High Noon at Universal Pipe: Sell Out or Risk Everything? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of High Noon at Universal Pipe: Sell Out or Risk Everything?
Dave Butler, the CEO of Universal Pipe, Inc. (UPI), a producer of PVC pipe, had to decide whether to acquiesce and let the Japanese parent company that owned UPI file for bankruptcy as part of UPI's sale to a private equity firm or to find an alternate solution. If the sale were to go forward UPI would probably be liquidated and all personnel would be dismissed. Butler considered this to be immoral and he pondered buying the company himself. This was risky because the economy was not doing well; the company had been performing poorly until most recently and carried a large debt load. Very little time was left and rumors about the impending bankruptcy were flying. The case describes the industry, its key material PVC and the producers of PVC resin; the mode of competition in the pipe industry and the checkered past of the company due to poor decisions by prior top management. This forms the basis for developing a proposal to the current owners; formulating a post-acquisition strategy and related forecast of future performance should the current CEO go ahead and prevail with a risky acquisition.
Swot Analysis of "High Noon at Universal Pipe: Sell Out or Risk Everything?" written by Arieh A Ullmann includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Upi Pipe facing as an external strategic factors. Some of the topics covered in High Noon at Universal Pipe: Sell Out or Risk Everything? case study are - Strategic Management Strategies, Corporate governance, Decision making, Knowledge management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the High Noon at Universal Pipe: Sell Out or Risk Everything? casestudy better are - – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, etc
Introduction to SWOT Analysis of High Noon at Universal Pipe: Sell Out or Risk Everything?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in High Noon at Universal Pipe: Sell Out or Risk Everything? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Upi Pipe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Upi Pipe 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 High Noon at Universal Pipe: Sell Out or Risk Everything? can be done for the following purposes –
1. Strategic planning using facts provided in High Noon at Universal Pipe: Sell Out or Risk Everything? case study
2. Improving business portfolio management of Upi Pipe
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 Upi Pipe
Strengths High Noon at Universal Pipe: Sell Out or Risk Everything? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Upi Pipe in High Noon at Universal Pipe: Sell Out or Risk Everything? Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the High Noon at Universal Pipe: Sell Out or Risk Everything? 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.
Strong track record of project management
– Upi Pipe is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Upi Pipe is one of the leading recruiters in the industry. Managers in the High Noon at Universal Pipe: Sell Out or Risk Everything? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Upi Pipe digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Upi Pipe 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.
Superior customer experience
– The customer experience strategy of Upi Pipe in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Upi Pipe is one of the most innovative firm in sector. Manager in High Noon at Universal Pipe: Sell Out or Risk Everything? 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
– Upi Pipe is present in almost all the verticals within the industry. This has provided firm in High Noon at Universal Pipe: Sell Out or Risk Everything? 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.
Learning organization
- Upi Pipe 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 Upi Pipe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in High Noon at Universal Pipe: Sell Out or Risk Everything? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Upi Pipe has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in High Noon at Universal Pipe: Sell Out or Risk Everything? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Upi Pipe 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.
High brand equity
– Upi Pipe has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Upi Pipe to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Upi Pipe has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Upi Pipe 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.
Weaknesses High Noon at Universal Pipe: Sell Out or Risk Everything? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of High Noon at Universal Pipe: Sell Out or Risk Everything? are -
Workers concerns about automation
– As automation is fast increasing in the segment, Upi Pipe 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study High Noon at Universal Pipe: Sell Out or Risk Everything?, it seems that the employees of Upi Pipe 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study High Noon at Universal Pipe: Sell Out or Risk Everything?, in the dynamic environment Upi Pipe has struggled to respond to the nimble upstart competition. Upi Pipe 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 High Noon at Universal Pipe: Sell Out or Risk Everything?, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study High Noon at Universal Pipe: Sell Out or Risk Everything?, is just above the industry average. Upi Pipe 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.
Low market penetration in new markets
– Outside its home market of Upi Pipe, firm in the HBR case study High Noon at Universal Pipe: Sell Out or Risk Everything? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the High Noon at Universal Pipe: Sell Out or Risk Everything? 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 Upi Pipe has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Upi Pipe 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.
Aligning sales with marketing
– It come across in the case study High Noon at Universal Pipe: Sell Out or Risk Everything? 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 High Noon at Universal Pipe: Sell Out or Risk Everything? can leverage the sales team experience to cultivate customer relationships as Upi Pipe is planning to shift buying processes online.
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 Upi Pipe supply chain. Even after few cautionary changes mentioned in the HBR case study - High Noon at Universal Pipe: Sell Out or Risk Everything?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Upi Pipe vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Upi Pipe is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Upi Pipe needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Upi Pipe to focus more on services rather than just following the product oriented approach.
Opportunities High Noon at Universal Pipe: Sell Out or Risk Everything? | 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 Upi Pipe in the consumer business. Now Upi Pipe can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Upi Pipe 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, High Noon at Universal Pipe: Sell Out or Risk Everything?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Upi Pipe can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. High Noon at Universal Pipe: Sell Out or Risk Everything? 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Upi Pipe is facing challenges because of the dominance of functional experts in the organization. High Noon at Universal Pipe: Sell Out or Risk Everything? 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.
Manufacturing automation
– Upi Pipe 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.
Learning at scale
– Online learning technologies has now opened space for Upi Pipe 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.
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. Upi Pipe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Upi Pipe can use these opportunities to build new business models that can help the communities that Upi Pipe operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Upi Pipe 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Upi Pipe 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.
Building a culture of innovation
– managers at Upi Pipe 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.
Leveraging digital technologies
– Upi Pipe can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Loyalty marketing
– Upi Pipe 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.
Threats High Noon at Universal Pipe: Sell Out or Risk Everything? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study High Noon at Universal Pipe: Sell Out or Risk Everything? are -
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. Upi Pipe can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Upi Pipe.
Regulatory challenges
– Upi Pipe 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.
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 Upi Pipe business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Upi Pipe 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.
Consumer confidence and its impact on Upi Pipe 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.
Stagnating economy with rate increase
– Upi Pipe 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Upi Pipe with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Upi Pipe 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. Upi Pipe can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Shortening product life cycle
– it is one of the major threat that Upi Pipe is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 High Noon at Universal Pipe: Sell Out or Risk Everything?, Upi Pipe 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 Upi Pipe 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 High Noon at Universal Pipe: Sell Out or Risk Everything? 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 Upi Pipe needs to make to build a sustainable competitive advantage.