The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A)
Following the sinking of the Deepwater Horizon drilling rig in late April 2010, the Obama administration organized a massive response operation to contain the enormous amount of oil spreading across the Gulf of Mexico. Attracting intense public attention and, eventually, widespread criticism, the response adhered to the Oil Pollution Act of 1990, a federal law that the crisis would soon reveal was not well understood - or even accepted - by all relevant parties. This two-part case profiles the efforts of senior officials from the U.S. Department of Homeland Security as they struggled to coordinate the actions of a myriad of actors, ranging from numerous federal partners (including key members of the Obama White House); the political leadership of the affected Gulf States and sub-state jurisdictions; and the private sector. Case A provides an overview of the disaster and early response; discusses the formation of the National Incident Command (NIC), which had responsibility for directing response activities; and explores the NIC's efforts to coordinate the actions of various federal entities. Case B focuses on the challenges the NIC encountered as it sought to engage with state and local actors - an effort that would grow increasingly complicated as the crisis deepened throughout the spring and summer of 2010. Case number 1981.0
Authors :: David Giles, Arnold Howitt, Dutch Leonard
Swot Analysis of "The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A)" written by David Giles, Arnold Howitt, Dutch Leonard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Response Nic facing as an external strategic factors. Some of the topics covered in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) case study are - Strategic Management Strategies, Government, Leadership and Global Business.
Some of the macro environment factors that can be used to understand the The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing energy prices, wage bills are increasing,
cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Response Nic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Response Nic operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) can be done for the following purposes –
1. Strategic planning using facts provided in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) case study
2. Improving business portfolio management of Response Nic
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 Response Nic
Strengths The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Response Nic in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Response Nic in the sector have low bargaining power. The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Response Nic to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Response Nic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Response Nic 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 recruit top talent
– Response Nic is one of the leading recruiters in the industry. Managers in the The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Response Nic is present in almost all the verticals within the industry. This has provided firm in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) 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.
Innovation driven organization
– Response Nic is one of the most innovative firm in sector. Manager in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Global Business industry
– The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) firm has clearly differentiated products in the market place. This has enabled Response Nic to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Response Nic to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Response Nic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Global Business field
– Response Nic 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 Response Nic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Response Nic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Response Nic 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 Response Nic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Response Nic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) 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.
Effective Research and Development (R&D)
– Response Nic 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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) are -
Capital Spending Reduction
– Even during the low interest decade, Response Nic 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A), it seems that the employees of Response Nic 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) 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 Response Nic 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Response Nic, firm in the HBR case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) can leverage the sales team experience to cultivate customer relationships as Response Nic is planning to shift buying processes online.
Products dominated business model
– Even though Response Nic 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 - The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, David Giles, Arnold Howitt, Dutch Leonard suggests that, Response Nic 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.
No frontier risks strategy
– After analyzing the HBR case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A), it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Response Nic 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.
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 Response Nic supply chain. Even after few cautionary changes mentioned in the HBR case study - The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Response Nic vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Response Nic has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) are -
Manufacturing automation
– Response Nic 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.
Loyalty marketing
– Response Nic 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.
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. Response Nic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Response Nic can use these opportunities to build new business models that can help the communities that Response Nic operates in. Secondly it can use opportunities from government spending in Global Business sector.
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. Response Nic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Response Nic 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.
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 Response Nic in the consumer business. Now Response Nic can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Response Nic 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Response Nic 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.
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 Response Nic 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.
Buying journey improvements
– Response Nic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Response Nic is facing challenges because of the dominance of functional experts in the organization. The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) 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.
Better consumer reach
– The expansion of the 5G network will help Response Nic to increase its market reach. Response Nic 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.
Threats The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A), Response Nic 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 .
Shortening product life cycle
– it is one of the major threat that Response Nic is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Response Nic 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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (A) .
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 Response Nic.
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 Response Nic in the Global Business sector and impact the bottomline of the organization.
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.
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. Response Nic needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Response Nic 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.
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. Response Nic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Response Nic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Response Nic 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. Response Nic can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Response Nic 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.
Weighted SWOT Analysis of The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 The Deepwater Horizon Oil Spill: The Politics of Crisis Response (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 Response Nic needs to make to build a sustainable competitive advantage.
