Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2
Describes the position of Utility #2 in negotiating Group B with respect to 1) its SO emissions reduction requirements; 2) the costs of its alternative compliance strategies; and 3) the nature of its state regulatory environment.
Swot Analysis of "Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2" written by Willis Emmons includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Utility 2 facing as an external strategic factors. Some of the topics covered in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 case study are - Strategic Management Strategies, Decision making, Negotiations, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing commodity prices, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, supply chains are disrupted by pandemic ,
cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Utility 2, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Utility 2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 can be done for the following purposes –
1. Strategic planning using facts provided in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 case study
2. Improving business portfolio management of Utility 2
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 Utility 2
Strengths Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Utility 2 in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 Harvard Business Review case study are -
Highly skilled collaborators
– Utility 2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Utility 2 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Utility 2 is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Utility 2 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Utility 2 is one of the leading recruiters in the industry. Managers in the Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Global Business field
– Utility 2 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 Utility 2 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Global Business industry
– Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 firm has clearly differentiated products in the market place. This has enabled Utility 2 to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Utility 2 to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Utility 2 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Utility 2 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.
Diverse revenue streams
– Utility 2 is present in almost all the verticals within the industry. This has provided firm in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Utility 2 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Utility 2 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.
High brand equity
– Utility 2 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Utility 2 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Utility 2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Utility 2 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 Willis Emmons 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.
Weaknesses Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2, in the dynamic environment Utility 2 has struggled to respond to the nimble upstart competition. Utility 2 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 HBR case study mentions - Utility 2 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.
Increasing silos among functional specialists
– The organizational structure of Utility 2 is dominated by functional specialists. It is not different from other players in the Global Business segment. Utility 2 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Utility 2 to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Utility 2 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 Utility 2 supply chain. Even after few cautionary changes mentioned in the HBR case study - Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Utility 2 vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Utility 2 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2, is just above the industry average. Utility 2 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2, it seems that the employees of Utility 2 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.
Slow decision making process
– As mentioned earlier in the report, Utility 2 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. Utility 2 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Utility 2 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.
Aligning sales with marketing
– It come across in the case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 can leverage the sales team experience to cultivate customer relationships as Utility 2 is planning to shift buying processes online.
Opportunities Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 | 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 are -
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. Utility 2 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Utility 2 has opened avenues for new revenue streams for the organization in the industry. This can help Utility 2 to build a more holistic ecosystem as suggested in the Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 case study. Utility 2 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. Utility 2 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. Utility 2 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, Utility 2 can use these opportunities to build new business models that can help the communities that Utility 2 operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Utility 2 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.
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 Utility 2 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.
Developing new processes and practices
– Utility 2 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.
Manufacturing automation
– Utility 2 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.
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 Utility 2 in the consumer business. Now Utility 2 can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Utility 2 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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.
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. Utility 2 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Utility 2 is facing challenges because of the dominance of functional experts in the organization. Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Utility 2 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Utility 2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Utility 2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2, Utility 2 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 .
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. Utility 2 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Utility 2 in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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 Utility 2.
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. Utility 2 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 Utility 2 in the Global Business sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Utility 2 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
– Utility 2 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 acceleration in Forth Industrial Revolution
– Utility 2 has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Utility 2 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.
Consumer confidence and its impact on Utility 2 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 wage structure of Utility 2
– 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 Utility 2.
Weighted SWOT Analysis of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #2 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 Utility 2 needs to make to build a sustainable competitive advantage.