The Water Cycle, Climate Change, and (Some of) Their Interactions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Water Cycle, Climate Change, and (Some of) Their Interactions
This note is assigned in Darden's course elective, "Global Economics of Water." There is more than enough fresh water to satisfy the world's needs. The primary concern, however, is the geographical mismatch between water needs and the availability of water to communities who need it. Hence, a major challenge for the 21st century is to better manage this mismatch. In this note, we focus on one particular factor-climate change-and how it may contribute to future stress on water resources. We lay out the basics of climate change and the hydrological cycle, and we point to some of the intricate ways in which both phenomena are connected. This note does not contain blanket policy recommendations as to how to fight global warming beyond the general statement that the rational response to the risk and uncertainty of higher global temperatures and their associated environmental changes is to take actions that ensure against potentially adverse effects.
Swot Analysis of "The Water Cycle, Climate Change, and (Some of) Their Interactions" written by Peter Debaere, Paolo Da€™Odorico includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Water Climate facing as an external strategic factors. Some of the topics covered in The Water Cycle, Climate Change, and (Some of) Their Interactions case study are - Strategic Management Strategies, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the The Water Cycle, Climate Change, and (Some of) Their Interactions casestudy better are - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing energy prices,
supply chains are disrupted by pandemic , wage bills are increasing, etc
Introduction to SWOT Analysis of The Water Cycle, Climate Change, and (Some of) Their Interactions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Water Cycle, Climate Change, and (Some of) Their Interactions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Water Climate, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Water Climate 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 The Water Cycle, Climate Change, and (Some of) Their Interactions can be done for the following purposes –
1. Strategic planning using facts provided in The Water Cycle, Climate Change, and (Some of) Their Interactions case study
2. Improving business portfolio management of Water Climate
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 Water Climate
Strengths The Water Cycle, Climate Change, and (Some of) Their Interactions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Water Climate in The Water Cycle, Climate Change, and (Some of) Their Interactions Harvard Business Review case study are -
Ability to lead change in Global Business field
– Water Climate 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 Water Climate in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Water Climate 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 The Water Cycle, Climate Change, and (Some of) Their Interactions 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.
Training and development
– Water Climate has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Water Cycle, Climate Change, and (Some of) Their Interactions 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.
Ability to recruit top talent
– Water Climate is one of the leading recruiters in the industry. Managers in the The Water Cycle, Climate Change, and (Some of) Their Interactions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– The Water Cycle, Climate Change, and (Some of) Their Interactions firm has clearly differentiated products in the market place. This has enabled Water Climate to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Water Climate to invest into research and development (R&D) and innovation.
Organizational Resilience of Water Climate
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Water Climate does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Water Climate 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.
Low bargaining power of suppliers
– Suppliers of Water Climate in the sector have low bargaining power. The Water Cycle, Climate Change, and (Some of) Their Interactions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Water Climate to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Water Climate in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Water Climate 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 The Water Cycle, Climate Change, and (Some of) Their Interactions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Water Climate has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Water Climate to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses The Water Cycle, Climate Change, and (Some of) Their Interactions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Water Cycle, Climate Change, and (Some of) Their Interactions are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Water Cycle, Climate Change, and (Some of) Their Interactions, in the dynamic environment Water Climate has struggled to respond to the nimble upstart competition. Water Climate has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Water Climate products
– To increase the profitability and margins on the products, Water Climate needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Water Climate 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 operating costs
– Compare to the competitors, firm in the HBR case study The Water Cycle, Climate Change, and (Some of) Their Interactions 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 Water Climate 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Water Cycle, Climate Change, and (Some of) Their Interactions 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 Water Climate has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Water Climate 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Water Climate is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Water Cycle, Climate Change, and (Some of) Their Interactions 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 Water Climate supply chain. Even after few cautionary changes mentioned in the HBR case study - The Water Cycle, Climate Change, and (Some of) Their Interactions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Water Climate vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Water Climate 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.
Need for greater diversity
– Water Climate 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 decision making process
– As mentioned earlier in the report, Water Climate 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. Water Climate 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.
Opportunities The Water Cycle, Climate Change, and (Some of) Their Interactions | 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 The Water Cycle, Climate Change, and (Some of) Their Interactions are -
Better consumer reach
– The expansion of the 5G network will help Water Climate to increase its market reach. Water Climate 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.
Building a culture of innovation
– managers at Water Climate 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 Global Business segment.
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. Water Climate can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Water Climate 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Water Climate 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Water Climate is facing challenges because of the dominance of functional experts in the organization. The Water Cycle, Climate Change, and (Some of) Their Interactions 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.
Loyalty marketing
– Water Climate 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.
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 Water Climate in the consumer business. Now Water Climate can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Water Climate has opened avenues for new revenue streams for the organization in the industry. This can help Water Climate to build a more holistic ecosystem as suggested in the The Water Cycle, Climate Change, and (Some of) Their Interactions case study. Water Climate can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Water Climate 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. Water Climate 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Water Climate can use these opportunities to build new business models that can help the communities that Water Climate operates in. Secondly it can use opportunities from government spending in Global Business sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Water Climate can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Water Climate can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Water Cycle, Climate Change, and (Some of) Their Interactions 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.
Threats The Water Cycle, Climate Change, and (Some of) Their Interactions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Water Cycle, Climate Change, and (Some of) Their Interactions are -
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. Water Climate can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Water Climate in the Global Business sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Water Climate is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Technology acceleration in Forth Industrial Revolution
– Water Climate has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Water Climate 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Water Climate with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Water Cycle, Climate Change, and (Some of) Their Interactions, Water Climate 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 .
Increasing wage structure of Water Climate
– 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 Water Climate.
Environmental challenges
– Water Climate 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. Water Climate can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Water Climate needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Water Climate 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.
Stagnating economy with rate increase
– Water Climate 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.
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 Water Climate business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of The Water Cycle, Climate Change, and (Some of) Their Interactions 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 The Water Cycle, Climate Change, and (Some of) Their Interactions 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 The Water Cycle, Climate Change, and (Some of) Their Interactions 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 The Water Cycle, Climate Change, and (Some of) Their Interactions 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 The Water Cycle, Climate Change, and (Some of) Their Interactions 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 Water Climate needs to make to build a sustainable competitive advantage.
