Case Study Description of Ashland Oil, Inc.: Trouble at Floreffe (C)
A copy of a news article that reflects the nature of the public's response to the CEO's statement and the company's actions.
Authors :: Pittsburgh Pittsburgh
Topics :: Communication
Tags :: Conflict, Crisis management, Ethics, Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Ashland Oil, Inc.: Trouble at Floreffe (C)" written by Pittsburgh Pittsburgh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ashland Floreffe facing as an external strategic factors. Some of the topics covered in Ashland Oil, Inc.: Trouble at Floreffe (C) case study are - Strategic Management Strategies, Conflict, Crisis management, Ethics, Public relations, Social responsibility and Communication.
Some of the macro environment factors that can be used to understand the Ashland Oil, Inc.: Trouble at Floreffe (C) casestudy better are - – increasing transportation and logistics costs, increasing commodity prices, challanges to central banks by blockchain based private currencies, wage bills are increasing, technology disruption, central banks are concerned over increasing inflation, there is backlash against globalization,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Ashland Oil, Inc.: Trouble at Floreffe (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ashland Oil, Inc.: Trouble at Floreffe (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ashland Floreffe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ashland Floreffe 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 Ashland Oil, Inc.: Trouble at Floreffe (C) can be done for the following purposes –
1. Strategic planning using facts provided in Ashland Oil, Inc.: Trouble at Floreffe (C) case study
2. Improving business portfolio management of Ashland Floreffe
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ashland Floreffe
Strengths Ashland Oil, Inc.: Trouble at Floreffe (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ashland Floreffe in Ashland Oil, Inc.: Trouble at Floreffe (C) Harvard Business Review case study are -
Strong track record of project management
– Ashland Floreffe 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 lead change in Communication field
– Ashland Floreffe 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 Ashland Floreffe in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Ashland Oil, Inc.: Trouble at Floreffe (C) 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.
High brand equity
– Ashland Floreffe has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ashland Floreffe to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Ashland Floreffe 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 Pittsburgh Pittsburgh 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 recruit top talent
– Ashland Floreffe is one of the leading recruiters in the industry. Managers in the Ashland Oil, Inc.: Trouble at Floreffe (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Ashland Floreffe 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 Ashland Floreffe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ashland Oil, Inc.: Trouble at Floreffe (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Communication industry
– Ashland Oil, Inc.: Trouble at Floreffe (C) firm has clearly differentiated products in the market place. This has enabled Ashland Floreffe to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Ashland Floreffe to invest into research and development (R&D) and innovation.
Organizational Resilience of Ashland Floreffe
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ashland Floreffe does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Ashland Floreffe has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ashland Oil, Inc.: Trouble at Floreffe (C) 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.
Successful track record of launching new products
– Ashland Floreffe has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ashland Floreffe 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.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Ashland Floreffe digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ashland Floreffe 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.
Weaknesses Ashland Oil, Inc.: Trouble at Floreffe (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ashland Oil, Inc.: Trouble at Floreffe (C) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ashland Oil, Inc.: Trouble at Floreffe (C), is just above the industry average. Ashland Floreffe 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 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 Ashland Floreffe supply chain. Even after few cautionary changes mentioned in the HBR case study - Ashland Oil, Inc.: Trouble at Floreffe (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ashland Floreffe vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ashland Oil, Inc.: Trouble at Floreffe (C), it seems that the employees of Ashland Floreffe 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.
Slow to strategic competitive environment developments
– As Ashland Oil, Inc.: Trouble at Floreffe (C) HBR case study mentions - Ashland Floreffe 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ashland Floreffe is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ashland Oil, Inc.: Trouble at Floreffe (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Ashland Floreffe 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. Ashland Floreffe 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ashland Floreffe 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.
Capital Spending Reduction
– Even during the low interest decade, Ashland Floreffe has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ashland Oil, Inc.: Trouble at Floreffe (C), in the dynamic environment Ashland Floreffe has struggled to respond to the nimble upstart competition. Ashland Floreffe 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 Ashland Floreffe 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.
No frontier risks strategy
– After analyzing the HBR case study Ashland Oil, Inc.: Trouble at Floreffe (C), it seems that company is thinking about the frontier risks that can impact Communication strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Ashland Oil, Inc.: Trouble at Floreffe (C) | 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 Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Floreffe 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 Ashland Floreffe has opened avenues for new revenue streams for the organization in the industry. This can help Ashland Floreffe to build a more holistic ecosystem as suggested in the Ashland Oil, Inc.: Trouble at Floreffe (C) case study. Ashland Floreffe can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ashland Floreffe is facing challenges because of the dominance of functional experts in the organization. Ashland Oil, Inc.: Trouble at Floreffe (C) 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ashland Floreffe 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, Ashland Oil, Inc.: Trouble at Floreffe (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ashland Floreffe can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Ashland Floreffe can develop new processes and procedures in Communication 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.
Manufacturing automation
– Ashland Floreffe can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Ashland Floreffe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Ashland Floreffe 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 Ashland Oil, Inc.: Trouble at Floreffe (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ashland Floreffe to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Ashland Floreffe can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Ashland Floreffe can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ashland Oil, Inc.: Trouble at Floreffe (C) 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, Ashland Floreffe can use these opportunities to build new business models that can help the communities that Ashland Floreffe operates in. Secondly it can use opportunities from government spending in Communication sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ashland Floreffe 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.
Threats Ashland Oil, Inc.: Trouble at Floreffe (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ashland Oil, Inc.: Trouble at Floreffe (C) are -
Shortening product life cycle
– it is one of the major threat that Ashland Floreffe is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ashland Floreffe 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 Ashland Oil, Inc.: Trouble at Floreffe (C) .
Increasing wage structure of Ashland Floreffe
– 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 Ashland Floreffe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ashland Oil, Inc.: Trouble at Floreffe (C), Ashland Floreffe may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
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 Ashland Floreffe business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Ashland Floreffe 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 Communication industry regulations.
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 Ashland Floreffe.
Stagnating economy with rate increase
– Ashland Floreffe 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.
Technology acceleration in Forth Industrial Revolution
– Ashland Floreffe has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Ashland Floreffe needs to keep up with the evolution of technology in the Communication sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ashland Floreffe with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Ashland Floreffe 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.
Consumer confidence and its impact on Ashland Floreffe 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.
Weighted SWOT Analysis of Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Oil, Inc.: Trouble at Floreffe (C) 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 Ashland Floreffe needs to make to build a sustainable competitive advantage.
