Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team

In this two-party negotiation, a large oil company accuses a social venture supplier of overcharging and threatens to take its business to lower cost for-profit competitors. The two parties need to rekindle their collaborative relationship and re-establish the commercial logic to continue working together. The case casts the oil company in an aggressive role and puts the social entrepreneurs on the defensive to surface the stereotypes in the relationship.

Authors :: Horacio Falcao, Gillian Saint Leger, Delicado Nuno

Topics :: Innovation & Entrepreneurship

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team" written by Horacio Falcao, Gillian Saint Leger, Delicado Nuno includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Safe Fuel facing as an external strategic factors. Some of the topics covered in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.

Some of the macro environment factors that can be used to understand the Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team casestudy better are - – technology disruption, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing energy prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing commodity prices, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Safe Fuel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Safe Fuel 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team can be done for the following purposes –
1. Strategic planning using facts provided in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team case study
2. Improving business portfolio management of Safe Fuel
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Safe Fuel

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Strengths Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Safe Fuel in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team Harvard Business Review case study are -

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Safe Fuel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Safe Fuel 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.

Highly skilled collaborators

– Safe Fuel 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Low bargaining power of suppliers

– Suppliers of Safe Fuel in the sector have low bargaining power. Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Safe Fuel to manage not only supply disruptions but also source products at highly competitive prices.

Organizational Resilience of Safe Fuel

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Safe Fuel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– Safe Fuel is one of the leading recruiters in the industry. Managers in the Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Innovation driven organization

– Safe Fuel is one of the most innovative firm in sector. Manager in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Strong track record of project management

– Safe Fuel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High brand equity

– Safe Fuel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Safe Fuel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team firm has clearly differentiated products in the market place. This has enabled Safe Fuel to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Safe Fuel to invest into research and development (R&D) and innovation.

Analytics focus

– Safe Fuel 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 Horacio Falcao, Gillian Saint Leger, Delicado Nuno 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.

Operational resilience

– The operational resilience strategy in the Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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.

Learning organization

- Safe Fuel 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 Safe Fuel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

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Weaknesses Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Safe Fuel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Capital Spending Reduction

– Even during the low interest decade, Safe Fuel 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.

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 Safe Fuel supply chain. Even after few cautionary changes mentioned in the HBR case study - Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Safe Fuel vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

– The organizational structure of Safe Fuel is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Safe Fuel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Safe Fuel to focus more on services rather than just following the product oriented approach.

Products dominated business model

– Even though Safe Fuel 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 - Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team should strive to include more intangible value offerings along with its core products and services.

Slow to strategic competitive environment developments

– As Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team HBR case study mentions - Safe Fuel 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Safe Fuel 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 dependence on star products

– The top 2 products and services of the firm as mentioned in the Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Safe Fuel has relatively successful track record of launching new products.

Interest costs

– Compare to the competition, Safe Fuel has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team, in the dynamic environment Safe Fuel has struggled to respond to the nimble upstart competition. Safe Fuel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Lack of clear differentiation of Safe Fuel products

– To increase the profitability and margins on the products, Safe Fuel needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team | 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Safe Fuel 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, Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Building a culture of innovation

– managers at Safe Fuel 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 Innovation & Entrepreneurship segment.

Buying journey improvements

– Safe Fuel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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

– Safe Fuel 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Safe Fuel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Developing new processes and practices

– Safe Fuel can develop new processes and procedures in Innovation & Entrepreneurship 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.

Learning at scale

– Online learning technologies has now opened space for Safe Fuel 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 Safe Fuel 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.

Using analytics as competitive advantage

– Safe Fuel 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Safe Fuel to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Safe Fuel 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 Safe Fuel has opened avenues for new revenue streams for the organization in the industry. This can help Safe Fuel to build a more holistic ecosystem as suggested in the Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team case study. Safe Fuel can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Safe Fuel in the consumer business. Now Safe Fuel can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Safe Fuel can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.

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Threats Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team are -

Regulatory challenges

– Safe Fuel 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 Innovation & Entrepreneurship industry regulations.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Safe Fuel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Safe Fuel in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.

Stagnating economy with rate increase

– Safe Fuel 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.

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. Safe Fuel needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

Increasing wage structure of Safe Fuel

– 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 Safe Fuel.

High dependence on third party suppliers

– Safe Fuel 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.

Environmental challenges

– Safe Fuel needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Safe Fuel can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

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 Safe Fuel.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team, Safe Fuel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .

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.

Technology acceleration in Forth Industrial Revolution

– Safe Fuel has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Safe Fuel needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.

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Weighted SWOT Analysis of Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Negotiating Social Value - Crisis at Fuel Safe (B): Fuel Safe Confidential Instructions - Ava Delgado's Team 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 Safe Fuel needs to make to build a sustainable competitive advantage.

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