Swot Analysis of "Edgcomb Metals: The Troy Plant (A) (HANDOUT)" written by Phillip E. Pfeifer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Uv3331 Edgcomb facing as an external strategic factors. Some of the topics covered in Edgcomb Metals: The Troy Plant (A) (HANDOUT) case study are - Strategic Management Strategies, Financial analysis, Performance measurement and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Edgcomb Metals: The Troy Plant (A) (HANDOUT) casestudy better are - – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, etc
Introduction to SWOT Analysis of Edgcomb Metals: The Troy Plant (A) (HANDOUT)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Edgcomb Metals: The Troy Plant (A) (HANDOUT) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Uv3331 Edgcomb, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Uv3331 Edgcomb 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) can be done for the following purposes –
1. Strategic planning using facts provided in Edgcomb Metals: The Troy Plant (A) (HANDOUT) case study
2. Improving business portfolio management of Uv3331 Edgcomb
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 Uv3331 Edgcomb
Strengths Edgcomb Metals: The Troy Plant (A) (HANDOUT) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Uv3331 Edgcomb in Edgcomb Metals: The Troy Plant (A) (HANDOUT) Harvard Business Review case study are -
Analytics focus
– Uv3331 Edgcomb 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 Phillip E. Pfeifer 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 Leadership & Managing People industry
– Edgcomb Metals: The Troy Plant (A) (HANDOUT) firm has clearly differentiated products in the market place. This has enabled Uv3331 Edgcomb to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Uv3331 Edgcomb to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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.
Highly skilled collaborators
– Uv3331 Edgcomb 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Uv3331 Edgcomb has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Uv3331 Edgcomb to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Uv3331 Edgcomb digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Uv3331 Edgcomb 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.
Learning organization
- Uv3331 Edgcomb 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 Uv3331 Edgcomb is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Edgcomb Metals: The Troy Plant (A) (HANDOUT) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Uv3331 Edgcomb is one of the most innovative firm in sector. Manager in Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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
– Uv3331 Edgcomb has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Uv3331 Edgcomb 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 lead change in Leadership & Managing People field
– Uv3331 Edgcomb 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 Uv3331 Edgcomb in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Uv3331 Edgcomb is one of the leading recruiters in the industry. Managers in the Edgcomb Metals: The Troy Plant (A) (HANDOUT) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Uv3331 Edgcomb in the sector have low bargaining power. Edgcomb Metals: The Troy Plant (A) (HANDOUT) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Uv3331 Edgcomb to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Edgcomb Metals: The Troy Plant (A) (HANDOUT) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edgcomb Metals: The Troy Plant (A) (HANDOUT) are -
Products dominated business model
– Even though Uv3331 Edgcomb 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 - Edgcomb Metals: The Troy Plant (A) (HANDOUT) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Edgcomb Metals: The Troy Plant (A) (HANDOUT) HBR case study mentions - Uv3331 Edgcomb 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Uv3331 Edgcomb 's lucrative customers.
Interest costs
– Compare to the competition, Uv3331 Edgcomb 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, Phillip E. Pfeifer suggests that, Uv3331 Edgcomb 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.
Slow decision making process
– As mentioned earlier in the report, Uv3331 Edgcomb 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. Uv3331 Edgcomb 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.
No frontier risks strategy
– After analyzing the HBR case study Edgcomb Metals: The Troy Plant (A) (HANDOUT), 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 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 Uv3331 Edgcomb supply chain. Even after few cautionary changes mentioned in the HBR case study - Edgcomb Metals: The Troy Plant (A) (HANDOUT), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Uv3331 Edgcomb vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Uv3331 Edgcomb 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.
High cash cycle compare to competitors
Uv3331 Edgcomb 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Edgcomb Metals: The Troy Plant (A) (HANDOUT), is just above the industry average. Uv3331 Edgcomb 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.
Opportunities Edgcomb Metals: The Troy Plant (A) (HANDOUT) | 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) are -
Creating value in data economy
– The success of analytics program of Uv3331 Edgcomb has opened avenues for new revenue streams for the organization in the industry. This can help Uv3331 Edgcomb to build a more holistic ecosystem as suggested in the Edgcomb Metals: The Troy Plant (A) (HANDOUT) case study. Uv3331 Edgcomb can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Uv3331 Edgcomb 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.
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. Uv3331 Edgcomb 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. Uv3331 Edgcomb 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. Uv3331 Edgcomb can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Uv3331 Edgcomb 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, Uv3331 Edgcomb can use these opportunities to build new business models that can help the communities that Uv3331 Edgcomb operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Loyalty marketing
– Uv3331 Edgcomb 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.
Buying journey improvements
– Uv3331 Edgcomb can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Uv3331 Edgcomb 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Uv3331 Edgcomb 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.
Manufacturing automation
– Uv3331 Edgcomb 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.
Using analytics as competitive advantage
– Uv3331 Edgcomb 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Uv3331 Edgcomb to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Uv3331 Edgcomb 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.
Threats Edgcomb Metals: The Troy Plant (A) (HANDOUT) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Edgcomb Metals: The Troy Plant (A) (HANDOUT) are -
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. Uv3331 Edgcomb can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Uv3331 Edgcomb
– 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 Uv3331 Edgcomb.
High dependence on third party suppliers
– Uv3331 Edgcomb 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.
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.
Consumer confidence and its impact on Uv3331 Edgcomb 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.
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
– Uv3331 Edgcomb 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. Uv3331 Edgcomb 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.
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 Uv3331 Edgcomb in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Uv3331 Edgcomb.
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 Uv3331 Edgcomb business can come under increasing regulations regarding data privacy, data security, etc.
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. Uv3331 Edgcomb needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Environmental challenges
– Uv3331 Edgcomb 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. Uv3331 Edgcomb can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Edgcomb Metals: The Troy Plant (A) (HANDOUT) 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 Uv3331 Edgcomb needs to make to build a sustainable competitive advantage.