Laidlaw: The Resignation of James R. Bullock SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Laidlaw: The Resignation of James R. Bullock
After acquiring Greyhound U.S., Laidlaw, Inc. became the principal provider of intercity transit in North America. Nine months later, the board of Laidlaw asked its CEO to resign, citing performance problems and the need to divest certain operations to strengthen its balance sheet. This case examines Laidlaw's attempts to enter and consolidate selected transportation service industries. Something has gone terribly wrong and the search for the reasons pushes back to fundamental issues associated with growth by acquisition and the corporate management of (arguably) diverse businesses. This sets up a discussion of whether the CEO's strategy was reasonable or fundamentally flawed; whether something could have been done earlier by the CEO or the board, and if so, why action wasn't taken; and finally, the prospects for Laidlaw as it looks ahead.
Swot Analysis of "Laidlaw: The Resignation of James R. Bullock" written by Joseph N. Fry includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Laidlaw Laidlaw's facing as an external strategic factors. Some of the topics covered in Laidlaw: The Resignation of James R. Bullock case study are - Strategic Management Strategies, Organizational structure, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Laidlaw: The Resignation of James R. Bullock casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing transportation and logistics costs, technology disruption,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of Laidlaw: The Resignation of James R. Bullock
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Laidlaw: The Resignation of James R. Bullock case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Laidlaw Laidlaw's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Laidlaw Laidlaw's 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 Laidlaw: The Resignation of James R. Bullock can be done for the following purposes –
1. Strategic planning using facts provided in Laidlaw: The Resignation of James R. Bullock case study
2. Improving business portfolio management of Laidlaw Laidlaw's
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 Laidlaw Laidlaw's
Strengths Laidlaw: The Resignation of James R. Bullock | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Laidlaw Laidlaw's in Laidlaw: The Resignation of James R. Bullock Harvard Business Review case study are -
High brand equity
– Laidlaw Laidlaw's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Laidlaw Laidlaw's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Laidlaw: The Resignation of James R. Bullock firm has clearly differentiated products in the market place. This has enabled Laidlaw Laidlaw's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Laidlaw Laidlaw's to invest into research and development (R&D) and innovation.
Analytics focus
– Laidlaw Laidlaw's 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 Joseph N. Fry 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.
Ability to recruit top talent
– Laidlaw Laidlaw's is one of the leading recruiters in the industry. Managers in the Laidlaw: The Resignation of James R. Bullock are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Laidlaw: The Resignation of James R. Bullock 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.
Diverse revenue streams
– Laidlaw Laidlaw's is present in almost all the verticals within the industry. This has provided firm in Laidlaw: The Resignation of James R. Bullock 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.
Successful track record of launching new products
– Laidlaw Laidlaw's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Laidlaw Laidlaw's 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.
Innovation driven organization
– Laidlaw Laidlaw's is one of the most innovative firm in sector. Manager in Laidlaw: The Resignation of James R. Bullock Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Laidlaw Laidlaw's 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 Laidlaw: The Resignation of James R. Bullock HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Laidlaw Laidlaw's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Laidlaw Laidlaw's 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.
Ability to lead change in Strategy & Execution field
– Laidlaw Laidlaw's 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 Laidlaw Laidlaw's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Laidlaw: The Resignation of James R. Bullock | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Laidlaw: The Resignation of James R. Bullock are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Laidlaw: The Resignation of James R. Bullock 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 Laidlaw Laidlaw's has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Laidlaw: The Resignation of James R. Bullock 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 Laidlaw: The Resignation of James R. Bullock can leverage the sales team experience to cultivate customer relationships as Laidlaw Laidlaw's is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Joseph N. Fry suggests that, Laidlaw Laidlaw's 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.
Need for greater diversity
– Laidlaw Laidlaw's 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.
High cash cycle compare to competitors
Laidlaw Laidlaw's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Laidlaw Laidlaw's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Laidlaw Laidlaw's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Laidlaw: The Resignation of James R. Bullock 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 operating costs
– Compare to the competitors, firm in the HBR case study Laidlaw: The Resignation of James R. Bullock 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 Laidlaw Laidlaw's 's lucrative customers.
Lack of clear differentiation of Laidlaw Laidlaw's products
– To increase the profitability and margins on the products, Laidlaw Laidlaw's needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Laidlaw Laidlaw's 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. Laidlaw Laidlaw's 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 Laidlaw: The Resignation of James R. Bullock, 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.
Opportunities Laidlaw: The Resignation of James R. Bullock | 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 Laidlaw: The Resignation of James R. Bullock are -
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 Laidlaw Laidlaw's in the consumer business. Now Laidlaw Laidlaw's can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Laidlaw Laidlaw's 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 Laidlaw: The Resignation of James R. Bullock - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Laidlaw Laidlaw's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Laidlaw Laidlaw's has opened avenues for new revenue streams for the organization in the industry. This can help Laidlaw Laidlaw's to build a more holistic ecosystem as suggested in the Laidlaw: The Resignation of James R. Bullock case study. Laidlaw Laidlaw's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Laidlaw Laidlaw's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Laidlaw Laidlaw's 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.
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. Laidlaw Laidlaw's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Laidlaw Laidlaw's 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, Laidlaw Laidlaw's is facing challenges because of the dominance of functional experts in the organization. Laidlaw: The Resignation of James R. Bullock 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.
Buying journey improvements
– Laidlaw Laidlaw's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Laidlaw: The Resignation of James R. Bullock 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 Laidlaw Laidlaw's 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.
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. Laidlaw Laidlaw's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Laidlaw Laidlaw's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Laidlaw Laidlaw's 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.
Threats Laidlaw: The Resignation of James R. Bullock External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Laidlaw: The Resignation of James R. Bullock are -
Regulatory challenges
– Laidlaw Laidlaw's 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.
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 Laidlaw Laidlaw's in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Laidlaw Laidlaw's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Laidlaw Laidlaw's 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 Laidlaw: The Resignation of James R. Bullock .
Technology acceleration in Forth Industrial Revolution
– Laidlaw Laidlaw's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Laidlaw Laidlaw's 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.
High dependence on third party suppliers
– Laidlaw Laidlaw's 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.
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. Laidlaw Laidlaw's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Laidlaw Laidlaw's 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. Laidlaw Laidlaw's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Laidlaw: The Resignation of James R. Bullock, Laidlaw Laidlaw's 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Laidlaw Laidlaw's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Laidlaw Laidlaw's.
Weighted SWOT Analysis of Laidlaw: The Resignation of James R. Bullock 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 Laidlaw: The Resignation of James R. Bullock 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 Laidlaw: The Resignation of James R. Bullock 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 Laidlaw: The Resignation of James R. Bullock 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 Laidlaw: The Resignation of James R. Bullock 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 Laidlaw Laidlaw's needs to make to build a sustainable competitive advantage.