Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad
In a revolutionary technology plant, iron ore is converted into pure iron by hydrogen reduction. The case describes the process flow, including flow diagrams, mass balances, yields, and equipment uptimes. The case then describes the fixed and variable cost structure of labor, material and equipment, resulting in an analysis of the plant economics.
Swot Analysis of "Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad" written by Christoph H. Loch, Christian Terwiesch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iron Ore facing as an external strategic factors. Some of the topics covered in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad case study are - Strategic Management Strategies, Financial markets and Technology & Operations.
Some of the macro environment factors that can be used to understand the Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is backlash against globalization, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iron Ore, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iron Ore 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad can be done for the following purposes –
1. Strategic planning using facts provided in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad case study
2. Improving business portfolio management of Iron Ore
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 Iron Ore
Strengths Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iron Ore in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Iron Ore in the sector have low bargaining power. Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iron Ore to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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.
Highly skilled collaborators
– Iron Ore 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Iron Ore has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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.
Innovation driven organization
– Iron Ore is one of the most innovative firm in sector. Manager in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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
– Iron Ore is present in almost all the verticals within the industry. This has provided firm in Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 lead change in Technology & Operations field
– Iron Ore 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 Iron Ore in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Iron Ore 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 Christoph H. Loch, Christian Terwiesch 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.
Effective Research and Development (R&D)
– Iron Ore 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Iron Ore
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iron Ore does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Iron Ore has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iron Ore 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.
Cross disciplinary teams
– Horizontal connected teams at the Iron Ore 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.
Weaknesses Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad are -
Slow to strategic competitive environment developments
– As Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad HBR case study mentions - Iron Ore takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad can leverage the sales team experience to cultivate customer relationships as Iron Ore is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Iron Ore has relatively successful track record of launching new products.
Lack of clear differentiation of Iron Ore products
– To increase the profitability and margins on the products, Iron Ore needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Christoph H. Loch, Christian Terwiesch suggests that, Iron Ore 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.
Products dominated business model
– Even though Iron Ore 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 - Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Iron Ore is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 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 Iron Ore supply chain. Even after few cautionary changes mentioned in the HBR case study - Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iron Ore vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Iron Ore 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad, in the dynamic environment Iron Ore has struggled to respond to the nimble upstart competition. Iron Ore 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 Iron Ore is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Iron Ore needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Iron Ore to focus more on services rather than just following the product oriented approach.
Opportunities Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad | 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad are -
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. Iron Ore can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Iron Ore has opened avenues for new revenue streams for the organization in the industry. This can help Iron Ore to build a more holistic ecosystem as suggested in the Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad case study. Iron Ore can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Iron Ore 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iron Ore is facing challenges because of the dominance of functional experts in the organization. Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Iron Ore 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, Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iron Ore 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.
Building a culture of innovation
– managers at Iron Ore 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 Technology & Operations segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iron Ore can use these opportunities to build new business models that can help the communities that Iron Ore operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Leveraging digital technologies
– Iron Ore 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Iron Ore 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 Iron Ore 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 Iron Ore can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Iron Ore 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 Iron Ore to increase its market reach. Iron Ore 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.
Threats Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iron Ore 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iron Ore 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad .
High dependence on third party suppliers
– Iron Ore 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.
Technology acceleration in Forth Industrial Revolution
– Iron Ore has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Iron Ore 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.
Consumer confidence and its impact on Iron Ore 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad, Iron Ore 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 .
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.
Environmental challenges
– Iron Ore 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. Iron Ore can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Iron Ore business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Iron Ore is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iron Ore with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Iron Ore.
Weighted SWOT Analysis of Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Pumping Iron at Cliffs & Associates: The Circored Iron Ore Reduction Plant in Trinidad 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 Iron Ore needs to make to build a sustainable competitive advantage.
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