Suncor's Political Role in Fort McMurray SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Suncor's Political Role in Fort McMurray
In the midst of massive growth in the oil sands, Suncor's chief executive officer (CEO) is growing concerned about the local government's inability to cope with unprecedented growth of oils sands development in Fort McMurray, Alberta. Crime, prostitution, drug use, social inequality and ecological deterioration have begun to cripple Fort McMurray and the surrounding area largely because the local government has been unable to support the massive growth with appropriate public services and environmental protection. As part of a major oil and gas company in the region, the CEO is aware of the harsh lessons learned by Shell in Nigeria in 1995, where the company's reluctance to get involved in political activities led to a massive boycott and tarnished reputation. The CEO is concerned that inaction may hold Suncor complicit in the social and ecological issues in the region. The case illustrates the need for companies to take on political responsibilities, in this case through the active engagement of addressing public service gaps. Written for courses in business and society, stakeholder engagement, public administration, public-private partnerships, strategic management, and negotiations, the case chronicles the motivations of companies such as Suncor to address public service gaps to avoid negative impacts on the firm. Students engage in a role-play representing six different stakeholders, the objective of which is to begin a process of engagement to collectively address the social and ecological issues plaguing the region. The case helps students recognize the growing prevalence of private sector involvement in political affairs and the difference between stakeholder management of and stakeholder engagement with seemingly adversarial stakeholders, the latter of which is critical to collaboratively respond to the complexity of sustainable development.
Swot Analysis of "Suncor's Political Role in Fort McMurray" written by Michael Valente includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mcmurray Fort facing as an external strategic factors. Some of the topics covered in Suncor's Political Role in Fort McMurray case study are - Strategic Management Strategies, Government and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Suncor's Political Role in Fort McMurray casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , there is backlash against globalization, increasing household debt because of falling income levels, wage bills are increasing, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Suncor's Political Role in Fort McMurray
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Suncor's Political Role in Fort McMurray case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mcmurray Fort, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mcmurray Fort 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 Suncor's Political Role in Fort McMurray can be done for the following purposes –
1. Strategic planning using facts provided in Suncor's Political Role in Fort McMurray case study
2. Improving business portfolio management of Mcmurray Fort
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mcmurray Fort
Strengths Suncor's Political Role in Fort McMurray | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mcmurray Fort in Suncor's Political Role in Fort McMurray Harvard Business Review case study are -
Effective Research and Development (R&D)
– Mcmurray Fort 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 Suncor's Political Role in Fort McMurray - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Mcmurray Fort has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Suncor's Political Role in Fort McMurray 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.
Diverse revenue streams
– Mcmurray Fort is present in almost all the verticals within the industry. This has provided firm in Suncor's Political Role in Fort McMurray 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Mcmurray Fort digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mcmurray Fort has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Leadership & Managing People field
– Mcmurray Fort 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 Mcmurray Fort in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Mcmurray Fort has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mcmurray Fort to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Mcmurray Fort 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 Mcmurray Fort is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Suncor's Political Role in Fort McMurray Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Mcmurray Fort in the sector have low bargaining power. Suncor's Political Role in Fort McMurray has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mcmurray Fort to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Mcmurray Fort
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mcmurray Fort does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Mcmurray Fort 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 Michael Valente 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.
Superior customer experience
– The customer experience strategy of Mcmurray Fort in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– Suncor's Political Role in Fort McMurray firm has clearly differentiated products in the market place. This has enabled Mcmurray Fort to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Mcmurray Fort to invest into research and development (R&D) and innovation.
Weaknesses Suncor's Political Role in Fort McMurray | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Suncor's Political Role in Fort McMurray are -
Slow to strategic competitive environment developments
– As Suncor's Political Role in Fort McMurray HBR case study mentions - Mcmurray Fort 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.
Skills based hiring
– The stress on hiring functional specialists at Mcmurray Fort 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Suncor's Political Role in Fort McMurray 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 Mcmurray Fort 's lucrative customers.
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 Mcmurray Fort supply chain. Even after few cautionary changes mentioned in the HBR case study - Suncor's Political Role in Fort McMurray, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mcmurray Fort vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mcmurray Fort is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Suncor's Political Role in Fort McMurray can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Suncor's Political Role in Fort McMurray, is just above the industry average. Mcmurray Fort 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Suncor's Political Role in Fort McMurray 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 Mcmurray Fort has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Suncor's Political Role in Fort McMurray, it seems that the employees of Mcmurray Fort 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.
Increasing silos among functional specialists
– The organizational structure of Mcmurray Fort is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Mcmurray Fort needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mcmurray Fort to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Suncor's Political Role in Fort McMurray, in the dynamic environment Mcmurray Fort has struggled to respond to the nimble upstart competition. Mcmurray Fort has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Mcmurray Fort 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.
Opportunities Suncor's Political Role in Fort McMurray | 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 Suncor's Political Role in Fort McMurray are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mcmurray Fort is facing challenges because of the dominance of functional experts in the organization. Suncor's Political Role in Fort McMurray 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mcmurray Fort can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Mcmurray Fort to increase its market reach. Mcmurray Fort 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mcmurray Fort 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.
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 Mcmurray Fort to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Mcmurray Fort can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Mcmurray Fort 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 Leadership & Managing People segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mcmurray Fort 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 Mcmurray Fort to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mcmurray Fort 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, Suncor's Political Role in Fort McMurray, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Mcmurray Fort can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Mcmurray Fort can develop new processes and procedures in Leadership & Managing People 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.
Loyalty marketing
– Mcmurray Fort 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.
Creating value in data economy
– The success of analytics program of Mcmurray Fort has opened avenues for new revenue streams for the organization in the industry. This can help Mcmurray Fort to build a more holistic ecosystem as suggested in the Suncor's Political Role in Fort McMurray case study. Mcmurray Fort can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Suncor's Political Role in Fort McMurray External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Suncor's Political Role in Fort McMurray are -
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.
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. Mcmurray Fort 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mcmurray Fort can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Mcmurray Fort 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mcmurray Fort 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 Suncor's Political Role in Fort McMurray .
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 Mcmurray Fort business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Mcmurray Fort
– 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 Mcmurray Fort.
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 Mcmurray Fort.
Regulatory challenges
– Mcmurray Fort 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 Leadership & Managing People industry regulations.
Shortening product life cycle
– it is one of the major threat that Mcmurray Fort is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Mcmurray Fort 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. Mcmurray Fort can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Mcmurray Fort 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mcmurray Fort in the Leadership & Managing People industry. The Leadership & Managing People 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.
Weighted SWOT Analysis of Suncor's Political Role in Fort McMurray 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 Suncor's Political Role in Fort McMurray 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 Suncor's Political Role in Fort McMurray 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 Suncor's Political Role in Fort McMurray 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 Suncor's Political Role in Fort McMurray 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 Mcmurray Fort needs to make to build a sustainable competitive advantage.
