Case Study Description of Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid
Supplement to case W18067. Two executives at Express Trucking-the vice-president of legal affairs, and the vice-president of sales-were preparing for an executive team meeting. The two vice-presidents were disputing the terms of a customer contract to be signed the following day. According to the vice-president of legal affairs, the contract needed to be revised to include a standard clause regarding Express Trucking's liability, whereas the vice-president of sales feared losing the contract if any changes were made. The company's chief executive officer asked the two executives to resolve this dispute before the upcoming executive team meeting. How would the two executives resolve their differences? The case involves the students in a role play to develop their competence to address typical conflicts between executive team members, by reproducing the complex environment in which executives operate. Students will be assigned the role of the vice-president of legal affairs (9B18M014); the vice-president of sales (9B18M015); or the observer (9B18M016). The authors Louis Hebert and Jean Poitras is affiliated with HEC Montreal.
Authors :: Jacques Neatby, Louis Hebert, Jean Poitras
Swot Analysis of "Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid" written by Jacques Neatby, Louis Hebert, Jean Poitras includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vice Affairs facing as an external strategic factors. Some of the topics covered in Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid case study are - Strategic Management Strategies, Decision making, Leadership, Leading teams and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, increasing energy prices,
cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vice Affairs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vice Affairs 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid can be done for the following purposes –
1. Strategic planning using facts provided in Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid case study
2. Improving business portfolio management of Vice Affairs
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Vice Affairs
Strengths Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vice Affairs in Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid Harvard Business Review case study are -
Training and development
– Vice Affairs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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.
Strong track record of project management
– Vice Affairs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Vice Affairs 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Vice Affairs is one of the leading recruiters in the industry. Managers in the Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Vice Affairs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vice Affairs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Vice Affairs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Vice Affairs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Vice Affairs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vice Affairs 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid firm has clearly differentiated products in the market place. This has enabled Vice Affairs to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Vice Affairs to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Vice Affairs in the sector have low bargaining power. Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vice Affairs to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Vice Affairs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Vice Affairs 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.
Operational resilience
– The operational resilience strategy in the Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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.
Weaknesses Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid are -
No frontier risks strategy
– After analyzing the HBR case study Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Vice Affairs has relatively successful track record of launching new products.
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 Vice Affairs supply chain. Even after few cautionary changes mentioned in the HBR case study - Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vice Affairs vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Jacques Neatby, Louis Hebert, Jean Poitras suggests that, Vice Affairs 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.
Low market penetration in new markets
– Outside its home market of Vice Affairs, firm in the HBR case study Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Vice Affairs 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.
Slow to strategic competitive environment developments
– As Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid HBR case study mentions - Vice Affairs 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid, it seems that the employees of Vice Affairs 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Vice Affairs 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Vice Affairs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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
Vice Affairs 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.
Opportunities Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid | 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid are -
Leveraging digital technologies
– Vice Affairs 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 Vice Affairs has opened avenues for new revenue streams for the organization in the industry. This can help Vice Affairs to build a more holistic ecosystem as suggested in the Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid case study. Vice Affairs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Vice Affairs 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.
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 Vice Affairs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vice Affairs in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Vice Affairs 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 Vice Affairs 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 Leadership & Managing People segment.
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 Vice Affairs in the consumer business. Now Vice Affairs can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vice Affairs is facing challenges because of the dominance of functional experts in the organization. Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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.
Developing new processes and practices
– Vice Affairs can develop new processes and procedures in Leadership & Managing People 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.
Buying journey improvements
– Vice Affairs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vice Affairs 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vice Affairs 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 Vice Affairs to hire the very best people irrespective of their geographical location.
Threats Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid are -
Environmental challenges
– Vice Affairs 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. Vice Affairs can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Technology acceleration in Forth Industrial Revolution
– Vice Affairs has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Vice Affairs needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Vice Affairs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vice Affairs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Vice Affairs.
Regulatory challenges
– Vice Affairs 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 Leadership & Managing People industry regulations.
Consumer confidence and its impact on Vice Affairs 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Vice Affairs 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid .
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.
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. Vice Affairs 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.
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 Vice Affairs business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Vice Affairs 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Express Trucking: Executive Team Dynamics (Role Play) (C): Observer Grid 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 Vice Affairs needs to make to build a sustainable competitive advantage.