Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy
This case narrates a complex, long-running, and emotional controversy between Shell Exploration & Production Ireland (SEPIL) and opponents of its planned natural gas pipeline and gas processing facility in County Mayo, Ireland. The Corrib Gas Project is years behind schedule and over budget. SEPIL must not only complete the project, but must do so in a manner consistent with its own principles of corporate social responsibility. This case provides an opportunity to explore the challenges implicit in utilizing stakeholder management approaches. Students must evaluate various options available to SEPIL such as: Should the gas be processed at sea, as the more strident protestors demand? Should the processing facility be relocated to an area of no habitation, as other protestors wish, which would mean writing off a significant investment? For that matter, is this project worth completing at any cost? Finally, despite having all the required statutory approvals, final implementation would probably require utilizing the Garda SiochA?na (the Irish national police force) and other resources of the Irish State, as well as Shell's own contract security force, to keep protestors at bay. But what are the possible effects of such action on Shell's corporate reputation, and what if something, anything, goes wrong? It is not only which course of action SEPIL chooses to undertake, but how the action is implemented, that matters. This case is most appropriate for use in MBA and upper-level undergraduate courses in Business Ethics, Business and Society, International Business, and Business and the Natural Environment.
Swot Analysis of "Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy" written by James Kennelly, Trevor Mengel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sepil Protestors facing as an external strategic factors. Some of the topics covered in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy case study are - Strategic Management Strategies, Ethics, Growth strategy, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy casestudy better are - – increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc
Introduction to SWOT Analysis of Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sepil Protestors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sepil Protestors 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy can be done for the following purposes –
1. Strategic planning using facts provided in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy case study
2. Improving business portfolio management of Sepil Protestors
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 Sepil Protestors
Strengths Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sepil Protestors in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy Harvard Business Review case study are -
Analytics focus
– Sepil Protestors 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 James Kennelly, Trevor Mengel 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.
Strong track record of project management
– Sepil Protestors is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Sepil Protestors 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Sepil Protestors in the sector have low bargaining power. Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sepil Protestors to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Sepil Protestors 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 Sepil Protestors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Sepil Protestors is present in almost all the verticals within the industry. This has provided firm in Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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.
Ability to recruit top talent
– Sepil Protestors is one of the leading recruiters in the industry. Managers in the Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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
– Sepil Protestors 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Sepil Protestors has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sepil Protestors to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Sepil Protestors 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 Sepil Protestors in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Sepil Protestors has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sepil Protestors 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy firm has clearly differentiated products in the market place. This has enabled Sepil Protestors to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sepil Protestors to invest into research and development (R&D) and innovation.
Weaknesses Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy are -
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 Sepil Protestors supply chain. Even after few cautionary changes mentioned in the HBR case study - Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sepil Protestors vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy can leverage the sales team experience to cultivate customer relationships as Sepil Protestors is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Sepil Protestors 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. Sepil Protestors 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Sepil Protestors 's lucrative customers.
Need for greater diversity
– Sepil Protestors 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sepil Protestors 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy, in the dynamic environment Sepil Protestors has struggled to respond to the nimble upstart competition. Sepil Protestors has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy, it seems that the employees of Sepil Protestors 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.
Capital Spending Reduction
– Even during the low interest decade, Sepil Protestors 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 star products
– The top 2 products and services of the firm as mentioned in the Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Sepil Protestors has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Sepil Protestors is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sepil Protestors needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sepil Protestors to focus more on services rather than just following the product oriented approach.
Opportunities Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy | 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Sepil Protestors 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.
Buying journey improvements
– Sepil Protestors can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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.
Building a culture of innovation
– managers at Sepil Protestors 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 Sepil Protestors 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 Sepil Protestors to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Sepil Protestors 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sepil Protestors in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Sepil Protestors 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 Sepil Protestors has opened avenues for new revenue streams for the organization in the industry. This can help Sepil Protestors to build a more holistic ecosystem as suggested in the Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy case study. Sepil Protestors can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sepil Protestors can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sepil Protestors can use these opportunities to build new business models that can help the communities that Sepil Protestors operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Sepil Protestors can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sepil Protestors is facing challenges because of the dominance of functional experts in the organization. Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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.
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 Sepil Protestors in the consumer business. Now Sepil Protestors can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy are -
High dependence on third party suppliers
– Sepil Protestors 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sepil Protestors 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.
Technology acceleration in Forth Industrial Revolution
– Sepil Protestors has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sepil Protestors needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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 Sepil Protestors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sepil Protestors with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Sepil Protestors 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.
Environmental challenges
– Sepil Protestors 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. Sepil Protestors can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Sepil Protestors needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Sepil Protestors business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy, Sepil Protestors may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Sepil Protestors 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.
Regulatory challenges
– Sepil Protestors 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.
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. Sepil Protestors can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Shell E&P Ireland Limited (SEPIL) and the Corrib Gas Controversy 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 Sepil Protestors needs to make to build a sustainable competitive advantage.