Mobil USM&R (C): Lubricants Business Unit SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mobil USM&R (C): Lubricants Business Unit
The general manager of a Lubricants Business Unit in Mobil's U.S. Marketing and Refining division launched a project to develop a Balanced Scorecard (BSC) for his unit. The purpose was to provide focus for all employees of the unit, enabling it to operate on an integrated basis. After the unit's scorecard had been developed, the general manager challenged the project team to extend the effort out to every employee in the business unit. The team started by constructing a cause-and-effect tree that linked high-level business unit objectives down to positions or tasks for every individual. The team then visited all locations, using the cause-and-effect tree to link the unit's strategy and scorecard to individuals' responsibilities. This case describes the construction of individual BSCs and their impact on employee behavior.
Swot Analysis of "Mobil USM&R (C): Lubricants Business Unit" written by Robert S. Kaplan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Unit Scorecard facing as an external strategic factors. Some of the topics covered in Mobil USM&R (C): Lubricants Business Unit case study are - Strategic Management Strategies, Assessing performance, Balanced scorecard, Boards, Financial analysis, Labor, Leading teams, Motivating people, Project management, Sales, Strategy execution and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Mobil USM&R (C): Lubricants Business Unit casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing commodity prices, increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Mobil USM&R (C): Lubricants Business Unit
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mobil USM&R (C): Lubricants Business Unit case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Unit Scorecard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Unit Scorecard 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 Mobil USM&R (C): Lubricants Business Unit can be done for the following purposes –
1. Strategic planning using facts provided in Mobil USM&R (C): Lubricants Business Unit case study
2. Improving business portfolio management of Unit Scorecard
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 Unit Scorecard
Strengths Mobil USM&R (C): Lubricants Business Unit | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Unit Scorecard in Mobil USM&R (C): Lubricants Business Unit Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Unit Scorecard 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 Mobil USM&R (C): Lubricants Business Unit 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.
Strong track record of project management
– Unit Scorecard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Finance & Accounting field
– Unit Scorecard 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 Unit Scorecard in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Unit Scorecard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Unit Scorecard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Unit Scorecard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Unit Scorecard is present in almost all the verticals within the industry. This has provided firm in Mobil USM&R (C): Lubricants Business Unit 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Mobil USM&R (C): Lubricants Business Unit firm has clearly differentiated products in the market place. This has enabled Unit Scorecard to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Unit Scorecard to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Unit Scorecard 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 Mobil USM&R (C): Lubricants Business Unit - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Unit Scorecard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Unit Scorecard 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.
Highly skilled collaborators
– Unit Scorecard 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 Mobil USM&R (C): Lubricants Business Unit 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
– Unit Scorecard has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Unit Scorecard 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.
Weaknesses Mobil USM&R (C): Lubricants Business Unit | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mobil USM&R (C): Lubricants Business Unit are -
Aligning sales with marketing
– It come across in the case study Mobil USM&R (C): Lubricants Business Unit 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 Mobil USM&R (C): Lubricants Business Unit can leverage the sales team experience to cultivate customer relationships as Unit Scorecard is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Unit Scorecard, firm in the HBR case study Mobil USM&R (C): Lubricants Business Unit needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mobil USM&R (C): Lubricants Business Unit, it seems that the employees of Unit Scorecard 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.
Products dominated business model
– Even though Unit Scorecard 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 - Mobil USM&R (C): Lubricants Business Unit should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Unit Scorecard products
– To increase the profitability and margins on the products, Unit Scorecard needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Mobil USM&R (C): Lubricants Business Unit 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 Unit Scorecard 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Unit Scorecard supply chain. Even after few cautionary changes mentioned in the HBR case study - Mobil USM&R (C): Lubricants Business Unit, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Unit Scorecard vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert S. Kaplan suggests that, Unit Scorecard 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Unit Scorecard is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mobil USM&R (C): Lubricants Business Unit 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
Unit Scorecard 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.
No frontier risks strategy
– After analyzing the HBR case study Mobil USM&R (C): Lubricants Business Unit, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Opportunities Mobil USM&R (C): Lubricants Business Unit | 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 Mobil USM&R (C): Lubricants Business Unit are -
Learning at scale
– Online learning technologies has now opened space for Unit Scorecard 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Unit Scorecard 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 Unit Scorecard to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Unit Scorecard can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Developing new processes and practices
– Unit Scorecard 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.
Better consumer reach
– The expansion of the 5G network will help Unit Scorecard to increase its market reach. Unit Scorecard 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Unit Scorecard is facing challenges because of the dominance of functional experts in the organization. Mobil USM&R (C): Lubricants Business Unit 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.
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 Unit Scorecard 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Unit Scorecard 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, Mobil USM&R (C): Lubricants Business Unit, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Unit Scorecard 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.
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 Unit Scorecard in the consumer business. Now Unit Scorecard can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Unit Scorecard can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Unit Scorecard can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mobil USM&R (C): Lubricants Business Unit 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.
Using analytics as competitive advantage
– Unit Scorecard 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 Mobil USM&R (C): Lubricants Business Unit - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Unit Scorecard to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Mobil USM&R (C): Lubricants Business Unit External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mobil USM&R (C): Lubricants Business Unit are -
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. Unit Scorecard needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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
– Unit Scorecard has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Unit Scorecard 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.
Consumer confidence and its impact on Unit Scorecard 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.
Environmental challenges
– Unit Scorecard 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. Unit Scorecard can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
High dependence on third party suppliers
– Unit Scorecard 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.
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 Unit Scorecard in the Finance & Accounting sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Unit Scorecard can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mobil USM&R (C): Lubricants Business Unit, Unit Scorecard 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 .
Stagnating economy with rate increase
– Unit Scorecard can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology 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.
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 Unit Scorecard business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Unit Scorecard
– 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 Unit Scorecard.
Weighted SWOT Analysis of Mobil USM&R (C): Lubricants Business Unit 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 Mobil USM&R (C): Lubricants Business Unit 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 Mobil USM&R (C): Lubricants Business Unit 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 Mobil USM&R (C): Lubricants Business Unit 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 Mobil USM&R (C): Lubricants Business Unit 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 Unit Scorecard needs to make to build a sustainable competitive advantage.
