Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation
"With a global leadership and sustainability perspective, this case uses SNCF, a state-owned railway and public service company based in France, to set the stage for an analysis of change management in a large company. It also allows for an exploration of sustainable development within the context of a large company. Written from the field, it depicts the firm's overall strategy to adopt sustainable practices and provides an opportunity to introduce basic leadership, strategy, sustainability, and operational terms that can be explored in subsequent classes. The case opens with a summary of urgent issues that include an influential employee who resists new policies, a public scandal around a supplier that employed undocumented workers, and pressure to present the accounting department with financial metrics to evaluate the sustainable procurement efforts. In a big-picture view, Olivier Menuet, directeur dA?lA?guA? achats durable et solidaires, and his boss, Pierre Pelouzet, directeur des achats, want more visibility around sustainable development not only within the procurement function but throughout the organization. How might changes already made at SNCF be driven deeper into the company? "
Authors :: Gerry Yemen, Ronald G. Kamin, Karen Delchet-Cochet
Swot Analysis of "Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation" written by Gerry Yemen, Ronald G. Kamin, Karen Delchet-Cochet includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sncf Achats facing as an external strategic factors. Some of the topics covered in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation case study are - Strategic Management Strategies, Competitive strategy, Economics, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation casestudy better are - – there is backlash against globalization, geopolitical disruptions, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, etc
Introduction to SWOT Analysis of Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sncf Achats, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sncf Achats 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation can be done for the following purposes –
1. Strategic planning using facts provided in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation case study
2. Improving business portfolio management of Sncf Achats
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 Sncf Achats
Strengths Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sncf Achats in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation firm has clearly differentiated products in the market place. This has enabled Sncf Achats to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sncf Achats to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Sncf Achats in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Sncf Achats is one of the most innovative firm in sector. Manager in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Sncf Achats is present in almost all the verticals within the industry. This has provided firm in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sncf Achats digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sncf Achats 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.
Cross disciplinary teams
– Horizontal connected teams at the Sncf Achats 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.
Learning organization
- Sncf Achats 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 Sncf Achats is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Sncf Achats 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Sncf Achats 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Sncf Achats
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sncf Achats does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Sncf Achats 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 Sncf Achats in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation are -
Capital Spending Reduction
– Even during the low interest decade, Sncf Achats 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.
Slow to strategic competitive environment developments
– As Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation HBR case study mentions - Sncf Achats 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 decision making process
– As mentioned earlier in the report, Sncf Achats 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. Sncf Achats 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.
Products dominated business model
– Even though Sncf Achats 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 - Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation can leverage the sales team experience to cultivate customer relationships as Sncf Achats is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation, it seems that the employees of Sncf Achats 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sncf Achats 's lucrative customers.
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 Sncf Achats supply chain. Even after few cautionary changes mentioned in the HBR case study - Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sncf Achats vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Sncf Achats 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.
Interest costs
– Compare to the competition, Sncf Achats has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation | 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation are -
Building a culture of innovation
– managers at Sncf Achats 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sncf Achats is facing challenges because of the dominance of functional experts in the organization. Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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.
Developing new processes and practices
– Sncf Achats 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.
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 Sncf Achats in the consumer business. Now Sncf Achats can target international markets with far fewer capital restrictions requirements than the existing system.
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. Sncf Achats can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Sncf Achats 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. Sncf Achats 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.
Using analytics as competitive advantage
– Sncf Achats 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sncf Achats to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Sncf Achats 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sncf Achats can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Sncf Achats 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.
Better consumer reach
– The expansion of the 5G network will help Sncf Achats to increase its market reach. Sncf Achats 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
– Sncf Achats can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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.
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 Sncf Achats 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.
Threats Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Sncf Achats in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Sncf Achats needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sncf Achats 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation .
Regulatory challenges
– Sncf Achats 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.
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.
Shortening product life cycle
– it is one of the major threat that Sncf Achats is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Sncf Achats has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sncf Achats 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.
High dependence on third party suppliers
– Sncf Achats 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.
Consumer confidence and its impact on Sncf Achats 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation, Sncf Achats 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 .
Environmental challenges
– Sncf Achats 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. Sncf Achats can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Sncf Achats business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sustainable Procurement at SNCF: An Impressionist's Approach to Transformation 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 Sncf Achats needs to make to build a sustainable competitive advantage.