SWOT ANALYSIS

SWOT Analysis of BHDP

Professor Macarie

Casey Abney, Bryce Addeo, Nate Berman, Adam Chapman, Dylan Curran, Bryce Duncan,

Siddarth Kamma, Ravina Khemani, Chase Malarkey, Michael Mock, Nick Nance, Jhanvi

Punjabi, Nick Ryan, Nino Salamone, Thomas Schutzman, Elizabeth Shah, Max Sharpe, Ethan

Starcher, Jonathan Uchtman, Andrew Zedella

The University of Cincinnati

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SWOT Analysis of BHDP

The mastermind behind the elegant design of a building's interior or exterior is attributed

to its architect. An architect can be seen as a large-scale artist, and all of their ideas can be

constructed into a tangible product. This tangible product can be anything from an office

building, a retail store, or a business headquarters. All the designs would be different, but they

would share the fact that the inside of the building was designed for their specific day to day

processes the business requires. At BHDP architecture, located in Cincinnati, Ohio, they

specialize in designing informed spaces while keeping building aesthetics in mind.

The history of BHDP can be traced back to 1937 when one man named Cyrus L. Baxter

decided to start an architecture firm. Throughout the span of seven years Baxter managed to

build an exceptional team comprised of Baxter, Jack Hodell, Jim Donnelly, and Jim Preston; all

of which were architects. In 1960, they combined their names to form what their brand name is

to this day - BHDP. At first, the company only designed structures for manufacturing companies

and workplaces, but as time went on they anchored their expertise towards higher education,

financial buildings, and retail. A defining moment for BHDP happened in 1970 when they

finished a project for Procter & Gamble, but this project for P&G was only the beginning of their

partnership. Eventually BHDP settled down into their current location in Cincinnati, Ohio;

however, they have offices in Columbus, Ohio and Raleigh, North Carolina. The expansionary

actions that the firm has accomplished turned the number of employees from its original four to

now roughly 200.

There are many goals BHDP works towards when designing, but their mission is to

design an area that will be used in an efficient way. Efficiency for a company or retail store can
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foster better attitudes while maximizing performance. Also, since BHDP leans towards interior

design above all else, the attention to how people interact within a space is critical to what they

design. The culture that the company lives by is Think Creatively, Stay Curious, Foster

Collaboration, Deliver Excellence, Be Bold. Everyday people can see their culture in not only

what they design, but in what kind of people they all are. We can also see their mission in their

slogan, which is Design for People.

The research methods used for all aspects of the paper derived from a presentation from

Dominic Lacobucci (one of the client leaders from BHDP), the internet, and our learning

community visiting the office located in Cincinnati, Ohio.

Strengths

The strengths of a company are what they allocate most of their resources towards. An

architecture firm should put most of their time towards designing buildings, but BHDP does

more than simply design buildings. They strive to design space in the most appealing way while

still making the space efficient. A few more notable examples of BHDPs strengths other than

their attention to how the interior design benefits the customer are they have developed

sustainability, relationships with current customers, and international projects. All aspects of

their strengths are areas where BHDP should continue to emphasize to promote growth.

When visiting BHDP, Dominic Lacobucci showed us how their building is truly unique

to how they run as a business. When people think of an office space, they probably imagine a

bunch of cubicles. It is quite the opposite at BHDP. They were efficient and innovative in the

way they used their space. There were cubicles located in their headquarters, but they were very

large and open. There was also a large rectangular desk in between the small cubicles for designs
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and blueprints to be started. The walls of the cubicles did not go past eye level. One can see how

much emphasis BHDP puts on the space inside a building at their headquarters. They have

designed an inviting environment that fosters efficiency in the workplace.

The entire firm itself is 15 inches above where the floor starts. This is due to there being a

slant for about 15 feet after one enters the building. The added feet allow them to run air ducts,

wiring, and piping through the floor, and in return the company was able to leave their ceilings

open allowing for a very roomy feel to the building. We were first taken to the lounge and

meeting area. This is where we asked most of our questions. The area was filled with couches,

barstools, and tables. When we met there, it gave us a more relaxed feeling to the conversations.

This relaxed feeling is also reflected in their corporate culture. This was perfect for a group like

us. Not every aspect of the headquarters was relaxed, for example they have traditional and

formal rooms that they use for meeting with clients.

We then walked to the other side of the building where everyones workplaces were. All

the desks were very open. Also on that side they had several project spaces. In these areas there

were supplies for designing, magnetic walls, and large desk areas. This allowed someone to

spread out their work and set their ideas in front of them. They would be able to leave this stuff

here and work on the projects over periods of time. Some of these spaces were noise resistant

allowing anyone working in there to have minimal distractions. These noise resistant rooms are

great for one on one meetings as well.

BHDP has also been able to benefit the customer and themselves by a company called

AVUITY. AVUITY is owned by BHDP and it is an independent technology firm equipping

organizations with custom tools that collect, monitor, and measure how people and place
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interact. This allows them as an architecture firm to look at how current spaces are being used

and how they can create new spaces to better utilize them.

BHDP aims at creating spaces that inspire great experiences while providing

environmental, economic and social benefits. The main purpose behind sustainable building is to

protect the environment and reduce the depletion of the earths natural resources. When

sustainability is practiced through every phase of the projects development, it allows BHDP to

do the following:

Protect the ecosystem

Conserve water

Reduce waste stream

Temperature Control

Reduce Emissions

Improve air and water quality

Conserve and restore natural resources

Waste Reduction

BHDP is able to provide customers that are searching for an environmentally friendly space

with one that fits their needs. This gives BHDP an advantage because they can cater their

product to a larger portion of that market and thus the ability to create more customers.

A company needs to maintain its relationship with other reputable companies to stand

against their competition. BHDP has been able to maintain a strong relationship with various

multinational and local companies, which has helped them maintain a competitive firm. Some

multinational companies such as Toyota, P&G, DHL, and Microsoft are the prime clients of
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BHDP, which has helped them establish their foreign ties and expand their services to other parts

of the world.

One strength that is admirable is that BHDP has taken the opportunity to grow beyond

our domestic borders. They have taken a risk to spend their time and resources working on

projects in foreign countries, which has given them new sources of revenue and has made them a

more competitive firm. One of the greatest benefits of a company being global is the fact that a

cushioning has been established in the case of a crashing market in one country. A hypothetical

situation would be if BHDP is negatively affected by a steep increase the price of resources,

government involvement, or environmental regulations. If BHDP did not have other their other

international markets, their success would not be probable. Another important aspect that

globalization of their company is the experience the firm establishes. BHDP has gained

experience by working in over twenty different countries including China, India, and France.

Since these countries are so diverse, their projects are going to be completely different. They will

be able to showcase this diversity when searching for new clients and allow them to increase

business and ultimately profit.

Weaknesses

All companies have weaknesses, but some of these more vulnerable areas are more

apparent than others. Weaknesses are never something a CEO or manager wants to talk about,

but weaknesses will restrict the company's ability to achieve business goals, so the weaknesses

must be addressed. At BHDP there are key issues that need to be examined. The areas inside

BHDP where they fall short are as follows: lacking in a strong community presence, losing bids

for buildings, having a narrow portfolio in regard to what they build, not having a striking
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website, having a small marketing department, and not being clear in how they differentiate their

firm. If BHDP can sharpen their weaknesses, they will be a more prominent and successful

architecture firm.

A strong community presence for a business will create a great deal of awareness for a

company. BHDP does not utilize the city of Cincinnati as much as they should. An example

where we can see this apparent is when they did not secure the bid to make the new business

building at The University of Cincinnati. The new buildings design was displayed on various

online websites crediting Henning- Larsen and KZF Design as the architects behind the new

building. This was a huge amount of publicity for them. This hurts BHDP because their

community involvement should encompass their engagement with Universities in the area. Also,

losing the bid to design the new business building at The University of Cincinnati supports the

fact that they lose bids. According to BHDPs website, they have a surprisingly low amount of

jobs done in Cincinnati. Cincinnati is currently Ohios number one metropolitan economy and is

ranked 28th in the country. It is crucial to establish a strong presence in the community, so that

BHDP has the home court advantage on bids in Cincinnati.

BHDPs portfolio regarding what type of buildings they design is a bit dull. They mainly

build financial buildings. Our learning community met with the CEO, Mike Habel, of BHDP and

he told us that he wants to, design the Googles and the Apples. For this vision to ever become

a reality, their portfolio needs to be exceptional. Having the advantage of an impressive portfolio

could lead to new jobs such as government buildings and higher education jobs within the city.

BHDP seems to have very little experience with government buildings, compared to competing
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firms such as KZF. Their narrow portfolio would require taking more risks and bidding higher

for certain projects, but the rewards would make it worthwhile.

The marketing department is the only area of a business where they can affect and meet

with the consumer. Although the advertisement of an architecture seems ineffective, it is the only

way to ensure that their potential customers know who they are. Currently at BHDP, there are

only seven members in their marketing team. The marketing department of an architecture firm

would have the responsibility of telling the world about what they make and all the amazing

designs BHDP can customize for you. Our learning community asked the CEO, how do people

find out about your company? He laughingly responded, I dont know.. It is probably word of

mouth. This is a testament to the lack of resources put into the marketing department. The lack

of involvement of the marketing department can be explicitly seen on the company's website. In

comparison to other architecture firms websites, BHDPs is indistinct. They do not have enough

of their buildings showcased, the colors are bland, there are few customer reviews, and there is

not a differentiator that makes their firm better than others. KZF Designs website is intuitive and

captures one's attention easily, whereas BHDPs website does not. Since BHDP is an architecture

firm and design are the most essential part to it, a well-designed website is necessary.

Companies that focus on their value proposition are the ones we know off the top of our

head. If BHDP can successfully communicate to their customer what makes them better than any

other firm, they would increase their profits. Unfortunately for BHDP, it is unclear what they do

different in comparison to other big firms. It is apparent that they design buildings, but they do

not showcase what makes them better. This statement leads us to the fact that BHDP has not

incubated enough on why people should choose them. Is it the resources the use that make them
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better? Is it their attention to detail? Is it their price? These are a few questions that the firm

could ask themselves before advertising their company and meeting with potential customers.

Not having a clear value proposition can also be a turnoff to possible customers. If someone is

between KZF Design and BHDP, it is unclear what specifically makes BHDP the better

candidate, so the consumer would likely choose KZF Design because of its popularity and ability

to be an elite firm.

Opportunities

The expertise that BHDP Architecture has could allow them to seek opportunities they

are currently not exploiting. Opportunity is all around us, it is a matter of whether or not you

seize it. This philosophy is truthful in the business world as well. Up and coming cities are not

going to knock on the doors of BHDP and tell them that they should go there. BHDP must act

when they are given the chance to. The opportunities BHDP needs to seek are penetrating the

healthcare industry, pairing up with an engineering company, doing landscape architecture,

going to developing cities, expanding the size of the company, and designing apartments. Once

BHDP notices and pursues their opportunities, they will become a household name in the

architecture industry.

The health industry is an area where the layout of the building has not drastically changed

in a long time. BHDP has been able to prove that they are a team of creativity and dedication-

this is exactly what the healthcare industry needs. Hospitals should not be boring, nor should

they be cookie cutter. They should feel welcoming to the patients that are being treated there.

BHDP could meet with a group of people that are experts in operations management to better

understand the efficiencies and inefficiencies of a hospital environment. Then a building could
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be designed to meet those needs. Getting into this field may be easier said than done. One way

that BHDP could enter this market would be showing a stronger partnership with AVUITY. Not

only could BHDP design a state of the art hospital, they could put AVUITY software into

various room so that doctors could monitor patients in greater detail. Reaching out and bidding

for projects would become more successful in part due to how they put AVUITY into buildings,

such as hospitals.

What would a campus look like without landscape architecture? There would only be

buildings. Someone had to decide where the sidewalk would go and the materiality of it.

Someone had to define where trees would play a role. Are there areas outside where people like

to gather? Of course there are. A landscape architect did all of those things. A regular architect

and a landscape architect go through the same process of designing, except that there is a

different result. Currently, BHDP does not put enough focus on the landscape surrounding a

design as much as much as they should. The outside of a building is the first thing someone is

going to see, so it should have just as much importance as the building itself. There are very few

large firms that also do landscape architecture, and if BHDP were to add it to what they know

how to do, it would differentiate them and increase their potential for profit. Adding landscape

architecture would also be appealing to even more businesses because it would show that they

cover more than simply designing the inside.

Engineers play a crucial role in architecture. They are the people who run the numbers

and make sure the design will be able to work. One of the ways BHDP can improve its business

is if they could pair up with another engineering company. This does not mean they will have to

change to a A&E firm (Architecture and Engineering), but pairing with another company will
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give them many new opportunities that they did not have before. BHDP would not have to take

time away from working on the project because they would already have engineers approving

designs. Also, if marketed correctly, potential customers are going to want to hire BHDP because

they know they are already paired with engineers.

BHDP is considered a large firm with about 200 employees. 200 people working for a

large firm seems small, and it is. Many of the large firms have well over a thousand architects at

their disposal. Some of these companies are Gensler, Perkins+Will, HDR, and Nikken Sekkei.

These high baller firms have been able to dominate the architecture industry much better than

BHDP, for example, Gensler designed the Shanghai Tower in China as well as Facebook

headquarters in Menlo Park, California. These projects are just the surface of what they have

accomplished. If BHDP were to add more offices and architects to what they already have, they

could become a more successful firm. One way that BHDP could acquire more talented

architects would be to send ambassadors to colleges in Cincinnati or throughout the Tri-State

area. If they have students that are interested, they could eventually higher them. Not only would

this increase their size, it would foster a community presence. The size of a company does not

always mean they are better, but there is no doubt that 1000 minds working at once will foster

more designs than 200 minds.

Up and coming cities

There are many up and coming cities in the United States and if BHDP does not act on

developing roots in these cities, they will lose opportunities. The real decision comes in deciding

which city or cities will be able to sustain this growth over an extended period of time. Some

examples of these cities include Greenville, South Carolina and Austin, Texas. Both cities have
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been growing over the past two decades and there is no end in the foreseeable future. Over a

single year, July 1, 2015 to July 1, 2016, Greenville, SC witnessed a 5.3 percent change in

growth and they will only continue to grow. Greenville is also only a four hour drive from

BHDPs satellite office in Raleigh, NC. This would allow for quick collaboration between clients

and BHDP architects because they could meet face to face. Greenville is a large metropolitan

area and has a diverse industry base that includes corporate offices, manufacturing, and

warehousing/distribution operations. There are more corporate headquarters here than any other

region in South Carolina. Austin, TX on the other hand has experienced a 16.9 percent change in

population for the past seven years starting in April 2010. There are many opportunities in Texas

due to it being part of the Sunshine Belt which has been the most prosperous and growing part

of the US since the 60s and will continue to grow. One of the key industries in Austin, TX is

Corporate Headquarters, which has been a large client for BHDPs portfolio. If BHDP can

penetrate these cities and make their buildings well known in those areas, they can then start to

network out into other sustainable industries.

Threats

Every company big or small has some threat against them. These threats can range from

other companies to changes in consumer demand. Threats do not necessarily need to be

eliminated, but they do need to be contained. BHDP has four primary threats to their company

and they are as follows: competitive threats, altered consumer taste, shrinking markets, and the

advancement of new technology. Unfortunately for BHDP, they can not take out the competition

or decide what customers buy and do not buy, but they can monitor their threats and do their best

to plan for the future.

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BHDPs competitive threat predominantly comes from losing bids. Bids are the main

way a firm gets the opportunity to design a building. BHDP is the largest architectural firm in

Cincinnati and one would assume that they have the best chance to win a bid in their home city,

however, as stated previously, in January of 2016 it was announced that Henning Larsen, a

company headquartered in Copenhagen, Denmark, was selected to design the new Carl H.

Lindner College of Business at the University of Cincinnati. Henning Larsen has only been

doing projects outside of the United States. This is a major threat to BHDP because they should

be getting projects in Cincinnati since that is where they are headquartered. International firms

such as Henning Larsen are expanding their markets to outside of their countries and getting

projects here in the United States. This should be alarming to BHDP considering that they are the

largest architectural firm in Cincinnati. There are other factors than simply just a bid to decide

what company has the privilege to design a building, but winning the bid should be first priority

in order for BHDP to stay with the competition.

BHDP has put most of their resources into the financial industry. A large sum of their

designs are financial buildings. This market is starting to slow down, and the need for financial

buildings is going down. More people bank online instead of going to the bank to deposit a

check. This is a huge threat to BHDP since financial buildings are one of the primary reasons

they have been able to keep their head above the water. If BHDP does not go after other markets,

they may not be able to survive.

Architectural firms must be more proficient and well-known than their competitors in

order to remain successful. Another significant threat that BHDP needs to monitor is developing

firms. In regard to international projects, BHDP is growing at a slower rate in comparison to

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other companies. They are represented in twenty countries, which seems like a good number, but

when in fact it should be more since the firm was established eighty years ago. There is a firm

called Unispace and they were established in 2010. They are headquartered in Sydney, Australia,

but they have already done projects expanding in eighteen countries. This is only example of a

new company that has been able to grow fast as well as penetrate international markets at a

significantly faster rate in comparison to BHDP. Since BHDP has been around since 1937, they

can be considered one of the older firms, but they have not made groundbreaking designs since

their infancy. Their competitors have been able to sustain growth in the modern world, which is

something BHDP is lacking right now.

Technology and social media is a crucial part to a business. Social media apps, such as

Facebook, Twitter, and Instagram allow connections where geographic walls exist. BHDP has

these platforms of social media, but are not using them to their fullest potential. BHDPs lack of

social media responsibility is a threat to themselves. They are inhibiting their growth by limiting

how easy their name can be received to the public. Facebook is the largest and most used form of

social media on the planet with 1.8 billion monthly active users. Looking at other firms social

media compared to BHDPs, we have found that BHDP is behind in social media presence.

While BHDP does have over 500 likes and followers on their Facebook page, their competitors

are way ahead. One of their main competitors, Perkins + Will has almost 15,000 likes and

followers on Facebook. If BHDP wants to land more projects, they need to get their name out

there among architectural firms. Their competitors have more followers than them and therefore

are clearly more well-known. Potential clients will research architectural firms to decide which

one is the most well-known, most trustworthy, and which ones have the best customer reviews.
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When analyzing the technological side of BHDP, they have been advancing their office

environment with the latest technology, such as VR (virtual reality), but have not been tending to

the innovations outside of their home space. Even though the firm is making their office up to

date with new design software and computers, they need to be careful in regard to how

accessible new design software can be accessed. Possible customers can get ahold of some of the

apps and VR simulators that BHDP currently has for themselves and use it to design something

right from their own computer. BHDPs service would then not be needed, and the person could

go straight for the builder or engineer. It was noted in our tour of BHDPs headquarters that they

have virtual simulators and will soon have geographic layouts to help display their ideas;

however, regular people can get a hold of this technology and use it themselves for a cheaper

price. While BHDP technology is advanced and their architects are professionals at using the

software, people want to take the middleman out of the equation if they can.

Strategic Recommendations

Every aspect of the S.W.O.T. analysis is important, but there are some points that could

put BHDP into a better situation. Currently they are struggling to overcome boundaries such as

their narrow portfolio. We have simplified the S.W.O.T. analysis into five parts that make up our

strategic recommendations. Our strategic recommendations for BHDP are to first sustain and

continue to flourish in the finance industry. Second, develop a stronger marketing department.

Third, be more daring. Fourth, develop a landscape architecture segment within the firm and

fifth, utilize AVUITY. If BHDP can satisfy all five conditions of the strategic recommendations,

they will see growth.

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In order for BHDP to sustain any growth they have to make sure they have somewhat of

a contingency plan to fall back on. The financial buildings are what is keeping them alive, so

they should continue to put resources into building those relationships. We believe that BHDP

should not abandon this industry quite yet, because of the success it has brought them in the past.

They should take any opportunity they get to continue to build their brand, even if that means

working in the same market. Eventually, once the financial market starts to decline they may

move into other markets.

The marketing department at BHDP has not succeeded in various aspects of what their

job entails. They are the only employees that can have a direct impact on a possible customers

decision to choose BHDP over any other firm. First, we believe that the size of the marketing

team is too small. The team is outnumbered in regard to other positions within the company and

it is possible that they feel less worth than the architects for example. We understand that it is

easier to communicate ideas among fewer people, but more people collaborating and incubating

on ideas will have a positive impact on the firm. It is imperative for the marketing department to

put their time and energy into making a more appealing webpage. People are going to judge a

company by their website, so it should look good. The marketing team also needs to brag more

about the company. They would have to answer questions like, Why chose BHDP over this

firm? What does BHDP offer compared to their competitors? Another beneficial action that the

marketing department should take is increasing their activity on social media. They could post

updates on how a project is developing or raise awareness for the firm. BHDPs website also

needs to be refined and polished. The marketing department could take away a lot of the clutter
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and extra words on their website. They could also streamline it and make it more appealing to the

eye by adding picture of some of their current designs.

BHDP has been playing it safe for some time now and it is time to be more daring. Once

they have plenty of resources to back up future activities, they can go after different markets to

diversify their portfolio and lower their risk. One market we believe would be beneficial for them

to pursue would be the health industry. As said before, the layout of a hospital has not changed

since the infancy of them. BHDP could work together with operational managers to find out the

most efficient way to structure a hospital. Also, AVUITY could be used in hospitals and they

would make profit from that addition as well. Being more daring also encompasses bidding more

and higher to get a job. They need to make it known that BHDP wants to stay competitive firm.

Once their bid winning ratio increases, they will be able to increase their staff since the demand

for their work would increase. New office locations in developing cities would also be an

outcome of more projects.

Landscape architecture is widely overlooked by architecture firms. BHDP has the chance

to differentiate their brand if they chose to add it to their expertise. First impressions are key and

anyone who enters a building, house, or school sees the outside of it first. BHDP needs to

segment their strengths and add a landscape architecture section to their list of traits. BHDP

would have far more opportunities than just buildings because they could design the building

itself and the exterior. A possible customer may not need any landscape architecture done, but

since they offer a wide range of expertise, they are more likely to choose BHDP over its

competitors. Landscape architecture is a huge opportunity that BHDP needs to chase before other

firms do.
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References

Watkins, K. (2014). Top 300 US Firms. Architecture Daily. 4 August 2014.

https://www.archdaily.com/533836/top-300-us-architecture-firms

Quick Facts: Greenville, South Carolina. (2017, October).

https://www.census.gov/quickfacts/fact/table/greenvillecountysouthcarolina

Quick Facts: Austin, Texas. (2017, October).

https://www.census.gov/quickfacts/fact/table/austincitytexas/PST045216

Key Industries In Austin. (2017 October).

https://www.austinchamber.com/economic-development/key-industries

Greenville Area Development Corporation. (2017 October).

http://www.greenvilleeconomicdevelopment.com/existing-business-industry.php

About, AVUITY, bdhp Architecture, 2017 September 22.

Henning Larsen selected to design University of Cincinnati business school.

Archpaper.com, 8 Jan. 2016

https://archpaper.com/2016/01/henning-larsen-named-designer-university-cincinnati-business-sc

hool/