Case Study Description of Allied-Signal: Managing the Hazardous Waste Liability Risk
Allied-Signal, Inc., one of the world's oldest chemical companies and today a diversified conglomerate, is liable for clean-up costs of old hazardous waste sites. These costs are substantial: reserves grew to nearly $500 million in 1991. Attempting to avoid further set-asides, and anticipating U.S.-style liability laws in Europe, environmental managers undertake a review of the company's three-part environmental control policy. With extensive programs for disposal-site inspection, auditing for compliance, and hazardous waste reduction, the managers try to optimize costs and liabilities by balancing waste disposal and reduction. The case recounts the formation of the control policy in response to legislation such as RCTA, Superfund, and the Toxics Release Inventory. Examines in detail the implementation of the three hazardous waste programs, analyzing the experiences of two plants. Exhibits include internal control documentation.
Swot Analysis of "Allied-Signal: Managing the Hazardous Waste Liability Risk" written by Richard H.K. Vietor, Edward Prewitt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hazardous Waste facing as an external strategic factors. Some of the topics covered in Allied-Signal: Managing the Hazardous Waste Liability Risk case study are - Strategic Management Strategies, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Allied-Signal: Managing the Hazardous Waste Liability Risk casestudy better are - – talent flight as more people leaving formal jobs, there is backlash against globalization, there is increasing trade war between United States & China, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Allied-Signal: Managing the Hazardous Waste Liability Risk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Allied-Signal: Managing the Hazardous Waste Liability Risk case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hazardous Waste, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hazardous Waste 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 Allied-Signal: Managing the Hazardous Waste Liability Risk can be done for the following purposes –
1. Strategic planning using facts provided in Allied-Signal: Managing the Hazardous Waste Liability Risk case study
2. Improving business portfolio management of Hazardous Waste
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 Hazardous Waste
Strengths Allied-Signal: Managing the Hazardous Waste Liability Risk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hazardous Waste in Allied-Signal: Managing the Hazardous Waste Liability Risk Harvard Business Review case study are -
Strong track record of project management
– Hazardous Waste is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Hazardous Waste is one of the leading recruiters in the industry. Managers in the Allied-Signal: Managing the Hazardous Waste Liability Risk are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Hazardous Waste digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hazardous Waste 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.
Training and development
– Hazardous Waste has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Allied-Signal: Managing the Hazardous Waste Liability Risk 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.
High switching costs
– The high switching costs that Hazardous Waste 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.
Cross disciplinary teams
– Horizontal connected teams at the Hazardous Waste 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.
Innovation driven organization
– Hazardous Waste is one of the most innovative firm in sector. Manager in Allied-Signal: Managing the Hazardous Waste Liability Risk Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Hazardous Waste is present in almost all the verticals within the industry. This has provided firm in Allied-Signal: Managing the Hazardous Waste Liability Risk 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.
High brand equity
– Hazardous Waste has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hazardous Waste to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Hazardous Waste 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 Hazardous Waste in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Hazardous Waste 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 Hazardous Waste is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Allied-Signal: Managing the Hazardous Waste Liability Risk Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Hazardous Waste in the sector have low bargaining power. Allied-Signal: Managing the Hazardous Waste Liability Risk has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hazardous Waste to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Allied-Signal: Managing the Hazardous Waste Liability Risk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Allied-Signal: Managing the Hazardous Waste Liability Risk are -
No frontier risks strategy
– After analyzing the HBR case study Allied-Signal: Managing the Hazardous Waste Liability Risk, 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.
Slow to strategic competitive environment developments
– As Allied-Signal: Managing the Hazardous Waste Liability Risk HBR case study mentions - Hazardous Waste 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.
Increasing silos among functional specialists
– The organizational structure of Hazardous Waste is dominated by functional specialists. It is not different from other players in the Global Business segment. Hazardous Waste needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hazardous Waste to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Hazardous Waste 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Allied-Signal: Managing the Hazardous Waste Liability Risk, in the dynamic environment Hazardous Waste has struggled to respond to the nimble upstart competition. Hazardous Waste has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Richard H.K. Vietor, Edward Prewitt suggests that, Hazardous Waste 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 operating costs
– Compare to the competitors, firm in the HBR case study Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Hazardous Waste 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Allied-Signal: Managing the Hazardous Waste Liability Risk, is just above the industry average. Hazardous Waste 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.
Products dominated business model
– Even though Hazardous Waste 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 - Allied-Signal: Managing the Hazardous Waste Liability Risk should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Hazardous Waste has relatively successful track record of launching new products.
Lack of clear differentiation of Hazardous Waste products
– To increase the profitability and margins on the products, Hazardous Waste needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Allied-Signal: Managing the Hazardous Waste Liability Risk | 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 Allied-Signal: Managing the Hazardous Waste Liability Risk are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hazardous Waste can use these opportunities to build new business models that can help the communities that Hazardous Waste operates in. Secondly it can use opportunities from government spending in Global Business sector.
Creating value in data economy
– The success of analytics program of Hazardous Waste has opened avenues for new revenue streams for the organization in the industry. This can help Hazardous Waste to build a more holistic ecosystem as suggested in the Allied-Signal: Managing the Hazardous Waste Liability Risk case study. Hazardous Waste can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Hazardous Waste can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Hazardous Waste 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.
Learning at scale
– Online learning technologies has now opened space for Hazardous Waste 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hazardous Waste 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, Allied-Signal: Managing the Hazardous Waste Liability Risk, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Hazardous Waste has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Allied-Signal: Managing the Hazardous Waste Liability Risk - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hazardous Waste to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Hazardous Waste 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hazardous Waste can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 Hazardous Waste in the consumer business. Now Hazardous Waste can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hazardous Waste can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Hazardous Waste can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Allied-Signal: Managing the Hazardous Waste Liability Risk 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.
Manufacturing automation
– Hazardous Waste 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.
Threats Allied-Signal: Managing the Hazardous Waste Liability Risk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Allied-Signal: Managing the Hazardous Waste Liability Risk are -
Regulatory challenges
– Hazardous Waste 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Allied-Signal: Managing the Hazardous Waste Liability Risk, Hazardous Waste 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 .
High dependence on third party suppliers
– Hazardous Waste 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. Hazardous Waste needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hazardous Waste with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hazardous Waste 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 Allied-Signal: Managing the Hazardous Waste Liability Risk .
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 Hazardous Waste business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Hazardous Waste 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.
Increasing wage structure of Hazardous Waste
– 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 Hazardous Waste.
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 Hazardous Waste.
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. Hazardous Waste 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.
Shortening product life cycle
– it is one of the major threat that Hazardous Waste is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Allied-Signal: Managing the Hazardous Waste Liability Risk 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 Hazardous Waste needs to make to build a sustainable competitive advantage.
