Based on various researches at Oak Spring University , ACS Actividades Construccion ADR is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, geopolitical disruptions, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , there is backlash against globalization, increasing energy prices, increasing commodity prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of ACS Actividades Construccion ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ACS Actividades Construccion ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ACS Actividades Construccion ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR can be done for the following purposes –
1. Strategic planning of ACS Actividades Construccion ADR
2. Improving business portfolio management of ACS Actividades Construccion ADR
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of ACS Actividades Construccion ADR
Strengths of ACS Actividades Construccion ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of ACS Actividades Construccion ADR are -
Analytics focus
– ACS Actividades Construccion ADR 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 of United States 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.
Learning organization
- ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at ACS Actividades Construccion ADR emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the industry
– ACS Actividades Construccion ADR is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of ACS Actividades Construccion ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– ACS Actividades Construccion ADR is present in almost all the verticals within the industry. This has provided ACS Actividades Construccion ADR 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.
Low bargaining power of suppliers
– Suppliers of ACS Actividades Construccion ADR in the sector have low bargaining power. ACS Actividades Construccion ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps ACS Actividades Construccion ADR to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– ACS Actividades Construccion ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled ACS Actividades Construccion ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– ACS Actividades Construccion ADR is one of the most innovative firm in sector.
Highly skilled collaborators
– ACS Actividades Construccion ADR has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of ACS Actividades Construccion ADR have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy of ACS Actividades Construccion ADR 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.
Ability to recruit top talent
– ACS Actividades Construccion ADR is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in
– ACS Actividades Construccion ADR is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled ACS Actividades Construccion ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of ACS Actividades Construccion ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ACS Actividades Construccion ADR are -
Aligning sales with marketing
– From the outside it seems that ACS Actividades Construccion ADR 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 at ACS Actividades Construccion ADR can leverage the sales team experience to cultivate customer relationships as ACS Actividades Construccion ADR is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of ACS Actividades Construccion ADR is dominated by functional specialists. It is not different from other players in the industry, but ACS Actividades Construccion ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help ACS Actividades Construccion ADR to focus more on services in the industry rather than just following the product oriented approach.
Products dominated business model
– Even though ACS Actividades Construccion ADR has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. ACS Actividades Construccion ADR should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee of ACS Actividades Construccion ADR is just above the 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.
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 ACS Actividades Construccion ADR supply chain. Even after few cautionary changes, ACS Actividades Construccion ADR is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left ACS Actividades Construccion ADR vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR ‘s star products
– The top 2 products and services of ACS Actividades Construccion ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though ACS Actividades Construccion ADR has relatively successful track record of launching new products.
High cash cycle compare to competitors
ACS Actividades Construccion ADR has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, ACS Actividades Construccion ADR is slow explore the new channels of communication. These new channels of communication can help ACS Actividades Construccion ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the industry, ACS Actividades Construccion ADR 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.
Interest costs
– Compare to the competition, ACS Actividades Construccion ADR 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.
ACS Actividades Construccion ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of ACS Actividades Construccion ADR are -
Low interest rates
– Even though inflation is raising its head in most developed economies, ACS Actividades Construccion ADR 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.
Learning at scale
– Online learning technologies has now opened space for ACS Actividades Construccion ADR 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– ACS Actividades Construccion ADR 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, ACS Actividades Construccion ADR is facing challenges because of the dominance of functional experts in the organization. ACS Actividades Construccion ADR can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– ACS Actividades Construccion ADR can use the latest technology developments to improve its manufacturing and designing process in 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, ACS Actividades Construccion ADR can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help ACS Actividades Construccion ADR to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of ACS Actividades Construccion ADR has opened avenues for new revenue streams for the organization in industry. This can help ACS Actividades Construccion ADR to build a more holistic ecosystem for ACS Actividades Construccion ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help ACS Actividades Construccion ADR to increase its market reach. ACS Actividades Construccion ADR 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.
Building a culture of innovation
– managers at ACS Actividades Construccion ADR 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 industry.
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. ACS Actividades Construccion ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– ACS Actividades Construccion ADR has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled ACS Actividades Construccion ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help ACS Actividades Construccion ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, ACS Actividades Construccion ADR can use these opportunities to build new business models that can help the communities that ACS Actividades Construccion ADR operates in. Secondly it can use opportunities from government spending in sector.
Threats ACS Actividades Construccion ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of ACS Actividades Construccion ADR are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, ACS Actividades Construccion ADR may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Environmental challenges
– ACS Actividades Construccion ADR 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. ACS Actividades Construccion ADR can take advantage of this fund but it will also bring new competitors in the industry.
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.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. ACS Actividades Construccion ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that ACS Actividades Construccion ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents ACS Actividades Construccion ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– ACS Actividades Construccion ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, ACS Actividades Construccion ADR needs to keep up with the evolution of technology in the sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. ACS Actividades Construccion ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Increasing wage structure of ACS Actividades Construccion ADR
– 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 ACS Actividades Construccion ADR.
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 ACS Actividades Construccion ADR business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– ACS Actividades Construccion ADR 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 industry.
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. ACS Actividades Construccion ADR 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.
High dependence on third party suppliers
– ACS Actividades Construccion ADR 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.
Weighted SWOT Analysis of ACS Actividades Construccion ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR 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 ACS Actividades Construccion ADR needs to make to build a sustainable competitive advantage.
