Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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 #1
Describes the position of Utility #1 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 #1" written by Willis Emmons includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Utility 1 facing as an external strategic factors. Some of the topics covered in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 case study are - Strategic Management Strategies, Negotiations, Strategy, 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 #1 casestudy better are - – digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , geopolitical disruptions, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies,
increasing energy prices, increasing commodity prices, etc
Introduction to SWOT Analysis of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1
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 #1 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Utility 1, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Utility 1 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 #1 can be done for the following purposes –
1. Strategic planning using facts provided in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 case study
2. Improving business portfolio management of Utility 1
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 1
Strengths Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Utility 1 in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Utility 1 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.
Innovation driven organization
– Utility 1 is one of the most innovative firm in sector. Manager in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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.
High brand equity
– Utility 1 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Utility 1 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Utility 1 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Global Business field
– Utility 1 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 1 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Utility 1 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Utility 1 is present in almost all the verticals within the industry. This has provided firm in Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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.
Highly skilled collaborators
– Utility 1 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 #1 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Utility 1 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Utility 1 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.
Learning organization
- Utility 1 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 1 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 #1 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Utility 1 in the sector have low bargaining power. Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Utility 1 to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 | 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 #1 are -
Low market penetration in new markets
– Outside its home market of Utility 1, firm in the HBR case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Utility 1 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 - Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Utility 1 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.
Lack of clear differentiation of Utility 1 products
– To increase the profitability and margins on the products, Utility 1 needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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 #1 can leverage the sales team experience to cultivate customer relationships as Utility 1 is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Utility 1 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 star products
– The top 2 products and services of the firm as mentioned in the Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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 Utility 1 has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Willis Emmons suggests that, Utility 1 is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Utility 1 is dominated by functional specialists. It is not different from other players in the Global Business segment. Utility 1 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Utility 1 to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 HBR case study mentions - Utility 1 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, Utility 1 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.
Opportunities Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 | 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 #1 are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Utility 1 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.
Developing new processes and practices
– Utility 1 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Utility 1 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 Utility 1 to hire the very best people irrespective of their geographical location.
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 1 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Utility 1 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.
Using analytics as competitive advantage
– Utility 1 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Utility 1 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Utility 1 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.
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 1 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 1 can use these opportunities to build new business models that can help the communities that Utility 1 operates in. Secondly it can use opportunities from government spending in Global Business sector.
Better consumer reach
– The expansion of the 5G network will help Utility 1 to increase its market reach. Utility 1 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, Utility 1 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, Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Utility 1 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.
Buying journey improvements
– Utility 1 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 #1 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 Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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 #1 are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Utility 1 needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Utility 1 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Utility 1 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.
Increasing wage structure of Utility 1
– 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 1.
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 1 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.
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 #1, Utility 1 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 .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Environmental challenges
– Utility 1 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. Utility 1 can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 1.
Technology acceleration in Forth Industrial Revolution
– Utility 1 has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Utility 1 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.
Shortening product life cycle
– it is one of the major threat that Utility 1 is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 1 in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Negotiation Exercise on Tradeable Pollution Allowances: Group B, Utility #1 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 #1 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 #1 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 #1 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 #1 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 1 needs to make to build a sustainable competitive advantage.