Business Management Toolkit: SWOT & STEEPLE Analysis (DP IB Business Management): Revision Note

Market leadership in concrete production

• ABC is the largest concrete producer in its country, giving it strong market share

• This provides stable revenues and bargaining power with suppliers and customers

Strong financial resources

• As a publicly held company, ABC can raise finance through shareholders

• This helps fund investment in new technologies and new factories

Innovation and technical expertise

• ABC’s scientists discovered a new low-energy process to recover precious metals from e-waste

• This gives ABC a potential technological advantage over competitors

Diversified activities

• ABC operates in both construction materials and e-waste processing

• This reduces reliance on one single market

Improved environmental image

• Recycling e-waste and reducing carbon-intensive processes can improve ABC’s CSR profile

• This may appeal to governments, investors, and environmentally conscious stakeholders

High environmental impact of core product

• Concrete and cement production produce large amounts of CO₂ emissions

• This can damage ABC’s reputation and increase regulatory pressure

High capital and operating costs

• Concrete factories and e-waste processing plants are expensive to build and run

• Short-term profitability may fall due to high fixed costs

Limited experience in the e-waste industry

• E-waste processing is very different from concrete production

• ABC may lack experience in managing electronic waste supply chains

Dependence on raw material supply

• Concrete production relies on limestone and aggregates

• E-waste processing relies on consistent access to discarded electronics, which may be uncertain

Growing demand for sustainable construction

• Governments and developers increasingly demand low-carbon building materials

• ABC could develop greener concrete products

Rapid growth of global e-waste

• Global e-waste volumes are rising every year

• This creates long-term growth opportunities for e-waste processing

Valuable materials in e-waste

• Circuit boards contain gold and other precious metals

• Selling these to jewellery makers creates a new revenue stream

Sustainability as a competitive advantage

• Combining recycling with construction materials supports a circular economy

• This could differentiate ABC from traditional concrete producers

Government support and incentives

• Some governments provide subsidies or support for recycling and green technologies

• ABC may benefit from these policies

Stricter environmental regulations

• Governments may introduce tougher limits on CO₂ emissions from cement plants

• Compliance could increase costs or limit production

Volatile commodity prices

• Prices of gold and other metals can fluctuate

• This makes revenues from e-waste processing unpredictable

Competition in recycling markets

• Other specialist e-waste recyclers may already be established

• ABC may face strong competition despite its new technology

Supply risks in e-waste

• If e-waste is not collected properly, ABC may not receive enough input materials

• Informal recycling in some countries reduces supply to formal firms

Public scrutiny and pressure groups

• Environmental groups may criticise ABC if sustainability claims are seen as “greenwashing”

• Reputational damage could follow if improvements are not meaningful

Growing concern about environmental damage

• Society is increasingly worried about pollution, landfill waste, and climate change

• Concrete production and e-waste disposal are both seen as environmentally damaging industries

ABC’s move into e-waste recycling may improve public perception by showing it is part of the solution rather than the problem

Demand for sustainable buildings

• Home buyers, construction firms, and governments want greener buildings

• This includes using recycled materials and lowering carbon emissions

ABC could supply concrete that uses recycled aggregates or has a lower carbon footprint, making it more attractive to developers

Public concern about electronic waste

• Consumers are aware that old phones and computers create large amounts of waste

• Many people want better recycling solutions

ABC’s e-waste factory responds to growing social pressure to recycle electronics responsibly

Innovation in recycling technology

• New technologies allow valuable metals to be recovered from e-waste more efficiently

• Lower-energy processes reduce costs and emissions

ABC discovered a process that recovers gold from circuit boards at room temperature, avoiding energy-intensive burning

Improvements in concrete production methods

Technology can reduce energy use and waste in concrete production

Automation can improve efficiency and consistency

ABC is considering increasing efficiency in its concrete factories through improved production methods

Technology as a competitive advantage

• Firms with better technology can reduce costs and meet regulations more easily

ABC’s recycling technology could give it an advantage over traditional e-waste recyclers

High and rising production costs

• Concrete production is energy-intensive

• Rising fuel and electricity prices increase costs

ABC may face lower profit margins if energy prices continue to rise

New revenue streams from e-waste

• E-waste contains valuable materials such as gold

• Recycling creates additional income sources

ABC sells recovered gold to jewellery makers, helping to diversify revenue

Cyclical demand in construction

• Demand for concrete depends on economic growth

• During recessions, construction activity often falls

If the economy slows, ABC’s concrete sales may fall, making diversification into e-waste more important

High carbon emissions from cement production

• Cement production produces large amounts of CO₂

• This contributes significantly to climate change

ABC may be criticised for the environmental impact of its core business

Reduction of landfill waste

• Recycling e-waste reduces the amount sent to landfill

• This supports environmental sustainability

ABC’s e-waste factory helps reduce the 80% of global e-waste that currently goes to landfill

Pressure to reduce environmental footprint

• Governments and investors increasingly expect firms to reduce emissions and waste

ABC is considering methods to reduce its environmental impact across operations

Government support for recycling

• Many governments promote recycling and the circular economy

• Some provide subsidies or incentives for green technologies

ABC may benefit from government support for its e-waste recycling activities

Infrastructure spending policies

• Governments often invest in roads, housing, and public buildings

• This affects demand for concrete

Public infrastructure projects could increase demand for ABC’s concrete products

Political pressure on high-polluting industries

• Cement and concrete industries are under political scrutiny

ABC may face political pressure to reduce emissions or change production methods

Environmental regulations

• Laws may limit emissions, waste disposal, and pollution

• Non-compliance can result in fines or shutdowns

ABC must meet strict environmental standards for both concrete plants and e-waste factories

Waste management and recycling laws

• E-waste handling is tightly regulated in many countries

• Firms must follow rules on collection, processing, and disposal

ABC must ensure its e-waste processing meets legal safety and environmental requirements

Health and safety laws

• Both industries involve potentially dangerous materials

ABC must protect workers from dust, chemicals, and hazardous electronic components

Corporate Social Responsibility (CSR)

• Businesses are expected to act responsibly towards society and the environment

ABC’s recycling activities support ethical objectives by reducing waste and pollution

Ethical concerns about resource use

• Quarrying limestone and aggregates damages landscapes

• Poor e-waste disposal harms communities

ABC must balance profit with responsible use of natural resources

Risk of “greenwashing”

• Firms may be accused of exaggerating environmental claims

If ABC promotes its e-waste recycling but does not reduce emissions from concrete production, stakeholders may lose trust