Environmental Power Corp.: Changing Manure into Gold? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Environmental Power Corp.: Changing Manure into Gold?
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.In 2002, Environmental Power Corp. (EPC), a small company developing renewable energy projects, was attempting to commercialize its "digester," a facility that extracted methane from manure, reduced manure's environmental impact, and generated electricity. The company addressed two promising convergent markets: the farm waste management market and the renewable energy market. One of the main challenges was to put together a financial scheme that satisfied the conflicting interests of four groups of stakeholders: the farmers who lacked cash, the investors who distrusted the electricity trading business after the Enron scandal, the utilities who resisted long-term commitments to buy electricity, and the government who was reconsidering its agricultural and energy policies. The primary challenge is to provide a process that reduces animal waste pollution and at the same time provides a positive renewable energy source.
Swot Analysis of "Environmental Power Corp.: Changing Manure into Gold?" written by Ray A. Goldberg, Laure Mougeot Stroock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Manure Renewable facing as an external strategic factors. Some of the topics covered in Environmental Power Corp.: Changing Manure into Gold? case study are - Strategic Management Strategies, Policy, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Environmental Power Corp.: Changing Manure into Gold? casestudy better are - – central banks are concerned over increasing inflation, wage bills are increasing, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of Environmental Power Corp.: Changing Manure into Gold?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Environmental Power Corp.: Changing Manure into Gold? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Manure Renewable, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Manure Renewable 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 Environmental Power Corp.: Changing Manure into Gold? can be done for the following purposes –
1. Strategic planning using facts provided in Environmental Power Corp.: Changing Manure into Gold? case study
2. Improving business portfolio management of Manure Renewable
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 Manure Renewable
Strengths Environmental Power Corp.: Changing Manure into Gold? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Manure Renewable in Environmental Power Corp.: Changing Manure into Gold? Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Manure Renewable 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Manure Renewable digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Manure Renewable 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
– Manure Renewable has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Manure Renewable to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Manure Renewable 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 Environmental Power Corp.: Changing Manure into Gold? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Manure Renewable is present in almost all the verticals within the industry. This has provided firm in Environmental Power Corp.: Changing Manure into Gold? 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.
Strong track record of project management
– Manure Renewable is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Manure Renewable 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 Environmental Power Corp.: Changing Manure into Gold? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Manure Renewable 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 Ray A. Goldberg, Laure Mougeot Stroock 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.
Sustainable margins compare to other players in Global Business industry
– Environmental Power Corp.: Changing Manure into Gold? firm has clearly differentiated products in the market place. This has enabled Manure Renewable to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Manure Renewable to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Manure Renewable has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Manure Renewable 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.
High switching costs
– The high switching costs that Manure Renewable has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Manure Renewable is one of the leading recruiters in the industry. Managers in the Environmental Power Corp.: Changing Manure into Gold? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Environmental Power Corp.: Changing Manure into Gold? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Environmental Power Corp.: Changing Manure into Gold? are -
Slow decision making process
– As mentioned earlier in the report, Manure Renewable 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. Manure Renewable 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Environmental Power Corp.: Changing Manure into Gold? 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 Manure Renewable 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Manure Renewable has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Environmental Power Corp.: Changing Manure into Gold? HBR case study mentions - Manure Renewable 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.
Aligning sales with marketing
– It come across in the case study Environmental Power Corp.: Changing Manure into Gold? 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 Environmental Power Corp.: Changing Manure into Gold? can leverage the sales team experience to cultivate customer relationships as Manure Renewable is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Ray A. Goldberg, Laure Mougeot Stroock suggests that, Manure Renewable 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Environmental Power Corp.: Changing Manure into Gold? 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 Manure Renewable has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Manure Renewable, firm in the HBR case study Environmental Power Corp.: Changing Manure into Gold? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Environmental Power Corp.: Changing Manure into Gold?, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Environmental Power Corp.: Changing Manure into Gold?, in the dynamic environment Manure Renewable has struggled to respond to the nimble upstart competition. Manure Renewable has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Manure Renewable 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.
Opportunities Environmental Power Corp.: Changing Manure into Gold? | 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 Environmental Power Corp.: Changing Manure into Gold? are -
Better consumer reach
– The expansion of the 5G network will help Manure Renewable to increase its market reach. Manure Renewable 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Manure Renewable can use these opportunities to build new business models that can help the communities that Manure Renewable operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Manure Renewable in the consumer business. Now Manure Renewable can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Manure Renewable to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Manure Renewable 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.
Developing new processes and practices
– Manure Renewable 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Manure Renewable is facing challenges because of the dominance of functional experts in the organization. Environmental Power Corp.: Changing Manure into Gold? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Manure Renewable 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.
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. Manure Renewable can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Manure Renewable can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Manure Renewable 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, Environmental Power Corp.: Changing Manure into Gold?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Manure Renewable 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Manure Renewable 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 Manure Renewable to hire the very best people irrespective of their geographical location.
Threats Environmental Power Corp.: Changing Manure into Gold? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Environmental Power Corp.: Changing Manure into Gold? are -
Stagnating economy with rate increase
– Manure Renewable 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
– Manure Renewable has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Manure Renewable 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.
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 Manure Renewable.
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. Manure Renewable needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Manure Renewable with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Manure Renewable business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Environmental Power Corp.: Changing Manure into Gold?, Manure Renewable 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 Manure Renewable 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 Manure Renewable
– 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 Manure Renewable.
Consumer confidence and its impact on Manure Renewable 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.
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.
Regulatory challenges
– Manure Renewable 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.
Weighted SWOT Analysis of Environmental Power Corp.: Changing Manure into Gold? 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 Environmental Power Corp.: Changing Manure into Gold? 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 Environmental Power Corp.: Changing Manure into Gold? 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 Environmental Power Corp.: Changing Manure into Gold? 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 Environmental Power Corp.: Changing Manure into Gold? 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 Manure Renewable needs to make to build a sustainable competitive advantage.