Swot Analysis of "Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B" written by Paul M. Healy, Clayton Rose, Penelope Rossano includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 110047 Chesapeake facing as an external strategic factors. Some of the topics covered in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B case study are - Strategic Management Strategies, Business law, Corporate governance, Ethics, Executive compensation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 110047 Chesapeake, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 110047 Chesapeake 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B can be done for the following purposes –
1. Strategic planning using facts provided in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B case study
2. Improving business portfolio management of 110047 Chesapeake
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of 110047 Chesapeake
Strengths Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 110047 Chesapeake in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B Harvard Business Review case study are -
Ability to lead change in Finance & Accounting field
– 110047 Chesapeake 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 110047 Chesapeake 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 110047 Chesapeake 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.
Innovation driven organization
– 110047 Chesapeake is one of the most innovative firm in sector. Manager in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– 110047 Chesapeake has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 110047 Chesapeake to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– 110047 Chesapeake is one of the leading recruiters in the industry. Managers in the Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– 110047 Chesapeake 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– 110047 Chesapeake is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of 110047 Chesapeake in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– 110047 Chesapeake is present in almost all the verticals within the industry. This has provided firm in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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.
Training and development
– 110047 Chesapeake has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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.
High switching costs
– The high switching costs that 110047 Chesapeake 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For 110047 Chesapeake digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 110047 Chesapeake 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.
Weaknesses Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B are -
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 110047 Chesapeake supply chain. Even after few cautionary changes mentioned in the HBR case study - Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 110047 Chesapeake vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, 110047 Chesapeake 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.
Skills based hiring
– The stress on hiring functional specialists at 110047 Chesapeake 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.
Interest costs
– Compare to the competition, 110047 Chesapeake has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B can leverage the sales team experience to cultivate customer relationships as 110047 Chesapeake is planning to shift buying processes online.
Products dominated business model
– Even though 110047 Chesapeake 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 - Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– 110047 Chesapeake has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, 110047 Chesapeake 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 bargaining power of channel partners
– Because of the regulatory requirements, Paul M. Healy, Clayton Rose, Penelope Rossano suggests that, 110047 Chesapeake 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 operating costs
– Compare to the competitors, firm in the HBR case study Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 110047 Chesapeake 's lucrative customers.
Lack of clear differentiation of 110047 Chesapeake products
– To increase the profitability and margins on the products, 110047 Chesapeake needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B | 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B are -
Buying journey improvements
– 110047 Chesapeake can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 110047 Chesapeake can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– 110047 Chesapeake can develop new processes and procedures in Finance & Accounting 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 110047 Chesapeake in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of 110047 Chesapeake has opened avenues for new revenue streams for the organization in the industry. This can help 110047 Chesapeake to build a more holistic ecosystem as suggested in the Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B case study. 110047 Chesapeake can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– 110047 Chesapeake 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.
Loyalty marketing
– 110047 Chesapeake 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. 110047 Chesapeake can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, 110047 Chesapeake 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.
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 110047 Chesapeake in the consumer business. Now 110047 Chesapeake 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, 110047 Chesapeake can use these opportunities to build new business models that can help the communities that 110047 Chesapeake operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 110047 Chesapeake 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, Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 110047 Chesapeake 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 110047 Chesapeake to hire the very best people irrespective of their geographical location.
Threats Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B are -
Environmental challenges
– 110047 Chesapeake 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. 110047 Chesapeake can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Technology acceleration in Forth Industrial Revolution
– 110047 Chesapeake has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, 110047 Chesapeake needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 110047 Chesapeake.
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 110047 Chesapeake business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on 110047 Chesapeake 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 110047 Chesapeake with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. 110047 Chesapeake needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B, 110047 Chesapeake may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Regulatory challenges
– 110047 Chesapeake 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 Finance & Accounting industry regulations.
Shortening product life cycle
– it is one of the major threat that 110047 Chesapeake is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 110047 Chesapeake in the Finance & Accounting sector and impact the bottomline of the organization.
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. 110047 Chesapeake 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
– 110047 Chesapeake 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.
Weighted SWOT Analysis of Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy B 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 110047 Chesapeake needs to make to build a sustainable competitive advantage.
