Organizational Transformation: Agency for Volunteer Service SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Organizational Transformation: Agency for Volunteer Service
Founded in 1970, the Agency for Volunteer Service (AVS) was a non-governmental organization in Hong Kong with the mission of facilitating volunteerism and managing education, health, and welfare services. For more than two decades, it played an active role in the Hong Kong social service sector. However, in the years 1998 to 2001, several factors prompted AVS to undergo organizational transformation: a temporary crisis in management, a change in the source of government funding signalling a shift in the organization's mission, and the United Nations' designation of 2001 as the International Year of Volunteers. These changes compelled AVS to carry out a strategic review in 2001 and undergo radical organizational transformation. How should it implement strategic change to incorporate this new vision? Introduces students to the concept of radical organizational transformation and familiarizes students with managerial competencies common to successful transformations.
Authors :: Shirley Chan, Monica Park, Gilbert Wong, Joseph Chan
Swot Analysis of "Organizational Transformation: Agency for Volunteer Service" written by Shirley Chan, Monica Park, Gilbert Wong, Joseph Chan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Avs Transformation facing as an external strategic factors. Some of the topics covered in Organizational Transformation: Agency for Volunteer Service case study are - Strategic Management Strategies, Leadership and Organizational Development.
Some of the macro environment factors that can be used to understand the Organizational Transformation: Agency for Volunteer Service casestudy better are - – increasing government debt because of Covid-19 spendings, technology disruption, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
wage bills are increasing, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Organizational Transformation: Agency for Volunteer Service
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Organizational Transformation: Agency for Volunteer Service case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Avs Transformation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Avs Transformation 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 Organizational Transformation: Agency for Volunteer Service can be done for the following purposes –
1. Strategic planning using facts provided in Organizational Transformation: Agency for Volunteer Service case study
2. Improving business portfolio management of Avs Transformation
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 Avs Transformation
Strengths Organizational Transformation: Agency for Volunteer Service | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Avs Transformation in Organizational Transformation: Agency for Volunteer Service Harvard Business Review case study are -
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Avs Transformation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Avs Transformation 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.
Superior customer experience
– The customer experience strategy of Avs Transformation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Avs Transformation are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Avs Transformation has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Organizational Transformation: Agency for Volunteer Service HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Avs Transformation 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.
Successful track record of launching new products
– Avs Transformation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Avs Transformation 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.
Learning organization
- Avs Transformation 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 Avs Transformation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Organizational Transformation: Agency for Volunteer Service Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Avs Transformation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Avs Transformation 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 Organizational Transformation: Agency for Volunteer Service - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Avs Transformation is present in almost all the verticals within the industry. This has provided firm in Organizational Transformation: Agency for Volunteer Service 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.
High brand equity
– Avs Transformation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Avs Transformation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Avs Transformation is one of the most innovative firm in sector. Manager in Organizational Transformation: Agency for Volunteer Service Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Organizational Transformation: Agency for Volunteer Service | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Organizational Transformation: Agency for Volunteer Service are -
No frontier risks strategy
– After analyzing the HBR case study Organizational Transformation: Agency for Volunteer Service, 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.
Increasing silos among functional specialists
– The organizational structure of Avs Transformation is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Avs Transformation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Avs Transformation to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Avs Transformation 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.
Interest costs
– Compare to the competition, Avs Transformation 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Organizational Transformation: Agency for Volunteer Service, it seems that the employees of Avs Transformation 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.
Lack of clear differentiation of Avs Transformation products
– To increase the profitability and margins on the products, Avs Transformation needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Organizational Transformation: Agency for Volunteer Service that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Organizational Transformation: Agency for Volunteer Service can leverage the sales team experience to cultivate customer relationships as Avs Transformation is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Avs Transformation 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.
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 Avs Transformation supply chain. Even after few cautionary changes mentioned in the HBR case study - Organizational Transformation: Agency for Volunteer Service, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Avs Transformation vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Avs Transformation has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Avs Transformation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Organizational Transformation: Agency for Volunteer Service can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Organizational Transformation: Agency for Volunteer Service | 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 Organizational Transformation: Agency for Volunteer Service are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Avs Transformation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Avs Transformation can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Avs Transformation can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Buying journey improvements
– Avs Transformation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Organizational Transformation: Agency for Volunteer Service 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.
Using analytics as competitive advantage
– Avs Transformation has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Organizational Transformation: Agency for Volunteer Service - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Avs Transformation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Avs Transformation in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Avs Transformation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Avs Transformation 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.
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. Avs Transformation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Avs Transformation has opened avenues for new revenue streams for the organization in the industry. This can help Avs Transformation to build a more holistic ecosystem as suggested in the Organizational Transformation: Agency for Volunteer Service case study. Avs Transformation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Avs Transformation is facing challenges because of the dominance of functional experts in the organization. Organizational Transformation: Agency for Volunteer Service 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 Avs Transformation 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 Avs Transformation to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Avs Transformation 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, Organizational Transformation: Agency for Volunteer Service, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Avs Transformation to increase its market reach. Avs Transformation 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.
Threats Organizational Transformation: Agency for Volunteer Service External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Organizational Transformation: Agency for Volunteer Service are -
High dependence on third party suppliers
– Avs Transformation 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.
Technology acceleration in Forth Industrial Revolution
– Avs Transformation has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Avs Transformation needs to keep up with the evolution of technology in the Organizational Development 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.
Increasing wage structure of Avs Transformation
– 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 Avs Transformation.
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.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Avs Transformation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Avs Transformation 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.
Stagnating economy with rate increase
– Avs Transformation 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.
Environmental challenges
– Avs Transformation needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Avs Transformation can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Avs Transformation 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.
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. Avs Transformation needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Avs Transformation business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Avs Transformation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Organizational Transformation: Agency for Volunteer Service 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 Organizational Transformation: Agency for Volunteer Service 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 Organizational Transformation: Agency for Volunteer Service 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 Organizational Transformation: Agency for Volunteer Service 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 Organizational Transformation: Agency for Volunteer Service 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 Avs Transformation needs to make to build a sustainable competitive advantage.