Swot Analysis of "Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate" written by Kristin E. Fabbe, Sophus A. Reinert, Nathan Cisneros includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Arbitrate Crescent facing as an external strategic factors. Some of the topics covered in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arbitrate Crescent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Arbitrate Crescent 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate can be done for the following purposes –
1. Strategic planning using facts provided in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate case study
2. Improving business portfolio management of Arbitrate Crescent
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 Arbitrate Crescent
Strengths Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Arbitrate Crescent in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate Harvard Business Review case study are -
Analytics focus
– Arbitrate Crescent 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 Kristin E. Fabbe, Sophus A. Reinert, Nathan Cisneros 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 recruit top talent
– Arbitrate Crescent is one of the leading recruiters in the industry. Managers in the Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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
– Arbitrate Crescent 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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
– Arbitrate Crescent has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Arbitrate Crescent 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
- Arbitrate Crescent 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 Arbitrate Crescent is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Arbitrate Crescent in the sector have low bargaining power. Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Arbitrate Crescent to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Arbitrate Crescent in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Arbitrate Crescent is present in almost all the verticals within the industry. This has provided firm in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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.
Innovation driven organization
– Arbitrate Crescent is one of the most innovative firm in sector. Manager in Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Arbitrate Crescent
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Arbitrate Crescent does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Global Business field
– Arbitrate Crescent 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 Arbitrate Crescent in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate are -
Workers concerns about automation
– As automation is fast increasing in the segment, Arbitrate Crescent 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 decision making process
– As mentioned earlier in the report, Arbitrate Crescent 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. Arbitrate Crescent 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.
Capital Spending Reduction
– Even during the low interest decade, Arbitrate Crescent 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.
No frontier risks strategy
– After analyzing the HBR case study Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Arbitrate Crescent has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Arbitrate Crescent is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 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 Arbitrate Crescent supply chain. Even after few cautionary changes mentioned in the HBR case study - Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Arbitrate Crescent vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Arbitrate Crescent 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Kristin E. Fabbe, Sophus A. Reinert, Nathan Cisneros suggests that, Arbitrate Crescent 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.
Skills based hiring
– The stress on hiring functional specialists at Arbitrate Crescent 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate, is just above the industry average. Arbitrate Crescent 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.
Opportunities Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate | 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Arbitrate Crescent 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.
Loyalty marketing
– Arbitrate Crescent 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.
Using analytics as competitive advantage
– Arbitrate Crescent 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Arbitrate Crescent to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Arbitrate Crescent can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
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. Arbitrate Crescent 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. Arbitrate Crescent 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. Arbitrate Crescent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Arbitrate Crescent to increase its market reach. Arbitrate Crescent 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.
Creating value in data economy
– The success of analytics program of Arbitrate Crescent has opened avenues for new revenue streams for the organization in the industry. This can help Arbitrate Crescent to build a more holistic ecosystem as suggested in the Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate case study. Arbitrate Crescent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Arbitrate Crescent 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Arbitrate Crescent 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, Arbitrate Crescent 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, Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate, 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
– Arbitrate Crescent 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.
Learning at scale
– Online learning technologies has now opened space for Arbitrate Crescent 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.
Threats Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Arbitrate Crescent 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate .
Environmental challenges
– Arbitrate Crescent 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. Arbitrate Crescent can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Arbitrate Crescent 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.
Increasing wage structure of Arbitrate Crescent
– 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 Arbitrate Crescent.
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 Arbitrate Crescent in the Global Business sector and impact the bottomline of the organization.
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. Arbitrate Crescent can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate, Arbitrate Crescent 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 .
Regulatory challenges
– Arbitrate Crescent 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.
Consumer confidence and its impact on Arbitrate Crescent 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 dependence on third party suppliers
– Arbitrate Crescent 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Arbitrate Crescent with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Arbitrate Crescent has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Arbitrate Crescent 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.
Weighted SWOT Analysis of Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Crescent Petroleum-Dana Gas: Negotiate, Mediate, Arbitrate 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 Arbitrate Crescent needs to make to build a sustainable competitive advantage.