Strategic Planning Part II SWOTT Analysis
Wayne Felder
BUS 475
June 28, 2017
Gerald West
STRATEGIC PLANNING PART II SWOTT ANALYSIS / 1Introduction
Strategic planning is often quite important for any business organization. It helps a firm maximize its capability both internally and externally. The planning usually has different parts ranging from identification of a gap that needs to be filled to the execution of the strategy that has already been set. Shaw Group Inc. (CB & I) is an organization that provides various products and services in different sectors such as engineering, fabrication, maintenance, technology, remediation, as well as support for various customers. The customers lie in various segments such as the energy, environmental, emergency response, and infrastructure. The company has decided to open up a new division known as Lean Green New Division with the aim of elevating Shaw Group to the top three suppliers of energy and minimize damages to the environment. The line will provide goods and services such as Green Energy, Solar Panels, and Renewable energy which will help in satisfying the requirements of the customers. Therefore, this paper will discuss the viability of this plan and provide the SWOT analysis of the company to identify if it can adapt to the change.
SWOTT Analysis Table
Forces and Trends / Internal / External / TrendsExternal / Strengths / Weaknesses / Opportunities / Threats / Trends
Industry Changes / Properly adapts itself to the changes in the industry. / Some changes are quite expensive. / There is a possibility of increasing product lines. / The high cost of adapting to changes in the industry. / Different firms are diversifying their production.
Legal and Regulatory / Has few lawsuits impacting it. / The government highly controls the industry. / Government’s adoption of favorable rules and regulations. / Changes made to government rules and regulations. / The rules keep on changing so as to meet the demands of the industry.
Global / It has partnerships with global firms. / Not widely known worldwide. / Capacity to expand to international locations. / Faces high costs of global expansion. / Most firms are identifying global outlay of activities as profitable moves.
Economic / It enjoys economies of scale. / Weak brand portfolio / Rising demand for different products like energy. / Cyclical movements exist in economy. / The economic environment is developing well.
Technological / Has one of the best technological setup. / Technological problems. / Technology keeps on growing. / Some kinds of technology might hinder some divisions of the organization. / Different companies are making use of new methods of technology in the production of goods and services.
Innovation / It has a highly innovative team. / It has a lower capacity of innovation. / It makes investment in innovations. / High costs of innovations. / Most customers are moving for innovative products.
Social / Good relationships with different stakeholders / Faces different cases of unethical conducts. / The formation of new contracts with stakeholders. / There is a possibility of unethical practices or incompetent corporate social responsibility. / Partnerships and involvement of different stakeholders in different activities are becoming the norm.
Environmental / Tries its best to minimize environmental pollution. / Some sources of energy like coal are harmful to the environment. / There is a possibility of development of environmentally friendly sources of energy. / Environment conservation measures keep on getting tougher. / Most firms are deploying different methods of preserving the environment.
Competitive Analysis / It has a diverse customer base. / Declining financial performance. / Growing demand for energy. / Entry of new firms / A trend of increasing profitability of business enterprises in the industry.
Internal / Strengths / Weaknesses / Opportunities / Threats / Trends
Strategy / Well-developed strategy. / Some strategies are not well-planned. / A possibility of development of achievable plans. / Unforeseen risks. / Clear definitions of varying strategies to simplify things.
Structures / Has strong company structures. / Different cases of failure of some structures. / The expansion of structures. / The Interference with some structures is a threat. / The development of new organizational structures.
Processes and Systems / Consistency in operating results. / Complicated financial statements. / Improvement of the processes and systems. / There are risks of frauds. / Firms are working hard to improve their systems.
Resources / It has sufficient resources. / Declining resources. / Venturing into new sources of resources is an opportunity. / The depletion of resource base. / A reduction in the resources especially the non-renewable resources.
Goals / Ambitious and achievable goals. / Some goals are poorly defined. / The development of better goals. / Some employees might hinder achievement of goals. / Companies are setting up higher goals in this sector.
Strategic capabilities / It has the capacity to fulfill strategies. / Few cases of interference with the strategic cycles. / Strategic partnerships. / Incompetent personnel in achieving strategies. / Firms are applying better strategic management styles.
Culture / It has a strong company culture. / Some employees do not add value. / The experimentation of better long-term value. / Competitive threats might interfere with culture. / Developing cultures of experimenting produce.
Technologies / It has different internet connections in its offices. / Cases of weak technologies. / Research on newer productive technologies. / Costs of acquiring technologies. / Development of newer kinds of technologies.
Innovations / Allows for innovations. / Some poor innovations. / Employees are learning and coming up with new ideas. / High costs of training. / Firms are encouraging competition among employees regarding innovation.
Intellectual property / Has its own subsidiary of intellectual property. / Interference with some rights. / People are getting to learn more concerning intellectual property. / A large dependence on third party policies. / Different firms are paying attention to copyrights and terms and conditions.
Leadership / It has capable leaders. / The Inability of leaders to influence everyone. / The ability of leaders to understand and communicate efficiently. / Incompetent leadership practices. / Training of leaders regarding changing the managerial climate.
Economic, Legal, and Regulatory Forces and Trends
Notably, different economic forces, legal, and regulations exist for the company. One of the forces is that the firm has a strong domestic market that makes the company enjoy more profitability in the industry. Furthermore, the company has a large client base that further contributes to the profitability of this business. The customers and the range of services that this company has are the main driving forces in the success of the company at large. However, there exist stringent rules and regulations in the industry where this company operates, (Lund, 2009). These rules often define how a company engages itself in general, but there is a possibility of reducing such rules which would further help in setting the operations of the company in different sectors such as the energy sector. Economically, the energy industry keeps on improving resulting to a growth of demand in the sector.
How Well the Company Adapts to Change
Shaw Group Inc. has better developed strategic capabilities showing that the company can keep on going with its strategic moves. The company has employees who do their best to ensure that it achieves the changes that it desires to have. The employees get the encouragement from the salaries that they receive. They are competitive and encouraging making them work hard towards the achievement of the changes that it desires to make. Furthermore, the technology sector which is one of the subsidiaries of the company has been undergoing different changes. However, instead of declining, the company has been keeping up with the technology to ensure that it provides all the services and products that the clients need. It has sufficient resources that enable it to achieve the objectives and strategies that it sets thereby making it adapt to the changes efficiently, (Shaw Group, 2017).
Analysis of the Supply Chain of the New Division of Shaw Group Inc.
The new division aims to ensure that the company meets the new and growing demands of customers within the country and abroad. The new division will supply goods abroad. The group will use international channels and intermediaries to provide to the consumers who are abroad such as foreign commercial firms. In international business, it will be critical to involve the international intermediaries and other partners in the supply of these new products, (Fernie and Sparks, 2014). It will have to spend more of its financial resources to develop and create stores in the global markets.
Primary Internal Considerations for the Development of a Strategic Plan
Different internal factors are critical in the development of the strategic plan. One of the factors is the leadership of the company. It helps in determining if the company would have the best leaders to lead the strategic moves. Other factors include resources and systems of the company which determines whether the firm would be able to go ahead and fully finance its different strategies and plans.
Major Issues and Opportunities for Shaw Group Inc.
One opportunity for the company is the growing demand for energy all over the world. The increasing demand shows that the firm would be able to earn more profits if it succeeds in implementing the strategy. However, the stringent regulations that the company faces might interfere with the achievement of the plan, (Lund, 2009).The market is also highly competitive which necessitates the company to be aggressive in making different types of partnerships that will help the business to achieve the strategy.
Conclusion
In conclusion, this paper provided a swot analysis of Shaw Group Inc. and provided all the components concerning each of the factors that affect the company. The company adapts itself well to changes that it undertakes such as having capable employees. Due to the high levels of competition in the industry, the company should use its resources to minimize the threats.
References
Fernie, J., & Sparks, L. (2014).Logistics and retail management: emerging issues and new challenges in the retail supply chain. London: Kogan page publishers.
Lund, P. D. (2009). Effects of energy policies on industry expansion in renewable energy.Renewable energy,34(1), 53-64.
Shaw Group (2017). The Shaw Group. Retrieved from