Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA
In 2003, Rob Carter, CIO of international express courier FedEx, launched the 'Six by Six' (6 A? 6) IT transformation program: a major rationalization and centralization effort to improve FedEx's IT service delivery to its business partners. This teaching case deals with the 6 A? 6 efforts made by the IT department for Europe, Middle East, Indian sub-continent and Africa (EMEA). The case focuses on two objectives of the 6 A? 6 program: (a) creating a consistent IT environment and (b) increasing delivery bandwidth to the business. Historically, FedEx Express in EMEA had granted high levels of empowerment to local business and IT people. Moreover, FedEx had always supported a 'can-do' mentality in both business and IT people. Consequently, the IT department was expected to keep the enterprise systems architecture resilient and supportive of longer-term enterprise growth, while keeping the IT development pipeline aligned with the often unpredictable stream of requests from empowered business constituents. The story begins in 2007, when a new Vice President for IT was appointed for the region. Part A deals with the IT department's efforts to set up a central systems architecture and IT resource estimation review process. Part B deals with demand-side prioritization issues. The suggested teaching plan assumes that Part A is discussed before the students receive Part B. Instructors can use this case to introduce their students to a realistic view on the complex puzzle of establishing enterprise-wide business-IT engagement patterns through IT governance in an empowered and operations-focused business environment.
Swot Analysis of "Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA" written by Stijn Viaene, Steven De Hertogh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 6 Fedex facing as an external strategic factors. Some of the topics covered in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA casestudy better are - – central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 6 Fedex, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 6 Fedex 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA can be done for the following purposes –
1. Strategic planning using facts provided in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA case study
2. Improving business portfolio management of 6 Fedex
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 6 Fedex
Strengths Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 6 Fedex in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA Harvard Business Review case study are -
Analytics focus
– 6 Fedex 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 Stijn Viaene, Steven De Hertogh 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.
Innovation driven organization
– 6 Fedex is one of the most innovative firm in sector. Manager in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- 6 Fedex 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 6 Fedex is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of 6 Fedex
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 6 Fedex does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– 6 Fedex has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 6 Fedex 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.
Low bargaining power of suppliers
– Suppliers of 6 Fedex in the sector have low bargaining power. Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 6 Fedex to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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.
High brand equity
– 6 Fedex has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 6 Fedex to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the 6 Fedex are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Diverse revenue streams
– 6 Fedex is present in almost all the verticals within the industry. This has provided firm in Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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.
Ability to recruit top talent
– 6 Fedex is one of the leading recruiters in the industry. Managers in the Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA firm has clearly differentiated products in the market place. This has enabled 6 Fedex to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped 6 Fedex to invest into research and development (R&D) and innovation.
Weaknesses Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA are -
Capital Spending Reduction
– Even during the low interest decade, 6 Fedex 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.
Increasing silos among functional specialists
– The organizational structure of 6 Fedex is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. 6 Fedex needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 6 Fedex to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, 6 Fedex 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA, is just above the industry average. 6 Fedex 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.
Products dominated business model
– Even though 6 Fedex 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 - Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA can leverage the sales team experience to cultivate customer relationships as 6 Fedex is planning to shift buying processes online.
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 6 Fedex supply chain. Even after few cautionary changes mentioned in the HBR case study - Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 6 Fedex vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– 6 Fedex 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Stijn Viaene, Steven De Hertogh suggests that, 6 Fedex 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.
Skills based hiring
– The stress on hiring functional specialists at 6 Fedex 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.
Slow decision making process
– As mentioned earlier in the report, 6 Fedex 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. 6 Fedex 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.
Opportunities Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA | 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA are -
Leveraging digital technologies
– 6 Fedex 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 6 Fedex can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– 6 Fedex 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 6 Fedex 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 6 Fedex to hire the very best people irrespective of their geographical location.
Manufacturing automation
– 6 Fedex 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.
Building a culture of innovation
– managers at 6 Fedex 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.
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 6 Fedex 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, 6 Fedex 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 6 Fedex in the consumer business. Now 6 Fedex can target international markets with far fewer capital restrictions requirements than the existing system.
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. 6 Fedex can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of 6 Fedex has opened avenues for new revenue streams for the organization in the industry. This can help 6 Fedex to build a more holistic ecosystem as suggested in the Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA case study. 6 Fedex can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. 6 Fedex 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, 6 Fedex can use these opportunities to build new business models that can help the communities that 6 Fedex operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA are -
Consumer confidence and its impact on 6 Fedex 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.
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 6 Fedex in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 6 Fedex 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.
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. 6 Fedex needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 6 Fedex with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– 6 Fedex 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.
Environmental challenges
– 6 Fedex 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. 6 Fedex can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
High dependence on third party suppliers
– 6 Fedex 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.
Shortening product life cycle
– it is one of the major threat that 6 Fedex is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. 6 Fedex can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 6 Fedex 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA .
Regulatory challenges
– 6 Fedex 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.
Weighted SWOT Analysis of Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 Enterprise-Wide Business-IT Engagement In An Empowered Business Environment: The Case Of FedEx Express EMEA 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 6 Fedex needs to make to build a sustainable competitive advantage.
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