Gold Claim at Sturgeon Lake SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gold Claim at Sturgeon Lake
A freelance geologist was asked for advice regarding two mining claims to property on Sturgeon Lake, near Thunder Bay, Ontario. Specifically, he was asked if there was enough gold on the property to pursue an economically feasible mining opportunity. The geologist determined that an analytical approach would best aid the analysis of the multiple factors he would need to consider in arriving at a decision about whether or not to proceed with the mining operation. The first stage in ore extraction involved building an access road, and the second stage was to implement a drilling program. There was considerable uncertainty surrounding the costs and actual feasibility of completion of these stages; yet only when these stages were completed could actual mining of the property begin. If mining proceeded, it was assumed it would take 10 years to extract all the gold from the site, and the total amount of gold in the mine would be extracted at an even rate over the 10-year period. Mining costs were assumed to be $30 an ounce, and the geologist used a discount rate of 20 per cent before taxes when evaluating projects.
Swot Analysis of "Gold Claim at Sturgeon Lake" written by Peter C. Bell, Gregory S. Zaric includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Geologist Mining facing as an external strategic factors. Some of the topics covered in Gold Claim at Sturgeon Lake case study are - Strategic Management Strategies, Business models, Decision making, IT, Managing uncertainty and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Gold Claim at Sturgeon Lake casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, technology disruption, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy,
wage bills are increasing, increasing commodity prices, etc
Introduction to SWOT Analysis of Gold Claim at Sturgeon Lake
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gold Claim at Sturgeon Lake case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Geologist Mining, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Geologist Mining 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 Gold Claim at Sturgeon Lake can be done for the following purposes –
1. Strategic planning using facts provided in Gold Claim at Sturgeon Lake case study
2. Improving business portfolio management of Geologist Mining
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 Geologist Mining
Strengths Gold Claim at Sturgeon Lake | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Geologist Mining in Gold Claim at Sturgeon Lake Harvard Business Review case study are -
Highly skilled collaborators
– Geologist Mining 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 Gold Claim at Sturgeon Lake HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Geologist Mining 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 Geologist Mining is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gold Claim at Sturgeon Lake Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Geologist Mining in the sector have low bargaining power. Gold Claim at Sturgeon Lake has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Geologist Mining to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Geologist Mining is one of the most innovative firm in sector. Manager in Gold Claim at Sturgeon Lake Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Gold Claim at Sturgeon Lake 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.
Organizational Resilience of Geologist Mining
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Geologist Mining does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Geologist Mining has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gold Claim at Sturgeon Lake 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.
High brand equity
– Geologist Mining has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Geologist Mining to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Geologist Mining has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Geologist Mining 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.
Diverse revenue streams
– Geologist Mining is present in almost all the verticals within the industry. This has provided firm in Gold Claim at Sturgeon Lake 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.
Analytics focus
– Geologist Mining 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 Peter C. Bell, Gregory S. Zaric 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.
Strong track record of project management
– Geologist Mining is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Gold Claim at Sturgeon Lake | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gold Claim at Sturgeon Lake are -
Lack of clear differentiation of Geologist Mining products
– To increase the profitability and margins on the products, Geologist Mining 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 Gold Claim at Sturgeon Lake 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 Gold Claim at Sturgeon Lake can leverage the sales team experience to cultivate customer relationships as Geologist Mining 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, Geologist Mining is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gold Claim at Sturgeon Lake can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Geologist Mining 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.
No frontier risks strategy
– After analyzing the HBR case study Gold Claim at Sturgeon Lake, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 Geologist Mining supply chain. Even after few cautionary changes mentioned in the HBR case study - Gold Claim at Sturgeon Lake, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Geologist Mining vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Geologist Mining 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.
Products dominated business model
– Even though Geologist Mining 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 - Gold Claim at Sturgeon Lake should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Geologist Mining 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gold Claim at Sturgeon Lake, in the dynamic environment Geologist Mining has struggled to respond to the nimble upstart competition. Geologist Mining has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Geologist Mining 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.
Opportunities Gold Claim at Sturgeon Lake | 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 Gold Claim at Sturgeon Lake are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Geologist Mining can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Geologist Mining in the consumer business. Now Geologist Mining can target international markets with far fewer capital restrictions requirements than the existing system.
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 Geologist Mining 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.
Building a culture of innovation
– managers at Geologist Mining 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.
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. Geologist Mining can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Geologist Mining 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 Gold Claim at Sturgeon Lake - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Geologist Mining to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Geologist Mining 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. Geologist Mining 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 Geologist Mining to increase its market reach. Geologist Mining 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Geologist Mining can use these opportunities to build new business models that can help the communities that Geologist Mining operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Geologist Mining is facing challenges because of the dominance of functional experts in the organization. Gold Claim at Sturgeon Lake 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.
Creating value in data economy
– The success of analytics program of Geologist Mining has opened avenues for new revenue streams for the organization in the industry. This can help Geologist Mining to build a more holistic ecosystem as suggested in the Gold Claim at Sturgeon Lake case study. Geologist Mining can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Geologist Mining can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gold Claim at Sturgeon Lake 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.
Developing new processes and practices
– Geologist Mining 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.
Threats Gold Claim at Sturgeon Lake External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gold Claim at Sturgeon Lake are -
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. Geologist Mining needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Geologist Mining has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Geologist Mining needs to keep up with the evolution of technology in the Strategy & Execution 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Geologist Mining 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 Gold Claim at Sturgeon Lake .
Consumer confidence and its impact on Geologist Mining 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gold Claim at Sturgeon Lake, Geologist Mining 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 .
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 Geologist Mining in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Geologist Mining 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.
Increasing wage structure of Geologist Mining
– 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 Geologist Mining.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Geologist Mining with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Geologist Mining.
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 Geologist Mining is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Geologist Mining 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. Geologist Mining can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Gold Claim at Sturgeon Lake 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 Gold Claim at Sturgeon Lake 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 Gold Claim at Sturgeon Lake 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 Gold Claim at Sturgeon Lake 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 Gold Claim at Sturgeon Lake 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 Geologist Mining needs to make to build a sustainable competitive advantage.