Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD
Tom Muccio, former President, Global Consumer Teams at Procter & Gamble, reveals how the P&G Relationship with Wal-Mart was negotiated to become one of the most successful supplier/retailer partnerships in recent times.
Swot Analysis of "Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD" written by James K. Sebenius, Ellen Knebel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Muccio Tom facing as an external strategic factors. Some of the topics covered in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study are - Strategic Management Strategies, Negotiations and Organizational Development.
Some of the macro environment factors that can be used to understand the Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic ,
technology disruption, wage bills are increasing, etc
Introduction to SWOT Analysis of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Muccio Tom, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Muccio Tom operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD can be done for the following purposes –
1. Strategic planning using facts provided in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study
2. Improving business portfolio management of Muccio Tom
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Muccio Tom
Strengths Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Muccio Tom in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Muccio Tom has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Muccio Tom has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Muccio Tom is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Organizational Development field
– Muccio Tom is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Muccio Tom in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Muccio Tom is one of the leading recruiters in the industry. Managers in the Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Muccio Tom has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Organizational Development industry
– Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD firm has clearly differentiated products in the market place. This has enabled Muccio Tom to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Muccio Tom to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Muccio Tom has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Muccio Tom has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Muccio Tom to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Muccio Tom has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Muccio Tom is present in almost all the verticals within the industry. This has provided firm in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Muccio Tom digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Muccio Tom has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD are -
High bargaining power of channel partners
– Because of the regulatory requirements, James K. Sebenius, Ellen Knebel suggests that, Muccio Tom is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Muccio Tom is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Muccio Tom needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Muccio Tom to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Muccio Tom has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Muccio Tom even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Muccio Tom has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD, it seems that the employees of Muccio Tom don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Muccio Tom has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD, in the dynamic environment Muccio Tom has struggled to respond to the nimble upstart competition. Muccio Tom has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Muccio Tom needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Skills based hiring
– The stress on hiring functional specialists at Muccio Tom has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High cash cycle compare to competitors
Muccio Tom has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, firm in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Muccio Tom 's lucrative customers.
Opportunities Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Muccio Tom to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Muccio Tom can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Muccio Tom can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Muccio Tom can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Muccio Tom can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Muccio Tom has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Muccio Tom to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Muccio Tom has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Muccio Tom can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Muccio Tom can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Muccio Tom can use these opportunities to build new business models that can help the communities that Muccio Tom operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Muccio Tom can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Muccio Tom to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Muccio Tom has opened avenues for new revenue streams for the organization in the industry. This can help Muccio Tom to build a more holistic ecosystem as suggested in the Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study. Muccio Tom can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Muccio Tom can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD are -
Regulatory challenges
– Muccio Tom needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Muccio Tom can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Muccio Tom is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Muccio Tom in the Organizational Development sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Muccio Tom can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD, Muccio Tom may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Technology acceleration in Forth Industrial Revolution
– Muccio Tom has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Muccio Tom needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Muccio Tom needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Muccio Tom can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Muccio Tom.
High dependence on third party suppliers
– Muccio Tom high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Muccio Tom will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Muccio Tom in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Muccio Tom
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Muccio Tom.
Weighted SWOT Analysis of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Muccio Tom needs to make to build a sustainable competitive advantage.
