Case Study Description of Ecolab, Inc. (G): Institutional Sales Conference
Supplements the (A) case. Includes excerpts from speeches by Ecolab president Al Schuman, CEO Sandy Grieve, and three senior sales executives, and highlights the camaraderie and goodwill among senior executives of Ecolab's Institutional Division. May be used in place of the video.
Swot Analysis of "Ecolab, Inc. (G): Institutional Sales Conference" written by Ashish Nanda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ecolab Grieve facing as an external strategic factors. Some of the topics covered in Ecolab, Inc. (G): Institutional Sales Conference case study are - Strategic Management Strategies, Organizational culture, Sales and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Ecolab, Inc. (G): Institutional Sales Conference casestudy better are - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, wage bills are increasing,
banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc
Introduction to SWOT Analysis of Ecolab, Inc. (G): Institutional Sales Conference
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ecolab, Inc. (G): Institutional Sales Conference case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ecolab Grieve, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ecolab Grieve 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 Ecolab, Inc. (G): Institutional Sales Conference can be done for the following purposes –
1. Strategic planning using facts provided in Ecolab, Inc. (G): Institutional Sales Conference case study
2. Improving business portfolio management of Ecolab Grieve
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 Ecolab Grieve
Strengths Ecolab, Inc. (G): Institutional Sales Conference | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ecolab Grieve in Ecolab, Inc. (G): Institutional Sales Conference Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Ecolab Grieve digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ecolab Grieve 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 Ecolab Grieve 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 lead change in Leadership & Managing People field
– Ecolab Grieve 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 Ecolab Grieve in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Ecolab Grieve has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ecolab Grieve to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Ecolab Grieve 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 Ashish Nanda 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.
Learning organization
- Ecolab Grieve 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 Ecolab Grieve is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ecolab, Inc. (G): Institutional Sales Conference Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Ecolab Grieve 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 recruit top talent
– Ecolab Grieve is one of the leading recruiters in the industry. Managers in the Ecolab, Inc. (G): Institutional Sales Conference are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Ecolab Grieve
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ecolab Grieve does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Ecolab Grieve in the sector have low bargaining power. Ecolab, Inc. (G): Institutional Sales Conference has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ecolab Grieve to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Ecolab, Inc. (G): Institutional Sales Conference 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.
Innovation driven organization
– Ecolab Grieve is one of the most innovative firm in sector. Manager in Ecolab, Inc. (G): Institutional Sales Conference Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Ecolab, Inc. (G): Institutional Sales Conference | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ecolab, Inc. (G): Institutional Sales Conference are -
Products dominated business model
– Even though Ecolab Grieve 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 - Ecolab, Inc. (G): Institutional Sales Conference should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Ecolab Grieve 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.
Skills based hiring
– The stress on hiring functional specialists at Ecolab Grieve 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.
Slow decision making process
– As mentioned earlier in the report, Ecolab Grieve 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. Ecolab Grieve 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.
Aligning sales with marketing
– It come across in the case study Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab, Inc. (G): Institutional Sales Conference can leverage the sales team experience to cultivate customer relationships as Ecolab Grieve is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab Grieve has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Ecolab Grieve is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ecolab Grieve needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ecolab Grieve to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Ecolab, Inc. (G): Institutional Sales Conference HBR case study mentions - Ecolab Grieve 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.
Need for greater diversity
– Ecolab Grieve 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 bargaining power of channel partners
– Because of the regulatory requirements, Ashish Nanda suggests that, Ecolab Grieve is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ecolab Grieve is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ecolab, Inc. (G): Institutional Sales Conference can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Ecolab, Inc. (G): Institutional Sales Conference | 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 Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab Grieve 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 Ecolab Grieve has opened avenues for new revenue streams for the organization in the industry. This can help Ecolab Grieve to build a more holistic ecosystem as suggested in the Ecolab, Inc. (G): Institutional Sales Conference case study. Ecolab Grieve 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. Ecolab Grieve 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 Ecolab Grieve 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.
Leveraging digital technologies
– Ecolab Grieve 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ecolab Grieve 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, Ecolab, Inc. (G): Institutional Sales Conference, 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 Ecolab Grieve can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ecolab Grieve can use these opportunities to build new business models that can help the communities that Ecolab Grieve operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Ecolab Grieve in the consumer business. Now Ecolab Grieve can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Ecolab Grieve to increase its market reach. Ecolab Grieve 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ecolab Grieve 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.
Developing new processes and practices
– Ecolab Grieve can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ecolab Grieve is facing challenges because of the dominance of functional experts in the organization. Ecolab, Inc. (G): Institutional Sales Conference 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.
Threats Ecolab, Inc. (G): Institutional Sales Conference External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ecolab, Inc. (G): Institutional Sales Conference are -
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. Ecolab Grieve 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ecolab Grieve 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.
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 Ecolab Grieve business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Ecolab Grieve 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. Ecolab Grieve can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ecolab Grieve with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ecolab Grieve 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 Ecolab, Inc. (G): Institutional Sales Conference .
Regulatory challenges
– Ecolab Grieve 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.
Increasing wage structure of Ecolab Grieve
– 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 Ecolab Grieve.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ecolab, Inc. (G): Institutional Sales Conference, Ecolab Grieve 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 .
Consumer confidence and its impact on Ecolab Grieve 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.
Technology acceleration in Forth Industrial Revolution
– Ecolab Grieve has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Ecolab Grieve 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.
Weighted SWOT Analysis of Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab, Inc. (G): Institutional Sales Conference 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 Ecolab Grieve needs to make to build a sustainable competitive advantage.
