GVM Exploration Limited's (GVM) $2 million environmental assessment project at Grizzly Valley was disrupted by a road blockade set up by a small group of local First Nation people. How GVM handled this situation would not only affect the progress of the Grizzly Valley project but also other ongoing projects. The case challenges students to address an emergent situation. Students will need to think through the short-term and long-term implications of the potential project delay or legal actions. They must assess the issues, alternatives, and decision criteria before selecting the actions to be recommended. The case introduces stakeholder management and corporate social responsibility (CSR). However, the case provides a fairly inclusive scenario where a stakeholder or CSR perspective alone does not dictate strategic directions. Students will need to take into account both stakeholder and business imperatives.
Swot Analysis of "GVM Exploration Limited" written by Michael Rouse, Guo-Liang Frank Jiang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gvm Grizzly facing as an external strategic factors. Some of the topics covered in GVM Exploration Limited case study are - Strategic Management Strategies, Ethics, Growth strategy, Social responsibility, Strategic planning, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the GVM Exploration Limited casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing commodity prices,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of GVM Exploration Limited
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GVM Exploration Limited case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gvm Grizzly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gvm Grizzly 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 GVM Exploration Limited can be done for the following purposes –
1. Strategic planning using facts provided in GVM Exploration Limited case study
2. Improving business portfolio management of Gvm Grizzly
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 Gvm Grizzly
Strengths GVM Exploration Limited | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gvm Grizzly in GVM Exploration Limited Harvard Business Review case study are -
Ability to recruit top talent
– Gvm Grizzly is one of the leading recruiters in the industry. Managers in the GVM Exploration Limited are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Gvm Grizzly has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gvm Grizzly 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.
High switching costs
– The high switching costs that Gvm Grizzly has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Learning organization
- Gvm Grizzly 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 Gvm Grizzly is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GVM Exploration Limited Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Gvm Grizzly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gvm Grizzly 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.
Effective Research and Development (R&D)
– Gvm Grizzly 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 GVM Exploration Limited - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– GVM Exploration Limited firm has clearly differentiated products in the market place. This has enabled Gvm Grizzly to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Gvm Grizzly to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Gvm Grizzly in the sector have low bargaining power. GVM Exploration Limited has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gvm Grizzly to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Gvm Grizzly in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Gvm Grizzly
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gvm Grizzly does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Gvm Grizzly 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 Gvm Grizzly in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Gvm Grizzly 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 GVM Exploration Limited | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GVM Exploration Limited are -
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 Gvm Grizzly supply chain. Even after few cautionary changes mentioned in the HBR case study - GVM Exploration Limited, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gvm Grizzly vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Gvm Grizzly, firm in the HBR case study GVM Exploration Limited needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Gvm Grizzly is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Gvm Grizzly needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gvm Grizzly to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study GVM Exploration Limited 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 Gvm Grizzly 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GVM Exploration Limited 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 Gvm Grizzly has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gvm Grizzly is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GVM Exploration Limited 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 Gvm Grizzly 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 - GVM Exploration Limited should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Gvm Grizzly 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.
Need for greater diversity
– Gvm Grizzly 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.
Interest costs
– Compare to the competition, Gvm Grizzly 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.
High cash cycle compare to competitors
Gvm Grizzly 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.
Opportunities GVM Exploration Limited | 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 GVM Exploration Limited are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gvm Grizzly is facing challenges because of the dominance of functional experts in the organization. GVM Exploration Limited 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.
Better consumer reach
– The expansion of the 5G network will help Gvm Grizzly to increase its market reach. Gvm Grizzly 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.
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 Gvm Grizzly 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.
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. Gvm Grizzly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gvm Grizzly 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, GVM Exploration Limited, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Gvm Grizzly to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gvm Grizzly 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 Gvm Grizzly to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Gvm Grizzly 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.
Buying journey improvements
– Gvm Grizzly can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GVM Exploration Limited 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.
Leveraging digital technologies
– Gvm Grizzly 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.
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. Gvm Grizzly can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Gvm Grizzly can develop new processes and procedures in Strategy & Execution 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.
Creating value in data economy
– The success of analytics program of Gvm Grizzly has opened avenues for new revenue streams for the organization in the industry. This can help Gvm Grizzly to build a more holistic ecosystem as suggested in the GVM Exploration Limited case study. Gvm Grizzly can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats GVM Exploration Limited External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GVM Exploration Limited are -
Shortening product life cycle
– it is one of the major threat that Gvm Grizzly is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Gvm Grizzly 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. Gvm Grizzly can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gvm Grizzly 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.
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 Gvm Grizzly in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Gvm Grizzly 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.
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. Gvm Grizzly 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 Gvm Grizzly business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Gvm Grizzly 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.
Regulatory challenges
– Gvm Grizzly 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 Strategy & Execution industry regulations.
Stagnating economy with rate increase
– Gvm Grizzly 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.
Increasing wage structure of Gvm Grizzly
– 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 Gvm Grizzly.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gvm Grizzly 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 GVM Exploration Limited .
Weighted SWOT Analysis of GVM Exploration Limited 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 GVM Exploration Limited 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 GVM Exploration Limited 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 GVM Exploration Limited 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 GVM Exploration Limited 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 Gvm Grizzly needs to make to build a sustainable competitive advantage.