Asia Pulp & Paper: Implementing the Forest Conservation Policy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Asia Pulp & Paper: Implementing the Forest Conservation Policy
Indonesia's Asia Pulp & Paper (APP), the world's largest pulp and paper company, was attacked in 2011 by Greenpeace in a global campaign against buyers of APP packaging, particularly Mattel. The managing director of APP's sustainability and stakeholder engagement (SSE) had to address lost sales and the accusation of greenwashing and devise an appropriate response to Greenpeace's challenge while implementing the APP Group chairman's goals to promote climate conservation, community, and commerce. In November 2014, the managing director of SSE had to assess the current progress of the Forest Conservation Policy and APP's relationships with its stakeholders. Hugh Thomas is affiliated with Chinese University of Hong Kong. Shige Makino is affiliated with Chinese University of Hong Kong.
Authors :: Hugh Thomas, Shigefumi Makino, KA Wai Boby Shiu
Swot Analysis of "Asia Pulp & Paper: Implementing the Forest Conservation Policy" written by Hugh Thomas, Shigefumi Makino, KA Wai Boby Shiu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pulp Sse facing as an external strategic factors. Some of the topics covered in Asia Pulp & Paper: Implementing the Forest Conservation Policy case study are - Strategic Management Strategies, International business, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Asia Pulp & Paper: Implementing the Forest Conservation Policy casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, technology disruption, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices,
talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Asia Pulp & Paper: Implementing the Forest Conservation Policy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Asia Pulp & Paper: Implementing the Forest Conservation Policy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pulp Sse, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pulp Sse 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy can be done for the following purposes –
1. Strategic planning using facts provided in Asia Pulp & Paper: Implementing the Forest Conservation Policy case study
2. Improving business portfolio management of Pulp Sse
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 Pulp Sse
Strengths Asia Pulp & Paper: Implementing the Forest Conservation Policy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pulp Sse in Asia Pulp & Paper: Implementing the Forest Conservation Policy Harvard Business Review case study are -
Successful track record of launching new products
– Pulp Sse has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pulp Sse 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.
Learning organization
- Pulp Sse 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 Pulp Sse is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Asia Pulp & Paper: Implementing the Forest Conservation Policy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Pulp Sse in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Pulp Sse
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pulp Sse does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– Asia Pulp & Paper: Implementing the Forest Conservation Policy firm has clearly differentiated products in the market place. This has enabled Pulp Sse to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Pulp Sse to invest into research and development (R&D) and innovation.
Strong track record of project management
– Pulp Sse 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
– Pulp Sse is one of the leading recruiters in the industry. Managers in the Asia Pulp & Paper: Implementing the Forest Conservation Policy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Pulp Sse 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 Pulp Sse in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Pulp Sse is present in almost all the verticals within the industry. This has provided firm in Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Pulp Sse digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pulp Sse 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.
Highly skilled collaborators
– Pulp Sse 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Pulp Sse 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Asia Pulp & Paper: Implementing the Forest Conservation Policy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Asia Pulp & Paper: Implementing the Forest Conservation Policy are -
High operating costs
– Compare to the competitors, firm in the HBR case study Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Pulp Sse 's lucrative customers.
Need for greater diversity
– Pulp Sse 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, Pulp Sse 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pulp Sse is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Asia Pulp & Paper: Implementing the Forest Conservation Policy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Asia Pulp & Paper: Implementing the Forest Conservation Policy, it seems that the employees of Pulp Sse 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.
Lack of clear differentiation of Pulp Sse products
– To increase the profitability and margins on the products, Pulp Sse needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Pulp Sse 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.
Skills based hiring
– The stress on hiring functional specialists at Pulp Sse 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 bargaining power of channel partners
– Because of the regulatory requirements, Hugh Thomas, Shigefumi Makino, KA Wai Boby Shiu suggests that, Pulp Sse is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to strategic competitive environment developments
– As Asia Pulp & Paper: Implementing the Forest Conservation Policy HBR case study mentions - Pulp Sse 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Asia Pulp & Paper: Implementing the Forest Conservation Policy, is just above the industry average. Pulp Sse 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.
Opportunities Asia Pulp & Paper: Implementing the Forest Conservation Policy | 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pulp Sse 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 Pulp Sse to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pulp Sse is facing challenges because of the dominance of functional experts in the organization. Asia Pulp & Paper: Implementing the Forest Conservation Policy 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.
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. Pulp Sse 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 Pulp Sse in the consumer business. Now Pulp Sse can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Pulp Sse to increase its market reach. Pulp Sse 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.
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 Pulp Sse 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.
Leveraging digital technologies
– Pulp Sse can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Pulp Sse can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pulp Sse 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pulp Sse 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.
Manufacturing automation
– Pulp Sse can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Using analytics as competitive advantage
– Pulp Sse 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pulp Sse to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pulp Sse 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, Asia Pulp & Paper: Implementing the Forest Conservation Policy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Asia Pulp & Paper: Implementing the Forest Conservation Policy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Asia Pulp & Paper: Implementing the Forest Conservation Policy are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pulp Sse with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Pulp Sse can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pulp Sse 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy .
Consumer confidence and its impact on Pulp Sse 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.
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. Pulp Sse can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Pulp Sse business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Pulp Sse has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Pulp Sse 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.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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. Pulp Sse needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Pulp Sse 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.
Shortening product life cycle
– it is one of the major threat that Pulp Sse is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Pulp Sse.
Weighted SWOT Analysis of Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Asia Pulp & Paper: Implementing the Forest Conservation Policy 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 Pulp Sse needs to make to build a sustainable competitive advantage.
