Case Study Description of Edgcomb Metals: The Troy Plant (B)
This case describes the system of standards implemented at Edgcomb Metals (see OM-0549) and the subsequent driver performance. (The C case is OM-0571.)
Authors :: Phillip E. Pfeifer, William T. Stewart, Glenn A. Ferguson
Swot Analysis of "Edgcomb Metals: The Troy Plant (B)" written by Phillip E. Pfeifer, William T. Stewart, Glenn A. Ferguson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Edgcomb Om facing as an external strategic factors. Some of the topics covered in Edgcomb Metals: The Troy Plant (B) 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 (B) casestudy better are - – there is increasing trade war between United States & China, geopolitical disruptions, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing commodity prices, talent flight as more people leaving formal jobs,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Edgcomb Metals: The Troy Plant (B)
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 (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Edgcomb Om, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Edgcomb Om 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 (B) can be done for the following purposes –
1. Strategic planning using facts provided in Edgcomb Metals: The Troy Plant (B) case study
2. Improving business portfolio management of Edgcomb Om
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 Edgcomb Om
Strengths Edgcomb Metals: The Troy Plant (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Edgcomb Om in Edgcomb Metals: The Troy Plant (B) Harvard Business Review case study are -
Innovation driven organization
– Edgcomb Om is one of the most innovative firm in sector. Manager in Edgcomb Metals: The Troy Plant (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Edgcomb Om 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 Edgcomb Om is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Edgcomb Metals: The Troy Plant (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Edgcomb Om in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Edgcomb Om is present in almost all the verticals within the industry. This has provided firm in Edgcomb Metals: The Troy Plant (B) 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.
Analytics focus
– Edgcomb Om 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, William T. Stewart, Glenn A. Ferguson 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.
Training and development
– Edgcomb Om has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Edgcomb Metals: The Troy Plant (B) 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.
Cross disciplinary teams
– Horizontal connected teams at the Edgcomb Om 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.
High brand equity
– Edgcomb Om has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Edgcomb Om to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Edgcomb Om is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Edgcomb Om 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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Edgcomb Om digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Edgcomb Om 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Edgcomb Metals: The Troy Plant (B) firm has clearly differentiated products in the market place. This has enabled Edgcomb Om to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Edgcomb Om to invest into research and development (R&D) and innovation.
Weaknesses Edgcomb Metals: The Troy Plant (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edgcomb Metals: The Troy Plant (B) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Phillip E. Pfeifer, William T. Stewart, Glenn A. Ferguson suggests that, Edgcomb Om 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Edgcomb Metals: The Troy Plant (B), in the dynamic environment Edgcomb Om has struggled to respond to the nimble upstart competition. Edgcomb Om has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Edgcomb Metals: The Troy Plant (B) 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 Edgcomb Om 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Edgcomb Om, firm in the HBR case study Edgcomb Metals: The Troy Plant (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Edgcomb Metals: The Troy Plant (B) 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 Edgcomb Om has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Edgcomb Metals: The Troy Plant (B) 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 Edgcomb Metals: The Troy Plant (B) can leverage the sales team experience to cultivate customer relationships as Edgcomb Om is planning to shift buying processes online.
Lack of clear differentiation of Edgcomb Om products
– To increase the profitability and margins on the products, Edgcomb Om needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Edgcomb Om needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Skills based hiring
– The stress on hiring functional specialists at Edgcomb Om 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.
Increasing silos among functional specialists
– The organizational structure of Edgcomb Om is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Edgcomb Om needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Edgcomb Om to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Edgcomb Om 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 (B) should strive to include more intangible value offerings along with its core products and services.
Opportunities Edgcomb Metals: The Troy Plant (B) | 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 (B) are -
Building a culture of innovation
– managers at Edgcomb Om 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. Edgcomb Om can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Edgcomb Om 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.
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 Edgcomb Om 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Edgcomb Om is facing challenges because of the dominance of functional experts in the organization. Edgcomb Metals: The Troy Plant (B) 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.
Creating value in data economy
– The success of analytics program of Edgcomb Om has opened avenues for new revenue streams for the organization in the industry. This can help Edgcomb Om to build a more holistic ecosystem as suggested in the Edgcomb Metals: The Troy Plant (B) case study. Edgcomb Om can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Edgcomb Om can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Edgcomb Om 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.
Loyalty marketing
– Edgcomb Om 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.
Learning at scale
– Online learning technologies has now opened space for Edgcomb Om 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Edgcomb Om 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Edgcomb Om 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 Edgcomb Om to hire the very best people irrespective of their geographical location.
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 Edgcomb Om in the consumer business. Now Edgcomb Om can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Edgcomb Metals: The Troy Plant (B) 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 (B) are -
High dependence on third party suppliers
– Edgcomb Om 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.
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 Edgcomb Om.
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 Edgcomb Om in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Edgcomb Om is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Edgcomb Om needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Edgcomb Metals: The Troy Plant (B), Edgcomb Om 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 .
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. Edgcomb Om can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Edgcomb Om 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.
Stagnating economy with rate increase
– Edgcomb Om 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.
Consumer confidence and its impact on Edgcomb Om 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.
Regulatory challenges
– Edgcomb Om 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.
Increasing wage structure of Edgcomb Om
– 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 Edgcomb Om.
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 Edgcomb Om business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Edgcomb Metals: The Troy Plant (B) 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 (B) 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 (B) 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 (B) 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 (B) 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 Edgcomb Om needs to make to build a sustainable competitive advantage.
