Integrating Environmental and International Strategies in a World of Regulatory Turbulence SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Integrating Environmental and International Strategies in a World of Regulatory Turbulence
Companies operating in multiple countries face different and often changing regimes of environmental regulation. This regulatory turbulence raises the question of what environmental strategies multinational enterprises with a portfolio of divergent regulatory regimes should develop in relation to their international business expansion strategies. Forward-looking multinationals seeking to develop an effective environmental strategy should integrate relative regulatory stringency and international market interdependence. There are four environmental strategies that match different regulatory/market configurations for multinationals from both developed and emerging markets, and which identify the factors that drive strategic changes. The article presents a "regulatory turbulence tool" that describes relevant regulatory/market configurations and prescribes contingently effective, dynamic environmental strategies.
Swot Analysis of "Integrating Environmental and International Strategies in a World of Regulatory Turbulence" written by Frank Wijen, Rob van Tulder includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Regulatory Environmental facing as an external strategic factors. Some of the topics covered in Integrating Environmental and International Strategies in a World of Regulatory Turbulence case study are - Strategic Management Strategies, Cross-cultural management, Managing uncertainty, Regulation and Global Business.
Some of the macro environment factors that can be used to understand the Integrating Environmental and International Strategies in a World of Regulatory Turbulence casestudy better are - – central banks are concerned over increasing inflation, increasing household debt because of falling income levels, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
wage bills are increasing, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Integrating Environmental and International Strategies in a World of Regulatory Turbulence
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Integrating Environmental and International Strategies in a World of Regulatory Turbulence case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Regulatory Environmental, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Regulatory Environmental 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence can be done for the following purposes –
1. Strategic planning using facts provided in Integrating Environmental and International Strategies in a World of Regulatory Turbulence case study
2. Improving business portfolio management of Regulatory Environmental
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 Regulatory Environmental
Strengths Integrating Environmental and International Strategies in a World of Regulatory Turbulence | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Regulatory Environmental in Integrating Environmental and International Strategies in a World of Regulatory Turbulence Harvard Business Review case study are -
Training and development
– Regulatory Environmental has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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.
Ability to recruit top talent
– Regulatory Environmental is one of the leading recruiters in the industry. Managers in the Integrating Environmental and International Strategies in a World of Regulatory Turbulence are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Regulatory Environmental in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Regulatory Environmental digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Regulatory Environmental 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.
Innovation driven organization
– Regulatory Environmental is one of the most innovative firm in sector. Manager in Integrating Environmental and International Strategies in a World of Regulatory Turbulence Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Regulatory Environmental 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Regulatory Environmental in the sector have low bargaining power. Integrating Environmental and International Strategies in a World of Regulatory Turbulence has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Regulatory Environmental to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Regulatory Environmental has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Regulatory Environmental to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Regulatory Environmental has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Regulatory Environmental 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.
Cross disciplinary teams
– Horizontal connected teams at the Regulatory Environmental 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.
Organizational Resilience of Regulatory Environmental
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Regulatory Environmental does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Integrating Environmental and International Strategies in a World of Regulatory Turbulence are -
Aligning sales with marketing
– It come across in the case study Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence can leverage the sales team experience to cultivate customer relationships as Regulatory Environmental is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Regulatory Environmental 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. Regulatory Environmental 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.
Products dominated business model
– Even though Regulatory Environmental 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 - Integrating Environmental and International Strategies in a World of Regulatory Turbulence should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Integrating Environmental and International Strategies in a World of Regulatory Turbulence HBR case study mentions - Regulatory Environmental 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 cash cycle compare to competitors
Regulatory Environmental 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.
Lack of clear differentiation of Regulatory Environmental products
– To increase the profitability and margins on the products, Regulatory Environmental needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Integrating Environmental and International Strategies in a World of Regulatory Turbulence, is just above the industry average. Regulatory Environmental needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, 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 Regulatory Environmental supply chain. Even after few cautionary changes mentioned in the HBR case study - Integrating Environmental and International Strategies in a World of Regulatory Turbulence, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Regulatory Environmental vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Regulatory Environmental 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.
Low market penetration in new markets
– Outside its home market of Regulatory Environmental, firm in the HBR case study Integrating Environmental and International Strategies in a World of Regulatory Turbulence needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Regulatory Environmental is dominated by functional specialists. It is not different from other players in the Global Business segment. Regulatory Environmental needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Regulatory Environmental to focus more on services rather than just following the product oriented approach.
Opportunities Integrating Environmental and International Strategies in a World of Regulatory Turbulence | 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence are -
Learning at scale
– Online learning technologies has now opened space for Regulatory Environmental 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
– Regulatory Environmental 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.
Leveraging digital technologies
– Regulatory Environmental 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.
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. Regulatory Environmental can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Regulatory Environmental can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Regulatory Environmental has opened avenues for new revenue streams for the organization in the industry. This can help Regulatory Environmental to build a more holistic ecosystem as suggested in the Integrating Environmental and International Strategies in a World of Regulatory Turbulence case study. Regulatory Environmental can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Regulatory Environmental 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.
Buying journey improvements
– Regulatory Environmental can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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.
Loyalty marketing
– Regulatory Environmental 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.
Building a culture of innovation
– managers at Regulatory Environmental can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Regulatory Environmental can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Regulatory Environmental is facing challenges because of the dominance of functional experts in the organization. Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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.
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. Regulatory Environmental 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. Regulatory Environmental 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.
Threats Integrating Environmental and International Strategies in a World of Regulatory Turbulence External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Integrating Environmental and International Strategies in a World of Regulatory Turbulence are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Regulatory Environmental with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Regulatory Environmental 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.
Shortening product life cycle
– it is one of the major threat that Regulatory Environmental is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Regulatory Environmental 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. Regulatory Environmental can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Integrating Environmental and International Strategies in a World of Regulatory Turbulence, Regulatory Environmental 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 .
Technology acceleration in Forth Industrial Revolution
– Regulatory Environmental has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Regulatory Environmental 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.
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. Regulatory Environmental 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.
Stagnating economy with rate increase
– Regulatory Environmental 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
– Regulatory Environmental 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.
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.
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 Regulatory Environmental 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.
Weighted SWOT Analysis of Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Integrating Environmental and International Strategies in a World of Regulatory Turbulence 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 Regulatory Environmental needs to make to build a sustainable competitive advantage.
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