Swot Analysis of "BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION" written by Paul Strebel, Brian Rogers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imd519 Deepwater facing as an external strategic factors. Some of the topics covered in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION case study are - Strategic Management Strategies, Leadership, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, technology disruption, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imd519 Deepwater, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imd519 Deepwater 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION can be done for the following purposes –
1. Strategic planning using facts provided in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION case study
2. Improving business portfolio management of Imd519 Deepwater
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 Imd519 Deepwater
Strengths BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imd519 Deepwater in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION Harvard Business Review case study are -
Ability to recruit top talent
– Imd519 Deepwater is one of the leading recruiters in the industry. Managers in the BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Imd519 Deepwater is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Imd519 Deepwater
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Imd519 Deepwater does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Imd519 Deepwater in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Imd519 Deepwater 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 Imd519 Deepwater is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Imd519 Deepwater in the sector have low bargaining power. BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Imd519 Deepwater to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Imd519 Deepwater has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imd519 Deepwater 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.
Diverse revenue streams
– Imd519 Deepwater is present in almost all the verticals within the industry. This has provided firm in BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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.
High switching costs
– The high switching costs that Imd519 Deepwater 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.
Highly skilled collaborators
– Imd519 Deepwater 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Leadership & Managing People field
– Imd519 Deepwater 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 Imd519 Deepwater in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION are -
Need for greater diversity
– Imd519 Deepwater 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 Imd519 Deepwater has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION can leverage the sales team experience to cultivate customer relationships as Imd519 Deepwater is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION, is just above the industry average. Imd519 Deepwater 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, Imd519 Deepwater is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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
Imd519 Deepwater 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.
Increasing silos among functional specialists
– The organizational structure of Imd519 Deepwater is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Imd519 Deepwater needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Imd519 Deepwater to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Imd519 Deepwater 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.
Skills based hiring
– The stress on hiring functional specialists at Imd519 Deepwater 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.
Slow to strategic competitive environment developments
– As BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION HBR case study mentions - Imd519 Deepwater 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.
No frontier risks strategy
– After analyzing the HBR case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Opportunities BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION | 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION are -
Better consumer reach
– The expansion of the 5G network will help Imd519 Deepwater to increase its market reach. Imd519 Deepwater 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.
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. Imd519 Deepwater can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Imd519 Deepwater in the consumer business. Now Imd519 Deepwater can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Imd519 Deepwater 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, BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Imd519 Deepwater 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Imd519 Deepwater to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imd519 Deepwater 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 Imd519 Deepwater to hire the very best people irrespective of their geographical location.
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. Imd519 Deepwater can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Imd519 Deepwater 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Imd519 Deepwater is facing challenges because of the dominance of functional experts in the organization. BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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.
Building a culture of innovation
– managers at Imd519 Deepwater 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Imd519 Deepwater can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Imd519 Deepwater can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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.
Developing new processes and practices
– Imd519 Deepwater 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.
Threats BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION are -
Technology acceleration in Forth Industrial Revolution
– Imd519 Deepwater has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Imd519 Deepwater 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imd519 Deepwater with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Imd519 Deepwater 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.
Stagnating economy with rate increase
– Imd519 Deepwater 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.
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 Imd519 Deepwater business can come under increasing regulations regarding data privacy, data security, etc.
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. Imd519 Deepwater can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Imd519 Deepwater in the Leadership & Managing People sector and impact the bottomline 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. Imd519 Deepwater 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.
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 Imd519 Deepwater.
Consumer confidence and its impact on Imd519 Deepwater 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION, Imd519 Deepwater 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 .
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. Imd519 Deepwater needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 BRITISH PETROLEUM (B): THE DEEPWATER HORIZON EXPLOSION 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 Imd519 Deepwater needs to make to build a sustainable competitive advantage.