Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas

In the summer of 2014, a large energy company was poised to begin expanding its unconventional natural gas operations in northeastern British Columbia in the hopes of capitalizing on the Canadian province's determination to build a liquid natural gas industry. The company had secured mineral rights from the province but had not simultaneously pursued surface rights from a First Nation community that historically had used the land. When a seismic exploration team appeared on the tribe's traditional territory without consulting it, as was customary (and in some cases legally required), the company unwittingly ignited a firestorm of protest from both First Nation and non First Nation local citizens. Recognizing the importance of social acceptance both to operations and profitability, the company sent senior vice president Maria Paquet to participate in fireside discussions with tribal, regional government, and environmental leaders in the hopes of finding some common ground. Could these leaders arrive at sufficient trust and agreement to allow the company to move forward with its plans? Or would the company face gridlock, community blocking, or even financial peril? In a small-group role-playing exercise, students will step into the shoes of each of these stakeholders as they try to forge a path forward that is acceptable to all.

Authors :: Jamie Jones, Peter Bryant, Charlotte Snyder

Topics :: Sales & Marketing

Tags :: Conflict, Negotiations, Policy, Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas" written by Jamie Jones, Peter Bryant, Charlotte Snyder includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nation Gas facing as an external strategic factors. Some of the topics covered in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas case study are - Strategic Management Strategies, Conflict, Negotiations, Policy, Public relations, Social responsibility and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas casestudy better are - – increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, technology disruption, challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

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Introduction to SWOT Analysis of Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nation Gas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nation Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas can be done for the following purposes –
1. Strategic planning using facts provided in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas case study
2. Improving business portfolio management of Nation Gas
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nation Gas

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Strengths Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Nation Gas in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas Harvard Business Review case study are -

Analytics focus

– Nation Gas 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 Jamie Jones, Peter Bryant, Charlotte Snyder 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.

Innovation driven organization

– Nation Gas is one of the most innovative firm in sector. Manager in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Highly skilled collaborators

– Nation Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Successful track record of launching new products

– Nation Gas has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nation Gas 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.

High brand equity

– Nation Gas has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nation Gas to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Cross disciplinary teams

– Horizontal connected teams at the Nation Gas 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.

High switching costs

– The high switching costs that Nation Gas 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 Nation Gas in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Strong track record of project management

– Nation Gas is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Learning organization

- Nation Gas 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 Nation Gas is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Training and development

– Nation Gas has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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.

Effective Research and Development (R&D)

– Nation Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas are -

Aligning sales with marketing

– It come across in the case study Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas can leverage the sales team experience to cultivate customer relationships as Nation Gas is planning to shift buying processes online.

Products dominated business model

– Even though Nation Gas 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 - Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas should strive to include more intangible value offerings along with its core products and services.

Skills based hiring

– The stress on hiring functional specialists at Nation Gas 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.

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 Nation Gas supply chain. Even after few cautionary changes mentioned in the HBR case study - Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nation Gas vulnerable to further global disruptions in South East Asia.

Workers concerns about automation

– As automation is fast increasing in the segment, Nation Gas 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.

Slow to strategic competitive environment developments

– As Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas HBR case study mentions - Nation Gas 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.

Lack of clear differentiation of Nation Gas products

– To increase the profitability and margins on the products, Nation Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas, it seems that the employees of Nation Gas 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nation Gas is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High cash cycle compare to competitors

Nation Gas 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Nation Gas has relatively successful track record of launching new products.

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Opportunities Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas | 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Nation Gas 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Nation Gas is facing challenges because of the dominance of functional experts in the organization. Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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.

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

Reforming the budgeting process

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

Learning at scale

– Online learning technologies has now opened space for Nation Gas 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.

Manufacturing automation

– Nation Gas can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.

Leveraging digital technologies

– Nation Gas 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.

Creating value in data economy

– The success of analytics program of Nation Gas has opened avenues for new revenue streams for the organization in the industry. This can help Nation Gas to build a more holistic ecosystem as suggested in the Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas case study. Nation Gas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Nation Gas in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.

Low interest rates

– Even though inflation is raising its head in most developed economies, Nation Gas 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Nation Gas 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, Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Developing new processes and practices

– Nation Gas can develop new processes and procedures in Sales & Marketing 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.

Loyalty marketing

– Nation Gas 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.

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Threats Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas are -

Consumer confidence and its impact on Nation Gas 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.

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. Nation Gas needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

Environmental challenges

– Nation Gas 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. Nation Gas can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

Regulatory challenges

– Nation Gas 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 Sales & Marketing industry regulations.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nation Gas with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Nation Gas in the Sales & Marketing industry. The Sales & Marketing 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.

Stagnating economy with rate increase

– Nation Gas 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.

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 Nation Gas in the Sales & Marketing sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Nation Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas .

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 Nation Gas.

High dependence on third party suppliers

– Nation Gas 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.

Easy access to finance

– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nation Gas can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

– Nation Gas has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Nation Gas needs to keep up with the evolution of technology in the Sales & Marketing 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.

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Weighted SWOT Analysis of Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Mending the Fractures: Creating a Multi-Stakeholder Framework for Building Shared Purpose in Unconventional Oil and Gas 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 Nation Gas needs to make to build a sustainable competitive advantage.

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