Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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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 inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing transportation and logistics costs,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, 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 -
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.
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: 1978 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.
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.
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.
Organizational Resilience of 190 Abc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 190 Abc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information firm has clearly differentiated products in the market place. This has enabled 190 Abc to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped 190 Abc to invest into research and development (R&D) and innovation.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of 190 Abc in the sector have low bargaining power. Adam Baxter Co./Local 190: 1978 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.
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 -
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.
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.
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.
Increasing silos among functional specialists
– The organizational structure of 190 Abc is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. 190 Abc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 190 Abc to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of 190 Abc, firm in the HBR case study Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information, is just above the industry average. 190 Abc 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.
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.
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.
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 190 Abc supply chain. Even after few cautionary changes mentioned in the HBR case study - Adam Baxter Co./Local 190: 1978 Negotiation, Local 190 Confidential Information, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 190 Abc vulnerable to further global disruptions in South East Asia.
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 -
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for 190 Abc 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.
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: 1978 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 190 Abc 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 190 Abc to hire the very best people irrespective of their geographical location.
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.
Building a culture of innovation
– managers at 190 Abc can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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.
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.
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.
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.
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.
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 -
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.
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 .
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.
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.
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.
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.
Environmental challenges
– 190 Abc 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. 190 Abc can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 190 Abc 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.
Technology acceleration in Forth Industrial Revolution
– 190 Abc has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, 190 Abc 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.
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.
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.