Hanjin Heavy Ind. & Const. (97230) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Hanjin Heavy Ind. & Const. (South Korea)

Based on various researches at Oak Spring University , Hanjin Heavy Ind. & Const. is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, etc

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Introduction to SWOT Analysis of Hanjin Heavy Ind. & Const.

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hanjin Heavy Ind. & Const. can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hanjin Heavy Ind. & Const., and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hanjin Heavy Ind. & Const. 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Hanjin Heavy Ind. & Const. can be done for the following purposes –
1. Strategic planning of Hanjin Heavy Ind. & Const.
2. Improving business portfolio management of Hanjin Heavy Ind. & Const.
3. Assessing feasibility of the new initiative in South Korea
4. Making a Water Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hanjin Heavy Ind. & Const.

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Strengths of Hanjin Heavy Ind. & Const. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hanjin Heavy Ind. & Const. are -

Digital Transformation in Water Transportation industry

- digital transformation varies from industry to industry. For Hanjin Heavy Ind. & Const. digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hanjin Heavy Ind. & Const. 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.

Innovation driven organization

– Hanjin Heavy Ind. & Const. is one of the most innovative firm in Water Transportation sector.

Operational resilience

– The operational resilience strategy of Hanjin Heavy Ind. & Const. comprises – understanding the underlying the factors in the Water Transportation 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.

Ability to recruit top talent

– Hanjin Heavy Ind. & Const. is one of the leading players in the Water Transportation industry in South Korea. It is in a position to attract the best talent available in South Korea. The firm has a robust talent identification program that helps in identifying the brightest.

Strong track record of project management in the Water Transportation industry

– Hanjin Heavy Ind. & Const. is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to lead change in Water Transportation

– Hanjin Heavy Ind. & Const. is one of the leading players in the Water Transportation industry in South Korea. Over the years it has not only transformed the business landscape in the Water Transportation industry in South Korea but also across the existing markets. The ability to lead change has enabled Hanjin Heavy Ind. & Const. in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Hanjin Heavy Ind. & Const. has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Water Transportation industry. Secondly the value chain collaborators of Hanjin Heavy Ind. & Const. have helped the firm to develop new products and bring them quickly to the marketplace.

Analytics focus

– Hanjin Heavy Ind. & Const. 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 Water Transportation industry. The technology infrastructure of South Korea is also helping 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

– Hanjin Heavy Ind. & Const. has one of the best training and development program in Transportation industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Learning organization

- Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Hanjin Heavy Ind. & Const. emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

– Suppliers of Hanjin Heavy Ind. & Const. in the Transportation sector have low bargaining power. Hanjin Heavy Ind. & Const. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hanjin Heavy Ind. & Const. to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Hanjin Heavy Ind. & Const. in Water Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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Weaknesses of Hanjin Heavy Ind. & Const. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hanjin Heavy Ind. & Const. are -

Slow to strategic competitive environment developments

– As Hanjin Heavy Ind. & Const. is one of the leading players in the Water Transportation industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Water Transportation industry in last five years.

Employees’ less understanding of Hanjin Heavy Ind. & Const. strategy

– From the outside it seems that the employees of Hanjin Heavy Ind. & Const. 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 bargaining power of channel partners in Water Transportation industry

– because of the regulatory requirements in South Korea, Hanjin Heavy Ind. & Const. 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 Water Transportation industry.

Lack of clear differentiation of Hanjin Heavy Ind. & Const. products

– To increase the profitability and margins on the products, Hanjin Heavy Ind. & Const. needs to provide more differentiated products than what it is currently offering in the marketplace.

Need for greater diversity

– Hanjin Heavy Ind. & Const. 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 dependence on Hanjin Heavy Ind. & Const. ‘s star products

– The top 2 products and services of Hanjin Heavy Ind. & Const. still accounts for major business revenue. This dependence on star products in Water Transportation industry has resulted into insufficient focus on developing new products, even though Hanjin Heavy Ind. & Const. has relatively successful track record of launching new products.

Compensation and incentives

– The revenue per employee of Hanjin Heavy Ind. & Const. is just above the Water Transportation industry average. It 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.

Increasing silos among functional specialists

– The organizational structure of Hanjin Heavy Ind. & Const. is dominated by functional specialists. It is not different from other players in the Water Transportation industry, but Hanjin Heavy Ind. & Const. needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hanjin Heavy Ind. & Const. to focus more on services in the Water Transportation industry rather than just following the product oriented approach.

Products dominated business model

– Even though Hanjin Heavy Ind. & Const. has some of the most successful models in the Water Transportation industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Hanjin Heavy Ind. & Const. should strive to include more intangible value offerings along with its core products and services.

Interest costs

– Compare to the competition, Hanjin Heavy Ind. & Const. 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.

Capital Spending Reduction

– Even during the low interest decade, Hanjin Heavy Ind. & Const. 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 Water Transportation industry using digital technology.

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Hanjin Heavy Ind. & Const. Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Hanjin Heavy Ind. & Const. are -

Use of Bitcoin and other crypto currencies for transactions in Water Transportation industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hanjin Heavy Ind. & Const. in the Water Transportation industry. Now Hanjin Heavy Ind. & Const. can target international markets with far fewer capital restrictions requirements than the existing system.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Hanjin Heavy Ind. & Const. is facing challenges because of the dominance of functional experts in the organization. Hanjin Heavy Ind. & Const. can utilize new technology in the field of Water Transportation industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Using analytics as competitive advantage

– Hanjin Heavy Ind. & Const. has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Water Transportation sector. This continuous investment in analytics has enabled Hanjin Heavy Ind. & Const. to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hanjin Heavy Ind. & Const. to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Developing new processes and practices

– Hanjin Heavy Ind. & Const. can develop new processes and procedures in Water Transportation 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 Hanjin Heavy Ind. & Const. to increase its market reach. Hanjin Heavy Ind. & Const. 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.

Manufacturing automation

– Hanjin Heavy Ind. & Const. can use the latest technology developments to improve its manufacturing and designing process in Water Transportation sector. 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.

Learning at scale

– Online learning technologies has now opened space for Hanjin Heavy Ind. & Const. 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.

Buying journey improvements

– Hanjin Heavy Ind. & Const. can improve the customer journey of consumers in the Water Transportation industry by using analytics and artificial intelligence. It 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 Hanjin Heavy Ind. & Const. has opened avenues for new revenue streams for the organization in Water Transportation industry. This can help Hanjin Heavy Ind. & Const. to build a more holistic ecosystem for Hanjin Heavy Ind. & Const. products in the Water Transportation industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hanjin Heavy Ind. & Const. can use these opportunities to build new business models that can help the communities that Hanjin Heavy Ind. & Const. operates in. Secondly it can use opportunities from government spending in Water Transportation sector.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Hanjin Heavy Ind. & Const. can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hanjin Heavy Ind. & Const. 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.

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Threats Hanjin Heavy Ind. & Const. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Hanjin Heavy Ind. & Const. are -

Consumer confidence and its impact on Hanjin Heavy Ind. & Const. 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 Water Transportation industry and other sectors.

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. Hanjin Heavy Ind. & Const. needs to understand the core reasons impacting the Water Transportation industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Hanjin Heavy Ind. & Const. 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.

Environmental challenges

– Hanjin Heavy Ind. & Const. 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. Hanjin Heavy Ind. & Const. can take advantage of this fund but it will also bring new competitors in the Water Transportation industry.

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 Hanjin Heavy Ind. & Const. in the Water Transportation sector and impact the bottomline of the organization.

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.

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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Water Transportation industry are lowering. It can presents Hanjin Heavy Ind. & Const. with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Water Transportation sector.

Regulatory challenges

– Hanjin Heavy Ind. & Const. 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 Water Transportation industry regulations.

Easy access to finance

– Easy access to finance in Water Transportation industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const.

– 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 Hanjin Heavy Ind. & Const..

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 Hanjin Heavy Ind. & Const. business can come under increasing regulations regarding data privacy, data security, etc.

Shortening product life cycle

– it is one of the major threat that Hanjin Heavy Ind. & Const. is facing in Water Transportation sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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Weighted SWOT Analysis of Hanjin Heavy Ind. & Const. Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. needs to make to build a sustainable competitive advantage.

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