Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information

Includes a series of three negotiation exercises portraying management/labor relations at ABC over a period of seven years. ABC, initially a family-owned business, had prided itself on its cooperative relationship with its union, Local 190. With the skyrocketing inflation of the 1970s, management considered drastic changes. Management and labor would undergo a series of negotiations over wages, benefits, and work conditions at ABC's main plant in Deloitte, Iowa.

Authors :: Victoria Medvec, Kathleen L. McGinn

Topics :: Strategy & Execution

Tags :: Human resource management, Labor, Leading teams, Negotiations, Workspaces, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information" written by Victoria Medvec, Kathleen L. McGinn includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Baxter 190 facing as an external strategic factors. Some of the topics covered in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information case study are - Strategic Management Strategies, Human resource management, Labor, Leading teams, Negotiations, Workspaces and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing commodity prices, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, etc

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Introduction to SWOT Analysis of Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Baxter 190, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Baxter 190 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information can be done for the following purposes –
1. Strategic planning using facts provided in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information case study
2. Improving business portfolio management of Baxter 190
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 Baxter 190

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Strengths Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Baxter 190 in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information Harvard Business Review case study are -

Low bargaining power of suppliers

– Suppliers of Baxter 190 in the sector have low bargaining power. Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Baxter 190 to manage not only supply disruptions but also source products at highly competitive prices.

Diverse revenue streams

– Baxter 190 is present in almost all the verticals within the industry. This has provided firm in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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

– Baxter 190 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 Victoria Medvec, Kathleen L. McGinn 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.

Operational resilience

– The operational resilience strategy in the Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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.

Learning organization

- Baxter 190 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 Baxter 190 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Innovation driven organization

– Baxter 190 is one of the most innovative firm in sector. Manager in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Training and development

– Baxter 190 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Baxter 190 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.

Effective Research and Development (R&D)

– Baxter 190 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information - 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

– Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information firm has clearly differentiated products in the market place. This has enabled Baxter 190 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Baxter 190 to invest into research and development (R&D) and innovation.

Ability to recruit top talent

– Baxter 190 is one of the leading recruiters in the industry. Managers in the Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

High switching costs

– The high switching costs that Baxter 190 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.

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Weaknesses Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information are -

High operating costs

– Compare to the competitors, firm in the HBR case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Baxter 190 's lucrative customers.

Capital Spending Reduction

– Even during the low interest decade, Baxter 190 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.

Low market penetration in new markets

– Outside its home market of Baxter 190, firm in the HBR case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Interest costs

– Compare to the competition, Baxter 190 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.

Products dominated business model

– Even though Baxter 190 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 - Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information, in the dynamic environment Baxter 190 has struggled to respond to the nimble upstart competition. Baxter 190 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Baxter 190 supply chain. Even after few cautionary changes mentioned in the HBR case study - Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Baxter 190 vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Baxter 190 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

– The organizational structure of Baxter 190 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Baxter 190 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Baxter 190 to focus more on services rather than just following the product oriented approach.

High cash cycle compare to competitors

Baxter 190 has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High bargaining power of channel partners

– Because of the regulatory requirements, Victoria Medvec, Kathleen L. McGinn suggests that, Baxter 190 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.

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Opportunities Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information | 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information are -

Buying journey improvements

– Baxter 190 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Baxter 190 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 Baxter 190 to hire the very best people irrespective of their geographical location.

Loyalty marketing

– Baxter 190 has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Developing new processes and practices

– Baxter 190 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Baxter 190 is facing challenges because of the dominance of functional experts in the organization. Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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.

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. Baxter 190 can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Low interest rates

– Even though inflation is raising its head in most developed economies, Baxter 190 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.

Leveraging digital technologies

– Baxter 190 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.

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. Baxter 190 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Manufacturing automation

– Baxter 190 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.

Better consumer reach

– The expansion of the 5G network will help Baxter 190 to increase its market reach. Baxter 190 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 Baxter 190 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.

Learning at scale

– Online learning technologies has now opened space for Baxter 190 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.

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Threats Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information are -

Technology acceleration in Forth Industrial Revolution

– Baxter 190 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Baxter 190 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.

High dependence on third party suppliers

– Baxter 190 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 international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Baxter 190 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information, Baxter 190 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 .

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.

Regulatory challenges

– Baxter 190 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.

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. Baxter 190 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Stagnating economy with rate increase

– Baxter 190 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.

Consumer confidence and its impact on Baxter 190 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.

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.

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 Baxter 190 in the Strategy & Execution sector and impact the bottomline 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 Baxter 190.

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. Baxter 190 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.

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Weighted SWOT Analysis of Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Adam Baxter Co./Local 190: 1983 Negotiation, Baxter Management Confidential Information 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 Baxter 190 needs to make to build a sustainable competitive advantage.

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