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Author : Grow with Grades Category : Business Management December 01, 2021

Introduction

CATWOE represents Customer, Actor, Transformation, Worldview, Owner, and Environment. The CATWOE Analysis makes it viable to recognize trouble spots, what an organization needs to accomplish, and which solutions can impact the people involved. The analysis utilizes thought arrangements according to different viewpoints. The CATWOE analysis is used to recognize and tackle business issues that frequently include various interests. Critical thinking can be done based on CATWOE analysis. With the assistance of CATWOE theory, partners can test their suppositions, positions, and declarations.

CATWOE Theory

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Customers

A company’s customers are the main elements of this analysis. These can be the users or the stakeholders of the organization. This stage studies how the system affects the customers. Identification of customers involves; what the problem is and how solving it can benefit the people involved. There are many real examples of stores known for their low costs, such as Walmart. When they began to raise the prices of their products for some period, their customers revolted against them, and daily purchases started to suffer. Then, the managers had to bring down the costs since they had no other option left. Another model is Netflix which attempted to raise its costs. There was so much public objection and fury over it. Since the business is centered on individuals, it must be ensured that prices should be as per the paying capacity of the people.

 

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Actors

Employees working inside the organization are responsible for carrying out the change. Before carrying out any change, we must consider its implications on the stakeholders involved and their reaction to the same. When Facebook began to extend, Mark Zuckerberg, their CEO, realized that there was a need for a change in the organization as it progressed, so he appointed Sheryl Sandberg because she is the one persuasive orator, fruitful writer, and author.

 

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Transformation

It refers to the switching in process or the system. Each time a choice is made that is part of the business cycle, processes will be influenced. Every choice will affect another space of the business. When Coke chose to come out with Clear Coke, they may have believed that it was a smart thought; however, the general population didn't care for the most loved brand.

 

Worldview 

In this, the system is examined to see the impact on the business, whether positive or negative. It considers everyone connected to the organization in one way or the other. It reflects the ‘Bigger picture’ of the current situation and how it will affect the stakeholders from all around the world. It also reflects the influence the company’s decisions might have on the people from the surroundings. This is one of the major steps in CATWOE analysis. The different approaches of the stakeholders are studied in this and also their conflicting ideas so that there is no room for confusion and any doubt at the end.

 

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Owner

The owner is the person who holds power to judge the whole system. The owner is the one who decides whether to begin the project, continue it or stop it in case it’s not working. The main power lies in the hands of the owners, as they are the decision-makers.

 

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Environmental constraints

This includes the limitation that might impact the business. It adds various restrictions that are not under the control of the organization. Various environmental components like laws, financial regulations, and ethical issues can limit the working and raise boundaries on various grounds.

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Example of The CATWOE Analysis

Here we are discussing the CATWOE analysis of Hyperloop that is quite in the news these days.

 

Customers- The ticket prices are still not known, but it is assumed that this project is aimed at the upper-middle class to ferry them from one place to another in the fastest possible manner. We can guess about this as high-speed trains are mostly expensive.

 

Actor- There are two main actors involved in this project. One is Elon Musk, and another is Virgin Group, owned by Richard Branson.

 

Transformation- It has plans to change how we move in trains by modifying them. The components in this process involve a long vacuum chamber, a single wagon with a turbine.

 

Worldview- The view is that people could commute within cities or even countries in a rapid transport system.  For example, moving from Paris to Milan in half an hour.

 

Owner- Different hyperloop projects would have different owners depending upon the company in operation.

 

Environment- It would prove beneficial for the environment as no greenhouse gases would be produced and if companies get incentives, they can work more on reducing pollution.

 

Another example of CATWOE analysis is an aviation company that decided to put ads on their airplanes.

 

Customer- Passengers travelling on it, third-party agencies, and advertisement companies.

 

Actors- People working on the plane include cabin crew, designers and engineers, and shareholders.

 

Transformation- Advertisements to be displayed on the airplane during their flight.

World view- Increasing the sales and the profits.

 

Owner- The person or the team that owns the aviation company and is responsible for making any big decisions.

 

Environmental constraints- are laws of the country, regulations of the airline companies.

 

Uses of CATWOE analysis

  • The clarity in issues- It clearly highlights the action plan of each individual involved in the project and the expectations from them at every step.
  • Holistic understanding- It provides an overall understanding of various things. This permits the partners to test a statement, accept it, and help them in the uprightness of the information and data. It also provides proof of the investigation and its results for choosing the better option.
  • Solve business problems- Another use of CATWOE analysis is when there are issues in business because of the different mindsets of the people involved. All perspectives are taken into consideration in CATWOE analysis and then based upon that critical thinking required measures can be adopted.

 

Disadvantages Of CATWOE Analysis

While numerous advantages, there are some disadvantages of the CATWOE analysis, which are discussed below:

 

  • The framework doesn't give a genuine view of insight and requires another wide delicate framework that would support and subsequently make the framework wasteful.
  • Another inconvenience with this stage is that it divides the issues being dissected, making it difficult to come to a solution.
  • The various elements involved in it can affect its efficiency and hinder the performance of other employees working under the project.

 

Conclusion

To conclude, it's important to examine the point of views of the different people involved for any change. In most situations, it is normal that partners have distinctive perspectives about the issues and how best to handle them. The CATWOE method permits the exploration of every partner's point of view exclusively and gets hold of the information. The data examined is then utilized to help adequately deal with the partners, a critical component of any change project. Various examples have been discussed above to prove this analysis. Connect with GWG for assignment help on CATWOE analysis or get one edited.

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