Case Study Description of ICI-Nobel's Explosives Co. (Abridged)
Anticipates an Australian innovation (not mentioned here) that Nobel's Explosives later considers. This is an abridged version of ICI--Nobel's Explosive Co. (IMD028), which considers the Australian innovation.
Authors :: Robert S. Collins, Michael L. Gibbs, Roger W. Schmenner, Henning Von Spreckelsen
Swot Analysis of "ICI-Nobel's Explosives Co. (Abridged)" written by Robert S. Collins, Michael L. Gibbs, Roger W. Schmenner, Henning Von Spreckelsen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nobel's Explosives facing as an external strategic factors. Some of the topics covered in ICI-Nobel's Explosives Co. (Abridged) case study are - Strategic Management Strategies, Financial markets, Productivity, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the ICI-Nobel's Explosives Co. (Abridged) casestudy better are - – increasing commodity prices, increasing transportation and logistics costs, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , there is backlash against globalization, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of ICI-Nobel's Explosives Co. (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ICI-Nobel's Explosives Co. (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nobel's Explosives, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nobel's Explosives 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 ICI-Nobel's Explosives Co. (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in ICI-Nobel's Explosives Co. (Abridged) case study
2. Improving business portfolio management of Nobel's Explosives
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nobel's Explosives
Strengths ICI-Nobel's Explosives Co. (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nobel's Explosives in ICI-Nobel's Explosives Co. (Abridged) Harvard Business Review case study are -
High brand equity
– Nobel's Explosives has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nobel's Explosives to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Nobel's Explosives in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Nobel's Explosives 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 ICI-Nobel's Explosives Co. (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Nobel's Explosives has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nobel's Explosives 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.
Diverse revenue streams
– Nobel's Explosives is present in almost all the verticals within the industry. This has provided firm in ICI-Nobel's Explosives Co. (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.
Ability to recruit top talent
– Nobel's Explosives is one of the leading recruiters in the industry. Managers in the ICI-Nobel's Explosives Co. (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.
Sustainable margins compare to other players in Technology & Operations industry
– ICI-Nobel's Explosives Co. (Abridged) firm has clearly differentiated products in the market place. This has enabled Nobel's Explosives to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Nobel's Explosives to invest into research and development (R&D) and innovation.
Learning organization
- Nobel's Explosives 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 Nobel's Explosives is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ICI-Nobel's Explosives Co. (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Nobel's Explosives 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.
Analytics focus
– Nobel's Explosives 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 Robert S. Collins, Michael L. Gibbs, Roger W. Schmenner, Henning Von Spreckelsen 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Nobel's Explosives digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nobel's Explosives 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.
Highly skilled collaborators
– Nobel's Explosives 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 ICI-Nobel's Explosives Co. (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses ICI-Nobel's Explosives Co. (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ICI-Nobel's Explosives Co. (Abridged) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ICI-Nobel's Explosives Co. (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 Nobel's Explosives has relatively successful track record of launching new products.
Products dominated business model
– Even though Nobel's Explosives 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 - ICI-Nobel's Explosives Co. (Abridged) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Nobel's Explosives 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.
No frontier risks strategy
– After analyzing the HBR case study ICI-Nobel's Explosives Co. (Abridged), it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nobel's Explosives needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High cash cycle compare to competitors
Nobel's Explosives 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.
Increasing silos among functional specialists
– The organizational structure of Nobel's Explosives is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Nobel's Explosives needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nobel's Explosives to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Nobel's Explosives products
– To increase the profitability and margins on the products, Nobel's Explosives needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study ICI-Nobel's Explosives Co. (Abridged), in the dynamic environment Nobel's Explosives has struggled to respond to the nimble upstart competition. Nobel's Explosives has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study ICI-Nobel's Explosives Co. (Abridged) 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 ICI-Nobel's Explosives Co. (Abridged) can leverage the sales team experience to cultivate customer relationships as Nobel's Explosives is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Nobel's Explosives, firm in the HBR case study ICI-Nobel's Explosives Co. (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities ICI-Nobel's Explosives Co. (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 ICI-Nobel's Explosives Co. (Abridged) are -
Using analytics as competitive advantage
– Nobel's Explosives has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study ICI-Nobel's Explosives Co. (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nobel's Explosives to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nobel's Explosives can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Nobel's Explosives can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Nobel's Explosives can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nobel's Explosives 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 Nobel's Explosives to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Nobel's Explosives can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Nobel's Explosives can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ICI-Nobel's Explosives Co. (Abridged) 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.
Developing new processes and practices
– Nobel's Explosives can develop new processes and procedures in Technology & Operations 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nobel's Explosives can use these opportunities to build new business models that can help the communities that Nobel's Explosives operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nobel's Explosives 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. Nobel's Explosives 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nobel's Explosives in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Nobel's Explosives to increase its market reach. Nobel's Explosives 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.
Loyalty marketing
– Nobel's Explosives 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 ICI-Nobel's Explosives Co. (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ICI-Nobel's Explosives Co. (Abridged) are -
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.
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 Nobel's Explosives business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Nobel's Explosives 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nobel's Explosives can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Nobel's Explosives
– 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 Nobel's Explosives.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nobel's Explosives in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Nobel's Explosives has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Nobel's Explosives needs to keep up with the evolution of technology in the Technology & Operations 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.
Shortening product life cycle
– it is one of the major threat that Nobel's Explosives is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Nobel's Explosives 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 Technology & Operations industry regulations.
Environmental challenges
– Nobel's Explosives 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. Nobel's Explosives can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Nobel's Explosives in the Technology & Operations sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nobel's Explosives 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 ICI-Nobel's Explosives Co. (Abridged) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ICI-Nobel's Explosives Co. (Abridged), Nobel's Explosives may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Weighted SWOT Analysis of ICI-Nobel's Explosives Co. (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 ICI-Nobel's Explosives Co. (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 ICI-Nobel's Explosives Co. (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 ICI-Nobel's Explosives Co. (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 ICI-Nobel's Explosives Co. (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 Nobel's Explosives needs to make to build a sustainable competitive advantage.