Case Study Description of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership
Banco Itau was founded in 1945 and is the second largest private bank in Brazil. As part of its social responsibility strategy, it has created a Community Assistance Program aimed at projects in education and health. To carry out this program, the bank has established cross-sector alliances with partners selected for their technical expertise to operate these programs and to establish relations with the communities. One of the two programs--Education & Participation--has helped civil society organizations that assist needy students with supplementary schooling programs. Itau's primary nonprofit partner, CENPEC, is dedicated to research and strengthening public education. CENPEC provides technical direction and establishes contact with community organizations. The program includes the Itau Education & Participation Prize and constitutes one of the most competitive selection processes in Brazil's Third Sector.
Authors :: Rosa Maria Fischer, Marisa Eboli
Topics :: Leadership & Managing People
Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Education & Participation Award: ITAU-CENPEC-UNICEF Partnership" written by Rosa Maria Fischer, Marisa Eboli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cenpec Itau facing as an external strategic factors. Some of the topics covered in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Education & Participation Award: ITAU-CENPEC-UNICEF Partnership casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%,
cloud computing is disrupting traditional business models, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cenpec Itau, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cenpec Itau operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership case study
2. Improving business portfolio management of Cenpec Itau
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cenpec Itau
Strengths Education & Participation Award: ITAU-CENPEC-UNICEF Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cenpec Itau in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Cenpec Itau in the sector have low bargaining power. Education & Participation Award: ITAU-CENPEC-UNICEF Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cenpec Itau to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Cenpec Itau is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Rosa Maria Fischer, Marisa Eboli can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Cenpec Itau has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cenpec Itau has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Cenpec Itau digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cenpec Itau has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Cenpec Itau is one of the most innovative firm in sector. Manager in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Cenpec Itau is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Cenpec Itau in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Cenpec Itau has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Education & Participation Award: ITAU-CENPEC-UNICEF Partnership Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Education & Participation Award: ITAU-CENPEC-UNICEF Partnership Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management
– Cenpec Itau is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Cenpec Itau in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Cenpec Itau has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cenpec Itau to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Education & Participation Award: ITAU-CENPEC-UNICEF Partnership firm has clearly differentiated products in the market place. This has enabled Cenpec Itau to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Cenpec Itau to invest into research and development (R&D) and innovation.
Weaknesses Education & Participation Award: ITAU-CENPEC-UNICEF Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership are -
High bargaining power of channel partners
– Because of the regulatory requirements, Rosa Maria Fischer, Marisa Eboli suggests that, Cenpec Itau is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Need for greater diversity
– Cenpec Itau has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership, in the dynamic environment Cenpec Itau has struggled to respond to the nimble upstart competition. Cenpec Itau has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Cenpec Itau has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Cenpec Itau supply chain. Even after few cautionary changes mentioned in the HBR case study - Education & Participation Award: ITAU-CENPEC-UNICEF Partnership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cenpec Itau vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Education & Participation Award: ITAU-CENPEC-UNICEF Partnership HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Cenpec Itau has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Cenpec Itau has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cenpec Itau even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Cenpec Itau products
– To increase the profitability and margins on the products, Cenpec Itau needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Cenpec Itau has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cenpec Itau 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Cenpec Itau needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Education & Participation Award: ITAU-CENPEC-UNICEF Partnership | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cenpec Itau in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Cenpec Itau to increase its market reach. Cenpec Itau will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– Cenpec Itau can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Education & Participation Award: ITAU-CENPEC-UNICEF Partnership suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Cenpec Itau can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Cenpec Itau can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cenpec Itau can use these opportunities to build new business models that can help the communities that Cenpec Itau operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cenpec Itau is facing challenges because of the dominance of functional experts in the organization. Education & Participation Award: ITAU-CENPEC-UNICEF Partnership case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cenpec Itau to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cenpec Itau to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cenpec Itau can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cenpec Itau in the consumer business. Now Cenpec Itau can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Cenpec Itau to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Learning at scale
– Online learning technologies has now opened space for Cenpec Itau to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Cenpec Itau has opened avenues for new revenue streams for the organization in the industry. This can help Cenpec Itau to build a more holistic ecosystem as suggested in the Education & Participation Award: ITAU-CENPEC-UNICEF Partnership case study. Cenpec Itau can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Education & Participation Award: ITAU-CENPEC-UNICEF Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership, Cenpec Itau may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Stagnating economy with rate increase
– Cenpec Itau can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cenpec Itau will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Cenpec Itau has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Cenpec Itau needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cenpec Itau in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Cenpec Itau
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Cenpec Itau.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Cenpec Itau needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cenpec Itau with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Cenpec Itau demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cenpec Itau can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Cenpec Itau is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Education & Participation Award: ITAU-CENPEC-UNICEF Partnership is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Education & Participation Award: ITAU-CENPEC-UNICEF Partnership is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cenpec Itau needs to make to build a sustainable competitive advantage.