Procurement in the Finance & Accounting sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Defense Procurement is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Defense Procurement 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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Defense Procurement with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 .
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.
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.
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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