Adam Baxter Co./Local 190: 1985 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: 1985 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: 1985 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: 1985 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: 1985 Negotiation, Baxter Management Confidential Information casestudy better are - – increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, technology disruption, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc

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Introduction to SWOT Analysis of Adam Baxter Co./Local 190: 1985 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: 1985 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: 1985 Negotiation, Baxter Management Confidential Information can be done for the following purposes –
1. Strategic planning using facts provided in Adam Baxter Co./Local 190: 1985 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: 1985 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: 1985 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: 1985 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.

Operational resilience

– The operational resilience strategy in the Adam Baxter Co./Local 190: 1985 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.

Ability to lead change in Strategy & Execution field

– Baxter 190 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 Baxter 190 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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: 1985 Negotiation, Baxter Management Confidential Information Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Baxter 190

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Baxter 190 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– Baxter 190 is one of the most innovative firm in sector. Manager in Adam Baxter Co./Local 190: 1985 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.

Superior customer experience

– The customer experience strategy of Baxter 190 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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.

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: 1985 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.

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.

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.

Highly skilled collaborators

– Baxter 190 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 Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses Adam Baxter Co./Local 190: 1985 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: 1985 Negotiation, Baxter Management Confidential Information are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Adam Baxter Co./Local 190: 1985 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.

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: 1985 Negotiation, Baxter Management Confidential Information should strive to include more intangible value offerings along with its core products and services.

Slow to strategic competitive environment developments

– As Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information HBR case study mentions - Baxter 190 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.

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.

Slow decision making process

– As mentioned earlier in the report, Baxter 190 has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Baxter 190 even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

No frontier risks strategy

– After analyzing the HBR case study Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information, 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 operating costs

– Compare to the competitors, firm in the HBR case study Adam Baxter Co./Local 190: 1985 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.

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.

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.

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: 1985 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Baxter 190 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.

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Opportunities Adam Baxter Co./Local 190: 1985 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: 1985 Negotiation, Baxter Management Confidential Information are -

Using analytics as competitive advantage

– Baxter 190 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 Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Baxter 190 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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: 1985 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.

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.

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.

Creating value in data economy

– The success of analytics program of Baxter 190 has opened avenues for new revenue streams for the organization in the industry. This can help Baxter 190 to build a more holistic ecosystem as suggested in the Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information case study. Baxter 190 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

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 Baxter 190 in the consumer business. Now Baxter 190 can target international markets with far fewer capital restrictions requirements than the existing system.

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.

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.

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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Baxter 190 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, Adam Baxter Co./Local 190: 1985 Negotiation, Baxter Management Confidential Information, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Baxter 190 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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: 1985 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.

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Threats Adam Baxter Co./Local 190: 1985 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: 1985 Negotiation, Baxter Management Confidential Information are -

Environmental challenges

– Baxter 190 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. Baxter 190 can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Shortening product life cycle

– it is one of the major threat that Baxter 190 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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: 1985 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 .

Easy access to finance

– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Baxter 190 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 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.

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.

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.

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 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.

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.

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 Baxter 190 business can come under increasing regulations regarding data privacy, data security, etc.

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: 1985 Negotiation, Baxter Management Confidential Information .

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Weighted SWOT Analysis of Adam Baxter Co./Local 190: 1985 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: 1985 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: 1985 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: 1985 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: 1985 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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