Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video
Sykue Bioenergya (Sykue) was formed in April 2006 with the goal of building four 30 megawatt (MW) bioelectricity power plants in Brazil's Bahia province, 1,500 kilometers north of Sao Paulo. Bahia's savannah-like conditions were perfect for growing elephant grass, a biomass with substantial energy-generating potential. In November 2010 the first plant was online and Power Purchasing Agreements (PPAs) had been signed for 27 MW of the 30 MW capacity. Despite this accomplishment, however, the four years between conception and implementation were littered with management setbacks, including lack of capital, an abundance of debt, and increased skepticism among prospective investors and clients about the potential of the project. This case is taught in the HBS executive education Global Agribusiness and Energy executive education seminars. The case is also appropriate for the organizational congruence module of the first-year MBA course Leadership and Organizational Behavior, and second-year MBA electives Innovation Management and Leading Energy Business.
Swot Analysis of "Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video" written by Shon R. Hiatt, Ian Cornell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sykue Mw facing as an external strategic factors. Some of the topics covered in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video case study are - Strategic Management Strategies, Innovation, Leadership, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, technology disruption, geopolitical disruptions, cloud computing is disrupting traditional business models,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sykue Mw, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video can be done for the following purposes –
1. Strategic planning using facts provided in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video case study
2. Improving business portfolio management of Sykue Mw
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 Sykue Mw
Strengths Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sykue Mw in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video Harvard Business Review case study are -
Training and development
– Sykue Mw has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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.
Low bargaining power of suppliers
– Suppliers of Sykue Mw in the sector have low bargaining power. Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sykue Mw to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Sykue Mw 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 Shon R. Hiatt, Ian Cornell 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.
Strong track record of project management
– Sykue Mw is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Sykue Mw 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 Sykue Mw is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video firm has clearly differentiated products in the market place. This has enabled Sykue Mw to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sykue Mw to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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.
Cross disciplinary teams
– Horizontal connected teams at the Sykue Mw 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.
Ability to recruit top talent
– Sykue Mw is one of the leading recruiters in the industry. Managers in the Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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
– Sykue Mw is present in almost all the verticals within the industry. This has provided firm in Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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.
Weaknesses Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video are -
Aligning sales with marketing
– It come across in the case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video can leverage the sales team experience to cultivate customer relationships as Sykue Mw is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video, 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.
Slow to strategic competitive environment developments
– As Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video HBR case study mentions - Sykue Mw 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, Sykue Mw is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Sykue Mw 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Sykue Mw is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sykue Mw needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sykue Mw to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Sykue Mw 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.
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 Sykue Mw supply chain. Even after few cautionary changes mentioned in the HBR case study - Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sykue Mw vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Sykue Mw 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.
Products dominated business model
– Even though Sykue Mw 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 - Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Sykue Mw 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.
Opportunities Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video | 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Sykue Mw 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sykue Mw can use these opportunities to build new business models that can help the communities that Sykue Mw operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Sykue Mw 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.
Loyalty marketing
– Sykue Mw has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sykue Mw to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sykue Mw can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sykue Mw 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 Sykue Mw to hire the very best people irrespective of their geographical location.
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. Sykue Mw can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Sykue Mw in the consumer business. Now Sykue Mw can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Sykue Mw has opened avenues for new revenue streams for the organization in the industry. This can help Sykue Mw to build a more holistic ecosystem as suggested in the Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video case study. Sykue Mw can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Sykue Mw can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sykue Mw 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, Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Sykue Mw can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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.
Threats Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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.
Shortening product life cycle
– it is one of the major threat that Sykue Mw is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Sykue Mw 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.
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.
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. Sykue Mw 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.
Technology acceleration in Forth Industrial Revolution
– Sykue Mw has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Sykue Mw 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sykue Mw with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Sykue Mw 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video, Sykue Mw 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 .
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 Sykue Mw business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video .
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. Sykue Mw needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Sykue Mw 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Paulo Puterman, Co-Founder of Sykue Bioenergya, In-class comments (November 8, 2011), Video 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 Sykue Mw needs to make to build a sustainable competitive advantage.
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