Dear Tutor,

Could you please help me with the following aspects?

I already have initial writing that require change or modification regards to question should be answered in paper --- (1) Conducting an environmental scan of an organization to result in an analysis of its strengths, weaknesses, opportunities and threats (SWOT) (2) Summarize how a company applies research methods to solve problems within the organization -explain how research method can assist in solving company problems through the use of a SWOT analysis

 

I already have the report with articles

 

Please see the attachment(Note: This report in background is talking about Burger King, but want Sprint Corporation or Boston Consulting Group, all articles are located at the bottom)

Introduction

A SWOT analysis is an organizational plan used to determine the strengths, weaknesses, opportunities, and threats for a particular company or organization.  A SWOT analysis is typically used when an organization is involved in a new project or business venture.  It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.  There are four elements that go into making up a SWOT analysis.  They are  included strengths, weaknesses, opportunities, and threats.  The strength element is described as the characteristics of the business or organization that give it a competitive advantage over others.  The weakness element is described as the characteristics that place the team at a disadvantage relative to others.  The third element is opportunities, which labeled as the external chances to improve performance in the environment.  The fourth and final element is perceived threats.  Threats are external elements in the environment that could cause trouble for the business or organization.

The four elements of the SWOT analysis are broken into two main categories, internal and external.  The first category is internal.  The internal factors of the SWOT analysis are the strengths and weaknesses of a company or organization.  The external factors of the SWOT analysis are the opportunities and threats presented by the external environment to the organization.  These categories determine whether an issue affects the organization internally or externally.

The pros and cons of SWOT analyses vary.  Two of the main benefits of a SWOT analysis are its simplicity and flexibility.  SWOT analyses are not very difficult to integrate into a company’s present business model.  They are very flexible with incorporating new and recent information.  Although there are benefits to SWOT analyses, there are several drawbacks.  They include only being able to determine a SWOT analysis on one specific task rather than many tasks.  The next drawback is lack of prioritization of factors.  SWOT analyses don’t allow you prioritize factors from most important to less important.  This could have a major impact on what can get done first.  The final drawback of a SWOT analysis is the length of factors that go into the analysis.  These several factors make up pros and cons of conducting a SWOT analysis.

Although there are many pros and cons with constructing a SWOT analysis, they are really important to the field of public relations.  Specifically, the strength element of the SWOT analysis is useful in public relations because it can provide a listing of communication resources, capabilities, and positive assets that can be used to give an organization a competitive advantage.  The weakness element of public relations would be the lack of strengths.  These weaknesses could include poor reception among customers, low capability to react quickly to community situations, and no crisis management or communications plans.  The opportunity element suggest that public relation practitioners can use the SWOT analysis to appeal to unfulfilled public needs, they can establish new communication outlets, and make changes to procedures and regulatory setbacks.  Finally, threats in a SWOT analysis that are useful in public relations include hostile media practices, predisposed attitudes of important publics to certain issues, and increased barriers to communication.

Organizational Backgrou

 (Dear Tutor,  I want have changed the Company. I do not want the Burger King , I want Spring Corporation  or Boston Consulting Group) 

I have chosen to analyze the recent public relations problems at Burger King.  Arguably one of the most popular fast food restaurants in the world, Burger King has been serving up burgers and french fries for nearly 60 years.  The first BK store open in Jacksonville, Florida in 1953.  Since then, Burger King has competed for the top spot in fast food.  Headquartered in Miami, Florida, Burger King’s global reach spans over 70 countries with more than 12,000 outlets.  There are more than 34,000 employees under the direction of CEO Bernard Hees.  Revenue for Burger King exceeds 2.33 billion dollars annually.  At least 90 percent of Burger King franchises are privately owned and operated.  The famous fast food restaurant is known for is flame broiled whopper which made its debut in 1957.

I have decided to focus my SWOT analysis on Burger King.  Over the last seven days, Burger King has come under fire for producing a commercial advertising their new crispy chicken snack wrap.  The problem with the commercial is that R&B superstar Mary J. Blige, an African American woman is singing the lyrics to the commercial jingle.  The public relations problem surfaced late last week when an active blogger published a story saying “this harmonizing about chicken is a move I would associate with someone whose glory days were far behind them,” she goes on to say, “a black woman singing passionately about chicken is not the move!”  

I thought this story was extremely relevant as a public relations problem for Mary J. Blige, but really a public relations problem for Burger King.  I chose to examine Burger King based on their response to the matter and because as an African American male, I would like weigh in on what I feel Burger King could do to get name and brand back in good graces.    

Organizational Strengths

As the seventh largest food chain in the world, Burger King has plenty on strengths when it comes to the restaurant business.  One of the major strengths is being so geographically diverse.  As a company with more than 12,000 locations worldwide, Burger King has become a globally recognized brand known for its crispy french fries and juicy whoppers.  Another strength for BK is its established market share.  Burger King is second to McDonald’s when it comes to market share.  The company boosts a 15 percent share in the United States market with a profitability of 354 million dollars. 

Organizational Weaknesses

Burger King also has many weaknesses to worry about.  One of the major weaknesses would be the company’s heavy concentration in the United States.  As must as 65 percent of operations are run in the United States compared to McDonald’s 44 percent.  Many companies profit more when businesses are geographically spread around the world.  Another weakness would be not having enough corporately owned stores means it relies on franchisees to execute its brand promise.  More than 90 percent of Burger King franchises are privately owned which mean corporate executives can say very little to the owners.   The last weakness I will describe does of course come with the territory, healthy foods.  With any fast food restaurant comes the notion that Burger King must transition into leaner and healthier foods.  This is something the company has been slow to do.  Burger King compared to its competitors McDonald’s, Wendy’s and Subway which all offer healthy alternatives to burgers and fries.  

Organizational Opportunities

With its strengths and weaknesses comes the opportunity to improve Burger King’s image.  One of the opportunities available to Burger King is to improve menu for their morning customers.  Over the last several years, Burger King has been in the process of overhauling its breakfast menu.  In the process, they have worked with Starbucks to introduce that brand’s famed Seattle’s Best to all of its United States restaurants.  Burger King has also begun to add healthier food choices to their lunch time menus.  For example, Burger King launched a “cheat on beef” campaign to advertise its new chicken burger.  This allowed Burger King to advertise its new burger while not getting rid of a favorite.  One of my favorite initiatives which has goes along with the current public relations issue with Mary J. Blige is Burger King’s commitment to strengthen its standing in the African American community.  Burger King has established the “next best move” promotion which is a healthy marketing campaign targeted to the black community in the United States.

Organizational Threats

 Some of the perceived external threats for the company include it steady unrest with franchisees.  A new initiative in 2009 caused friction between Burger King store owners and corporate owners.  The corporate owners wanted to compete with other fast food chains by offering cheeseburgers for one dollar.  Most franchise owners were against that promotion.  This friction with both owners doesn’t allow for consistent pricing for customers which could cause them to go to other restaurants.  Another perceived threat would be the slowly recovering economy.  Burger King has not fared as nicely as McDonald’s, its closest competitor during the recent downfall of the economy.  While McDonald’s has either kept profits consistent or even increase profit in the last four years, Burger King has seen a decline in stock prices.

Along with falling stock prices and friction among franchisees, Burger King has also had to deal with the ever-changing eating habits of its patrons.  Consumers are starting to eat healthier foods which can steer business away from the already struggling fast food chain.  According to fast food survey, sales were down nearly five percent for the target demographic of 18 to 24 year olds.  The young demographic is opting for healthier choices when it comes to fast food consumption.  Last but not least, the increasing labor cost at Burger King restaurants is putting pressure on profit margins.  These organizational threats are things that can be worked on but will take some time.      

 

Action Plan

With any SWOT analysis, an action plan should be implemented.  As a a high power public relations expert, one of the first things I would recommend to Burger King is to explore expanding around the world.  I think in order to compete with the likes of McDonald’s and Subway, Burger King must expand more internationally.  Although there are hundreds of Burger King restaurants aboard, McDonald’s and Subway restaurants stretch into the thousands.  This would allow for greater exposure as well as expanding profit margins.  Another solution to the SWOT analysis is offering healthy food alternatives for their target demographic.  Eighteen to thirty-four year olds are now looking to increase their healthy food intake.  Like McDonald’s, Burger King should use their platform to advertise healthier items including salads, yogurts, and fruits.  

Another part of the action plan should be for Burger King to continue to overhaul its breakfast menu.  Like Subway, Burger King should offer healthy alternatives for its breakfast menu.  I think this would help bringing in its target demographic.  With the help of Starbucks, Burger King is already becoming known for its coffee.  Adding donuts, bagels, and fruit salads to its breakfast menu would only establish a healthier brand name.  

Another issue the company is currently facing is price negotiations with its franchisees.  I think in order to keep a positive relationship with their partners; Burger King must be willing to cut prices.  Doing this, would allow corporate partners to have a little more leeway in setting consistent prices among stores worldwide.  The final solution I think would be good for Burger King is to continue to support and advertise to its African American demographic.  I chose Burger King for my SWOT analysis because the recent controversy surrounding R&B singer Mary J. Blige singing about crispy, fried chicken snack wraps.  As a black male, I wasn’t offended by the commercial but I was shocked at the response Burger King initially released to the media.  Their first response was they accidently released an unfinished commercial.  Well when that excuse didn’t work, they finally apologized for the controversy the video may have caused and pulled it from the airways.  As a public relations expert, I would have immediately pulled the ad, apologized to the publics that were offended and made a donation to a charity that directly worked with the African American community.  In a time where racial relations are really high, Burger King should have been sensitive to putting out a commercial that could be seen as racial insensitive.  As the PR professional, I would encourage Burger King to continue donating and advertising to the black community so that they don’t feel left and deserted. 

Conclusion

In this SWOT analysis I learned a little bit more about Burger King and why they recently fell to the number three fast food restaurant in the world.  Burger King must learn that people are starting to run toward healthier food options.  Restaurants like McDonald’s and Wendy’s have realized that flavorful salads, fresh fruits, and leaner sandwiches and burgers are what people want.  It is up to Burger King to keep up with that demographic or they will choose to go elsewhere.  I also learned that in order to stay profitable they corporate partners must get along with the franchisees.  Neither business would be able to function without the other.  Last but not least, I learned the companies must be accountable for the media and commercials they advertise.  Burger King’s name would not be in the headlines if they alert and aware of the controversy of a black woman singing about chicken would do to their brand.



References

Burger King SWOT. (2012). Retrieved April 9, 2012, from Marketing Teacher LTD: http://www.marketingteacher.com/swot/burger-king-swot.html

 

Little, L. (2012, April 5). Burger King Apologizes for Mary J. Blige Chicken Ad. Retrieved April 6, 2012, from Wall Street Journal: www.wsj.com

 

News, A. (2012, April 5). Mary J. Blige: Burger King Ad was Unfinished. Retrieved April 5 , 2012, from ABC News: www.abcnews.com

 

Stone, R. (2012, April 4). Burger King Pulls Controversial Mary J. Blige Ad. Retrieved April 4, 2012, from Rolling Stone: www.rollingstone.com

 

The History of Burger King. (2012). Retrieved April 9, 2012, from Burger King: www.bk.com

 

Article

“SWOT” Tactics

Basics for Strategic Planning

By Randy Garner, Ph.D.

 

Often considered a daunting task filled with such complicated procedures and terms that it makes some want to ignore the activity altogether, strategic planning need not be an overly complicated process. Instead, managers can view it as simply considering where their organizations are—or should be—going over the next year or more and how they will get there. As it relates to law enforcement agencies, a strategic plan is the

product of a leadership process that helps departments better focus their energies and resources to ensure that all members work toward the same goal. The entire strategic planning process may take many forms and follow a variety of paths. At some point in the process, however, planners will identify or update the strategic philosophy. This may

include a mission, vision, or value statement—or some combination. While each has similarities, some general distinctions exist. Typically, a mission statement is a brief description of the intent of the organization, an expression of the agency’s unique reason for existence usually contained in a formal statement of purpose. A vision statement, which many agencies increasingly use, offers a vivid image of the desired future. It compellingly describes how the department will or should operate at some point in the future and how customers benefit from its services. A value statement often

lists the overall priorities of how the organization will operate. It may focus on moral values, such as integrity, honesty, and respect, or operational values, such as efficiency or effectiveness. This also may include an agency’s core values or principles that describe how it should conduct itself in carrying out its mission.

 

 

THE PROCESS

Four basic questions comprise the essence of the strategic planning process: 1) Where is the organization now? 2) Where does it want to be? 3) How will it get there? and 4) How does it measure its progress? While a number of terms are associated with this process, departments should focus only on what works for them. Some agencies have separate mission, vision, and value statements; others combine them. Some organizations create strategic goals, strategies, objectives, and tactics; others merely offer an identified goal and the objectives to reach it. Some review and update their

current mission or vision statements before doing an analysis of their environments; others examine their mission statements after completing an assessment. More important than any particular order is examining all aspects of the agency and the

environment it operates in while remaining flexible enough to make adjustments as needed. 

 

Regardless of the terms or order used, getting started remains one of the most important parts of the strategic planning process. It is akin to pushing a car: the greatest difficulty lies in getting it rolling; after that, the task becomes easier. Departments should not get lost in the search for the perfect method or approach; it does not exist. Rather, they should start with the basic questions and move forward, not getting sidetracked by “analysis paralysis” wherein they overly obsess about getting everything just right or worrying about “neatness” in the beginning. They should concentrate on just getting the process started. Generally, agencies should consider three main tasks when working on a strategic plan. The first, strategic analysis, is a review of the organization’s environment, both internal and external. The next, strategic direction, involves what the department must do as a result of the major issues and opportunities that it may face.

Finally, action planning deals with explaining how the agency will accomplish its strategic goals. Each component is important in creating the overall plan.

 

Strategic Analysis:

“SWOT” Tactics

Not surprisingly, for an organization to determine where it wants to go in the future, it must assess where it is now. In this part of the strategic planning process, law enforcement administrators can call on the “SWOT” team for help. Simply put, this acronym stands for assessing an agency’s strengths, weaknesses, opportunities, and threats, a critical phase in the general planning process as it helps determine exactly where the agency is and what resources it may or may not have. Strength assessment identifies what the department tends to do well and can include a skilled, professional staff and a modern, well-equipped facility. Weaknesses denote what the agency may not do so well or what diminishes its effectiveness. Inadequate financial

resources may fit into this category. Opportunities reflect what the organization might seize upon to do better. This area could include increasing community interactions and taking advantage of particular grants. Finally, threats are environmental factors that may hinder performance. Examples could include a rising demand for service or increased legislative mandates that can impact resources. Managers should consider “SWOT”

analysis for issues both external to the agency, such as population growth and increased industrialization, and internal to it, such as an aging workforce that might

result in excessive turnover or competing priorities for resources. “SWOT” analysis constitutes one of the most important aspects in the overall strategic planning process.

 

Strategic Direction:

SMARTER Goals

To move from an assessment of where it is to a plan for where it wants to be, a law enforcement agency must articulate particular strategies and identify strategic goals. When considering goals, a department can use the acronym SMARTER to create specific, measurable, acceptable, realistic, and timely goals that extend the capabilities of those working to achieve them while being rewarding for the organization and its members. An organization should make its goals as specific as possible so as not to cover too broad an area or to require completing a large number of steps or satisfying

a vast array of objectives. Usually easier to assess for success, specific goals lend themselves to helping an agency determine if it has accomplished them. Those charged with carrying out the goals must find them acceptable and realistic in scope. “Pie in the sky” ideas or goals that have no reasonable chance of success do not help the organization or the individuals who must work toward a goal’s completion. Some, believing that they are providing challenging direction to an agency, may set such lofty or demanding goals that no one possibly can satisfy them and, thus, predestine the organization to fail—exactly the opposite of the intended effect. Timely goals identify a

specific issue that a department can accomplish in a reasonably appropriate time

frame. Additionally, an agency should avoid overly simplistic, easy, or obvious goals. Instead, goals should challenge the organization within its limits and extend the capabilities of those working to achieve them. Careful consideration in goal creation can lead to renewed enthusiasm for the agency and its mission.

Strategic Success:

Action Planning

Once a department has assessed the environment (“SWOT” tactics) and arrived at a set of (SMARTER) goals, it must place the strategic plan into action. One of the biggest problems in strategic planning (after giving up on trying to find the “perfect way”) is not following the steps to implement the plan. It does little good to spend the time and energy identifying where the organization is and determining where it wants to be to then let the whole thing stagnate for a lack of action. In fact, strong leadership at this critical stage often proves key to successfully implementing a strategic plan. An action plan simply sets forth the goals, specifies the set of objectives needed to reach them, and identifies the responsible entity for accomplishing each one and in what time frame. This process ensures that the hard work of developing the strategic plan will become more than an exercise of enumerating “dreams.” The difference between a wish and a goal is the initiation of an action plan that specifically outlines the responsibilities for success.

CONCLUSION

The purpose of strategic planning is to help a law enforcement agency better recognize

where it is, where it wants to go, and how it can best get there. Although different departments use varying terms, they should focus on the creation of a thoughtful

plan to achieve growth and success. This need not be an overly difficult task. As the saying goes, “if you fail to plan, you plan to fail.” This proves particularly true in organizations that may face numerous challenges and competing priorities. The law enforcement profession cannot afford to practice “pinball leadership,” getting bounced

around by every unexpected event. Instead, leaders must plan proactively to create a future that encompasses the vision they desire and the plan required to achieve its success.

 

2. Articles

Adams, J. (2005). Analyze your Company Using SWOTs. Supply House Times, 48(7). 26-28

Strengths, Weaknesses, Opportunities and Threats) are an important management consulting concept. Consultants

use SWOTs to help a company see itself," for better and for worse, companies are inherently insular and inking. SWOTs are a means by ompany can better understand docs very well and where its Ttcomings are. SWOTs wilt help the company size up

the competitive landscape and get some insight into the vagaries of the marketplace. SWOTs are not suited for helping executives in their day-to-day management - yet, every company should go through the SWOTs exercise at least once a year. This is one time where I will strongly suggest you bring an outside consultant in to help you. It is just about impossible to do your own assessment. That'sbecauseyouand your team all have prejudices, feelings, and history with the company, personal experiences that will color your view and thus give you a less than true SWOTs' asse.ssment. Why do a SWOT analysis? The world changes - and so must your company. In order to make good changes, you must bave a clear idea of where you are strong and weak, as well as see the possibilities for growth and whatever tnarket pitfalls are lurking out there. After doing SWOTs, you can develop a solid business plan, a plan based on reality. In short order, you will have a good idea of what you have to do to continue your success. This assessment will help you defme areas for improvement, seize opportunities in the marketplace and anticipate threats. Think

about it - how can you possibly capitalize on your strengths and the current opportunities if you don't know what they arc? Similarly, how can you .shore up your weaknesses and prepare for changes in the marketplace if you don't know what

they are?

 

You probably think you know your company pretty well. And you do - in a day-to-day kind of way. Using SWOTs,

you will see where your company needs to go a year from now.

 

BREAKING DOWN SWOTS

• STRENGTHS arc INTERNAL to your company. These are things you control, things you own - patents, brand names, great location, a brilliant CEO, great product development, a "culture" of service. These are all strengths.

 

• WEAKNESSES are INTERNAL to your company. Weaknesses arc also under your controi - a terrible reputation, no

management succession plan, old inventory, obsolete technology, bad quality control. These are all things you

could improve but haven't. Thus, these arc weaknesses.

 

Strengths aren't forever. Over time,

strengths can suddenly turn into

weaknesses. Having an extremely well

known brand is great - until something

goes terribly wrong and that brand

becomes synonymous with failure (think

Enron or Edsel). Building the best

product or offering the best .service is a

strength - until the day conies that those

products (think typewriters, turntables,

horse buggies) or that service (think milk

delivery, armor repair, horse shoeing)

have become obsolete.

 

• OPPORTUNITIES are EXTERNAL

to your company - a growing economy,

reduced trade barriers, falling exchange

rates, and new technology.

 

• THREATS are also EXTERNAL -

rising oii prices, terrorist attacks, and

government regulations.

Opportunities for some are threats to

others. Rising oil prices in the i970s were

a huge opportunity for Japanese

cartnakcrs to enter the U.S. market. Those

same high prices hurt the Big Three badly.

Let's take a company we all know and

do a SWOTs analysis - Dell Computer.

Dell doesn't have an R&iD lab. They don't

have patents on software or hardware.

Their products arc not "unique." Yet,

today. Dell is wildly successful.

SWhat are Dell's

strengths?

Dell has a brilliant supply chain

management.

Dell has NO stores, giving them a huge

cost advantage.

Dell has great name recognition, and

low prices.

WWhat are Dell's

weaknesses?

Dell doesn't have any proprietary

technology.

The company has no physical locations

for returns, service, or repairs.

Dell sells computers and peripherals,

which involve complex technologies.

oWhat are Dell's opportunities? 

Dell can use ils supply chain expertise

with other products.

26 SUPPLY HOUSE TIMES, September 2005

Polished

 

Dell can readily partner with another company (Apple, Wal-Mart, etc.). Dell can add high value services to its product mix.

TWhat are Dell's threats?

Foreign manufacturers can still undercut Dell's prices. Shipping costs could hurt the price advantage. C'omputers are rapidly becoming commodities. I laving no stores is a strength for Dell, but it is also a weakness - customers have no place to "bring" tbeir computer for service and repair. Computers are becoming so complex that buyers may no longer want to buy online. We want someone (think Best Buy's "Geek Squad") to come to our home to set it up. There could be an opportunity

in there - or a threat.

 

SWOTS FOR A PVF SUPPLY HOUSE

Excellent Supply House has been an industrial supplier of PVF for 35 years. They do about $40 million in revenue and

are located in the Northeast. They have good relationships with their suppliers. They have a great order book full of repeat

customers, most of which are within 150 miles of the warehouse. Over the last few years revenues have been stable. Sales for

2004 were $38 million, the ftrst drop in sales ever. Here are the SWOTs for the Excellent

Supply House:

 

• STRENGTHS:

Excellent has a great sales force, with

excellent product knowledge.

Excellent bas good long-term relationships

with key suppliers.

Excellent can deliver most orders in 24

hours.

• WEAKNESSES

Excellent has not bougbt into IT. They

are drowning in paperwork.

Excellent has no market reach past

150 miles.

Excellent's marketing is weak. Sales to

"new" customers are low.

• OPPORTUNITIES

PVF services (managed inventory, etc.)

are becoming a bigger part of the market.

Creaky infrastructure needs to be

replaced throughout the East Coast.

Partnerships are available with the rigbt

mechanical contractors, municipalities, etc.

• THREATS

There's a huge consolidation going on in

the industrial PVF realm. Some supply

houses supply Fortune 500 companies

nationwide.

New materials and new vendors are

coming into the market.

Costs are rising and commoditization

increasing.

Do these things sound familiar?

Set aside a half-day meeting. Bring in the

consultant, your salespeople, warehouse

manager, other key associates, and go

through the exercise. The purpose of

uncovering these Strengths, Weakness,

Opportunities and Threats is to create an

action plan. And never, ever get

complacent. Make tbis exercise a habit.  

3. Article

The Boston Consulting Group

Company Overview

SWOT ANALYSIS

The Boston Consulting Group (BCG or "the company") is a global management consulting company

and a leading advisor on business strategy.The company's strong acceptance as a strategy consulting

brand differentiates it from many of its peers and equips BCG with competitive traction. However,

intense competition in the marketplace may negatively impact BCG's growth in market share and

margins.

 

 

 Strengths

Established brand image in the strategy 

consulting domain 

Broad portfolio of solutions for multiple

industry sectors

Diversified customer base

Weaknesses 

 Lack of scale as compared to peers

 

  

Opportunities

Positive outlook for the management and 

marketing consulting market 

Growth in the non-IT end markets drives 

demand for consulting services Threats 

 Intense competition

Prolonged recovery of European economy

 could impact demand

Emergence of in-house consulting units

 

 

 

 

Opportunities Threats

Positive outlook for the management and Intense competition

marketing consulting market Prolonged recovery of European economy

Growth in the non-IT end markets drives could impact demand

demand for consulting services Emergence of in-house consulting units

Strengths

Established brand image in the strategy consulting domain

BCG, over the years has cultivated and built up a reputation for itself and a corporate brand which

has become almost synonymous to strategy consulting. In the process, BCG has pioneered some

path breaking ideas and concepts in the strategy consulting domain that provided innovative

frameworks and solutions to address the needs and problems of business community.The company's

focus on conceptual, strategic thinking has yielded many concepts that went on to become classics

of strategy, and resulted into many academic constructs, tools and methodologies. It pioneered the

growth share matrix/BCG Matrix model which was one of the famous concepts in resource allocation

strategy and was the basis for origin of further models.The company also formulated many concepts,

including the experience curve, time-based competition, sustainable growth, and total shareholder

value, which many organizations have leveraged to improve their competitive positions. Most of

BCG's models are regarded as benchmarks in strategic management and business consulting areas.

The strong acceptance of BCG as a strategy consulting brand differentiates it from many of its peers

and equips the company with competitive traction.

The Boston Consulting Group Page 4

© MarketLine

The Boston Consulting Group

SWOT Analysis

Broad portfolio of solutions for multiple industry sectors

BCG has developed broad expertise in offering services for various industry verticals, including

automotive; biopharmaceuticals; consumer products; energy and environment; engineered products

and infrastructure; financial institutions; hardware and software; health care payers and providers;

insurance; media and entertainment; medical devices and technology; metals and mining; private

equity; process industries; public sector; retail; social impact; telecommunications; and transportation,

travel and tourism. Moreover, the company offers strategic business consulting services in several

areas, including corporate development; corporate finance; digital economy; globalization; growth;

innovation; management in a two-speed economy; marketing and sales; operations; people and

organization; postmerger integration; risk management; strategy; sustainability; technology; turnaround

and transformation and large scale change. Furthermore, the company has established a wide

geographic presence, with 82 offices in 46 countries. The company's expertise across multiple

sectors and industries coupled with the robust geographic spread enables it to keep its business

sustenance at high levels.

Diversified customer base

The company serves large organizations in both private and public sectors. A majority of the

company's clients rank among the world's 500 largest corporations around the world. BCG also

advises midsized businesses, nonprofit organizations, and government agencies. Some of the

company's clients include World Food Programme, Dresdner Bank, Telefonica O2 UK, Fondazione

Palazzo Strozzi, Allianz Germany, News International and Ullens Center for Contemporary Art,

among others. Strong customer base not only ensures steady revenues for the company but also

adds to its brand image in a highly competitive market and thereby enabling it to attract high value

clients.

Weaknesses

Lack of scale as compared to peers

The company lacks scale when compared to its peers in the consulting industry. Many of its

competitors, such as Deloitte, Accenture and Ernst & Young, have substantially greater financial

and other resources than the company. For instance, the company's competitor Deloitte reported

revenues of $34.2 billion in for the year ended May 2014. Also Accenture, another competitor of the

company reported revenues of $31.9 billion during the financial year ended August 2014. In

comparison, the company reported revenues of $4,550 million in FY2014. Large scale enables these

competitors to leverage on their facilities and resources to achieve operating efficiency.The company

stands to lose out often in bidding for larger projects and assignments due to its lower scale which

also impacts its operating efficiency significantly.

Opportunities

The Boston Consulting Group Page 5

© MarketLine

The Boston Consulting Group

SWOT Analysis

Positive outlook for the management and marketing consulting market

The management and marketing consulting market witnessed a strong growth in the recent past

and is expected to grow in the near future. According to MarketLine (a unit of Informa), the US

management and marketing consulting market is expected to grow at a compound annual growth

rate (CAGR) of 7.4% during 2014-19 from $141,038.1 million in 2014 to $201,802.3 million in 2019.

Comparatively, the European and Asia-Pacific markets are projected to grow with CAGRs of 4.2%

and 3.8% respectively, over the same period, to reach respective values of $152.6 billion and $38.5

billion in 2019.

BCG is one of the leading management and marketing consulting company. The company offers

management consulting services and business advisory services across various industries. Its

marketing and sales consulting services include brand strategy, marketing, sales and channels,

pricing, go-to-market strategy, and the consumer and customer insight. The positive outlook of the

management and marketing consulting market offers ample growth opportunities to the company.

Growth in the non-IT end markets drives demand for consulting services

Some of the non IT end markets of the company have been growing over the past few years.

Moreover, markets including the healthcare, oil and gas and the pharmaceutical markets are forecast

to show a steady growth in the medium term. According to MarketLine (a unit of Informa) the global

healthcare providers market is expected to increase from $7,542.5 billion in 2014 to $9,608.5 billion

in 2018 growing at a CAGR of % for 2014-18 periods. BCG conducts research and analysis across

a range of industries, including biopharmaceuticals, energy and environment, and health care payers

and providers, among others. Positive growth in such end markets will result in the origin of new

projects, thereby creating the demand for the company's consulting services.

Threats

Intense competition

BCG operates in a highly competitive consultancy business and requires product and solution

innovation on a regular basis to create and maintain competitive edge.The company faces competition

from other large players in the consultancy market such as McKinsey, Accenture, Deloitte Consulting,

Booz Allen, and Ernst & Young International. BCG also faces competition from companies that

originated in the strategic consulting environment such as Bain, firms with core competence in IT

solutions such as IBM, Capgemini, Hewlett Packard, and Infosys entered and extended their presence

in the consulting industry, bringing a new breed of innovations and solution design, allowing other

smaller IT companies to do the same. This trend may put pressure on the margins of mainstream

consultancy firms such as BCG. Intense competition in the marketplace may negatively impact

BCG's growth in market share and margins.

Prolonged recovery of European economy could impact demand

The Boston Consulting Group Page 6

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The Boston Consulting Group

SWOT Analysis

Due to the current economic downturn, global recession is accelerating, with unemployment rising

and overall economic activity falling. European regions are facing an economic slowdown in addition

to the rise in inflation due to the current debt crisis. According to IMF, the growth in the Euro area

is projected to remain weak and fragile as high debt and financial fragmentation hold back domestic

demand. Moreover, the Euro area still faces downside risks from low inflation and the possibility of

protracted low growth. The gross domestic product (GDP) in Euro area is expected to be sluggish

at 1.3% in 2015. Similarly, Greece recorded a sluggish growth of 0.4% in 2014 and is expected to

remain weak due to debt crisis. The weak economic outlook in key European markets is expected

to impact the growth of the company and negatively affect its financial position.

Emergence of in-house consulting units

In the recent years, there has been a global trend to entrust corporate in-house consulting units with

core management consultancy tasks. Following the global recession, several companies around

the world have focused on cost reduction activities, which resulted in the emergence of these in-house

consulting units. In-house consulting has established itself as an alternative to external management

consultancies. These units are organized as independent subsidiaries or as corporate service units

in large companies globally. In-house consulting is growing and consequently, the demand for internal

consultants has grown in strategic and operational projects. In addition, in-house consulting units

are expected to have several advantages as compared to external consulting firms. For instance,

the consultants within these units would be familiar with the company and its processes and are

well-connected internally. This is expected to ensure quick solutions geared towards the company's

needs.

Emergence of these in-house consulting units could impact the consulting industry and reduce the

demand for BCG's products and services in coming years.

The Boston Consulting Group Page 7

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The Boston Consulting Group

SWOT Analysis

 

4. Article

Sprint Corporation

Company Overview

Sprint Corporation (Sprint or “the company”) is a communications services company engaged in

offering a range of wireless and wireline communications products and services to consumers,

businesses, government subscribers and resellers.The company primarily operates in the US where

it is headquartered in Overland Park, Kansas and employed about 31,000 people as on March 31,

2015.

The company recorded revenues* of $34,532 million during the financial year ended March 2015

(FY2015). The operating loss of the company was $1,895 million in FY2015. Its net loss was $3,345

million in FY2015.

*Sprint Corporation is a successor company to Sprint Nextel Corporation (predecessor).The company

merged with SoftBank in 2013. In order to align with SoftBank’s reporting schedule, the company

changed its fiscal year end to March 31. As a result of financial transactions at the time of SoftBank

merger, the financial results of the predecessor are different from the successor. Therefore, they

are not comparable. The revenues covered in this report are of the successor company.

KEY FACTS

Head Office Sprint Corporation

6200 Sprint Parkway

Overland Park

Kansas

USA

Phone 1 855 848 3280

Fax

Web Address http://www.sprint.com

Revenue / turnover 34,532.0

(USD Mn)

Financial Year End December

Employees 31,000

New York Ticker S

 

SWOT ANALYSIS

Sprint Corporation (Sprint or “the company”) is a communications services company engaged in

offering a range of wireless and wireline communications products and services to consumers,

businesses, government subscribers and resellers. Sprint is the third largest telecom provider in the

US with large subscriber base, network and spectrum, which will enable it to tap into the emerging

opportunities. However, the impending saturation and limited availability of spectrum will impact

Sprint's growth prospects.

Strengths Weaknesses

Third largest telecom provider in the US Delayed foray into 4G LTE services

Sprint's acquisition by SoftBank High debt

Declining ARPU

Opportunities Threats

Network modernization High penetration rates and increased churn

Strong outlook for high-bandwidth mobile in wireless segment

 communications Intense competition in the wireless telecom

Rising demand for the smartphones and the market

tablets Changes in regulations may affect business

prospects

 

Strengths

Third largest telecom provider in the US

Sprint enjoys significant market position in the US telecom market. The company is the third largest

wireless communication provider in the US market based on wireless revenue.The company is also

one of the largest providers of wireline long distance services, and one of the largest internet carriers

in the US.While its competitors AT&T and Verizon are considerably large companies, Sprint although

significantly smaller in size has a large addressable market. The company by the end of FY2015

had 57.1 million wireless subscribers of which 30.1 million were postpaid, 16.1 million were prepaid

subscribers, and 11 million were wholesale and affiliates subscribers. The company is also among

the few telecom companies that enjoy a nationwide wireless network. The company was able to

maintain the nationwide reach by not only operating its own digital network but also by entering into

commercial agreements with third party affiliates. Additionally to enhance its reach, Sprint offers

roaming on other providers' networks.

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Sprint Corporation

SWOT Analysis

Moreover, the company owns Clearwire, which offer fourth generation (4G) worldwide interoperability

for microwave access (WiMAX) services in certain markets in the US.The company also has access

to spectrum licenses across the US.The company holds 800 megahertz (MHz), 1.9 gigahertz (GHz)

and 2.5 GHz licenses authorizing the use of radio frequency spectrum to deploy its wireless services.

Despite disadvantages associated with size and scale, Sprint with its large addressable subscriber

base, spectrum and nationwide network reach is equipped to leverage these factors to defend its

market position. Additionally, the company has a strong base to implement new strategies to enhance

revenues and profitability. Its large subscriber base, network and spectrum will enable Sprint to tap

into the emerging opportunities.

Sprint's acquisition by SoftBank

In 2013, SoftBank, a Japanese telecommunications and internet company, invested $22.2 billion in

Sprint for an 80% stake in the company. The acquisition strengthened Sprint's balance sheet and

provided capital for continued investment in the modernization of its network, which would allow

Sprint to upgrade its technology, expand its service offerings and improve the quality and reliability

of its product offerings. It also allowed Sprint to leverage SoftBank's operational and technological

expertise in smartphones and next-generation mobile networks to enhance its competitiveness in

the US. Furthermore, the new combined entity is well positioned to leverage its size to procure

equipment and phones at favorable prices. The size also allows the company to favorably negotiate

better terms with original equipment manufacturers (OEMs) such as Apple, and cross-pollinate best

practices. SoftBank acquisition positioned the company as a stronger player in the US

telecommunications industry, enabling it to add new customers and enhance its market share.

Further, SoftBank's investment is expected to enable Sprint to benefit from SoftBank's leadership

in LTE and improve the operating scale and create opportunities for collaborative innovation in

consumer services and applications.

Weaknesses

Delayed foray into 4G LTE services

Sprint is lagging behind its peers in the 4G LTE roll out. The latest LTE based 4G technology was

utilized by the telecom industry from FY2010 onwards. Verizon was the first player to offer the 4G

LTE market in 2010 followed by AT&T and consequently these companies have a significant lead.

They have built a strong presence across the US and Sprint Nextel is lagging behind, being a late

entrant.The company will face an uphill task while trying to acquire customers for its 4G LTE services.

High debt

The company is highly leveraged. At the end of FY2015, the company’s consolidated principal

amount of indebtedness was $32.7 billion, and had $3.3 billion of unused borrowing capacity. The

company recorded a debt equity ratio of 1.5 times in FY2015 and an interest expense of $2,051

million. The company’s high debt levels and debt service requirements are significant in relation to

Sprint Corporation Page 5

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Sprint Corporation

SWOT Analysis

its revenues and cash flow, which may reduce Sprint’s ability to respond to competition and economic

trends in the industry or in the economy. In addition, the company’s revolving bank credit facility and

other financing facilities also require that Sprint maintain certain financial ratios, including a leverage

ratio, which could limit the company’s ability to incur additional debt. Sprint’s failure to comply with

debt covenants would trigger defaults under those obligations, which could result in the maturities

of those debt obligations being accelerated and could in turn result in cross defaults with other debt

obligations. Limitations on Sprint’s ability to obtain suitable financing when needed, or at all, could

result in an inability to continue to expand the business, timely execute network modernization plans,

and meet competitive challenges.

High debt limits the company's ability to raise further capital to fund its growth. Additionally, the

company also has high debt servicing obligations making its cash flows highly vulnerable further

impacting its ability to fund growth internally. High outstanding debt increases the company's financial

risk.

Declining ARPU

Sprint witnessed as significant decline in its average revenue per user (ARPU) per month during

2013-15. The successor company’s postpaid ARPU declined from $63.5 in FY2013 to $59.3 in

FY2015 representing a compound annual rate change (CARC) of 3% during the same period. Further,

the average retail ARPU of the company declined at a CARC of 2% during 2013-15 from $50.9 in

FY2013 to $48.7 in FY2015. The decline in postpaid ARPU was attributed to growth in sales of

tablets, which carry a lower revenue per subscriber combined with the impact of subscriber migration

to many of the company’s new service plans, resulting in lower service fees. Declining ARPU would

further put pressure on Sprint’s profitability.

Opportunities

Network modernization

The company is in the process of modernizing its network to allow the consolidation and optimization

of its 800 MHz, 1.9 GHz and 2.5 GHz spectrum into its base stations. The company employed

network modernization program, which contributed to improvement in churn rates, enhanced the

network quality and led to a decline in the service disruptions. As part of this program, the company

modified its existing backhaul architecture to enable increased capacity to the network at a lower

cost by utilizing Ethernet as opposed to time division multiplexing (TDM) technology. As part of the

program, the company will upgrade the existing Sprint platform that will enable it to offer 4G

technologies, including LTE. Further, the company's acquisition of Clearwire catalyzed its foray into

4G mobile broadband.The company further intends to continue to optimize its 3G data network and

invest in LTE deployment across all spectrum bands. In addition, Sprint entered into 4G LTE

agreements with 15 additional rural and regional network carriers as part of the Rural Roaming

Preferred Provider program, in September 2014.

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Sprint Corporation

SWOT Analysis

According to the industry estimates, the adoption of 4G and LTE is expected to increase exponentially.

The estimates indicate that the 4G/LTE smartphone shipments will grow robustly in coming years.

The US is expected to contribute significantly to this growth, indicating a strong market for 4G and

LTE services in the US. Network modernization will enable the company to sustain market share as

the subscribers move to increased adoption of LTE and 4G services. It also enhances the competitive

position as its peers like AT&T and Verizon had a long lead with 4G services. As the voice services

market in the US reaches maturity, the increase in data revenues is expected to enhance the growth

prospects for telecom companies including Sprint.

Strong outlook for high-bandwidth mobile communications

The US mobile broadband market had grown strongly over the historical period and is expected to

continue growing in the coming period. The growth in mobile broadband is primarily attributable to

the high data consumption by mobile devices, including smartphones and tablets. According to

industry estimates, global mobile data traffic is projected to grow at a CAGR of 57% during 2014-19,

to 24.3 exabytes per month by 2019. Further, 4G connections are expected to account for 26% of

total mobile connections by 2019.

Sprint has robust network infrastructure to support the growing demand for high-bandwidth mobile

communications.The company is in the process of modernizing its network to allow the consolidation

and optimization of its 800 MHz, 1.9 GHz and 2.5 GHz spectrum into its base stations. Moreover,

majority of efforts to roll out 4G LTE on its 800 MHz and 2.5 GHz spectrum bands are expected to

be completed by the end of 2015. The company can leverage its leadership position in the wireless

market to further drive ARPUs by tapping into the trend of growing mobile traffic.

Rising demand for the smartphones and the tablets

Sprint will benefit from the rising demand for smartphones and tablets in the US. According to industry

estimates, the tablet shipments are expected to grow at a CAGR 5.4% during 2014-18 to reach

285.9 million units in 2018. Smartphones and tablets are expected to constitute 87% of the total

connected device market by 2018. Further, the smartphones market increased by 19.3% to reach

a total of 1.2 billion units shipped in 2014. It is also estimated that the total smartphone shipments

will reach 1.7 billion units in 2018, representing a CAGR of 11.5%. Mirroring the global trend, the

tablet users in the US are expected to continue to rise. With a range of smartphones and tablets,

Sprint is well poised to exploit the demand for these data intensive mobile devices which will enable

the company to enhance revenues.

Threats

High penetration rates and increased churn in wireless segment

The wireless markets in the US are saturated. The penetration rate of the US market is more than

110%, with more connections than the population and the market is considered to be saturated.

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Sprint Corporation

SWOT Analysis

Hence, the company needs to acquire new subscribers from its competitors rather than the first time

subscribers in order to expand the business. Starting from 2008 to 2015, the company experienced

a net decrease in the retail postpaid subscriber base of approximately 12.7 million subscribers. As

the wireless industry continues to mature, the future wireless growth will increasingly depend on

Sprint's ability to offer innovative data services to customers, which in turn, will depend on the

availability of additional spectrum.The spectrum and capacity constraints will increase in the coming

years as mobile data traffic increases at a robust pace. While Sprint continues to invest significant

capital in expanding its network capacity, the capacity constraints could affect the quality of existing

voice and data services and the ability to launch new, advanced wireless broadband services. Any

spectrum solution will require that the Federal Communications Commission (FCC) makes new

spectrum available to the wireless industry and allow the company to obtain the spectrum it needs

more immediately to meet the needs of its customers.The impending saturation and limited availability

of spectrum will impact Sprint's growth prospects.

Intense competition in the wireless telecom market

The company faces substantial and increasing competition in all aspects of its wireless business.

Under current FCC rules, multiple licensees, including six or more personal communication service

(PCS) licensees, two cellular licensees and one or more enhanced specialized mobile radio licensee

may operate in each of Sprint's service areas, which results in the potential presence of multiple

competitors.The company has multiple wireless competitors in each of its service areas and competes

for customers based principally on service/device offerings, price, call quality, coverage area and

customer service. The company's competitors include companies such as Verizon Wireless, AT&T

and T-Mobile USA, TracFone Wireless, and CenturyLink, as well as various regional wireless services

providers. In addition, Sprint faces competition from providers that offer voice, text messaging and

other services as applications on data networks. More than 97% of the US population lives in areas

with at least three mobile telephone operators, and 90% of the population lives in areas with at least

five competing carriers. This makes the company's environment highly competitive.

Moreover, the US wireless industry is expected to witness price competition in the coming years.

All the players in the US telecoms space have either introduced new plans or cut prices to poach

subscribers in an increasingly saturated postpaid market. For instance, T-Mobile introduced a number

of plans to lure customers from the dominant players. As part of its campaign, T-Mobile started

providing financing for phones and other packages, including cheap international rates and

approximately $650 to people who switch service.To counter the strategy of T-Mobile, other players

in the market have also lowered the pricing of some of their plans. For instance, in 2014, AT&T

lowered its monthly fee for 10 gigabytes monthly data share plan to $15 per device, from $40.

According to industry estimates, this is the first step in the impending price war across the industry

and other players would be forced to cut prices to retain subscribers.

Increasing competition coupled with impending price competition will continue to put pressure on

pricing and margins as companies compete for potential customers.

Changes in regulations may affect business prospects

Sprint Corporation Page 8

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Sprint Corporation

SWOT Analysis

The company's domestic operations are subject to regulation by the FCC and other federal, state

and local agencies. These regulatory regimes frequently restrict the company's ability to operate in

or provide specified products or services in designated areas and require the company to maintain

licenses for its operations. Also, the FCC grants wireless licenses for terms generally lasting 10

years that are subject to renewal. The loss of, or a material limitation on, certain of the company's

licenses could have a material adverse effect on its wireless business, results of operations and

financial condition. Moreover, the development of new technologies, such as IP-based services,

including voice over internet protocol (VoIP) and super high-speed broadband and video, could be

subject to conflicting regulation by the FCC and various state and local authorities, which could

significantly increase the cost of implementing and introducing new services based on this technology.

Moreover, as a precondition to approval of the SoftBank Merger, CFIUS required that SoftBank and

Sprint enter into a National Security Agreement (NSA). These provisions increase the cost of

compliance with security measures, and limit Sprint's control over certain US facilities, contracts,

personnel, vendor selection and operations, which may materially affect its operating results.

Furthermore, any new regulations could restrict the company's ability to compete in the marketplace

and limit the return it can expect to achieve on past and future investments. Changes in the regulatory

framework under which the company operates could adversely affect its business prospects or

results of operations.