Silver Cloud, Inc.: Charles Lake Mill (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Silver Cloud, Inc.: Charles Lake Mill (A)
Silver Cloud, an industry leader, had acquired the Charles Lake Mill whose management accommodated union demands. As management gave in to union demands, the mill quickly developed a reputation within the industry as a labor-relations nightmare. This reputation was exacerbated by a much-publicized strike. Would all the negative energy and turmoil created by the strike hinder the creation of a new, productive paper mill?
Swot Analysis of "Silver Cloud, Inc.: Charles Lake Mill (A)" written by Alexander Horniman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mill Lake facing as an external strategic factors. Some of the topics covered in Silver Cloud, Inc.: Charles Lake Mill (A) case study are - Strategic Management Strategies, Leading teams, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Silver Cloud, Inc.: Charles Lake Mill (A) casestudy better are - – there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing commodity prices,
central banks are concerned over increasing inflation, technology disruption, etc
Introduction to SWOT Analysis of Silver Cloud, Inc.: Charles Lake Mill (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Silver Cloud, Inc.: Charles Lake Mill (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mill Lake, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) can be done for the following purposes –
1. Strategic planning using facts provided in Silver Cloud, Inc.: Charles Lake Mill (A) case study
2. Improving business portfolio management of Mill Lake
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 Mill Lake
Strengths Silver Cloud, Inc.: Charles Lake Mill (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mill Lake in Silver Cloud, Inc.: Charles Lake Mill (A) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Silver Cloud, Inc.: Charles Lake Mill (A) 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.
Highly skilled collaborators
– Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Leadership & Managing People industry
– Silver Cloud, Inc.: Charles Lake Mill (A) firm has clearly differentiated products in the market place. This has enabled Mill Lake to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Mill Lake to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Mill Lake in the sector have low bargaining power. Silver Cloud, Inc.: Charles Lake Mill (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mill Lake to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Mill Lake has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mill Lake to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Mill Lake has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Silver Cloud, Inc.: Charles Lake Mill (A) 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 Mill Lake 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.
Diverse revenue streams
– Mill Lake is present in almost all the verticals within the industry. This has provided firm in Silver Cloud, Inc.: Charles Lake Mill (A) 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.
Effective Research and Development (R&D)
– Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Mill Lake has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mill Lake 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.
Organizational Resilience of Mill Lake
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mill Lake does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Mill Lake is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Silver Cloud, Inc.: Charles Lake Mill (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Silver Cloud, Inc.: Charles Lake Mill (A) are -
Products dominated business model
– Even though Mill Lake 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 - Silver Cloud, Inc.: Charles Lake Mill (A) should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Mill Lake products
– To increase the profitability and margins on the products, Mill Lake needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Silver Cloud, Inc.: Charles Lake Mill (A) 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 Silver Cloud, Inc.: Charles Lake Mill (A) can leverage the sales team experience to cultivate customer relationships as Mill Lake is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Silver Cloud, Inc.: Charles Lake Mill (A), 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.
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 Mill Lake supply chain. Even after few cautionary changes mentioned in the HBR case study - Silver Cloud, Inc.: Charles Lake Mill (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mill Lake vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Silver Cloud, Inc.: Charles Lake Mill (A), in the dynamic environment Mill Lake has struggled to respond to the nimble upstart competition. Mill Lake has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A), is just above the industry average. Mill Lake 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.
Need for greater diversity
– Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) 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 Mill Lake has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Mill Lake 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. Mill Lake 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.
Opportunities Silver Cloud, Inc.: Charles Lake Mill (A) | 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 Silver Cloud, Inc.: Charles Lake Mill (A) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mill Lake can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Mill Lake can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Silver Cloud, Inc.: Charles Lake Mill (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mill Lake 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.
Using analytics as competitive advantage
– Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mill Lake to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Mill Lake 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mill Lake 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 Mill Lake to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Mill Lake 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.
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. Mill Lake 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. Mill Lake 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.
Creating value in data economy
– The success of analytics program of Mill Lake has opened avenues for new revenue streams for the organization in the industry. This can help Mill Lake to build a more holistic ecosystem as suggested in the Silver Cloud, Inc.: Charles Lake Mill (A) case study. Mill Lake can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Mill Lake can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Mill Lake 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.
Developing new processes and practices
– Mill Lake 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. Mill Lake can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Silver Cloud, Inc.: Charles Lake Mill (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Silver Cloud, Inc.: Charles Lake Mill (A) are -
Stagnating economy with rate increase
– Mill Lake 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, Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A) .
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 Mill Lake in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Mill Lake.
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. Mill Lake 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 Silver Cloud, Inc.: Charles Lake Mill (A), Mill Lake 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mill Lake 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.
Shortening product life cycle
– it is one of the major threat that Mill Lake is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mill Lake with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Mill Lake needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Mill Lake can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Mill Lake 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 Mill Lake business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Silver Cloud, Inc.: Charles Lake Mill (A) 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 Silver Cloud, Inc.: Charles Lake Mill (A) 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 Silver Cloud, Inc.: Charles Lake Mill (A) 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 Silver Cloud, Inc.: Charles Lake Mill (A) 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 Silver Cloud, Inc.: Charles Lake Mill (A) 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 Mill Lake needs to make to build a sustainable competitive advantage.
