Envision Charlotte: Building an Energy Cluster (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Envision Charlotte: Building an Energy Cluster (Abridged)
To maximize their effectiveness, color cases should be printed in color.Charlotte, North Carolina, was one of the leading economic centers in the south with a strong position as a headquarter city. Since the 1980s, the city had become increasingly reliant on a successful but also volatile financial service industry. In 2006, Jim Rogers, CEO of Duke Energy, began to lay the groundwork to establish Charlotte as the "new energy hub of America." The Envision Charlotte initiative builds on the Charlotte region's economic development "energy capital USA" initiative that was announced by North Carolina Governor Beverly Perdue, city and business leaders in April 2009. Five years later, on October 28, 2011 he and more than 1,500 people celebrated the launch of Envision Charlotte, a first-in-the-nation smart grid plan aimed at reducing energy use in the central business district. With worries about a renewed downturn in the financial sector, Rogers and the other leaders in attendance hoped that rallying around a shared idea and supporting a civic initiative such as Envision was the formula for economic sustainability.
Swot Analysis of "Envision Charlotte: Building an Energy Cluster (Abridged)" written by William W. George includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Charlotte Envision facing as an external strategic factors. Some of the topics covered in Envision Charlotte: Building an Energy Cluster (Abridged) case study are - Strategic Management Strategies, Economy, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Envision Charlotte: Building an Energy Cluster (Abridged) casestudy better are - – central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Envision Charlotte: Building an Energy Cluster (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Envision Charlotte: Building an Energy Cluster (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Charlotte Envision, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Charlotte Envision 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 Envision Charlotte: Building an Energy Cluster (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Envision Charlotte: Building an Energy Cluster (Abridged) case study
2. Improving business portfolio management of Charlotte Envision
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 Charlotte Envision
Strengths Envision Charlotte: Building an Energy Cluster (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Charlotte Envision in Envision Charlotte: Building an Energy Cluster (Abridged) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Charlotte Envision in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Envision Charlotte: Building an Energy Cluster (Abridged) 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.
Low bargaining power of suppliers
– Suppliers of Charlotte Envision in the sector have low bargaining power. Envision Charlotte: Building an Energy Cluster (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Charlotte Envision to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Charlotte Envision is one of the leading recruiters in the industry. Managers in the Envision Charlotte: Building an Energy Cluster (Abridged) 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 Charlotte Envision digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Charlotte Envision 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.
Cross disciplinary teams
– Horizontal connected teams at the Charlotte Envision 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.
Diverse revenue streams
– Charlotte Envision is present in almost all the verticals within the industry. This has provided firm in Envision Charlotte: Building an Energy Cluster (Abridged) 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.
Innovation driven organization
– Charlotte Envision is one of the most innovative firm in sector. Manager in Envision Charlotte: Building an Energy Cluster (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Charlotte Envision 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 William W. George 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.
Highly skilled collaborators
– Charlotte Envision 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 Envision Charlotte: Building an Energy Cluster (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Charlotte Envision has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Charlotte Envision 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.
Strong track record of project management
– Charlotte Envision is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Envision Charlotte: Building an Energy Cluster (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Envision Charlotte: Building an Energy Cluster (Abridged) are -
Products dominated business model
– Even though Charlotte Envision 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 - Envision Charlotte: Building an Energy Cluster (Abridged) should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Envision Charlotte: Building an Energy Cluster (Abridged) 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 Charlotte Envision 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Envision Charlotte: Building an Energy Cluster (Abridged), it seems that the employees of Charlotte Envision 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 cash cycle compare to competitors
Charlotte Envision has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Charlotte Envision products
– To increase the profitability and margins on the products, Charlotte Envision needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Charlotte Envision 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Envision Charlotte: Building an Energy Cluster (Abridged) 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 Charlotte Envision has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Charlotte Envision 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Envision Charlotte: Building an Energy Cluster (Abridged), in the dynamic environment Charlotte Envision has struggled to respond to the nimble upstart competition. Charlotte Envision has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Charlotte Envision is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Charlotte Envision needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Charlotte Envision to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Charlotte Envision has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities Envision Charlotte: Building an Energy Cluster (Abridged) | 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 Envision Charlotte: Building an Energy Cluster (Abridged) are -
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. Charlotte Envision can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Charlotte Envision to increase its market reach. Charlotte Envision 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.
Learning at scale
– Online learning technologies has now opened space for Charlotte Envision 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Charlotte Envision can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Charlotte Envision in the consumer business. Now Charlotte Envision 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. Charlotte Envision 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. Charlotte Envision 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Charlotte Envision is facing challenges because of the dominance of functional experts in the organization. Envision Charlotte: Building an Energy Cluster (Abridged) 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.
Developing new processes and practices
– Charlotte Envision 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 Charlotte Envision has opened avenues for new revenue streams for the organization in the industry. This can help Charlotte Envision to build a more holistic ecosystem as suggested in the Envision Charlotte: Building an Energy Cluster (Abridged) case study. Charlotte Envision can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Charlotte Envision 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 Charlotte Envision to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Charlotte Envision 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Charlotte Envision can use these opportunities to build new business models that can help the communities that Charlotte Envision operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Charlotte Envision 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.
Threats Envision Charlotte: Building an Energy Cluster (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Envision Charlotte: Building an Energy Cluster (Abridged) are -
Stagnating economy with rate increase
– Charlotte Envision 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.
Technology acceleration in Forth Industrial Revolution
– Charlotte Envision has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Charlotte Envision 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.
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. Charlotte Envision 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.
Increasing wage structure of Charlotte Envision
– 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 Charlotte Envision.
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 Charlotte Envision.
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 Charlotte Envision in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Charlotte Envision 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.
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. Charlotte Envision needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Environmental challenges
– Charlotte Envision 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. Charlotte Envision can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Charlotte Envision can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Charlotte Envision 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 Envision Charlotte: Building an Energy Cluster (Abridged) .
Weighted SWOT Analysis of Envision Charlotte: Building an Energy Cluster (Abridged) 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 Envision Charlotte: Building an Energy Cluster (Abridged) 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 Envision Charlotte: Building an Energy Cluster (Abridged) 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 Envision Charlotte: Building an Energy Cluster (Abridged) 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 Envision Charlotte: Building an Energy Cluster (Abridged) 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 Charlotte Envision needs to make to build a sustainable competitive advantage.
