Swot Analysis of "Crown Cork & Seal/CarnaudMetalbox" written by William E. Fruhan, William Dewitt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Packaging Carnaudmetalbox facing as an external strategic factors. Some of the topics covered in Crown Cork & Seal/CarnaudMetalbox case study are - Strategic Management Strategies, Financial management, Marketing, Mergers & acquisitions and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Crown Cork & Seal/CarnaudMetalbox casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, technology disruption, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Crown Cork & Seal/CarnaudMetalbox
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Crown Cork & Seal/CarnaudMetalbox case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Packaging Carnaudmetalbox, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Packaging Carnaudmetalbox 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 Crown Cork & Seal/CarnaudMetalbox can be done for the following purposes –
1. Strategic planning using facts provided in Crown Cork & Seal/CarnaudMetalbox case study
2. Improving business portfolio management of Packaging Carnaudmetalbox
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Packaging Carnaudmetalbox
Strengths Crown Cork & Seal/CarnaudMetalbox | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Packaging Carnaudmetalbox in Crown Cork & Seal/CarnaudMetalbox Harvard Business Review case study are -
Successful track record of launching new products
– Packaging Carnaudmetalbox has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Packaging Carnaudmetalbox 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.
Training and development
– Packaging Carnaudmetalbox has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Crown Cork & Seal/CarnaudMetalbox 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.
Cross disciplinary teams
– Horizontal connected teams at the Packaging Carnaudmetalbox 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.
Diverse revenue streams
– Packaging Carnaudmetalbox is present in almost all the verticals within the industry. This has provided firm in Crown Cork & Seal/CarnaudMetalbox 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 Finance & Accounting segment
- digital transformation varies from industry to industry. For Packaging Carnaudmetalbox digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Packaging Carnaudmetalbox 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.
Learning organization
- Packaging Carnaudmetalbox 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 Packaging Carnaudmetalbox is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Crown Cork & Seal/CarnaudMetalbox Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Finance & Accounting field
– Packaging Carnaudmetalbox 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 Packaging Carnaudmetalbox in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Packaging Carnaudmetalbox 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 Crown Cork & Seal/CarnaudMetalbox HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Packaging Carnaudmetalbox in the sector have low bargaining power. Crown Cork & Seal/CarnaudMetalbox has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Packaging Carnaudmetalbox to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Packaging Carnaudmetalbox has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Packaging Carnaudmetalbox to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Packaging Carnaudmetalbox 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 William E. Fruhan, William Dewitt 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.
Superior customer experience
– The customer experience strategy of Packaging Carnaudmetalbox in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Crown Cork & Seal/CarnaudMetalbox | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Crown Cork & Seal/CarnaudMetalbox are -
High cash cycle compare to competitors
Packaging Carnaudmetalbox 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.
Capital Spending Reduction
– Even during the low interest decade, Packaging Carnaudmetalbox 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 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 Packaging Carnaudmetalbox supply chain. Even after few cautionary changes mentioned in the HBR case study - Crown Cork & Seal/CarnaudMetalbox, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Packaging Carnaudmetalbox vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Packaging Carnaudmetalbox 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.
Lack of clear differentiation of Packaging Carnaudmetalbox products
– To increase the profitability and margins on the products, Packaging Carnaudmetalbox needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Crown Cork & Seal/CarnaudMetalbox 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 Crown Cork & Seal/CarnaudMetalbox can leverage the sales team experience to cultivate customer relationships as Packaging Carnaudmetalbox is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Packaging Carnaudmetalbox is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Crown Cork & Seal/CarnaudMetalbox can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Packaging Carnaudmetalbox 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 - Crown Cork & Seal/CarnaudMetalbox should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Packaging Carnaudmetalbox 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 bargaining power of channel partners
– Because of the regulatory requirements, William E. Fruhan, William Dewitt suggests that, Packaging Carnaudmetalbox 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.
Slow decision making process
– As mentioned earlier in the report, Packaging Carnaudmetalbox 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. Packaging Carnaudmetalbox 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.
Opportunities Crown Cork & Seal/CarnaudMetalbox | 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 Crown Cork & Seal/CarnaudMetalbox are -
Developing new processes and practices
– Packaging Carnaudmetalbox can develop new processes and procedures in Finance & Accounting 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.
Manufacturing automation
– Packaging Carnaudmetalbox can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Packaging Carnaudmetalbox 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. Packaging Carnaudmetalbox 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.
Better consumer reach
– The expansion of the 5G network will help Packaging Carnaudmetalbox to increase its market reach. Packaging Carnaudmetalbox will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Packaging Carnaudmetalbox 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 Finance & Accounting segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Packaging Carnaudmetalbox 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, Crown Cork & Seal/CarnaudMetalbox, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Packaging Carnaudmetalbox 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Packaging Carnaudmetalbox 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Packaging Carnaudmetalbox can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Packaging Carnaudmetalbox can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Packaging Carnaudmetalbox can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Crown Cork & Seal/CarnaudMetalbox suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Packaging Carnaudmetalbox 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 Packaging Carnaudmetalbox to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Packaging Carnaudmetalbox has opened avenues for new revenue streams for the organization in the industry. This can help Packaging Carnaudmetalbox to build a more holistic ecosystem as suggested in the Crown Cork & Seal/CarnaudMetalbox case study. Packaging Carnaudmetalbox can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Crown Cork & Seal/CarnaudMetalbox External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Crown Cork & Seal/CarnaudMetalbox are -
Environmental challenges
– Packaging Carnaudmetalbox 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. Packaging Carnaudmetalbox can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Packaging Carnaudmetalbox with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Packaging Carnaudmetalbox in the Finance & Accounting sector and impact the bottomline of the organization.
Regulatory challenges
– Packaging Carnaudmetalbox 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 Finance & Accounting industry regulations.
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.
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 Packaging Carnaudmetalbox.
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. Packaging Carnaudmetalbox needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Packaging Carnaudmetalbox has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Packaging Carnaudmetalbox needs to keep up with the evolution of technology in the Finance & Accounting 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Packaging Carnaudmetalbox 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 Crown Cork & Seal/CarnaudMetalbox .
Stagnating economy with rate increase
– Packaging Carnaudmetalbox 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.
Shortening product life cycle
– it is one of the major threat that Packaging Carnaudmetalbox is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Packaging Carnaudmetalbox business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Crown Cork & Seal/CarnaudMetalbox 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 Crown Cork & Seal/CarnaudMetalbox 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 Crown Cork & Seal/CarnaudMetalbox 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 Crown Cork & Seal/CarnaudMetalbox 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 Crown Cork & Seal/CarnaudMetalbox 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 Packaging Carnaudmetalbox needs to make to build a sustainable competitive advantage.
