Adam Baxter Co./Local 190: 1978 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: 1978 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: 1978 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: 1978 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: 1978 Negotiation, Local 190 Confidential Information casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, technology disruption, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Adam Baxter Co./Local 190: 1978 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: 1978 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: 1978 Negotiation, Local 190 Confidential Information can be done for the following purposes –
1. Strategic planning using facts provided in Adam Baxter Co./Local 190: 1978 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: 1978 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: 1978 Negotiation, Local 190 Confidential Information Harvard Business Review case study are -
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.
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: 1978 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.
Innovation driven organization
– 190 Abc is one of the most innovative firm in sector. Manager in Adam Baxter Co./Local 190: 1978 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.
Cross disciplinary teams
– Horizontal connected teams at the 190 Abc 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.
Analytics focus
– 190 Abc is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Victoria Medvec, Kathleen L. McGinn can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 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.
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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For 190 Abc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 190 Abc 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.
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: 1978 Negotiation, Local 190 Confidential Information HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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: 1978 Negotiation, Local 190 Confidential Information Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– 190 Abc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– 190 Abc is present in almost all the verticals within the industry. This has provided firm in Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Adam Baxter Co./Local 190: 1978 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: 1978 Negotiation, Local 190 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: 1978 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.
No frontier risks strategy
– After analyzing the HBR case study Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, 190 Abc 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.
Products dominated business model
– Even though 190 Abc 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: 1978 Negotiation, Local 190 Confidential Information should strive to include more intangible value offerings along with its core products and services.
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.
Slow to strategic competitive environment developments
– As Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information HBR case study mentions - 190 Abc 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information, it seems that the employees of 190 Abc 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Adam Baxter Co./Local 190: 1978 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 bargaining power of channel partners
– Because of the regulatory requirements, Victoria Medvec, Kathleen L. McGinn suggests that, 190 Abc 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.
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.
Opportunities Adam Baxter Co./Local 190: 1978 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: 1978 Negotiation, Local 190 Confidential Information 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 190 Abc in the consumer business. Now 190 Abc can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. 190 Abc can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. 190 Abc can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, 190 Abc 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.
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: 1978 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 190 Abc can use these opportunities to build new business models that can help the communities that 190 Abc operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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: 1978 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.
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: 1978 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.
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.
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. 190 Abc 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
– 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.
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: 1978 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.
Threats Adam Baxter Co./Local 190: 1978 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: 1978 Negotiation, Local 190 Confidential Information are -
Increasing wage structure of 190 Abc
– 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 190 Abc.
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.
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.
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.
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.
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.
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.
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.
Regulatory challenges
– 190 Abc 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.
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: 1978 Negotiation, Local 190 Confidential Information .
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.
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. 190 Abc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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: 1978 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 .
Weighted SWOT Analysis of Adam Baxter Co./Local 190: 1978 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: 1978 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: 1978 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: 1978 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: 1978 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.
