Coaching at Banco Azucarero de Cali (BAC) (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Coaching at Banco Azucarero de Cali (BAC) (A)
Set in a bank, presents two complementary themes: a management by competencies interview and management coaching. The area director is undergoing his first 180-degree evaluation and has to conduct a self-assessment. Discusses his results and the passive role of his own coach.
Authors :: Pablo Cardona, Jose Ramon Pin, German Serrano Duarte, Lourdes Susaeta
Swot Analysis of "Coaching at Banco Azucarero de Cali (BAC) (A)" written by Pablo Cardona, Jose Ramon Pin, German Serrano Duarte, Lourdes Susaeta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Coaching Azucarero facing as an external strategic factors. Some of the topics covered in Coaching at Banco Azucarero de Cali (BAC) (A) case study are - Strategic Management Strategies, Coaching and Organizational Development.
Some of the macro environment factors that can be used to understand the Coaching at Banco Azucarero de Cali (BAC) (A) casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Coaching at Banco Azucarero de Cali (BAC) (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Coaching at Banco Azucarero de Cali (BAC) (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coaching Azucarero, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coaching Azucarero 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 Coaching at Banco Azucarero de Cali (BAC) (A) can be done for the following purposes –
1. Strategic planning using facts provided in Coaching at Banco Azucarero de Cali (BAC) (A) case study
2. Improving business portfolio management of Coaching Azucarero
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Coaching Azucarero
Strengths Coaching at Banco Azucarero de Cali (BAC) (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coaching Azucarero in Coaching at Banco Azucarero de Cali (BAC) (A) Harvard Business Review case study are -
Training and development
– Coaching Azucarero has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Coaching at Banco Azucarero de Cali (BAC) (A) 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Coaching Azucarero digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Coaching Azucarero 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.
Organizational Resilience of Coaching Azucarero
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Coaching Azucarero does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Coaching Azucarero in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Coaching Azucarero has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Diverse revenue streams
– Coaching Azucarero is present in almost all the verticals within the industry. This has provided firm in Coaching at Banco Azucarero de Cali (BAC) (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Coaching at Banco Azucarero de Cali (BAC) (A) 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.
Ability to recruit top talent
– Coaching Azucarero is one of the leading recruiters in the industry. Managers in the Coaching at Banco Azucarero de Cali (BAC) (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Coaching Azucarero has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Coaching at Banco Azucarero de Cali (BAC) (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Coaching Azucarero 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 Pablo Cardona, Jose Ramon Pin, German Serrano Duarte, Lourdes Susaeta 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.
High brand equity
– Coaching Azucarero has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Coaching Azucarero to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Coaching Azucarero is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Coaching Azucarero is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Coaching at Banco Azucarero de Cali (BAC) (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Coaching at Banco Azucarero de Cali (BAC) (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Coaching at Banco Azucarero de Cali (BAC) (A) are -
Low market penetration in new markets
– Outside its home market of Coaching Azucarero, firm in the HBR case study Coaching at Banco Azucarero de Cali (BAC) (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Coaching Azucarero supply chain. Even after few cautionary changes mentioned in the HBR case study - Coaching at Banco Azucarero de Cali (BAC) (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Coaching Azucarero vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Coaching Azucarero 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Coaching at Banco Azucarero de Cali (BAC) (A), it seems that the employees of Coaching Azucarero don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High operating costs
– Compare to the competitors, firm in the HBR case study Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching Azucarero 's lucrative customers.
Slow to strategic competitive environment developments
– As Coaching at Banco Azucarero de Cali (BAC) (A) HBR case study mentions - Coaching Azucarero takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Coaching at Banco Azucarero de Cali (BAC) (A), it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Coaching Azucarero is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Coaching at Banco Azucarero de Cali (BAC) (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Coaching at Banco Azucarero de Cali (BAC) (A), in the dynamic environment Coaching Azucarero has struggled to respond to the nimble upstart competition. Coaching Azucarero has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Coaching Azucarero has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Coaching at Banco Azucarero de Cali (BAC) (A) should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Coaching Azucarero 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. Coaching Azucarero 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.
Opportunities Coaching at Banco Azucarero de Cali (BAC) (A) | 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 Coaching at Banco Azucarero de Cali (BAC) (A) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Coaching Azucarero can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Coaching Azucarero can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Coaching Azucarero can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Coaching at Banco Azucarero de Cali (BAC) (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Coaching Azucarero can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Coaching at Banco Azucarero de Cali (BAC) (A) 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.
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 Coaching Azucarero 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.
Better consumer reach
– The expansion of the 5G network will help Coaching Azucarero to increase its market reach. Coaching Azucarero 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Coaching Azucarero 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 Coaching Azucarero to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Coaching Azucarero can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Coaching Azucarero can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Coaching Azucarero can develop new processes and procedures in Organizational Development 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.
Loyalty marketing
– Coaching Azucarero has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Coaching Azucarero 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 Coaching Azucarero has opened avenues for new revenue streams for the organization in the industry. This can help Coaching Azucarero to build a more holistic ecosystem as suggested in the Coaching at Banco Azucarero de Cali (BAC) (A) case study. Coaching Azucarero can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Coaching at Banco Azucarero de Cali (BAC) (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Coaching at Banco Azucarero de Cali (BAC) (A) are -
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. Coaching Azucarero needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Consumer confidence and its impact on Coaching Azucarero 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.
High dependence on third party suppliers
– Coaching Azucarero high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Coaching Azucarero
– 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 Coaching Azucarero.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Coaching at Banco Azucarero de Cali (BAC) (A), Coaching Azucarero may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Coaching Azucarero.
Regulatory challenges
– Coaching Azucarero needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Coaching Azucarero in the Organizational Development sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Coaching Azucarero in the Organizational Development industry. The Organizational Development 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.
Stagnating economy with rate increase
– Coaching Azucarero 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Coaching Azucarero with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Weighted SWOT Analysis of Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching at Banco Azucarero de Cali (BAC) (A) 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 Coaching Azucarero needs to make to build a sustainable competitive advantage.
