Standard or Smokescreen?: Implementation of a Voluntary Environmental Code SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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 - – digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, geopolitical disruptions, wage bills are increasing, central banks are concerned over increasing inflation, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
Innovation driven organization
– Codes Ehs is one of the most innovative firm in sector. Manager in Standard or Smokescreen?: Implementation of a Voluntary Environmental Code Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Codes Ehs 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.
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.
Ability to lead change in Global Business field
– Codes Ehs 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 Codes Ehs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Organizational Resilience of Codes Ehs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Codes Ehs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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 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.
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.
Lack of clear differentiation of Codes Ehs products
– To increase the profitability and margins on the products, Codes Ehs needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Products dominated business model
– Even though Codes Ehs 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 - Standard or Smokescreen?: Implementation of a Voluntary Environmental Code should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Codes Ehs 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.
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.
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.
Low market penetration in new markets
– Outside its home market of Codes Ehs, firm in the HBR case study Standard or Smokescreen?: Implementation of a Voluntary Environmental Code needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Codes Ehs 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.
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.
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 -
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.
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.
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 Codes Ehs to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 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.
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. Codes Ehs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Codes Ehs can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Codes Ehs can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Codes Ehs 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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Codes Ehs 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 Codes Ehs to hire the very best people irrespective of their geographical location.
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.
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.
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 -
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.
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.
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.
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 Codes Ehs.
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.
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.
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.
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 acceleration in Forth Industrial Revolution
– Codes Ehs has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Codes Ehs 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.
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.
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 .
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.
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.