Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring

The (B) case describes the actions taken by Royal Dutch Shell's CEO and his management team to maintain their commitment to diversity and inclusion (D&I), as introduced in the (A) case, during a major restructuring of the whole organization.

Authors :: Sandra J. Sucher, Daniela Beyersdorfer

Topics :: Technology & Operations

Tags :: Diversity, International business, Leadership, Leading teams, Reorganization, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring" written by Sandra J. Sucher, Daniela Beyersdorfer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Inclusion Dutch facing as an external strategic factors. Some of the topics covered in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring case study are - Strategic Management Strategies, Diversity, International business, Leadership, Leading teams, Reorganization and Technology & Operations.

Some of the macro environment factors that can be used to understand the Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring casestudy better are - – wage bills are increasing, increasing energy prices, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inclusion Dutch, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inclusion Dutch 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring can be done for the following purposes –
1. Strategic planning using facts provided in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring case study
2. Improving business portfolio management of Inclusion Dutch
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 Inclusion Dutch

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Strengths Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Inclusion Dutch in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring Harvard Business Review case study are -

High switching costs

– The high switching costs that Inclusion Dutch has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Organizational Resilience of Inclusion Dutch

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Inclusion Dutch does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Cross disciplinary teams

– Horizontal connected teams at the Inclusion Dutch 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.

Operational resilience

– The operational resilience strategy in the Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Inclusion Dutch in the sector have low bargaining power. Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Inclusion Dutch to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- Inclusion Dutch 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 Inclusion Dutch is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Inclusion Dutch is present in almost all the verticals within the industry. This has provided firm in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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.

Superior customer experience

– The customer experience strategy of Inclusion Dutch in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Analytics focus

– Inclusion Dutch 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 Sandra J. Sucher, Daniela Beyersdorfer 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 Inclusion Dutch digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Inclusion Dutch 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.

Training and development

– Inclusion Dutch has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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.

Highly skilled collaborators

– Inclusion Dutch 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring, in the dynamic environment Inclusion Dutch has struggled to respond to the nimble upstart competition. Inclusion Dutch has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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 Inclusion Dutch supply chain. Even after few cautionary changes mentioned in the HBR case study - Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Inclusion Dutch vulnerable to further global disruptions in South East Asia.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Inclusion Dutch has relatively successful track record of launching new products.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring, it seems that the employees of Inclusion Dutch 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.

Low market penetration in new markets

– Outside its home market of Inclusion Dutch, firm in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High operating costs

– Compare to the competitors, firm in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Inclusion Dutch 's lucrative customers.

Slow to strategic competitive environment developments

– As Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring HBR case study mentions - Inclusion Dutch 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Sandra J. Sucher, Daniela Beyersdorfer suggests that, Inclusion Dutch 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

Inclusion Dutch 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 Inclusion Dutch is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Inclusion Dutch needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Inclusion Dutch to focus more on services rather than just following the product oriented approach.

Workers concerns about automation

– As automation is fast increasing in the segment, Inclusion Dutch 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.

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Opportunities Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring | 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring are -

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 Inclusion Dutch 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.

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. Inclusion Dutch can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Developing new processes and practices

– Inclusion Dutch 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Inclusion Dutch can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Manufacturing automation

– Inclusion Dutch 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.

Creating value in data economy

– The success of analytics program of Inclusion Dutch has opened avenues for new revenue streams for the organization in the industry. This can help Inclusion Dutch to build a more holistic ecosystem as suggested in the Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring case study. Inclusion Dutch can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Leveraging digital technologies

– Inclusion Dutch 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.

Learning at scale

– Online learning technologies has now opened space for Inclusion Dutch 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Inclusion Dutch 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, Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Inclusion Dutch in the consumer business. Now Inclusion Dutch can target international markets with far fewer capital restrictions requirements than the existing system.

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. Inclusion Dutch can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Building a culture of innovation

– managers at Inclusion Dutch 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Inclusion Dutch is facing challenges because of the dominance of functional experts in the organization. Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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.

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Threats Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring are -

Stagnating economy with rate increase

– Inclusion Dutch 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.

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 Inclusion Dutch business can come under increasing regulations regarding data privacy, data security, etc.

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. Inclusion Dutch 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Inclusion Dutch 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 wage structure of Inclusion Dutch

– 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 Inclusion Dutch.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Inclusion Dutch 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring .

Regulatory challenges

– Inclusion Dutch 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.

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 Inclusion Dutch in the Technology & Operations sector and impact the bottomline of the organization.

Shortening product life cycle

– it is one of the major threat that Inclusion Dutch is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 Inclusion Dutch.

Consumer confidence and its impact on Inclusion Dutch 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.

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

– Inclusion Dutch 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. Inclusion Dutch can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

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Weighted SWOT Analysis of Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring 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 Inclusion Dutch needs to make to build a sustainable competitive advantage.

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