Standard or Smokescreen?: Implementation of a Voluntary Environmental Code SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Standard or Smokescreen?: Implementation of a Voluntary Environmental Code
In recent years, demands from external stakeholders have created pressures for companies to adopt new environmental management practices. Some industries have developed their own non-regulatory codes of environment, health, and safety (EHS) practice. Have these codes generated substantive change in members' actions, or do they simply reinforce existing perceptions and practices? This article examines the response of sixteen chemical companies to the first industry-generated EHS code, Responsible Care. In some cases, companies have adopted uniform practices, while in other cases significant variation persists. The adoption and implementation by companies of non-regulatory environmental codes is a poor indicator that any particular standard practices will be followed.
Authors :: Jennifer Howard, Jennifer Nash, John Ehrenfeld
Swot Analysis of "Standard or Smokescreen?: Implementation of a Voluntary Environmental Code" written by Jennifer Howard, Jennifer Nash, John Ehrenfeld includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Codes Ehs facing as an external strategic factors. Some of the topics covered in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Standard or Smokescreen?: Implementation of a Voluntary Environmental Code casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation, technology disruption, there is backlash against globalization,
geopolitical disruptions, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Standard or Smokescreen?: Implementation of a Voluntary Environmental Code
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Codes Ehs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Codes Ehs 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code can be done for the following purposes –
1. Strategic planning using facts provided in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code case study
2. Improving business portfolio management of Codes Ehs
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 Codes Ehs
Strengths Standard or Smokescreen?: Implementation of a Voluntary Environmental Code | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Codes Ehs in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code Harvard Business Review case study are -
Successful track record of launching new products
– Codes Ehs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Codes Ehs 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.
Superior customer experience
– The customer experience strategy of Codes Ehs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Codes Ehs 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 Jennifer Howard, Jennifer Nash, John Ehrenfeld 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.
Diverse revenue streams
– Codes Ehs is present in almost all the verticals within the industry. This has provided firm in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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
– Codes Ehs 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Global Business industry
– Standard or Smokescreen?: Implementation of a Voluntary Environmental Code firm has clearly differentiated products in the market place. This has enabled Codes Ehs to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Codes Ehs to invest into research and development (R&D) and innovation.
Learning organization
- Codes Ehs 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 Codes Ehs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Codes Ehs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Codes Ehs 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 switching costs
– The high switching costs that Codes Ehs 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.
Training and development
– Codes Ehs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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)
– Codes Ehs 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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.
Weaknesses Standard or Smokescreen?: Implementation of a Voluntary Environmental Code | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Standard or Smokescreen?: Implementation of a Voluntary Environmental Code are -
Slow to strategic competitive environment developments
– As Standard or Smokescreen?: Implementation of a Voluntary Environmental Code HBR case study mentions - Codes Ehs 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Codes Ehs has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Codes Ehs is dominated by functional specialists. It is not different from other players in the Global Business segment. Codes Ehs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Codes Ehs to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Codes Ehs 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. Codes Ehs 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.
Need for greater diversity
– Codes Ehs 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.
Capital Spending Reduction
– Even during the low interest decade, Codes Ehs 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code, it seems that the employees of Codes Ehs 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.
No frontier risks strategy
– After analyzing the HBR case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code, 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.
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 Codes Ehs supply chain. Even after few cautionary changes mentioned in the HBR case study - Standard or Smokescreen?: Implementation of a Voluntary Environmental Code, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Codes Ehs vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code can leverage the sales team experience to cultivate customer relationships as Codes Ehs is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Codes Ehs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Standard or Smokescreen?: Implementation of a Voluntary Environmental Code | 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code are -
Manufacturing automation
– Codes Ehs 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Codes Ehs 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.
Better consumer reach
– The expansion of the 5G network will help Codes Ehs to increase its market reach. Codes Ehs 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, Codes Ehs 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, Standard or Smokescreen?: Implementation of a Voluntary Environmental Code, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Codes Ehs is facing challenges because of the dominance of functional experts in the organization. Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Codes Ehs can use these opportunities to build new business models that can help the communities that Codes Ehs operates in. Secondly it can use opportunities from government spending in Global Business sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Codes Ehs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Codes Ehs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Codes Ehs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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.
Creating value in data economy
– The success of analytics program of Codes Ehs has opened avenues for new revenue streams for the organization in the industry. This can help Codes Ehs to build a more holistic ecosystem as suggested in the Standard or Smokescreen?: Implementation of a Voluntary Environmental Code case study. Codes Ehs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Codes Ehs 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.
Leveraging digital technologies
– Codes Ehs 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.
Loyalty marketing
– Codes Ehs 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.
Threats Standard or Smokescreen?: Implementation of a Voluntary Environmental Code External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code are -
Shortening product life cycle
– it is one of the major threat that Codes Ehs 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, Codes Ehs 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code .
Consumer confidence and its impact on Codes Ehs 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.
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.
High dependence on third party suppliers
– Codes Ehs 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.
Increasing wage structure of Codes Ehs
– 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 Codes Ehs.
Stagnating economy with rate increase
– Codes Ehs 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.
Regulatory challenges
– Codes Ehs 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.
Environmental challenges
– Codes Ehs 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. Codes Ehs can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code, Codes Ehs 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Codes Ehs 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.
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. Codes Ehs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Codes Ehs needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Standard or Smokescreen?: Implementation of a Voluntary Environmental Code 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 Codes Ehs needs to make to build a sustainable competitive advantage.
