Global Diversity and Inclusion at Royal Dutch Shell (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Global Diversity and Inclusion at Royal Dutch Shell (A)
Royal Dutch Shell has been among the early players to implement diversity and inclusion policies in the 1990s, first in the U.S. and then globally. In May 2009, Peter Voser, CFO and soon-to-be CEO, wants to adjust the company's business, head count, and cost levels to adapt to changing economic conditions after one of the worst economic downturns in decades. His all-male executive committee has raised eyebrows because it is a step back from that of his predecessor, and he must decide whether to continue to promote the firm's emphasis on global diversity and inclusion while it restructures its business and reduces its managerial workforce.
Swot Analysis of "Global Diversity and Inclusion at Royal Dutch Shell (A)" written by Sandra J. Sucher, Elena Corsi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Inclusion Diversity facing as an external strategic factors. Some of the topics covered in Global Diversity and Inclusion at Royal Dutch Shell (A) case study are - Strategic Management Strategies, Diversity, International business, Managing people, Recession, Reorganization and Global Business.
Some of the macro environment factors that can be used to understand the Global Diversity and Inclusion at Royal Dutch Shell (A) casestudy better are - – increasing energy prices, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation,
talent flight as more people leaving formal jobs, increasing commodity prices, etc
Introduction to SWOT Analysis of Global Diversity and Inclusion at Royal Dutch Shell (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Diversity and Inclusion at Royal Dutch Shell (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inclusion Diversity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inclusion Diversity 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 Global Diversity and Inclusion at Royal Dutch Shell (A) can be done for the following purposes –
1. Strategic planning using facts provided in Global Diversity and Inclusion at Royal Dutch Shell (A) case study
2. Improving business portfolio management of Inclusion Diversity
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 Inclusion Diversity
Strengths Global Diversity and Inclusion at Royal Dutch Shell (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Inclusion Diversity in Global Diversity and Inclusion at Royal Dutch Shell (A) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Inclusion Diversity in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Inclusion Diversity is present in almost all the verticals within the industry. This has provided firm in Global Diversity and Inclusion at Royal Dutch Shell (A) 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 switching costs
– The high switching costs that Inclusion Diversity 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.
High brand equity
– Inclusion Diversity has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Inclusion Diversity to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Inclusion Diversity is one of the leading recruiters in the industry. Managers in the Global Diversity and Inclusion at Royal Dutch Shell (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Inclusion Diversity
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Inclusion Diversity does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Inclusion Diversity 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.
Operational resilience
– The operational resilience strategy in the Global Diversity and Inclusion at Royal Dutch Shell (A) 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.
Effective Research and Development (R&D)
– Inclusion Diversity 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 Global Diversity and Inclusion at Royal Dutch Shell (A) - 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 Inclusion Diversity in the sector have low bargaining power. Global Diversity and Inclusion at Royal Dutch Shell (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Inclusion Diversity to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Inclusion Diversity digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Inclusion Diversity 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.
Ability to lead change in Global Business field
– Inclusion Diversity 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 Inclusion Diversity in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Global Diversity and Inclusion at Royal Dutch Shell (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Diversity and Inclusion at Royal Dutch Shell (A) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Inclusion Diversity is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Global Diversity and Inclusion at Royal Dutch Shell (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Inclusion Diversity 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. Inclusion Diversity even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandra J. Sucher, Elena Corsi suggests that, Inclusion Diversity 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.
Capital Spending Reduction
– Even during the low interest decade, Inclusion Diversity 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.
Skills based hiring
– The stress on hiring functional specialists at Inclusion Diversity 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A), it seems that the employees of Inclusion Diversity 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.
High cash cycle compare to competitors
Inclusion Diversity 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.
Increasing silos among functional specialists
– The organizational structure of Inclusion Diversity is dominated by functional specialists. It is not different from other players in the Global Business segment. Inclusion Diversity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Inclusion Diversity to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Global Diversity and Inclusion at Royal Dutch Shell (A) HBR case study mentions - Inclusion Diversity takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Global Diversity and Inclusion at Royal Dutch Shell (A) can leverage the sales team experience to cultivate customer relationships as Inclusion Diversity is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A), 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 Global Diversity and Inclusion at Royal Dutch Shell (A) | 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 Global Diversity and Inclusion at Royal Dutch Shell (A) 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, Inclusion Diversity can use these opportunities to build new business models that can help the communities that Inclusion Diversity operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Inclusion Diversity 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.
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 Inclusion Diversity in the consumer business. Now Inclusion Diversity can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Inclusion Diversity 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 Inclusion Diversity to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Inclusion Diversity 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.
Buying journey improvements
– Inclusion Diversity can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Global Diversity and Inclusion at Royal Dutch Shell (A) 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.
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. Inclusion Diversity can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Inclusion Diversity 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.
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 Inclusion Diversity 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.
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. Inclusion Diversity 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. Inclusion Diversity 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. Inclusion Diversity 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Inclusion Diversity can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Inclusion Diversity 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 Global Diversity and Inclusion at Royal Dutch Shell (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Inclusion Diversity to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Global Diversity and Inclusion at Royal Dutch Shell (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A) are -
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 Inclusion Diversity in the Global Business sector and impact the bottomline of the organization.
Regulatory challenges
– Inclusion Diversity 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Inclusion Diversity with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Inclusion Diversity 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Inclusion Diversity 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 Global Diversity and Inclusion at Royal Dutch Shell (A) .
Technology acceleration in Forth Industrial Revolution
– Inclusion Diversity has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Inclusion Diversity 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 Inclusion Diversity
– 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 Inclusion Diversity.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Global Diversity and Inclusion at Royal Dutch Shell (A), Inclusion Diversity 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 .
Stagnating economy with rate increase
– Inclusion Diversity 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.
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 Inclusion Diversity business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Inclusion Diversity 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.
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. Inclusion Diversity 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.
Weighted SWOT Analysis of Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Inclusion Diversity needs to make to build a sustainable competitive advantage.
