Case Study Description of Mearl Oil Co.: Environmental Impact Targets (A)
Mearl Canada Ltd. does not want to implement Mearl Oil Co.'s environmental impact targets because, in Mearl Canada's opinion, the targets create an extra layer of regulation for considerable cost and negligible benefit. Mearl's position is that all Mearl worldwide operations must adopt these performance standards to allow the company to make operational its stated environmental policy. Each party has an opportunity to make its case at the International Environmental Group meeting, which will decide whether Mearl Canada may deviate from the environmental impact target and continue with its own homegrown environmental management system and standards. Written from the perspective of the manager of Mearl Oil's Support System, Environmental.
Swot Analysis of "Mearl Oil Co.: Environmental Impact Targets (A)" written by Tima Bansal, Tom Ewart includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mearl Environmental facing as an external strategic factors. Some of the topics covered in Mearl Oil Co.: Environmental Impact Targets (A) case study are - Strategic Management Strategies, Negotiations, Operations management, Regulation, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Mearl Oil Co.: Environmental Impact Targets (A) casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing energy prices,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Mearl Oil Co.: Environmental Impact Targets (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mearl Oil Co.: Environmental Impact Targets (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mearl Environmental, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mearl Environmental 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 Mearl Oil Co.: Environmental Impact Targets (A) can be done for the following purposes –
1. Strategic planning using facts provided in Mearl Oil Co.: Environmental Impact Targets (A) case study
2. Improving business portfolio management of Mearl Environmental
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 Mearl Environmental
Strengths Mearl Oil Co.: Environmental Impact Targets (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mearl Environmental in Mearl Oil Co.: Environmental Impact Targets (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Mearl Environmental 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.
Cross disciplinary teams
– Horizontal connected teams at the Mearl Environmental 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.
Sustainable margins compare to other players in Global Business industry
– Mearl Oil Co.: Environmental Impact Targets (A) firm has clearly differentiated products in the market place. This has enabled Mearl Environmental to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mearl Environmental to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Mearl Oil Co.: Environmental Impact Targets (A) 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.
Innovation driven organization
– Mearl Environmental is one of the most innovative firm in sector. Manager in Mearl Oil Co.: Environmental Impact Targets (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mearl Environmental digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mearl Environmental 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.
Ability to lead change in Global Business field
– Mearl Environmental 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 Mearl Environmental in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Mearl Environmental 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 Tima Bansal, Tom Ewart 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.
High brand equity
– Mearl Environmental has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mearl Environmental to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Mearl Environmental
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mearl Environmental does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Mearl Environmental has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mearl Environmental 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.
Strong track record of project management
– Mearl Environmental is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Mearl Oil Co.: Environmental Impact Targets (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mearl Oil Co.: Environmental Impact Targets (A) are -
Skills based hiring
– The stress on hiring functional specialists at Mearl Environmental 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, Mearl Environmental is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mearl Oil Co.: Environmental Impact Targets (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Mearl Environmental 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.
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 Mearl Environmental supply chain. Even after few cautionary changes mentioned in the HBR case study - Mearl Oil Co.: Environmental Impact Targets (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mearl Environmental vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Mearl Oil Co.: Environmental Impact Targets (A) HBR case study mentions - Mearl Environmental 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.
Interest costs
– Compare to the competition, Mearl Environmental has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Mearl Environmental 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 - Mearl Oil Co.: Environmental Impact Targets (A) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mearl Oil Co.: Environmental Impact Targets (A), is just above the industry average. Mearl Environmental 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.
Aligning sales with marketing
– It come across in the case study Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Oil Co.: Environmental Impact Targets (A) can leverage the sales team experience to cultivate customer relationships as Mearl Environmental is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Mearl Environmental 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mearl Oil Co.: Environmental Impact Targets (A), it seems that the employees of Mearl Environmental 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.
Opportunities Mearl Oil Co.: Environmental Impact Targets (A) | 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 Mearl Oil Co.: Environmental Impact Targets (A) are -
Creating value in data economy
– The success of analytics program of Mearl Environmental has opened avenues for new revenue streams for the organization in the industry. This can help Mearl Environmental to build a more holistic ecosystem as suggested in the Mearl Oil Co.: Environmental Impact Targets (A) case study. Mearl Environmental can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mearl Environmental can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Mearl Environmental 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mearl Environmental 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.
Loyalty marketing
– Mearl Environmental 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.
Buying journey improvements
– Mearl Environmental can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mearl Oil Co.: Environmental Impact Targets (A) 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.
Better consumer reach
– The expansion of the 5G network will help Mearl Environmental to increase its market reach. Mearl Environmental 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mearl Environmental 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, Mearl Oil Co.: Environmental Impact Targets (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mearl Environmental 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.
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 Mearl Environmental in the consumer business. Now Mearl Environmental can target international markets with far fewer capital restrictions requirements than the existing system.
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. Mearl Environmental can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Mearl Environmental 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. Mearl Environmental 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, Mearl Environmental can use these opportunities to build new business models that can help the communities that Mearl Environmental operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Mearl Oil Co.: Environmental Impact Targets (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mearl Oil Co.: Environmental Impact Targets (A) are -
Increasing wage structure of Mearl Environmental
– 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 Mearl Environmental.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mearl Environmental 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 Mearl Oil Co.: Environmental Impact Targets (A) .
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.
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 Mearl Environmental.
Technology acceleration in Forth Industrial Revolution
– Mearl Environmental has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Mearl Environmental 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 Mearl Environmental with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mearl Environmental 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.
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. Mearl Environmental needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Regulatory challenges
– Mearl Environmental 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mearl Oil Co.: Environmental Impact Targets (A), Mearl Environmental 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 .
Stagnating economy with rate increase
– Mearl Environmental 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 Mearl Environmental business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Mearl Environmental 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.
Weighted SWOT Analysis of Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Oil Co.: Environmental Impact Targets (A) 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 Mearl Environmental needs to make to build a sustainable competitive advantage.
