Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO
This is a four-player negotiation simulation in which a newly-privatized British water utility must deal with contentious unions and national collective-bargaining agreements. Explores the question of coalitions and multi-lateral negotiations, and the value of interlocking guarantees. This case contains the confidential information for one of the four roles.
Swot Analysis of "Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO" written by Robert J. Robinson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nalgo Confidential facing as an external strategic factors. Some of the topics covered in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO case study are - Strategic Management Strategies, Labor, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO casestudy better are - – technology disruption, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nalgo Confidential, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nalgo Confidential 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO can be done for the following purposes –
1. Strategic planning using facts provided in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO case study
2. Improving business portfolio management of Nalgo Confidential
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nalgo Confidential
Strengths Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nalgo Confidential in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO Harvard Business Review case study are -
Effective Research and Development (R&D)
– Nalgo Confidential 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Nalgo Confidential 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.
High brand equity
– Nalgo Confidential has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nalgo Confidential to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Nalgo Confidential is one of the leading recruiters in the industry. Managers in the Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Nalgo Confidential 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 Robert J. Robinson 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.
Innovation driven organization
– Nalgo Confidential is one of the most innovative firm in sector. Manager in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO firm has clearly differentiated products in the market place. This has enabled Nalgo Confidential to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nalgo Confidential to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Nalgo Confidential is present in almost all the verticals within the industry. This has provided firm in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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.
Strong track record of project management
– Nalgo Confidential is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Nalgo Confidential 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 Nalgo Confidential is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Nalgo Confidential has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nalgo Confidential 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.
Organizational Resilience of Nalgo Confidential
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nalgo Confidential does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO, in the dynamic environment Nalgo Confidential has struggled to respond to the nimble upstart competition. Nalgo Confidential 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO, is just above the industry average. Nalgo Confidential 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
– Nalgo Confidential 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Nalgo Confidential has relatively successful track record of launching new products.
High cash cycle compare to competitors
Nalgo Confidential 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.
Slow to strategic competitive environment developments
– As Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO HBR case study mentions - Nalgo Confidential 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.
Low market penetration in new markets
– Outside its home market of Nalgo Confidential, firm in the HBR case study Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO can leverage the sales team experience to cultivate customer relationships as Nalgo Confidential is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Nalgo Confidential 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.
Products dominated business model
– Even though Nalgo Confidential 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 - Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Nalgo Confidential 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.
Opportunities Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO | 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Nalgo Confidential 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nalgo Confidential 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, Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Nalgo Confidential can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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.
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. Nalgo Confidential can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Nalgo Confidential 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 Strategy & Execution segment.
Using analytics as competitive advantage
– Nalgo Confidential 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nalgo Confidential to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nalgo Confidential can use these opportunities to build new business models that can help the communities that Nalgo Confidential operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Nalgo Confidential can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nalgo Confidential is facing challenges because of the dominance of functional experts in the organization. Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Nalgo Confidential can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Nalgo Confidential 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nalgo Confidential 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, Nalgo Confidential 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.
Threats Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO are -
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. Nalgo Confidential 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nalgo Confidential 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nalgo Confidential with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Nalgo Confidential 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.
Increasing wage structure of Nalgo Confidential
– 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 Nalgo Confidential.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO, Nalgo Confidential may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nalgo Confidential in the Strategy & Execution industry. The Strategy & Execution 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.
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. Nalgo Confidential needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Nalgo Confidential business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Nalgo Confidential 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.
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 Nalgo Confidential.
Shortening product life cycle
– it is one of the major threat that Nalgo Confidential is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Welsh Water (C): General Information and Confidential Instructions for Chris Smith, Lead Negotiator for NALGO 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 Nalgo Confidential needs to make to build a sustainable competitive advantage.
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