Coke in the Crosshairs: Water, India, and the University of Michigan SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Coke in the Crosshairs: Water, India, and the University of Michigan
How do you maintain relationships with companies that serve a majority of people, but upset an outspoken minority? Winner of the 2011 Oikos Casewriting Competition, this case explores a tenuous relationship between the University of Michigan and the Coca-Cola Company. Pressured by an activist group, the university decided to cut its contract with Coke until the company satisfied the environmental and labor demands of the activists. Students will learn about student activism in a university setting and how the university seeks to satisfy student requests. A Spanish language version of this case is also available at Coca-Cola en la mira: El Agua, India y la Universidad de Michigan.
Authors :: Andrew Hoffman, Grace Augustine, Sarah Howie
Topics :: Strategy & Execution
Tags :: Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Coke in the Crosshairs: Water, India, and the University of Michigan" written by Andrew Hoffman, Grace Augustine, Sarah Howie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Michigan University facing as an external strategic factors. Some of the topics covered in Coke in the Crosshairs: Water, India, and the University of Michigan case study are - Strategic Management Strategies, Public relations, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Coke in the Crosshairs: Water, India, and the University of Michigan casestudy better are - – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of Coke in the Crosshairs: Water, India, and the University of Michigan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Coke in the Crosshairs: Water, India, and the University of Michigan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Michigan University, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Michigan University 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 Coke in the Crosshairs: Water, India, and the University of Michigan can be done for the following purposes –
1. Strategic planning using facts provided in Coke in the Crosshairs: Water, India, and the University of Michigan case study
2. Improving business portfolio management of Michigan University
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 Michigan University
Strengths Coke in the Crosshairs: Water, India, and the University of Michigan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Michigan University in Coke in the Crosshairs: Water, India, and the University of Michigan Harvard Business Review case study are -
Strong track record of project management
– Michigan University is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Coke in the Crosshairs: Water, India, and the University of Michigan firm has clearly differentiated products in the market place. This has enabled Michigan University to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Michigan University to invest into research and development (R&D) and innovation.
Analytics focus
– Michigan University 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 Andrew Hoffman, Grace Augustine, Sarah Howie 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.
Innovation driven organization
– Michigan University is one of the most innovative firm in sector. Manager in Coke in the Crosshairs: Water, India, and the University of Michigan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Michigan University 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
– Michigan University has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Michigan University 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.
Learning organization
- Michigan University 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 Michigan University is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Coke in the Crosshairs: Water, India, and the University of Michigan Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Michigan University has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Coke in the Crosshairs: Water, India, and the University of Michigan 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.
Low bargaining power of suppliers
– Suppliers of Michigan University in the sector have low bargaining power. Coke in the Crosshairs: Water, India, and the University of Michigan has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Michigan University to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Coke in the Crosshairs: Water, India, and the University of Michigan 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.
Ability to lead change in Strategy & Execution field
– Michigan University 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 Michigan University in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Michigan University 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 Coke in the Crosshairs: Water, India, and the University of Michigan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Coke in the Crosshairs: Water, India, and the University of Michigan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Coke in the Crosshairs: Water, India, and the University of Michigan are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Coke in the Crosshairs: Water, India, and the University of Michigan, in the dynamic environment Michigan University has struggled to respond to the nimble upstart competition. Michigan University has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Michigan University 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. Michigan University 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.
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 Michigan University supply chain. Even after few cautionary changes mentioned in the HBR case study - Coke in the Crosshairs: Water, India, and the University of Michigan, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Michigan University vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Coke in the Crosshairs: Water, India, and the University of Michigan, is just above the industry average. Michigan University 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Coke in the Crosshairs: Water, India, and the University of Michigan 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 Michigan University has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Michigan University 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Michigan University is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Coke in the Crosshairs: Water, India, and the University of Michigan 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 Coke in the Crosshairs: Water, India, and the University of Michigan 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 Michigan University 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Michigan University 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.
Low market penetration in new markets
– Outside its home market of Michigan University, firm in the HBR case study Coke in the Crosshairs: Water, India, and the University of Michigan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Michigan University 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.
Opportunities Coke in the Crosshairs: Water, India, and the University of Michigan | 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 Coke in the Crosshairs: Water, India, and the University of Michigan are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Michigan University 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. Michigan University can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Michigan University 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.
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 Michigan University 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
– Michigan University 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.
Creating value in data economy
– The success of analytics program of Michigan University has opened avenues for new revenue streams for the organization in the industry. This can help Michigan University to build a more holistic ecosystem as suggested in the Coke in the Crosshairs: Water, India, and the University of Michigan case study. Michigan University can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Michigan University can use these opportunities to build new business models that can help the communities that Michigan University operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Michigan University to increase its market reach. Michigan University 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Michigan University 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 Michigan University to hire the very best people irrespective of their geographical location.
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. Michigan University 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. Michigan University 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.
Loyalty marketing
– Michigan University 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Michigan University 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Michigan University is facing challenges because of the dominance of functional experts in the organization. Coke in the Crosshairs: Water, India, and the University of Michigan 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.
Threats Coke in the Crosshairs: Water, India, and the University of Michigan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Coke in the Crosshairs: Water, India, and the University of Michigan are -
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 Michigan University business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Michigan University 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Michigan University 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 Coke in the Crosshairs: Water, India, and the University of Michigan .
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.
Technology acceleration in Forth Industrial Revolution
– Michigan University has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Michigan University 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.
Regulatory challenges
– Michigan University 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.
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 Michigan University.
High dependence on third party suppliers
– Michigan University 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 wage structure of Michigan University
– 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 Michigan University.
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 Michigan University 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. Michigan University needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Michigan University 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.
Weighted SWOT Analysis of Coke in the Crosshairs: Water, India, and the University of Michigan 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 Coke in the Crosshairs: Water, India, and the University of Michigan 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 Coke in the Crosshairs: Water, India, and the University of Michigan 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 Coke in the Crosshairs: Water, India, and the University of Michigan 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 Coke in the Crosshairs: Water, India, and the University of Michigan 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 Michigan University needs to make to build a sustainable competitive advantage.
