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 - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing energy prices,
technology disruption, increasing household debt because of falling income levels, 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 -
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.
Highly skilled collaborators
– Cambridge Ccs 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 Cambridge Cooling Systems: Empowering International Operations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
Sustainable margins compare to other players in Global Business industry
– Cambridge Cooling Systems: Empowering International Operations firm has clearly differentiated products in the market place. This has enabled Cambridge Ccs to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Cambridge Ccs to invest into research and development (R&D) and innovation.
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.
Cross disciplinary teams
– Horizontal connected teams at the Cambridge Ccs 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.
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.
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.
Effective Research and Development (R&D)
– Cambridge Ccs 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 Cambridge Cooling Systems: Empowering International Operations - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Ability to recruit top talent
– Cambridge Ccs is one of the leading recruiters in the industry. Managers in the Cambridge Cooling Systems: Empowering International Operations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 -
Products dominated business model
– Even though Cambridge Ccs 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 - Cambridge Cooling Systems: Empowering International Operations should strive to include more intangible value offerings along with its core products and services.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cambridge Cooling Systems: Empowering International Operations, is just above the industry average. Cambridge Ccs needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Lack of clear differentiation of Cambridge Ccs products
– To increase the profitability and margins on the products, Cambridge Ccs needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
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 operating costs
– Compare to the competitors, firm in the HBR case study Cambridge Cooling Systems: Empowering International Operations 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 Cambridge Ccs 's lucrative 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 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.
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.
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 -
Loyalty marketing
– Cambridge Ccs 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.
Building a culture of innovation
– managers at Cambridge Ccs 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 Global Business 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, 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cambridge Ccs can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
Learning at scale
– Online learning technologies has now opened space for Cambridge Ccs 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.
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. Cambridge Ccs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Better consumer reach
– The expansion of the 5G network will help Cambridge Ccs to increase its market reach. Cambridge Ccs 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cambridge Ccs 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 Cambridge Ccs to hire the very best people irrespective of their geographical location.
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.
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.
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 -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cambridge Ccs in the Global Business industry. The Global Business 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.
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.
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 Cambridge Ccs in the Global Business sector and impact the bottomline of the organization.
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.
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.
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.
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.
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.
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. Cambridge Ccs 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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Cambridge Ccs is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
