Essay: The Kimberly-Clerk Corporation analysis (PESTEL, SWOT)

The Kimberly-Clerk Corporation involves in manufacturing of disposable products for the consumers. The corporation has planned a 2022 sustainability goal. In this sustainability goal, the organization is trying to implement a Zero-waste plan by 2020. The organization used flexible plastic film as a product. This product is lighter and hygienic in nature. However, the perception of the people towards the plastic bag is changing rapidly. According to draft estimation, 300 million pounds of the flexible plastic film enters the municipal recycling facilities. But, not more than 10 million pounds of flexible plastic film is recycled. The main reason for this result in the lack of municipal recycling facilities. The top management of the organization has decided to encourage the consumers to return the flexible plastic film for recycling purposes. The top management team is considering a consumer reward program to encourage consumers. Organization has partnered with How2Recycle for waste management and increase awareness among people. The main purpose of this partnership is to raise consumer awareness. Consumers can be able to get effective information from How2Recycle.info. Consumers can also be able to provide their feedback through the website, reward program is one of the most significant ways that the organization can attract consumers. This type of activity can help the organization to achieve the 2022 sustainability goal. Development and implementation of a reward plan can enhance organizational activities. The organizational top managers are trying to implement a reward program, to spread awareness towards the flexible plastic film (Kimberly-clark, 2018).
The problem or the key issue in the case
1) Near around 300 million pounds of plastic are disposed of by the people of the USA on a yearly basis. However, only ten million pound film is recycled due to lack of enough municipal recycling facilities.
2) People are not much aware of the waste management of flexible plastic film. The top management of Kimberly-Clerk Corporation is trying to spread awareness towards the flexible plastic film.
3) Implementation of rewards programs is very critical for the organization. The organizational management has to check the flexible plastic film if there is any contamination elements or not, before receiving.
4) In the reward system, the organization has to implement a significant strategy to attract the attention of the customers. However, many communities have taken the plastic element in negative ways.
5) The key issues or problem that is stated in the Rewarding Consumer’s for Recycling Packaging: Kimberly-Clark Seeks Shared value case was illustrated below:
6) Resins that are creating from the recycled film are considered to be consisting of more chemical than the resins that are actually made from the rigid containers. As per the case study recycled film is considered in comparison to containers that are rigid, but the main problem is that stability. If it is observable from the cost basis then there is a problem as the company has to pay more for a consistent film that is made from the recycled film then rigid containers.
7) Contamination was considered to be another problem. Contamination creates issues such as hazardous for their employees; moreover, it also creates inefficiencies in terms to store of operations.
8) The problem that was reported was an infrastructure that was already been made for returning the film retail stores, but it was noticeable that the return of film rates was comparatively low. As many of the customers do not return the wrapper in a proper and there is the arrival of issues (Trex, 2018).
9) Customers are generally worried about the recycling of wrappers and all. The problem is that people usually fill the recycling bins and this also creates a problem like there are thousands of plastics that are clinging to trees and fences.
10) The problem that was specified should be reviewed and as well as analyzed properly before providing any solution.
SWOT analysis
In this context it is described Kimberly-Clark is an organization which works with products who mainly deals with the paper-based consumer products. Kimberly- Clark is the organization, which is working on encouraging the customers for recycling the flexible plastic film packaging that is wrapped in many of the products. Although the company has already set up an infrastructure still the return rates of the films are very low, on behalf of the company they are developing a consumer reward program in order to attract the customers for the return of the packaging. In order to analyze the SWOT analysis, the company should analyze the internal environment and the external environment. In this case study, the company is facing many opportunities threats, and strength and weakness. The descriptions of this is given below.
Opportunities Threats
Strengths Strength – opportunities (SO)Strategies
Leveraging the brand recognition in the new segments Strength – Threats (ST)strategies
The company should invest more in the research and the development, innovation of the products and Entrepreneurship industry disruptors.
Weakness Weakness -opportunities
(WO)Strategies
Investing in the customer’s oriented supply chain and supply. Weakness -Threats (WT) strategies
The company should not only focus on the business ideas but it should also focus on the growth areas which will help in further development.
The strengths of rewarding the consumers for recycling the packaging: Kimberly-Clark seeks shared value.
The strength of the firm’s resources and the capability which can be used to develop the design, sustain the competitive advantage in the marketplace.
• The high margins in comparison to the entrepreneurship and innovation of the industry’s competitors – the Kimberly-Clark is facing the problem related to the profitability still the company in comparison with the competitors seeks high-profit margins.
• The initial step taking advantage can enhance the packed market place. A new innovative product helps to rapidly increase the Kimberly-Clark marketplace share in the Entrepreneurship and innovative industry.
• The market leadership position- the Kimberly-Clark has occupied a strong and stable market leadership position in the entrepreneurship and innovation industry. With the new innovative product, the company can easily capture the market.
• Track the record of the innovation – the Kimberly-Clark has a good record at the consumer-driven innovation (fernfortuniversity, 2018).
• Strong brand recognition- the Kimberly-Clark has strong brand recognition all over the market. The company has a good growth strategy, customers, joint ventures, social responsibility and sustainability in the industry.
The weakness of rewarding the consumers for recycling the packaging: Kimberly-Clark seeks shared value.
• The extra cost of the building the new logistics network and supply chain – the artificial intelligence and internet have changed the business model. The decrease in the dealer network will lead to an obdurate negative consequence this will force the company to build a good supply chain network. This can be very costly.
• Low investment into the Kimberly-Clark customer-oriented services – this will lead to the gain in the competitive advantage in the upcoming future.
• Loyalty among the suppliers is very low – the share value of the Kimberly-Clark seems that there is a very low level of communication among the members of the supply chain partners.
• Decline per unit of the revenue for Kimberly-Clark.
Opportunities for rewarding the consumers for recycling the packaging: Kimberly-Clark seeks shared value.
• Opportunities in the online space will increase the growth of the firm.
• The customer preference is changing very fast with time.
• Accelerated technological innovation and the advances will help to increase industrial productivity.
The threat of rewarding the consumers for recycling the packaging: Kimberly-Clark seeks shared value.
• The lack of expert work force can affect the company.
• The growing technical skill of the domestic player in the export market can be one of the biggest threats.
• The competitive pressure is considered one of the major threats. The company launches many new varieties of product to reduce the customers, growth strategy, joint ventures, sustainability industry, and social responsibility.
• The saturation in the metropolitan market and the decline in the rural markets – in case of rewarding the customers for recycling the packaging of the Kimberly –Clark seek the shared value, this development is a continuing challenge in the entrepreneurship and the innovation segment.
• The commoditization of the product segment is considered to be one of the biggest challenge for the Kimberly-Clark.
Pestle analysis
This can be better understood if a PESTEL analysis is being done of the company. This tool the Kimberly Clark organization can utilize to examine its internal and external factors that are impacting the situations in rewarding consumers in recycling packaging. The PESTEL analysis stands for Political, social, economic, technological, environmental and legal factors. As these factors impact the companies macro environment. The company works in such an environment where there is immense government influence. These influences can be governmental decisions, regulatory frameworks, technological changes, etc.
POLITICAL FACTORS
• Government resource allocation and time scale
• Some regulatory practices that are being maintained by the company to stay in the market.
• Based on some information it has been seen that the company has come under some global demands so as to adhere to global system.
• There are some other stakeholders and nongovernment companies that play a vital role in policy making. The Kimberly Company should work together with them so that it can add to society goals and at the same time towards corporate goals.
• Lower Taxation policies have helped the company to go through a major profit margin.
• Kimberly Clark has always been in safer side and does not go through armed conflict that is the armed conflict does not have any impact on the company.
ECONOMIC FACTORS
• The company and its competitors can get affected by the government interventions in the sectors such as innovation and entrepreneurship.
• Increasing liberalization can prove to be a very good opportunity for the company to invest in such places where the company has still not invested.
• An economic cycle of Kimberly is closely related to the country’s economy. That is with the greater economy the country will shine and with the lower economy, the condition degrades.
• Availability of the core infrastructure can help the Kimberly Clark Company to enter into the tier 2 and 3 markets. If we go with the data that is being provided in the case study.
• The efficiency of financial markets helps the company to access the vibrant financial market so that it can grow globally.
SOCIAL FACTORS
• Migration: the market in which Kimberly is present is having a negative border attitude towards the migration approach. This will hamper the brain drain process that the company wants to approach.
• Power structure: The increasing trend of income inequality is the efficient work of the company that has changed the power structure of the society that is being present for 6 to 7 years.
• Educational level: The efforts of the company have made the education system very high.
• Societal norm and rules: The society that is being depict in the given case study usually shares values and attributes
• Leisure interests: The customers that are being targeted by the company as being mentioned in the case study are having high preferences towards experimental products and the services. So the firm should try harder to meet the expenses of those customers.
• Access to essential services: According to Rewarding Consumers for Recycling Packaging: Kimberly-Clark Seeks Shared Value case study the half of the population of the country are accessing to the essential services. This has become possible due to the increasing investments that are being done in the public services.
TECHNOLOGICAL FACTORS
• Maturity of technology: many companies are there who are approaching the technological improvement to shine in the market.
• Latest technology: The using of the latest technology helps the company to grow through their competitor.
• Intellectual property: The company safeguards the intellectual property in a very efficient way.
• 5g and it is potential: The Company has a very immense note on the speed and access so that the customers can get improved and innovated
15.5.2019