Swot Analysis of "Lac-Megantic Train Derailment: Putting Out the Fires (B)" written by Jana Seijts, Paul Bigus includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W13550 Megantic facing as an external strategic factors. Some of the topics covered in Lac-Megantic Train Derailment: Putting Out the Fires (B) case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Lac-Megantic Train Derailment: Putting Out the Fires (B) casestudy better are - – wage bills are increasing, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, geopolitical disruptions, supply chains are disrupted by pandemic ,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Lac-Megantic Train Derailment: Putting Out the Fires (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lac-Megantic Train Derailment: Putting Out the Fires (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W13550 Megantic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W13550 Megantic 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) can be done for the following purposes –
1. Strategic planning using facts provided in Lac-Megantic Train Derailment: Putting Out the Fires (B) case study
2. Improving business portfolio management of W13550 Megantic
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 W13550 Megantic
Strengths Lac-Megantic Train Derailment: Putting Out the Fires (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W13550 Megantic in Lac-Megantic Train Derailment: Putting Out the Fires (B) Harvard Business Review case study are -
Learning organization
- W13550 Megantic 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 W13550 Megantic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lac-Megantic Train Derailment: Putting Out the Fires (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– W13550 Megantic is present in almost all the verticals within the industry. This has provided firm in Lac-Megantic Train Derailment: Putting Out the Fires (B) 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For W13550 Megantic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. W13550 Megantic has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of W13550 Megantic in the sector have low bargaining power. Lac-Megantic Train Derailment: Putting Out the Fires (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W13550 Megantic to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the W13550 Megantic 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 W13550 Megantic 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.
Successful track record of launching new products
– W13550 Megantic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. W13550 Megantic 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.
Ability to lead change in Strategy & Execution field
– W13550 Megantic 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 W13550 Megantic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of W13550 Megantic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– W13550 Megantic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lac-Megantic Train Derailment: Putting Out the Fires (B) 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
– W13550 Megantic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W13550 Megantic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– W13550 Megantic 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 Jana Seijts, Paul Bigus 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.
Weaknesses Lac-Megantic Train Derailment: Putting Out the Fires (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lac-Megantic Train Derailment: Putting Out the Fires (B) are -
Need for greater diversity
– W13550 Megantic 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.
Products dominated business model
– Even though W13550 Megantic 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 - Lac-Megantic Train Derailment: Putting Out the Fires (B) should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, W13550 Megantic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lac-Megantic Train Derailment: Putting Out the Fires (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 W13550 Megantic supply chain. Even after few cautionary changes mentioned in the HBR case study - Lac-Megantic Train Derailment: Putting Out the Fires (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left W13550 Megantic vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lac-Megantic Train Derailment: Putting Out the Fires (B), is just above the industry average. W13550 Megantic needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lac-Megantic Train Derailment: Putting Out the Fires (B), it seems that the employees of W13550 Megantic don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) can leverage the sales team experience to cultivate customer relationships as W13550 Megantic is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 W13550 Megantic 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of W13550 Megantic is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. W13550 Megantic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help W13550 Megantic to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lac-Megantic Train Derailment: Putting Out the Fires (B), in the dynamic environment W13550 Megantic has struggled to respond to the nimble upstart competition. W13550 Megantic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of W13550 Megantic products
– To increase the profitability and margins on the products, W13550 Megantic needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Lac-Megantic Train Derailment: Putting Out the Fires (B) | 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) are -
Buying journey improvements
– W13550 Megantic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lac-Megantic Train Derailment: Putting Out the Fires (B) 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.
Creating value in data economy
– The success of analytics program of W13550 Megantic has opened avenues for new revenue streams for the organization in the industry. This can help W13550 Megantic to build a more holistic ecosystem as suggested in the Lac-Megantic Train Derailment: Putting Out the Fires (B) case study. W13550 Megantic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, W13550 Megantic 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, W13550 Megantic is facing challenges because of the dominance of functional experts in the organization. Lac-Megantic Train Derailment: Putting Out the Fires (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for W13550 Megantic in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help W13550 Megantic to increase its market reach. W13550 Megantic 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.
Learning at scale
– Online learning technologies has now opened space for W13550 Megantic 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, W13550 Megantic 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, Lac-Megantic Train Derailment: Putting Out the Fires (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 W13550 Megantic 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.
Developing new processes and practices
– W13550 Megantic 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.
Leveraging digital technologies
– W13550 Megantic 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.
Using analytics as competitive advantage
– W13550 Megantic 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help W13550 Megantic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W13550 Megantic 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 W13550 Megantic to hire the very best people irrespective of their geographical location.
Threats Lac-Megantic Train Derailment: Putting Out the Fires (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lac-Megantic Train Derailment: Putting Out the Fires (B) are -
High dependence on third party suppliers
– W13550 Megantic 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, W13550 Megantic 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) .
Consumer confidence and its impact on W13550 Megantic 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.
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 W13550 Megantic in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– W13550 Megantic 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. W13550 Megantic can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. W13550 Megantic 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.
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 W13550 Megantic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of W13550 Megantic
– 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 W13550 Megantic.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lac-Megantic Train Derailment: Putting Out the Fires (B), W13550 Megantic 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 .
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 W13550 Megantic business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for W13550 Megantic in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– W13550 Megantic 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.
Weighted SWOT Analysis of Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 Lac-Megantic Train Derailment: Putting Out the Fires (B) 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 W13550 Megantic needs to make to build a sustainable competitive advantage.
