Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director

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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director" 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 Oilco Jardine facing as an external strategic factors. Some of the topics covered in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director casestudy better are - – increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, technology disruption, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, supply chains are disrupted by pandemic , there is backlash against globalization, etc

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Introduction to SWOT Analysis of Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director

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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Oilco Jardine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Oilco Jardine 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director can be done for the following purposes –
1. Strategic planning using facts provided in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director case study
2. Improving business portfolio management of Oilco Jardine
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 Oilco Jardine

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Strengths Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Oilco Jardine in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director Harvard Business Review case study are -

Training and development

– Oilco Jardine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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.

Successful track record of launching new products

– Oilco Jardine has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Oilco Jardine has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Ability to lead change in Innovation & Entrepreneurship field

– Oilco Jardine 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 Oilco Jardine in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy in the Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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.

Diverse revenue streams

– Oilco Jardine is present in almost all the verticals within the industry. This has provided firm in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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.

Organizational Resilience of Oilco Jardine

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

Innovation driven organization

– Oilco Jardine is one of the most innovative firm in sector. Manager in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to recruit top talent

– Oilco Jardine is one of the leading recruiters in the industry. Managers in the Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Oilco Jardine 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director firm has clearly differentiated products in the market place. This has enabled Oilco Jardine to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Oilco Jardine to invest into research and development (R&D) and innovation.

Analytics focus

– Oilco Jardine 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.

Effective Research and Development (R&D)

– Oilco Jardine 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 Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director are -

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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 Oilco Jardine has relatively successful track record of launching new products.

Increasing silos among functional specialists

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

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director, is just above the industry average. Oilco Jardine 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Oilco Jardine 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Need for greater diversity

– Oilco Jardine 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.

No frontier risks strategy

– After analyzing the HBR case study Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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 cash cycle compare to competitors

Oilco Jardine 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.

Aligning sales with marketing

– It come across in the case study Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director can leverage the sales team experience to cultivate customer relationships as Oilco Jardine is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the segment, Oilco Jardine 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.

Low market penetration in new markets

– Outside its home market of Oilco Jardine, firm in the HBR case study Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to strategic competitive environment developments

– As Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director HBR case study mentions - Oilco Jardine 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.

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Opportunities Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director | 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Oilco Jardine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Oilco Jardine 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 Oilco Jardine 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.

Loyalty marketing

– Oilco Jardine has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Building a culture of innovation

– managers at Oilco Jardine 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Oilco Jardine 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 Oilco Jardine to hire the very best people irrespective of their geographical location.

Buying journey improvements

– Oilco Jardine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Oilco Jardine can use these opportunities to build new business models that can help the communities that Oilco Jardine operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Oilco Jardine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– Oilco Jardine 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Oilco Jardine is facing challenges because of the dominance of functional experts in the organization. Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Manufacturing automation

– Oilco Jardine 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.

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 Oilco Jardine in the consumer business. Now Oilco Jardine can target international markets with far fewer capital restrictions requirements than the existing system.

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Threats Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director are -

Easy access to finance

– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Oilco Jardine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Regulatory challenges

– Oilco Jardine 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.

Shortening product life cycle

– it is one of the major threat that Oilco Jardine is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 Oilco Jardine.

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. Oilco Jardine 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.

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 Oilco Jardine business can come under increasing regulations regarding data privacy, data security, etc.

High dependence on third party suppliers

– Oilco Jardine 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 Oilco Jardine 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.

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 Oilco Jardine in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

Increasing wage structure of Oilco Jardine

– 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 Oilco Jardine.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Oilco Jardine 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 Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director .

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

Stagnating economy with rate increase

– Oilco Jardine 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.

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Weighted SWOT Analysis of Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director 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 Oilco Jardine needs to make to build a sustainable competitive advantage.

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