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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, there is backlash against globalization, wage bills are increasing, talent flight as more people leaving formal jobs, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, 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 -
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.
Learning organization
- Inclusion Diversity 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 Inclusion Diversity is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Global Diversity and Inclusion at Royal Dutch Shell (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Inclusion Diversity is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Inclusion Diversity has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Global Diversity and Inclusion at Royal Dutch Shell (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
Analytics focus
– Inclusion Diversity 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 Sandra J. Sucher, Elena Corsi 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.
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.
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.
Innovation driven organization
– Inclusion Diversity is one of the most innovative firm in sector. Manager in Global Diversity and Inclusion at Royal Dutch Shell (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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 -
Low market penetration in new markets
– Outside its home market of Inclusion Diversity, firm in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Inclusion Diversity 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Inclusion Diversity 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Global Diversity and Inclusion at Royal Dutch Shell (A), is just above the industry average. Inclusion Diversity 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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Inclusion Diversity 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.
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.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Global Diversity and Inclusion at Royal Dutch Shell (A) 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 Inclusion Diversity has relatively successful track record of launching new products.
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.
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 -
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.
Creating value in data economy
– The success of analytics program of Inclusion Diversity has opened avenues for new revenue streams for the organization in the industry. This can help Inclusion Diversity to build a more holistic ecosystem as suggested in the Global Diversity and Inclusion at Royal Dutch Shell (A) case study. Inclusion Diversity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
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.
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.
Leveraging digital technologies
– Inclusion Diversity 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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Inclusion Diversity 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.
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.
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.
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 -
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.
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.
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 .
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.
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 Inclusion Diversity.
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.
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.
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. Inclusion Diversity needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Inclusion Diversity can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
High dependence on third party suppliers
– Inclusion Diversity 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.
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.
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.
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.