Business Responses to Climate Change: Identifying Emergent Strategies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Business Responses to Climate Change: Identifying Emergent Strategies
Companies face much uncertainty about the competitive effects of the recently adopted Kyoto Protocol on global climate change and the current and future regulations that may emerge from it. Companies have considerable discretion to explore different market strategies to address global warming and reduce greenhouse gas emissions. Examines these strategic options by reviewing the market-oriented actions that 136 large companies that are part of the Global 500 are currently taking. Companies use six different market strategies to address climate change, consisting of different combinations of the market components available to managers. Managers can choose between a greater emphasis on improvements in their business activities through innovation or employing compensatory approaches such as emissions trading. They can either act by themselves or work with other companies, NGOs, or (local) governments.
Swot Analysis of "Business Responses to Climate Change: Identifying Emergent Strategies" written by Ans Kolk, Jonatan Pinkse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Climate Emissions facing as an external strategic factors. Some of the topics covered in Business Responses to Climate Change: Identifying Emergent Strategies case study are - Strategic Management Strategies, Regulation, Sustainability and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Business Responses to Climate Change: Identifying Emergent Strategies casestudy better are - – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, central banks are concerned over increasing inflation, there is backlash against globalization, increasing energy prices,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Business Responses to Climate Change: Identifying Emergent Strategies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Business Responses to Climate Change: Identifying Emergent Strategies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Climate Emissions, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Climate Emissions 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 Business Responses to Climate Change: Identifying Emergent Strategies can be done for the following purposes –
1. Strategic planning using facts provided in Business Responses to Climate Change: Identifying Emergent Strategies case study
2. Improving business portfolio management of Climate Emissions
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 Climate Emissions
Strengths Business Responses to Climate Change: Identifying Emergent Strategies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Climate Emissions in Business Responses to Climate Change: Identifying Emergent Strategies Harvard Business Review case study are -
Highly skilled collaborators
– Climate Emissions 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 Business Responses to Climate Change: Identifying Emergent Strategies HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Climate Emissions
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Climate Emissions does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Climate Emissions 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 Climate Emissions in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Business Responses to Climate Change: Identifying Emergent Strategies firm has clearly differentiated products in the market place. This has enabled Climate Emissions to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Climate Emissions to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Business Responses to Climate Change: Identifying Emergent Strategies 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.
Innovation driven organization
– Climate Emissions is one of the most innovative firm in sector. Manager in Business Responses to Climate Change: Identifying Emergent Strategies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Climate Emissions has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Climate Emissions 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.
Ability to recruit top talent
– Climate Emissions is one of the leading recruiters in the industry. Managers in the Business Responses to Climate Change: Identifying Emergent Strategies 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 Climate Emissions digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Climate Emissions 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 Climate Emissions in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Climate Emissions in the sector have low bargaining power. Business Responses to Climate Change: Identifying Emergent Strategies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Climate Emissions to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Climate Emissions 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 Business Responses to Climate Change: Identifying Emergent Strategies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Business Responses to Climate Change: Identifying Emergent Strategies are -
Need for greater diversity
– Climate Emissions 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.
Aligning sales with marketing
– It come across in the case study Business Responses to Climate Change: Identifying Emergent Strategies 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 Business Responses to Climate Change: Identifying Emergent Strategies can leverage the sales team experience to cultivate customer relationships as Climate Emissions is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Climate Emissions has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Climate Emissions 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Climate Emissions is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Business Responses to Climate Change: Identifying Emergent Strategies 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 bargaining power of channel partners
– Because of the regulatory requirements, Ans Kolk, Jonatan Pinkse suggests that, Climate Emissions 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.
High cash cycle compare to competitors
Climate Emissions 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Business Responses to Climate Change: Identifying Emergent Strategies 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 Climate Emissions has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Business Responses to Climate Change: Identifying Emergent Strategies, is just above the industry average. Climate Emissions 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.
No frontier risks strategy
– After analyzing the HBR case study Business Responses to Climate Change: Identifying Emergent Strategies, 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.
Low market penetration in new markets
– Outside its home market of Climate Emissions, firm in the HBR case study Business Responses to Climate Change: Identifying Emergent Strategies needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Business Responses to Climate Change: Identifying Emergent Strategies | 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 Business Responses to Climate Change: Identifying Emergent Strategies are -
Creating value in data economy
– The success of analytics program of Climate Emissions has opened avenues for new revenue streams for the organization in the industry. This can help Climate Emissions to build a more holistic ecosystem as suggested in the Business Responses to Climate Change: Identifying Emergent Strategies case study. Climate Emissions can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Climate Emissions 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.
Learning at scale
– Online learning technologies has now opened space for Climate Emissions 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Climate Emissions is facing challenges because of the dominance of functional experts in the organization. Business Responses to Climate Change: Identifying Emergent Strategies 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Climate Emissions 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Climate Emissions 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 Climate Emissions to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Climate Emissions can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Climate Emissions 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. Climate Emissions can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Climate Emissions to increase its market reach. Climate Emissions 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.
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. Climate Emissions can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Climate Emissions 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, Business Responses to Climate Change: Identifying Emergent Strategies, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Climate Emissions 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.
Developing new processes and practices
– Climate Emissions 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.
Threats Business Responses to Climate Change: Identifying Emergent Strategies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Business Responses to Climate Change: Identifying Emergent Strategies are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Climate Emissions 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 Business Responses to Climate Change: Identifying Emergent Strategies .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Climate Emissions 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.
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 Climate Emissions 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 Business Responses to Climate Change: Identifying Emergent Strategies, Climate Emissions 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 .
Stagnating economy with rate increase
– Climate Emissions 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.
Shortening product life cycle
– it is one of the major threat that Climate Emissions is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Climate Emissions needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Climate Emissions in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Climate Emissions 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Climate Emissions with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Climate Emissions has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Climate Emissions 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.
Increasing wage structure of Climate Emissions
– 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 Climate Emissions.
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.
Weighted SWOT Analysis of Business Responses to Climate Change: Identifying Emergent Strategies 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 Business Responses to Climate Change: Identifying Emergent Strategies 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 Business Responses to Climate Change: Identifying Emergent Strategies 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 Business Responses to Climate Change: Identifying Emergent Strategies 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 Business Responses to Climate Change: Identifying Emergent Strategies 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 Climate Emissions needs to make to build a sustainable competitive advantage.
