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 government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing commodity prices, increasing energy prices, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -

Digital Transformation in Innovation & Entrepreneurship segment

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

High switching costs

– The high switching costs that Oilco Jardine 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.

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.

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.

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.

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.

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.

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.

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.

Learning organization

- Oilco Jardine 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 Oilco Jardine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

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.

Superior customer experience

– The customer experience strategy of Oilco Jardine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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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 -

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.

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.

Skills based hiring

– The stress on hiring functional specialists at Oilco Jardine 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 Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director, it seems that the employees of Oilco Jardine 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.

Products dominated business model

– Even though Oilco Jardine 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director should strive to include more intangible value offerings along with its core products and services.

Slow decision making process

– As mentioned earlier in the report, Oilco Jardine 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. Oilco Jardine 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.

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.

Interest costs

– Compare to the competition, Oilco Jardine 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.

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.

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.

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.

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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 -

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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Oilco Jardine 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.

Using analytics as competitive advantage

– Oilco Jardine 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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Oilco Jardine 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. Oilco Jardine can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Better consumer reach

– The expansion of the 5G network will help Oilco Jardine to increase its market reach. Oilco Jardine will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

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.

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 Oilco Jardine to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Learning at scale

– Online learning technologies has now opened space for 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.

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.

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.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Oilco Jardine 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. Oilco Jardine 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.

Creating value in data economy

– The success of analytics program of Oilco Jardine has opened avenues for new revenue streams for the organization in the industry. This can help Oilco Jardine to build a more holistic ecosystem as suggested in the Negotiating Social Value - Crisis at Fuel Safe (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director case study. Oilco Jardine can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

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.

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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 -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Oilco Jardine 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.

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 (C): OILCO Confidential Instructions - Joe Jardine, Procurement Director, Oilco Jardine 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 .

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.

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.

Technology acceleration in Forth Industrial Revolution

– Oilco Jardine has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Oilco Jardine 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.

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.

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.

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.

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 .

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.

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.

Barriers of entry lowering

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

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.

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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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