Mobil in Aceh, Indonesia (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mobil in Aceh, Indonesia (B)
In December 1998, Ron Wilson, chief executive of Mobil Oil Indonesia (MOI), considered how he should respond to allegations made by a group of nongovernmental organizations that Mobil had been complicit in serious human rights abuses in Aceh, Indonesia. MOI, established in 1968, was a joint venture between Mobil and the Indonesian oil company Pertamina. Based in Lhokseumawe, MOI was responsible for setting and managing the terms of the various contracts with Pertamina and the Indonesian government and for establishing and managing the exploration and exploitation operations. As a location, Aceh was far from convenient. But could any of the team at Mobil have imagined just how challenging managing operations in Aceh would be?
Authors :: Henri-Claude De Bettignies, Liana Downey
Topics :: Global Business
Tags :: Government, Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Mobil in Aceh, Indonesia (B)" written by Henri-Claude De Bettignies, Liana Downey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mobil Aceh facing as an external strategic factors. Some of the topics covered in Mobil in Aceh, Indonesia (B) case study are - Strategic Management Strategies, Government, Public relations, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Mobil in Aceh, Indonesia (B) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs,
technology disruption, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Mobil in Aceh, Indonesia (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mobil in Aceh, Indonesia (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mobil Aceh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mobil Aceh 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 in Aceh, Indonesia (B) can be done for the following purposes –
1. Strategic planning using facts provided in Mobil in Aceh, Indonesia (B) case study
2. Improving business portfolio management of Mobil Aceh
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 Mobil Aceh
Strengths Mobil in Aceh, Indonesia (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mobil Aceh in Mobil in Aceh, Indonesia (B) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Mobil Aceh in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Mobil Aceh 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 in Aceh, Indonesia (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Mobil Aceh 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.
Low bargaining power of suppliers
– Suppliers of Mobil Aceh in the sector have low bargaining power. Mobil in Aceh, Indonesia (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mobil Aceh to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Mobil Aceh 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 Henri-Claude De Bettignies, Liana Downey 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.
Training and development
– Mobil Aceh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mobil in Aceh, Indonesia (B) 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.
High brand equity
– Mobil Aceh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mobil Aceh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Mobil Aceh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mobil Aceh 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mobil Aceh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mobil Aceh 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
– Mobil Aceh 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 in Aceh, Indonesia (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Mobil Aceh is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– Mobil in Aceh, Indonesia (B) firm has clearly differentiated products in the market place. This has enabled Mobil Aceh to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mobil Aceh to invest into research and development (R&D) and innovation.
Weaknesses Mobil in Aceh, Indonesia (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mobil in Aceh, Indonesia (B) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mobil in Aceh, Indonesia (B), in the dynamic environment Mobil Aceh has struggled to respond to the nimble upstart competition. Mobil Aceh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mobil in Aceh, Indonesia (B) 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 Mobil Aceh has relatively successful track record of launching new products.
Lack of clear differentiation of Mobil Aceh products
– To increase the profitability and margins on the products, Mobil Aceh needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Mobil Aceh 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Mobil in Aceh, Indonesia (B) 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 Mobil Aceh 's lucrative customers.
Interest costs
– Compare to the competition, Mobil Aceh 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mobil in Aceh, Indonesia (B), it seems that the employees of Mobil Aceh 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.
Need for greater diversity
– Mobil Aceh 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, Mobil Aceh 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. Mobil Aceh 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.
Capital Spending Reduction
– Even during the low interest decade, Mobil Aceh 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.
Aligning sales with marketing
– It come across in the case study Mobil in Aceh, Indonesia (B) 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 in Aceh, Indonesia (B) can leverage the sales team experience to cultivate customer relationships as Mobil Aceh is planning to shift buying processes online.
Opportunities Mobil in Aceh, Indonesia (B) | 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 in Aceh, Indonesia (B) are -
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 Mobil Aceh 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mobil Aceh is facing challenges because of the dominance of functional experts in the organization. Mobil in Aceh, Indonesia (B) 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.
Using analytics as competitive advantage
– Mobil Aceh 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 in Aceh, Indonesia (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mobil Aceh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mobil Aceh 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 in Aceh, Indonesia (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mobil Aceh can use these opportunities to build new business models that can help the communities that Mobil Aceh operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mobil Aceh 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 Mobil Aceh to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mobil Aceh 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.
Manufacturing automation
– Mobil Aceh 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.
Leveraging digital technologies
– Mobil Aceh 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mobil Aceh can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Mobil Aceh has opened avenues for new revenue streams for the organization in the industry. This can help Mobil Aceh to build a more holistic ecosystem as suggested in the Mobil in Aceh, Indonesia (B) case study. Mobil Aceh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mobil Aceh 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.
Developing new processes and practices
– Mobil Aceh 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.
Threats Mobil in Aceh, Indonesia (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mobil in Aceh, Indonesia (B) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mobil Aceh 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 Mobil in Aceh, Indonesia (B) .
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 Mobil Aceh in the Global Business sector and impact the bottomline 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 Mobil Aceh business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Mobil Aceh 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.
Shortening product life cycle
– it is one of the major threat that Mobil Aceh is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Mobil Aceh
– 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 Mobil Aceh.
Stagnating economy with rate increase
– Mobil Aceh 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.
High dependence on third party suppliers
– Mobil Aceh 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.
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. Mobil Aceh needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Consumer confidence and its impact on Mobil Aceh 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mobil Aceh with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Mobil Aceh 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. Mobil Aceh can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Weighted SWOT Analysis of Mobil in Aceh, Indonesia (B) 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 in Aceh, Indonesia (B) 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 in Aceh, Indonesia (B) 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 in Aceh, Indonesia (B) 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 in Aceh, Indonesia (B) 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 Mobil Aceh needs to make to build a sustainable competitive advantage.
