Pennzoil-Quaker State Canada: The One-to-One Decision (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pennzoil-Quaker State Canada: The One-to-One Decision (A)
The director of the lubricants business for Pennzoil-Quaker State Canada is facing a significant challenge--overcoming customer apathy about changing motor oil. Increasing the frequency of oil changes and improving retention of its customers were critical for the financial success of the company. In response to this challenge, the director had to decide on the adoption and implementation of a major new promotional program: One-to-One. The program was designed to create closer relationships among consumers, retailers, and Pennzoil-Quaker State. Making the program work required active cooperation on the part of retail installers who performed the oil changes.
Authors :: Terry H. Deutscher, Christopher Spalding
Swot Analysis of "Pennzoil-Quaker State Canada: The One-to-One Decision (A)" written by Terry H. Deutscher, Christopher Spalding includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pennzoil Quaker facing as an external strategic factors. Some of the topics covered in Pennzoil-Quaker State Canada: The One-to-One Decision (A) case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Pennzoil-Quaker State Canada: The One-to-One Decision (A) casestudy better are - – there is backlash against globalization, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, technology disruption,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Pennzoil-Quaker State Canada: The One-to-One Decision (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pennzoil-Quaker State Canada: The One-to-One Decision (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pennzoil Quaker, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pennzoil Quaker 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) can be done for the following purposes –
1. Strategic planning using facts provided in Pennzoil-Quaker State Canada: The One-to-One Decision (A) case study
2. Improving business portfolio management of Pennzoil Quaker
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pennzoil Quaker
Strengths Pennzoil-Quaker State Canada: The One-to-One Decision (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pennzoil Quaker in Pennzoil-Quaker State Canada: The One-to-One Decision (A) Harvard Business Review case study are -
Innovation driven organization
– Pennzoil Quaker is one of the most innovative firm in sector. Manager in Pennzoil-Quaker State Canada: The One-to-One Decision (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Pennzoil Quaker 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Pennzoil-Quaker State Canada: The One-to-One Decision (A) firm has clearly differentiated products in the market place. This has enabled Pennzoil Quaker to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Pennzoil Quaker to invest into research and development (R&D) and innovation.
Learning organization
- Pennzoil Quaker 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 Pennzoil Quaker is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pennzoil-Quaker State Canada: The One-to-One Decision (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Pennzoil Quaker has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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.
Analytics focus
– Pennzoil Quaker is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Terry H. Deutscher, Christopher Spalding can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Pennzoil Quaker digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pennzoil Quaker 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.
Ability to recruit top talent
– Pennzoil Quaker is one of the leading recruiters in the industry. Managers in the Pennzoil-Quaker State Canada: The One-to-One Decision (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Pennzoil Quaker in the sector have low bargaining power. Pennzoil-Quaker State Canada: The One-to-One Decision (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pennzoil Quaker to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Pennzoil Quaker 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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.
High brand equity
– Pennzoil Quaker has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pennzoil Quaker to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Pennzoil-Quaker State Canada: The One-to-One Decision (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pennzoil-Quaker State Canada: The One-to-One Decision (A) are -
High cash cycle compare to competitors
Pennzoil Quaker 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil Quaker 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pennzoil-Quaker State Canada: The One-to-One Decision (A), is just above the industry average. Pennzoil Quaker 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pennzoil-Quaker State Canada: The One-to-One Decision (A), it seems that the employees of Pennzoil Quaker 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.
Slow to strategic competitive environment developments
– As Pennzoil-Quaker State Canada: The One-to-One Decision (A) HBR case study mentions - Pennzoil Quaker takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Pennzoil Quaker 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.
Increasing silos among functional specialists
– The organizational structure of Pennzoil Quaker is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Pennzoil Quaker needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pennzoil Quaker to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Pennzoil Quaker 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 - Pennzoil-Quaker State Canada: The One-to-One Decision (A) should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pennzoil Quaker is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pennzoil-Quaker State Canada: The One-to-One Decision (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pennzoil-Quaker State Canada: The One-to-One Decision (A), in the dynamic environment Pennzoil Quaker has struggled to respond to the nimble upstart competition. Pennzoil Quaker has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pennzoil Quaker supply chain. Even after few cautionary changes mentioned in the HBR case study - Pennzoil-Quaker State Canada: The One-to-One Decision (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pennzoil Quaker vulnerable to further global disruptions in South East Asia.
Opportunities Pennzoil-Quaker State Canada: The One-to-One Decision (A) | 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pennzoil Quaker is facing challenges because of the dominance of functional experts in the organization. Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pennzoil Quaker can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pennzoil Quaker 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.
Creating value in data economy
– The success of analytics program of Pennzoil Quaker has opened avenues for new revenue streams for the organization in the industry. This can help Pennzoil Quaker to build a more holistic ecosystem as suggested in the Pennzoil-Quaker State Canada: The One-to-One Decision (A) case study. Pennzoil Quaker can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Pennzoil Quaker 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.
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 Pennzoil Quaker in the consumer business. Now Pennzoil Quaker can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pennzoil Quaker 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 Pennzoil Quaker to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pennzoil Quaker 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. Pennzoil Quaker 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.
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. Pennzoil Quaker can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Pennzoil Quaker can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Pennzoil Quaker can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pennzoil Quaker in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pennzoil Quaker 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, Pennzoil-Quaker State Canada: The One-to-One Decision (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Pennzoil-Quaker State Canada: The One-to-One Decision (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pennzoil-Quaker State Canada: The One-to-One Decision (A) are -
Technology acceleration in Forth Industrial Revolution
– Pennzoil Quaker has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Pennzoil Quaker needs to keep up with the evolution of technology in the Sales & Marketing 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.
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 Pennzoil Quaker in the Sales & Marketing sector and impact the bottomline of the organization.
Consumer confidence and its impact on Pennzoil Quaker 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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Pennzoil Quaker can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pennzoil Quaker needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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. Pennzoil Quaker 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.
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.
Shortening product life cycle
– it is one of the major threat that Pennzoil Quaker is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Pennzoil Quaker.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pennzoil Quaker in the Sales & Marketing industry. The Sales & Marketing 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.
Environmental challenges
– Pennzoil Quaker 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. Pennzoil Quaker can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Pennzoil Quaker business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil-Quaker State Canada: The One-to-One Decision (A) 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 Pennzoil Quaker needs to make to build a sustainable competitive advantage.
