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 - – technology disruption, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic ,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, 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 -
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.
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.
Organizational Resilience of Muccio Tom
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Muccio Tom does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Muccio Tom in the sector have low bargaining power. Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Muccio Tom to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Muccio Tom is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Muccio Tom is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Muccio Tom in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Muccio Tom are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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 -
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD, is just above the industry average. Muccio Tom needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Need for greater diversity
– Muccio Tom has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Capital Spending Reduction
– Even during the low interest decade, Muccio Tom has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Muccio Tom has relatively successful track record of launching new products.
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.
Low market penetration in new markets
– Outside its home market of Muccio Tom, firm in the HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
Aligning sales with marketing
– It come across in the case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD can leverage the sales team experience to cultivate customer relationships as Muccio Tom is planning to shift buying processes online.
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.
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 -
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Muccio Tom is facing challenges because of the dominance of functional experts in the organization. Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Muccio Tom in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Muccio Tom in the consumer business. Now Muccio Tom can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Muccio Tom can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Muccio Tom can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Muccio Tom to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Muccio Tom to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Muccio Tom can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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 -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Muccio Tom can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Tom Muccio: Negotiating the P&G Relationship with Wal-Mart (Video), DVD .
Consumer confidence and its impact on Muccio Tom demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Muccio Tom business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Muccio Tom with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 .
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.
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.
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.
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.