Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 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 190 Abc facing as an external strategic factors. Some of the topics covered in Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 Confidential Information casestudy better are - – increasing energy prices, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models,
technology disruption, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 Confidential Information case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 190 Abc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 190 Abc 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 Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information can be done for the following purposes –
1. Strategic planning using facts provided in Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information case study
2. Improving business portfolio management of 190 Abc
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 190 Abc
Strengths Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 190 Abc in Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information Harvard Business Review case study are -
Training and development
– 190 Abc 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, Local 190 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.
High brand equity
– 190 Abc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 190 Abc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of 190 Abc in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– 190 Abc is one of the leading recruiters in the industry. Managers in the Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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.
Innovation driven organization
– 190 Abc is one of the most innovative firm in sector. Manager in Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– 190 Abc 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 190 Abc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– 190 Abc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 190 Abc 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.
Highly skilled collaborators
– 190 Abc 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: 1983 Negotiation, Local 190 Confidential Information HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that 190 Abc 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
- 190 Abc 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 190 Abc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of 190 Abc in the sector have low bargaining power. Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 190 Abc to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– 190 Abc 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, Local 190 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.
Weaknesses Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 Confidential Information are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 190 Abc 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, Local 190 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.
Low market penetration in new markets
– Outside its home market of 190 Abc, firm in the HBR case study Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information 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 Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information can leverage the sales team experience to cultivate customer relationships as 190 Abc is planning to shift buying processes online.
Lack of clear differentiation of 190 Abc products
– To increase the profitability and margins on the products, 190 Abc needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, 190 Abc 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, 190 Abc 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. 190 Abc 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.
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, Local 190 Confidential Information, in the dynamic environment 190 Abc has struggled to respond to the nimble upstart competition. 190 Abc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, 190 Abc 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.
Skills based hiring
– The stress on hiring functional specialists at 190 Abc 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information 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 190 Abc has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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 190 Abc 's lucrative customers.
Opportunities Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 Confidential Information are -
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. 190 Abc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– 190 Abc 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: 1983 Negotiation, Local 190 Confidential Information - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 190 Abc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– 190 Abc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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.
Learning at scale
– Online learning technologies has now opened space for 190 Abc 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.
Manufacturing automation
– 190 Abc 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 190 Abc to increase its market reach. 190 Abc 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 190 Abc 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 190 Abc in the consumer business. Now 190 Abc can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 190 Abc is facing challenges because of the dominance of functional experts in the organization. Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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.
Developing new processes and practices
– 190 Abc 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.
Loyalty marketing
– 190 Abc 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 190 Abc 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: 1983 Negotiation, Local 190 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.
Creating value in data economy
– The success of analytics program of 190 Abc has opened avenues for new revenue streams for the organization in the industry. This can help 190 Abc to build a more holistic ecosystem as suggested in the Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 Confidential Information case study. 190 Abc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 Confidential Information are -
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 190 Abc.
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 190 Abc 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, 190 Abc 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, Local 190 Confidential Information .
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. 190 Abc 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.
Consumer confidence and its impact on 190 Abc 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. 190 Abc needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– 190 Abc 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.
Stagnating economy with rate increase
– 190 Abc 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.
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, Local 190 Confidential Information, 190 Abc 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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 190 Abc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 190 Abc in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that 190 Abc is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Adam Baxter Co./Local 190: 1983 Negotiation, Local 190 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, Local 190 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, Local 190 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, Local 190 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, Local 190 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 190 Abc needs to make to build a sustainable competitive advantage.