TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector
In October 2013, future prospects for TransCanada's pipeline project were uncertain, as the company had to find ways to establish and manage relationships with Aboriginal communities along the proposed Energy East pipeline in Canada, particularly in the province of New Brunswick. Following Supreme Court rulings that reinforced the "duty to consult and accommodate," Aboriginals came to have a powerful voice in the development of energy infrastructure, creating new requirements for companies wishing to expand into areas subject to Aboriginal title and treaty claims.
Authors :: Guy Holburn, Bruce Anderson, Andre Wilkie
Swot Analysis of "TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector" written by Guy Holburn, Bruce Anderson, Andre Wilkie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aboriginal Transcanada's facing as an external strategic factors. Some of the topics covered in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector case study are - Strategic Management Strategies, Public relations and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector casestudy better are - – there is backlash against globalization, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, increasing commodity prices, increasing energy prices,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aboriginal Transcanada's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aboriginal Transcanada's 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector can be done for the following purposes –
1. Strategic planning using facts provided in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector case study
2. Improving business portfolio management of Aboriginal Transcanada's
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 Aboriginal Transcanada's
Strengths TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aboriginal Transcanada's in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector Harvard Business Review case study are -
Learning organization
- Aboriginal Transcanada's 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 Aboriginal Transcanada's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Aboriginal Transcanada's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aboriginal Transcanada's 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.
Innovation driven organization
– Aboriginal Transcanada's is one of the most innovative firm in sector. Manager in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Aboriginal Transcanada's 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector firm has clearly differentiated products in the market place. This has enabled Aboriginal Transcanada's to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Aboriginal Transcanada's to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Aboriginal Transcanada's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Aboriginal Transcanada's is one of the leading recruiters in the industry. Managers in the TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Aboriginal Transcanada's is present in almost all the verticals within the industry. This has provided firm in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 lead change in Leadership & Managing People field
– Aboriginal Transcanada's 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 Aboriginal Transcanada's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Aboriginal Transcanada's 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 Guy Holburn, Bruce Anderson, Andre Wilkie 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.
Training and development
– Aboriginal Transcanada's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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.
High switching costs
– The high switching costs that Aboriginal Transcanada's 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.
Weaknesses TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector are -
High cash cycle compare to competitors
Aboriginal Transcanada's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector, is just above the industry average. Aboriginal Transcanada's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector, in the dynamic environment Aboriginal Transcanada's has struggled to respond to the nimble upstart competition. Aboriginal Transcanada's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Aboriginal Transcanada's 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 Aboriginal Transcanada's has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Aboriginal Transcanada's 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. Aboriginal Transcanada's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aboriginal Transcanada's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Aboriginal Transcanada's 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.
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 Aboriginal Transcanada's supply chain. Even after few cautionary changes mentioned in the HBR case study - TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Aboriginal Transcanada's vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 Aboriginal Transcanada's 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Aboriginal Transcanada's is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Aboriginal Transcanada's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aboriginal Transcanada's to focus more on services rather than just following the product oriented approach.
Opportunities TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector | 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 Aboriginal Transcanada's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aboriginal Transcanada's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aboriginal Transcanada's 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.
Better consumer reach
– The expansion of the 5G network will help Aboriginal Transcanada's to increase its market reach. Aboriginal Transcanada's 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.
Buying journey improvements
– Aboriginal Transcanada's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Aboriginal Transcanada's can use these opportunities to build new business models that can help the communities that Aboriginal Transcanada's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Aboriginal Transcanada's 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, TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Aboriginal Transcanada's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Aboriginal Transcanada's is facing challenges because of the dominance of functional experts in the organization. TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Aboriginal Transcanada's 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 Aboriginal Transcanada's to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Aboriginal Transcanada's has opened avenues for new revenue streams for the organization in the industry. This can help Aboriginal Transcanada's to build a more holistic ecosystem as suggested in the TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector case study. Aboriginal Transcanada's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Aboriginal Transcanada's 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.
Building a culture of innovation
– managers at Aboriginal Transcanada's 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.
Threats TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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. Aboriginal Transcanada's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aboriginal Transcanada's 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector .
High dependence on third party suppliers
– Aboriginal Transcanada's 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.
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. Aboriginal Transcanada's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector, Aboriginal Transcanada's 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Aboriginal Transcanada's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Aboriginal Transcanada's 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.
Stagnating economy with rate increase
– Aboriginal Transcanada's 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.
Consumer confidence and its impact on Aboriginal Transcanada's 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.
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 Aboriginal Transcanada's.
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.
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 Aboriginal Transcanada's business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 TransCanada's Energy East Pipeline: Managing Aboriginal Relations in the Energy Sector 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 Aboriginal Transcanada's needs to make to build a sustainable competitive advantage.
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