Case Study Description of Cambridge Cooling Systems: Empowering International Operations
The chief operating officer at Cambridge Cooling Systems (CCS), based in Cambridge, Ontario, was helping his senior team prepare for two conference calls, with Italy and India, where CCS had foreign subsidiaries. At first glance, the chief issue with Italy seemed to be a lack of response from the managing director for Europe to detailed questions posed by project management for CCS. The issue with India seemed to be an inability to issue and stick to sales goals, and the Cambridge project manager wanted to speak about this with the managing director for Asia as soon as possible. However, further analysis revealed issues with how the headquarters in Cambridge had been managing its subsidiaries. Communications had broken down, and a conference call or two would not resolve the problem.
Swot Analysis of "Cambridge Cooling Systems: Empowering International Operations" written by Mary Weil, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cambridge Ccs facing as an external strategic factors. Some of the topics covered in Cambridge Cooling Systems: Empowering International Operations case study are - Strategic Management Strategies, Cross-cultural management, Manufacturing and Global Business.
Some of the macro environment factors that can be used to understand the Cambridge Cooling Systems: Empowering International Operations casestudy better are - – wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, 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 household debt because of falling income levels, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Cambridge Cooling Systems: Empowering International Operations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cambridge Cooling Systems: Empowering International Operations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cambridge Ccs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cambridge Ccs 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 Cambridge Cooling Systems: Empowering International Operations can be done for the following purposes –
1. Strategic planning using facts provided in Cambridge Cooling Systems: Empowering International Operations case study
2. Improving business portfolio management of Cambridge Ccs
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cambridge Ccs
Strengths Cambridge Cooling Systems: Empowering International Operations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cambridge Ccs in Cambridge Cooling Systems: Empowering International Operations Harvard Business Review case study are -
Analytics focus
– Cambridge Ccs 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 Mary Weil, Ken Mark 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.
Ability to lead change in Global Business field
– Cambridge Ccs 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 Cambridge Ccs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Cambridge Ccs is present in almost all the verticals within the industry. This has provided firm in Cambridge Cooling Systems: Empowering International Operations 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Cambridge Ccs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cambridge Ccs 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.
Successful track record of launching new products
– Cambridge Ccs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cambridge Ccs 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.
Learning organization
- Cambridge Ccs 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 Cambridge Ccs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cambridge Cooling Systems: Empowering International Operations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Cambridge Cooling Systems: Empowering International Operations 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.
Organizational Resilience of Cambridge Ccs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cambridge Ccs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Cambridge Ccs is one of the most innovative firm in sector. Manager in Cambridge Cooling Systems: Empowering International Operations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Cambridge Ccs 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.
Superior customer experience
– The customer experience strategy of Cambridge Ccs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Cambridge Ccs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cambridge Cooling Systems: Empowering International Operations 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.
Weaknesses Cambridge Cooling Systems: Empowering International Operations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cambridge Cooling Systems: Empowering International Operations are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Ccs has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cambridge Cooling Systems: Empowering International Operations, in the dynamic environment Cambridge Ccs has struggled to respond to the nimble upstart competition. Cambridge Ccs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Cambridge Cooling Systems: Empowering International Operations, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Slow decision making process
– As mentioned earlier in the report, Cambridge Ccs has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cambridge Ccs even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Cambridge Ccs 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, Cambridge Ccs 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cambridge Cooling Systems: Empowering International Operations, it seems that the employees of Cambridge Ccs 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.
Increasing silos among functional specialists
– The organizational structure of Cambridge Ccs is dominated by functional specialists. It is not different from other players in the Global Business segment. Cambridge Ccs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cambridge Ccs to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Cooling Systems: Empowering International Operations can leverage the sales team experience to cultivate customer relationships as Cambridge Ccs is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Cambridge Ccs 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 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 Cambridge Ccs supply chain. Even after few cautionary changes mentioned in the HBR case study - Cambridge Cooling Systems: Empowering International Operations, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cambridge Ccs vulnerable to further global disruptions in South East Asia.
Opportunities Cambridge Cooling Systems: Empowering International Operations | 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 Cambridge Cooling Systems: Empowering International Operations are -
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 Cambridge Ccs in the consumer business. Now Cambridge Ccs can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cambridge Ccs can use these opportunities to build new business models that can help the communities that Cambridge Ccs operates in. Secondly it can use opportunities from government spending in Global Business sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cambridge Ccs 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, Cambridge Cooling Systems: Empowering International Operations, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cambridge Ccs 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. Cambridge Ccs 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Cambridge Ccs 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
– Cambridge Ccs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cambridge Cooling Systems: Empowering International Operations 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.
Using analytics as competitive advantage
– Cambridge Ccs 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 Cambridge Cooling Systems: Empowering International Operations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cambridge Ccs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Cambridge Ccs 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.
Creating value in data economy
– The success of analytics program of Cambridge Ccs has opened avenues for new revenue streams for the organization in the industry. This can help Cambridge Ccs to build a more holistic ecosystem as suggested in the Cambridge Cooling Systems: Empowering International Operations case study. Cambridge Ccs 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
– Cambridge Ccs can develop new processes and procedures in Global Business 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cambridge Ccs in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cambridge Ccs is facing challenges because of the dominance of functional experts in the organization. Cambridge Cooling Systems: Empowering International Operations 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.
Leveraging digital technologies
– Cambridge Ccs 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.
Threats Cambridge Cooling Systems: Empowering International Operations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cambridge Cooling Systems: Empowering International Operations are -
Consumer confidence and its impact on Cambridge Ccs 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.
Regulatory challenges
– Cambridge Ccs 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Cambridge Ccs has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Cambridge Ccs needs to keep up with the evolution of technology in the Global Business 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 Cambridge Ccs
– 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 Cambridge Ccs.
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 Cambridge Ccs.
Environmental challenges
– Cambridge Ccs 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. Cambridge Ccs can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
High dependence on third party suppliers
– Cambridge Ccs 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.
Stagnating economy with rate increase
– Cambridge Ccs 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 Cambridge Ccs 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 Cambridge Cooling Systems: Empowering International Operations, Cambridge Ccs may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cambridge Ccs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cambridge Ccs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Ccs needs to make to build a sustainable competitive advantage.