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Strategic Plan for Trane Technologies

Mariana Berenice Candelaria Cardona

Alfredo Fidel Carranco Ponce

Oscar Martínez González

María del Carmen Torres Tepale

City University of Seattle

BUS495 Strategic Management

Dr. Payam Saadat

September 3rd, 2023

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Introduction

Companies have the constant objective to improve their position, by either making more

profits or increasing their market share, this could be achieved with the correct assessment of

experts that evaluate entities’ internal and external environments and formulate strategic plans

for the companies to be successful. The purpose of this paper is to perform assessments that

consulting experts do to boost an organization's scope. The assessments will be covered in a set

of sections evaluating Trane Technologies´ (a global HVAC company) current situation. Starting

with the “Executive Summary”, “Current State”, and “Internal Assessment” sections, by giving a

background of the company, detailing how it is doing internally on its processes; then “External

Assessment”, showing how variables outside the company interact and how they might impact it;

later “Goals and SMART Objectives” together with “SWOT Analysis” outcome will allow

developing “Alternative Strategies” for Trane, leading to the “Strategy Evaluation and Selection”

where the best strategy will be chosen by analyzing the strategies developed from the

information collected in the SWOT analysis; finally, the “Strategic Implementation Plan” section

will take place, describing the milestones needed to complete the strategic plan.

Executive Summary

Trane Technologies is a global climate innovator founded in Ireland in 2009, through its

strategic brands “Trane” and “Thermo King” it offers efficient and sustainable solutions to

buildings, homes, and transportation. Its profits come primarily from the designing,

manufacturing, selling, and offering services for Heating, Ventilation, and Air Conditioning

(HVAC), transport refrigeration, and custom refrigeration (Regnery & Kuehn, 2023).
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Trane Technologies manufactures a wide range of products related to air conditioning and

refrigeration. These products are made in 38 different plants worldwide, including Puerto Rico,

the United States, Brazil, Mexico, Spain, Italy, France, Germany, Ireland, Saudi Arabia, the

Czech Republic, Thailand, and China with about 39,000 employees involved in the

manufacturing process. Roughly 14,000 of these employees are located outside of the United

States. (Regnery & Kuehn, 2023).

Current State

Trane Technologies one of the most relevant companies in climate innovation. It has

continually worked to develop innovative HVAC products throughout the years, such as low-

pressure steam heating systems and transport refrigeration technologies for both individual

consumers and business-to-business markets through the different brands that make up Trane

Technologies, which are Trane, Thermo King, Life Science Solutions, American Standard,

Ameristar, FrigoBlock, ICS Energy, Exbox, RunTru, and Thermocold.

The company is dedicated to sustainability and seeks to lead the sector by providing

adequate and environmentally friendly climate solutions for homes, businesses, and

transportation. This overview will analyze the current state of Trane Technologies’ developments

and its efforts to move towards a sustainable future.

History

The company started as a family plumbing business in 1885, later in 1913 the “Trane”

company was incorporated after the creation of an innovative low-pressure steam heating
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system, afterwards, the company kept launching new products including “Turbovac”, a water

chiller suitable for large-building air conditioning systems. In the 1940s, Fred McKinley created

the transport refrigeration technology, this innovation was patented, allowing trucks to transport

fresh, perishable food anywhere, having a considerable impact on the supermarket and restaurant

industries. After that, in 1997 “Thermo King” was acquired and in 2008 “Trane” also faced the

same outcome, eventually, in 2020 Trane Technologies was formed (Trane Technologies PLC,

2023).

Mission Statement

According to (Trane Technologies PLC, 2023) their mission statement states that “they

are climate innovators with the courage to look at the world’s challenges and see endless

opportunity. There are not afraid to make bold commitments that set new standards to enhance

the health and well-being of the communities, customers, employees, and the planet through

innovations to buildings, homes, and transportation.”

Vision Statement

Trane´s vision states that they are "propelled to boldly challenge what's possible for a

sustainable world” (Trane Technologies, 2023). According to (Trane Technologies, 2023) the

company aims to be a leader of the industry by example using sustainable innovation to improve

the quality, reliability, and energy efficiency of its products and services to create a more

sustainable future.
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Core Values

The company is dedicated to creating a sustainable future by using sustainable practices

in its products and services. They have established three main objectives for their sustainability

initiatives, which include setting a positive example, offering equal opportunities, and tackling

the issue of greenhouse gas emissions. These goals guide their actions and help them make

responsible decisions to minimize their impact on the environment (Williams, 2022), as well as

make them a trustworthy brand. On the other hand, Trane Technologies is a company that wants

to make the world better by coming up with new ideas and using advanced technology betting on

new technologies in the marketplace (Trane Technologies, 2023).

Internal Assessment

The significance of conducting an internal assessment lies in determining unique

strengths that set an organization apart from competitors, as well as identifying weaknesses that

can be leveraged to gain a competitive edge and better position Trane in the market. This section

will examine important internal aspects of Trane Technology, including management, marketing,

finance, and production. It will assess how these areas impact the company's dynamics to achieve

its objectives and goals.

Management

As a leading company in the HVAC industry, Trane Technologies is dedicated to

minimizing its environmental impact by placing high value in innovation and sustainability. The

planning, organizing, motivating, staffing, and controlling processes of Trane will be deeply
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analyzed to highlight the strengths and weaknesses of Trane´s internal actions to propose

potential areas of improvement.

Planning

Trane is actively aligning with external social trends in the industry as part of its planning

efforts. For example, they have committed to reducing their environmental impact in line with

the 2030 Agenda, resulting in a significant decrease in operational emissions. They have also

focused on promoting inclusion within their culture, leading to a notable increase in the

representation of women in senior leadership positions (Trane Technologies, 2022).

Trane is also adaptable to external factors such as political and economic trends, as seen

in their active support for policies to decarbonize buildings. They conduct thorough assessments

to ensure their long-term plans are well-informed. The company's owners/founders suggest both

long-term and short-term objectives, which are then analyzed and finalized by the board. The

Project Management Office effectively communicates these objectives to departments,

facilitating collaboration and strategy development. Trane's ability to adapt to current trends is a

strength in its internal operations, allowing it to stay relevant in the market and environmental

landscape (Trane Technologies, 2022).

Organizing

Trane’s organization consists of an integrated management system, which from a tactical

standpoint is displayed in a matrix structure, which according to Asana (2023) is a work structure

where team members report to multiple leaders, including a project manager as well as their
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department head, who has a considerable level of authority in the decision-making process for

several objectives/goals to promote innovation, reduce complexity, streamline processes, and

standardize cross-functional tasks. However, there can be instances in which Trane faces several

issues regarding differences in expectations or internal structural processes.

Motivating

According to Brafouri (2023) employee motivation at Trane is driven by fostering

innovation and excellence. Strategies include competitive compensation, professional growth

opportunities, recognition of exceptional performance, and cultivating a positive work culture.

Despite the previously mentioned actions, Trane’s organizational dynamics can lead to lower

motivation since the matrix structure minimizes subordinate involvement, leading to inter-team

competition and distrust, as well as a defined control structure that can affect the teams’ inner

relationships.

Staffing

Trane’s staffing strategy focuses on attracting expertise in HVAC technology,

engineering, sales, and technical skills. Beyond recruitment, Trane emphasizes comprehensive

training and development to enrich existing team members’ skills. Specific degrees and technical

know-how are pivotal, spanning HVAC technology, engineering prowess, sales acumen, and

more. One positive aspect of Trane´s staffing strategy is that according to Trane (2023). The

company hires engineering graduates from prestigious universities and provides them with

comprehensive training in sales, engineering, and HVAC system design. The program focuses on

ethical and professional standards and is considered one of the most extensive in the industry,
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with over 8700 graduates. However, the company faces difficulties in integrating new talent due

to cultural differences caused by the retention of senior management, which can be a weakness.

Controlling

According to Trane Technologies (2018) Trane holds multiple certifications, among them

ISO 9001, ISO 14001, lSO 45001, and ISO 50001, which show how Trane has been able to

comply with international high-quality standards over the years. Some of the standards that

Trane capitalizes on are low operating costs, optimal indoor air quality, and establishing multiple

partnerships to deliver for the facility (Trane, 2015). Project managers analyze variances in

plans, make decisions on cost, time, quality, and safety, and ensure compliance with designs and

regulations. Quality control and assurance are identified as strengths for Trane.

Marketing

The company aims to provide easy access to product information through its marketing

strategy. Each Trane brand serves a specific market, but all websites provide clear information

for online and in-store purchases. The global website is also available for customers worldwide

to find sales offices, dealers, distributors, or service networks in their locality. On the other hand,

despite its competitors having higher sales, Trane maintains the same level of profit, suggesting

that its production and distribution costs are more efficient. (Craft, 2023). However, Trane is

still a pricier option for consumers.

The company has several opportunities to take advantage of. These include using

efficient production and low distribution costs to offer competitive prices to attract customers.
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Additionally, customizing information and marketing strategies based on regional markets can

help the company focus on the products that are popular in specific areas.

Finance and Accounting

In 2022, Trane generated $15,991 million in revenues, with $10,930 million coming from

products and $5,060 million from services. The costs of products sold were $7,935 million, while

the costs of services sold were $3,091 million. Net earnings for the year were $1,774 million.

Trane's total assets, liabilities, and equity amounted to $18,081 million. At the end of 2022,

Trane had $1,220 million in cash and cash equivalents. The company's inventories totaled $1,993

million, with $509 million in raw materials, $333 million in work-in-process, and $1,280 million

in finished goods. Also, property, plant, and equipment represent a total of $1,536 million

(Regnery & Kuehn, 2023). Since Trane is a public company, its stock price is 198 American

dollars, and the volume of shares is 1,026,603 (Stock Quote, 2023)

Production and Operations

Trane Technologies uses two inventory management methods, FIFO and LIFO, in its

plants across 100 countries. The company's machinery has a lifespan of 2 to 10 years, buildings

last 10 to 50 years, and software lasts 2 to 7 years. This allows Trane to plan for future property

purchases. The demand for HVAC products is higher in the second and third quarters due to the

spring and summer seasons in the U.S. (Regnery & Kuehn, 2023).

The company has experienced growth, but it is crucial to effectively manage inventory. If

there is too much inventory, it can harm the company's profitability by tying up funds and losing
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value. Additionally, it can limit the company's potential for growth by preventing the allocation

of capital to other areas of the business (Inturn, 2023)

External Assessment

Conducting an external assessment focused on Trane Technologies will allow an

examination of the market to analyze factors in the industry that impact the company and its

success. Therefore, the purpose to be achieved through the evaluation directed to Trane is to

identify the opportunities in the sector to improve the competitiveness and positioning of the

organization, and to identify the threats that hinder its growth. On this basis, the research will be

approached through PESTEL Analysis and Porter's 5 Forces as analysis models.

PESTEL Analysis

A PESTEL analysis is a tool that strategists use to assess the external factors that can

affect an organization, company, or industry. It looks at political, economic, social,

technological, environmental, and legal factors. This analysis helps identify potential threats and

weaknesses, which can then be used in a SWOT analysis (Washington State University, 2023).

Figure 1.1. PESTEL Analysis

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Political, Governmental, and Legal Forces: Environmental Regulations

It is crucial for the HVAC industry to prioritize energy efficiency by adhering to global

standards and agreements. Trane, for example, the Paris Agreement which aims to limit global

warming by reducing environmental impact (European Commission, n.d.), and initiatives such as

the Next Generation Energy Act in Minnesota and the Minneapolis City Climate Action Plan

also focus on reducing greenhouse gas emissions and achieving net zero emissions by 2050

(Banks, 2023). Consequently, Trane aims to align with the global goal of achieving net-zero

emissions economies by 2050 by reducing its emissions by 50% in line with its 2030

Sustainability Commitment (Trane Technologies PLC, 2021).

Additionally, the industry is subject to regulations set by the government, among those

the recent minimum accepted efficiency for air conditioners in the U.S. will be raised to 14-15

SEER depending on the region (Pomeroy, 2022) which requires the improvement of the

efficiencies of aerothermal heat pumps by increasing their seasonal heating performance factor,

as well as the regulations by the (ICC, 2022) in which the units having to fulfill the energetic

efficiency ratios established per state that were defined by the aforementioned institutions. The

energetic regulations are aspects that Trane considers when designing your products and

purchasing raw materials.

Economic

The HVAC industry is heavily reliant on manufacturing and selling worldwide, making it

susceptible to changes in currency exchange rates. The Euro and Chinese Yuan are particularly

important as they generate the most revenue from non-U.S. operations. A 10% difference in the
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average exchange rate used would lead to a decrease of around $140 million for the Euro and

$60 million for the Chinese Yuan. (Regnery & Kuehn, 2023). On the other hand, inflation

increases impact the products and services of the company and consequently, the consumption of

clients decreases. Global inflation is located at 6.6% (International Monetary Fund, 2023), these

numbers must be considered when performing analysis regarding the purchasing of any material

or service as well as setting selling prices.

Conversely, the Labor Cost Index reveals a notable rise from 2.1% to 4.5% in labor costs

in the American private industry between 2012 and 2022 (U.S. Bureau of Labor Statistics,

2023b). This is a significant factor for Trane, which has a substantial workforce in the US.

However, the sector is facing a scarcity of skilled workers due to wage structures being

determined by experience (Faraday, 2023). To address this situation, Trane offers training

programs for college graduates but still faces challenges in retaining employees in management

roles.

Social, Cultural, Demographic, and Natural Environment Forces

The public now expects corporations to prioritize more than just making money. The

current warming trend, caused by human activities, is occurring faster than previous warming

trends (NASA,2023). Consumers around the world are increasingly requesting that companies

prioritize sustainability by reducing pollution and offsetting carbon emissions. They also want

businesses to take on corporate social responsibility by partnering with local communities, and

nonprofits, and prioritizing the well-being of employees and customers. (We Think It Matters,
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2023). Trane is aware of these trends and demands and has set goals to promote sustainability

and provide opportunities for marginalized groups.

The demand for convenient and ready-to-eat meals is expected to continue growing with

various distribution channels available due to factors such as busy lifestyles, higher income

levels, and improvements in the cold chain sector (Adams, 2023). Trane has already addressed

this opportunity as it has brands focused on B2B and can enhance its market penetration strategy

by forming partnerships with retail chains that cater to consumers.

Technological Forces

The market for industrial temperature controller automation is poised for significant

growth, with a projected Compound Annual Growth Rate (CAGR) of 2.9% from 2018 to 2022

(FMR,2023), also Rate (CAGR) of 2.9% from 2018 to 2022 (FMR, 2023). Moreover, Artificial

intelligence (AI) is increasingly being used and accepted, with future applications expected to

have a significant impact (European Parliament, 2023). Given this scenario, the company's

implementation of smart technology and artificial intelligence, such as predictive services using

data, analytics, AI, and machine learning, is also becoming increasingly important to meet

industry standards and identify potential problems before they escalate (Trane, n.d.-B).

Porter’s 5 Forces

This analysis model allows organizations, investors, and stakeholders to evaluate the

attractiveness and profitability of a sector or industry, it consists of five forces: “New entrants

threat in the industry”, “Threat of Existing Substitutes”, “Power of Customers”, “Power of

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Suppliers”, and “Competition in the Industry”. It is helpful to identify the organization's

competitive advantage and disadvantage in the corresponding industry, as well as understand the

trends and dynamics of the industry.

New Entrants Threat in Industry

As previously mentioned, Trane has both B2B and B2C business models. From the point

of view of the B2B model, one of the largest barriers for new entrants is that multiple parties are

involved in cold chains with varying perspectives on balancing product quality, economic

factors, and sustainability, and it can lead to conflicts of interest among the stakeholders.

In addition, cooling products need to meet varying regulations in different countries to be

sold. This requires companies to invest in obtaining patents and certifications that meet each

country's specific criteria. If a new brand wants to compete with established brands such as

Trane, they would either fulfill a unique need that no other brand does or offer their products at a

significantly lower price. However, doing so may compromise the quality of their products as

they would need sufficient funds for product development, which could negatively impact the

brand's reputation.

Threat of Existing Substitutes

There are two main substitutes that Trane faces. For the residential sector, there are more

affordable air Conditioning options for the public, they are called “Window Units or Portable Air

Conditioner”, they can cost $150 to $800 U.S. dollars and they are available almost in any Lowe
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´s, Bed Bath & Beyond and Home Depot, this scenario is strictly related to the U.S. nation

(Thorsby, 2023).

Talking about the commercial sector, Trane offers a wide variety of air conditioning

options for buildings, hospitals, and more, however, nowadays experts are trying to reduce the

gas emissions coming from air conditioning systems through the reduction of the cooling energy

in large buildings, this by enveloping them in “fabrics” and repel the sun rays, reducing the

demand of more energy to cool offices and spaces, there are few pilot buildings in Europe,

however, this represents a substitute in the medium/long-term because there won’t be a need to

purchase many HVAC units to cool as nowadays (DW Documentary, 2023).

Power of Customers

Given that Trane Technologies is a member of the HVAC industry, its customers include

building owners, individuals who need HVAC solutions for residential spaces, and/or contractors

because, according to Trane (n.d.-A), they have a team of experts who have experience working

on both commercial and residential projects. Given the variety of competitors on the market (for

example Carrier or Goodman) who offer alternatives to Trane's products, it is important to note

that customers hold power due to the availability of multiple options. However, this impact could

be reduced by working to build a solid reputation for quality, innovation, and dependability,

giving an overall moderate amount of power to customers.

Power of Suppliers
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Since having the right stocks in the production facilities is crucial for the development of

HVAC solutions, suppliers in the HVAC industry have a significant power. For companies such

as Trane, the most crucial suppliers are those that can supply the need for raw materials,

technical components, and semi-finished goods. Franklin Electric, a provider of pumping

systems, and Danfoss, a producer of compressors and flow controllers, are two examples of

suppliers with significant influence (Trane, n.d.-C). By leveraging Trane's infrastructure, they

can take advantage of negotiations and fulfill their obligations under several product and service

agreements. The suppliers have a significant amount of influence because of all the factors that

affect Trane's manufacturing and the various technological requirements to manage the supplier

relationships properly.

Competition in the Industry

Trane Technologies is positioned in a highly competitive industry, having a higher level

of market share in three industry sectors, being the air and gas compressor manufacturing is the

one that reflects the highest rate with 25.2% of total revenues within the segment. At the same

time, market rivalry is an element that drives Trane to adopt new strategies in its operations to

generate innovative and sustainable solutions in the industry, since it faces competitors being

new companies seeking to penetrate the market and consolidated enterprises, among which

Carrier and Johnson Controls emerge as the leading players (IBIS World, n.d.). According to Just

Capital (2023), "Trane Technologies, a global climate innovator, is ranked 18th on the 2023

JUST 100 list, named first in the Building Materials & Construction industry, and ranked as the

best company in the industry for communities and workers". In this regard, the firm has managed

to consolidate its position among the top organizations in the industry by promoting
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sustainability to generate a differentiator in its processes and products through the development

of innovative solutions that meet its commitment to energy efficiency and decarbonization.

Goals and SMART Objectives

Goals SMART Objectives

Goal 1: Leading through

Generate an action plan to reduce
example by reimagining the
the energy usage by 10% in 2023
supply chain and operations.
and the water consumption by

2023, to promote the offsetting of

CO2 emissions by 2025.

Goal 2: Reduce customer carbon

Accelerate the transition to clean
footprint.
technologies instead of high-

global warming potential

refrigerants, to increase energy

efficiency and reduce food loss.

Goal 3: Create opportunities for Invest $100 million towards the

all uplifting our culture and creation of sustainable

communities. opportunities for underrepresented

students by dedicating 500,000

hours of aggregate employee

volunteering by 2025.

Table 1.1. Goals and SMART Objectives

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SWOT Matrix

This management tool allows decision makers to understand the whole situation of a

company, helping them to formulate strategies and plans to achieve goals and objectives.

Table 2.1. SWOT Matrix

Alternative Strategies

Basing on the patterns that were established in both the internal and external assessments

the alternative strategies will go as follows:

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SO: S1,O5 Cleaner HVAC Air Solutions

The first alternative strategy will focus on exploiting the increase in demand for indoor

air solutions by working on a global expansion plan, which will have the main objective of

expanding the company's market share globally, which will consist on entering new markets by

using their expertise as a mean to provide optimal indoor air solutions, while using their current

data to generate a sense of reliability from the consumer's perspective, the company could take

advantage of data analysis tools for quality monitoring and demand trends, to demonstrate the

efficiency of their HVAC solutions through both descriptive and prescriptive analysis.

WO: W4, O2 Retaining Collaborators

The second plan to mitigate the challenges in the organizational aspects of the operation,

that lead to unhealthy competition and distrust among the employees will rely on actions

including the development of mentorship programs in which experienced senior managers can

collaborate with new talents to promote new ideas and more fluid communication; the second

and final phase of this plan will consist of a feedback mechanism to collect insights from the

mentorship program to improve and adjust the matrix structure as the teams see necessary. By

implementing this plan, the company can prevent human capital from leaving the company,

especially when considering the growth in terms of competence in the HVAC industry.

ST: S1,T5 Supplier Portfolio Diversification Strategy

The third alternative strategy will capitalize on the supply chain disruptions, given that

Trane is a company that requires a great number of components to support their operation, the
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component shortages and the supply chain slowdowns that result in greater lead times, can turn

out to be detrimental. For the previous threat there will be a plan that will diversify the supplier

base to increase the number of options and reduce the risks of delay or manufacturing pauses due

to limited options, this diversification strategy will be carried out using a strategic partnership

program, to achieve a priority status, and ensure that the procurement of materials is more

efficient to prevent stock shortages.

WT: W1, T1: Manufacturing Products meeting ICC Standards.

Given that there are multiple regulatory changes affecting sustainability goal, the fourth

strategy will focus on optimizing Trane´s operative actions to better align with environmental

regulations, such as some units having to fulfill the energetic efficiency ratios established per

state that were defined by (ICC,2022). To achieve this goal, the company will closely monitor

the structural processes of the manufacturing of the products for them to comply with regulatory

requirements in terms of sustainability. The strategy will consist of proactively adapt to the

regulations in terms of the sustainable technologies´ standards. The final phase will consist on

investing on research and development to stay in the forefront when it comes to sustainable

technologies.
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Linking Objectives to Corresponding Alternative Strategies

Objectives Alternative Justification

Strategies

The relation comes because ICC

Generate an action plan to WT: W1, T1: standards require HVAC units to be
reduce the energy usage by 10% more efficient, leading to a reduction
in 2023 and the water Manufacturing of CO2 emissions.
consumption by 2023, to
promote the offsetting of CO2 Products meeting
emissions by 2025.
ICC Standards.

Clean HVAC systems are not only

Accelerate the transition to clean SO: S1,O5 Cleaner those that produce less carbon
technologies instead of high- emissions, they are also units that
global warming potential HVAC Air implement refrigerants less toxic and
refrigerants, to increase energy friendly with the environment where
efficiency and reduce food loss. Solutions the product is operating.

Invest $100 million towards the The relation is that in order to

creation of sustainable
opportunities for
underrepresented students by
dedicating 500,000 hours of
aggregate employee
volunteering by 2025.
WO: W4,O2 dedicate thousands of volunteer hours
to serve the communities, first, it is
Retaining important to retain and maintain
employees satisfied with a good work
Collaborators environment, great benefits and
opportunities of growing in the
professional aspect.

Table 3.1. Linking Objectives to Corresponding Alternative Strategies

SPACE Matrix

The SPACE matrix operates as a tool employed to analyze the strategic position of

companies and their competitiveness. The assessment is based on the evaluation of the proposed

strategic alternatives, establishing a correlation between the matrices and the organizations to

eventually lead to the identification of the alternative approach to be followed by the firm and to

define its strategic position, which can be classified as aggressive, competitive, conservative, or

defensive (Elezaj & Morina, 2017, p. 1071).

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Table 4.1. SPACE Matrix

Table 4.2. SPACE Matrix

Figure 2.1. SPACE Matrix

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Strategy Selected: Supplier Portfolio Diversification Strategy

Based on the previously developed space matrix, Trane Technologies must take a

defensive standpoint when considering its decisions, based on the internal and external analyses,

one of the most prevalent strengths of Trane is their ability to adapt their processes for

operational excellence. On the other hand, there is an area of opportunity when it comes to the

increase in demand for HVAC solutions; therefore, one strategy that work for a defensive play-

style is to diversify the supplier base, since this allows the company to mitigate the vulnerability

in the current supply chain disruptions, by implementing this strategy the company can reduce

the supply chain derived risks, since having multiple options will eliminate overdependence

while improving the company´s adaptability to variable market trends.

The selected strategy will focus on current supply chain disruptions since this affects

Trane´s operations due to its stocks being fundamental for manufacturing. To be up to speed with

the current supply chain challenges, such as shortages or slowdowns, the plan will consist of

diversifying the current supplier base. By doing this, the company will mitigate risks such as

delays or production shutdowns due to scarce supplies. The diversification strategy will be

carried out through a strategic partnership program to secure priority status with key suppliers,

enhance procurement efficiency, and prevent stock shortages.

Strategic Implementation Plan

Focuses on diversifying the supplier base to address the problem of insufficient stock of

pieces available for the production process and long lead times that slow down the processes

causing loss of profits and time. Consequently, the organization seeks to collaborate with
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different suppliers that can provide the needed components for the manufacturing process to

ensure the efficiency of the operations and the availability of the materials required.

Estimated
Milestone
Time
1.Evaluate the strengths and weaknesses of existing suppliers and
clearly outline the qualities and criteria sought in new potential 2 weeks
suppliers.
2. Create a dedicated space where the operational, financial, and
executive teams can collaborate to establish the necessary guidelines
2 weeks
and parameters for selecting new suitable suppliers (local or
international)
3. Conduct an in-depth field investigation of a supplier that fulfills
3 weeks
all the criteria and meets the specified requirements.
4. Conduct thorough research on potential suppliers to ascertain
whether they have existing partnerships with your competitors and to 1 week
gain insights into how their objectives align with Trane’s.
5. Schedule confidential gatherings to connect with the sales team
4 weeks
and initiate negotiations.
6. Create a document that includes a roster with the supplier's
contact information, along with one preferred option and two 1 week
alternative options to consider in case of a shortage.

Table 5.1. SPACE Matrix

Monitoring and Controlling Activities for Project Managers

In the first instance, “On-site and Online Meetings”. Communication is essential within a

strategy to share the progress and development of milestones established and allow the parties to

be aware of the updates in an efficient manner. Accordingly, an activity to execute is scheduling

weekly meetings between managers and stakeholders to address milestones and provide

information concerning them. The key benefits are flexibility by on-site or online modality

meetings (Gremban-Barnaby, 2021) and participants sharing ideas to improve outcomes.

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“Timesheets” is another tool to be implemented by the manager in charge. It is a record of hours

worked on specific projects and activities to track productivity. They can be physical (paper

forms) or electronic (spreadsheets), including: employee information, date range, days of the

week, time in/out, breaks, total hours, project/activity codes, overtime, manager/supervisor

approval, signature and date (Kumar, 2023). The advantages of it are time tracking, performance

evaluation, resource allocation, and legal compliance with labor laws and regulations. Talking

about the “Corrective Actions”, the manager can implement the methodology DPIC (Define,

Plan, Implement, and Control) known as “Just do it”. It consists of requirements including: the

solution must be known, the improvement made should be reversible, the enhancement must be

low-cost and quick to implement, the solution must not do harm or affect more, and the

improvement must be sustainable (Francisco, 2010). On the other hand, A3 is another method

consisting of a one-sheet paper report. Its process ranges from weeks to months and gathers

information to define problems, an analysis to arrive at the root cause, propose solutions and

implement them. The benefits offered are to address effective solutions and carry out the

resolution in a collaborative manner (Lean Construction Institute, n.d.).

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Asana, T. (2023, July 7). ¿Qué es una organización matricial y cómo funciona? [2023] • Asana.

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