SVT
Quick Summary
Skandvig Terra PLC (SVT) is a Norwegian company that specializes in providing potable
water. Its vision is "Making the world a safer place", and it operates with a regional monopoly in
each country in which it operates. SVT is divided into four product-based divisions: Fresh Water,
Desalination, Engineering, and Consumer Products. The Fresh Water Division sources, treats,
stores, and transports water from the environment for distribution to populations. The
Desalination Division removes salts and other minerals from sea water to produce water suitable
for human consumption or irrigation on farmland. The Engineering Division manufactures
equipment and machinery for SVT's water treatment plants, with factories in Norway, Germany,
and the UK. The Consumer Products Division manufactures home water filters.
The leadership styles of the directors differ between the divisions, with Yannick
Pedersen, the director of the Fresh Water Division, having a situational leadership style that
works well in responding quickly to unexpected changes in the external environment, and
Ariadne Johansen, the director of the Engineering Division, having an autocratic leadership style
that may have led to the Engineering Division being one of the industry leaders in productivity
per employee.
SVT's Desalination Division provides 15% of the world's desalination capacity and
operates desalination plants in 19 countries. The market for desalination is growing rapidly, and
some estimates suggest that the global water desalination market will double in the next 10 years.
The Engineering Division completed a takeover of a rival engineering company, H4 PLC, in
2015 and undertook a modernization program and reorganization of the operations of H4's UK
factories to achieve economies of scale. SVT offered a one-time incentive payment to employees
who agreed to sign a new flexible-working contract, which included accepting a new shift
pattern every six months, to overcome resistance to this change.
SVT is a well-organized company, with each division headed by a director with
operational and tactical authority, enabling quick decision making. SVT's HR department
carefully chooses where to advertise vacancies and requires highly skilled and specialized
employees, with new employee induction training included to ensure new employees understand
the company's vision and their role in achieving it.
SWOT
Strengths:

Regional monopoly: SVT has a regional monopoly in each country in which it operates, which
gives the company a significant advantage over its competitors.

Diversified product range: The company is organized into four divisions based on products,
which enables it to supply a diverse range of products and services to its customers.

Established global presence: SVT supplies potable water to millions of households in over 20
countries, and has a significant market share in the desalination market. This established global
presence provides the company with a strong foundation for growth and expansion.
Weaknesses:

Leadership issues: There are significant differences in leadership styles between the directors of
the four divisions, which can lead to clashes and disputes, as seen between Yannick Pedersen
and Ariadne Johansen. This can create a lack of cohesion and teamwork within the company,
which can be a hindrance to growth.

Dependence on specific markets: The majority of SVT's business is focused on the water supply
and desalination markets. This can create a vulnerability to changes in these markets, such as
changes in regulations, pricing or supply chain disruptions.
Opportunities:

Growth in the desalination market: The global water desalination market is expected to double in
the next 10 years, providing an opportunity for SVT to increase its market share.

Expansion into new markets: As SVT already has an established global presence, there is an
opportunity for the company to expand into new markets, both geographically and in terms of
new products and services.
Threats:

Economic downturn: Economic downturns can lead to reduced demand for the company's
products and services, and can also increase competition, potentially leading to a loss of market
share.

Changes in regulations: Changes in regulations, such as increased environmental standards or
changes to water usage regulations, can significantly impact the company's operations,
potentially leading to increased costs or loss of market share.
In conclusion, while Skandvig Terra PLC (SVT) has a strong foundation with an
established global presence, regional monopolies, and a diverse product range, the company
faces challenges in terms of leadership differences and dependence on specific markets.
However, there are opportunities for growth in the desalination market and expansion into new
markets, and threats such as economic downturns and changes in regulations can be mitigated
with effective planning and adaptation strategies.
STEEPLE
Social:
SVT's vision statement, "Making the world a safer place," highlights its commitment to social
responsibility. The company's core business of supplying potable water to over one million
people in Norway and millions of households in over 20 other countries has a significant social
impact. SVT's role in purifying water and maintaining regional water supply networks in these
countries ensures that communities have access to safe drinking water.
Technological:
SVT's Engineering Division manufactures water treatment equipment and power turbines, while
the Consumer Products Division manufactures home water filters. The company's expertise in
desalination technology has enabled it to construct and operate desalination plants around the
world, providing two income streams. The company has been able to expand its product range
through the acquisition of other companies, such as H4 PLC, a rival engineering company that
manufactures steam and gas turbines.
Economic:
SVT has a regional monopoly in each country in which it operates, which gives it a competitive
advantage. Its operations are diversified, with four divisions based on product, enabling it to
generate income from multiple streams. The company's acquisition of Geng PLC, a major water
supplier in the United Kingdom, has increased its market share and revenue. The market for
desalination is growing rapidly, and SVT is well-positioned to take advantage of this growth.
Environmental:
SVT's core business of supplying potable water has a positive environmental impact. The
company's expertise in desalination technology has enabled it to provide a source of freshwater
in areas where it is scarce, reducing the need to extract water from rivers and other freshwater
sources. The company's Fresh Water Division sources, treats, stores and transports water from
the environment, and the company has a responsibility to manage these activities in an
environmentally sustainable way.
Political:
SVT's operations are subject to regulation by the governments of the countries in which it
operates. The company's regional monopoly gives it a significant role in the provision of potable
water, and it must manage its operations in a way that is consistent with the regulatory
requirements of each country. The company's operations could be impacted by changes in
government policy related to the provision of potable water or environmental regulation.
Legal:
SVT's operations are subject to various legal requirements, including those related to
environmental protection, labor rights, and product safety. The company must ensure that its
operations comply with these requirements and manage any risks associated with noncompliance.
Ethical:
SVT's vision statement, "Making the world a safer place," highlights the company's ethical
commitment to social responsibility. The company's operations must be conducted in an ethical
manner that is consistent with this commitment. The company's management of the
modernization program and reorganization of the operations of H4's UK factories could be seen
as ethically questionable, as the company offered one-time incentive payments to employees
who agreed to sign a new flexible-working contract, which would include accepting a new shift
pattern every six months. Employees who did not want to sign this contract were offered
generous payments to leave SVT.
Stakeholder mapping

Customers - SVT's customers are a key stakeholder group, as they are the primary recipients of
the company's services. SVT supplies potable water to over one million people in Norway and to
millions of households in over 20 other countries. The company has a regional monopoly in each
country in which it operates, which could potentially lead to concerns about pricing and service
quality. However, SVT's commitment to providing safe, clean water and its status as a vital
public utility mean that it is likely to enjoy a high level of trust and support from its customer
base.

Shareholders - As a publicly traded company, SVT's shareholders are a key stakeholder group.
They have a financial interest in the company's success and are likely to be focused on factors
such as profitability and dividend payouts. Shareholders may also be concerned about the
company's strategic direction and the risks associated with expanding into new business sectors.

Employees - SVT's employees are a critical stakeholder group, as they are responsible for
delivering the company's services and driving its growth. SVT is organized into four divisions,
each with its own director, which could potentially lead to a siloed organizational structure.
However, the directors are given significant autonomy, enabling quick decision-making and
allowing for a high degree of specialization within each division. The differing leadership styles
of the directors could lead to varying levels of employee engagement and job satisfaction.

Suppliers - SVT's suppliers provide the raw materials and equipment needed to build and operate
its water treatment plants and desalination facilities. The company's supply chain is likely to be
complex and global in nature, which could make it vulnerable to supply chain disruptions and
price fluctuations. However, SVT's reputation as a major player in the water treatment industry
could give it some bargaining power with suppliers.

Government/regulatory bodies - As a provider of a vital public service, SVT is likely to be
subject to significant government regulation and oversight. Regulatory bodies are likely to have a
keen interest in ensuring that SVT is providing safe, clean water to its customers and that it is
operating in an environmentally responsible manner. Changes in government policy could have a
significant impact on SVT's operations, particularly if they relate to pricing or competition.

Local communities - SVT's operations are likely to have a significant impact on the local
communities in which it operates. The company's commitment to providing safe, clean water is
likely to be highly valued by local residents, and it could be seen as a key contributor to the
public good. However, the construction and operation of water treatment plants and desalination
facilities could potentially have negative impacts on the environment, and SVT may need to
work to mitigate these impacts and engage with local stakeholders to build trust.

Competitors - As a major player in the water treatment and desalination industries, SVT is likely
to face intense competition from other companies. The company's expansion into other business
sectors, including household water treatment products and desalination plants for seagoing
vessels, could be seen as a response to competitive pressures. However, SVT's regional
monopolies in the countries in which it operates give it a significant competitive advantage.

Environmental groups - Environmental groups are likely to be concerned about the impact of
SVT's operations on the natural environment, particularly with regard to the construction and
operation of water treatment plants and desalination facilities. However, SVT's commitment to
providing safe, clean water could also align with the goals of many environmental groups. The
company may need to engage with these stakeholders to build trust and to ensure that its
operations are sustainable and responsible.
In conclusion, SVT's stakeholders have different levels of influence and interest in the
company's operations. The company needs to take into account these stakeholders' needs and
interests to ensure its continued success. The company needs to prioritize customer satisfaction,
comply with regulatory frameworks, consider environmental impacts, keep shareholders
informed, maintain good supplier relationships, and be aware of the local communities' needs.