Swot Analysis of "BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY?" written by Paul Strebel, Brian Rogers includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imd521 Imd519 facing as an external strategic factors. Some of the topics covered in BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? casestudy better are - – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imd521 Imd519, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imd521 Imd519 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? can be done for the following purposes –
1. Strategic planning using facts provided in BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? case study
2. Improving business portfolio management of Imd521 Imd519
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 Imd521 Imd519
Strengths BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imd521 Imd519 in BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Imd521 Imd519 in the sector have low bargaining power. BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Imd521 Imd519 to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Imd521 Imd519 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imd521 Imd519 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 brand equity
– Imd521 Imd519 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Imd521 Imd519 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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.
Superior customer experience
– The customer experience strategy of Imd521 Imd519 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Imd521 Imd519 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Imd521 Imd519 is one of the leading recruiters in the industry. Managers in the BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Imd521 Imd519 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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.
Cross disciplinary teams
– Horizontal connected teams at the Imd521 Imd519 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Imd521 Imd519 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imd521 Imd519 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.
Analytics focus
– Imd521 Imd519 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 Paul Strebel, Brian Rogers 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.
Ability to lead change in Leadership & Managing People field
– Imd521 Imd519 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 Imd521 Imd519 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? are -
Products dominated business model
– Even though Imd521 Imd519 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 - BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 Imd521 Imd519 's lucrative customers.
High cash cycle compare to competitors
Imd521 Imd519 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.
Lack of clear differentiation of Imd521 Imd519 products
– To increase the profitability and margins on the products, Imd521 Imd519 needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY?, is just above the industry average. Imd521 Imd519 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 BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 Imd521 Imd519 has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY?, in the dynamic environment Imd521 Imd519 has struggled to respond to the nimble upstart competition. Imd521 Imd519 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Imd521 Imd519 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Imd521 Imd519 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 decision making process
– As mentioned earlier in the report, Imd521 Imd519 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. Imd521 Imd519 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.
Interest costs
– Compare to the competition, Imd521 Imd519 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.
Opportunities BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? | 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? are -
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 Imd521 Imd519 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.
Creating value in data economy
– The success of analytics program of Imd521 Imd519 has opened avenues for new revenue streams for the organization in the industry. This can help Imd521 Imd519 to build a more holistic ecosystem as suggested in the BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? case study. Imd521 Imd519 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imd521 Imd519 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 Imd521 Imd519 to hire the very best people irrespective of their geographical location.
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 Imd521 Imd519 in the consumer business. Now Imd521 Imd519 can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Imd521 Imd519 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Imd521 Imd519 is facing challenges because of the dominance of functional experts in the organization. BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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.
Loyalty marketing
– Imd521 Imd519 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.
Developing new processes and practices
– Imd521 Imd519 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.
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. Imd521 Imd519 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Imd521 Imd519 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.
Learning at scale
– Online learning technologies has now opened space for Imd521 Imd519 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Imd521 Imd519 can use these opportunities to build new business models that can help the communities that Imd521 Imd519 operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Imd521 Imd519 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. Imd521 Imd519 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.
Threats BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? are -
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 Imd521 Imd519 in the Leadership & Managing People sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Imd521 Imd519 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.
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. Imd521 Imd519 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 Imd521 Imd519.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Imd521 Imd519 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 BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? .
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. Imd521 Imd519 needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Imd521 Imd519 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Imd521 Imd519 has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Imd521 Imd519 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Imd521 Imd519 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 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.
Increasing wage structure of Imd521 Imd519
– 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 Imd521 Imd519.
Regulatory challenges
– Imd521 Imd519 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.
High dependence on third party suppliers
– Imd521 Imd519 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.
Weighted SWOT Analysis of BRITISH PETROLEUM (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 (C): ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY? 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 Imd521 Imd519 needs to make to build a sustainable competitive advantage.