Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group
The Beijing Capital Group was one of the most profitable and successful state-owned enterprises in China. Since its foundation, the group had been making unrelenting efforts in promoting reform, improving capital operation, and capitalizing on the advantages of the group in terms of operational scale. All these efforts had helped it achieve success. The employee turnover rate was low, as the staff had a sense of pride in being part of a successful firm. For the immediate future, however, the market environment was expected to be increasingly tough. Some of the important issues that the president of the group had to deal with included how to sustain growth and remain competitive following China's expected accession to the World Trade Organization. Given the structural and institutional constraints inherited from the socialist tradition, it was not easy for the group to overcome all the limits of the system. At this point, the president wondered whether he could find a way to reform the group's human resources system within the limits set by the state.
Swot Analysis of "Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group" written by Gilbert Wong, Scarlet Chan, Mary Ho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Beijing Limits facing as an external strategic factors. Some of the topics covered in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group case study are - Strategic Management Strategies, and Organizational Development.
Some of the macro environment factors that can be used to understand the Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, technology disruption, increasing energy prices, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
increasing commodity prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Limits, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Limits 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group can be done for the following purposes –
1. Strategic planning using facts provided in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group case study
2. Improving business portfolio management of Beijing Limits
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 Beijing Limits
Strengths Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beijing Limits in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Beijing Limits in the sector have low bargaining power. Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beijing Limits to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Organizational Development field
– Beijing Limits 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 Beijing Limits in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Beijing Limits 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 Beijing Limits is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Beijing Limits 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Beijing Limits is one of the most innovative firm in sector. Manager in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Beijing Limits 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 Gilbert Wong, Scarlet Chan, Mary Ho 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Beijing Limits digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beijing Limits 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.
High switching costs
– The high switching costs that Beijing Limits 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
– Beijing Limits has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beijing Limits 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.
Diverse revenue streams
– Beijing Limits is present in almost all the verticals within the industry. This has provided firm in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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.
Effective Research and Development (R&D)
– Beijing Limits 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Beijing Limits 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.
Weaknesses Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group are -
Increasing silos among functional specialists
– The organizational structure of Beijing Limits is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Beijing Limits needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Beijing Limits to focus more on services rather than just following the product oriented approach.
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 Beijing Limits supply chain. Even after few cautionary changes mentioned in the HBR case study - Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beijing Limits vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group, 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.
Lack of clear differentiation of Beijing Limits products
– To increase the profitability and margins on the products, Beijing Limits needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Beijing Limits 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. Beijing Limits 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.
Products dominated business model
– Even though Beijing Limits 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 - Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group, in the dynamic environment Beijing Limits has struggled to respond to the nimble upstart competition. Beijing Limits has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Beijing Limits, firm in the HBR case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Beijing Limits has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Interest costs
– Compare to the competition, Beijing Limits 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Beijing Limits 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group | 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group are -
Using analytics as competitive advantage
– Beijing Limits 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beijing Limits to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Beijing Limits 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.
Leveraging digital technologies
– Beijing Limits can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Beijing Limits to increase its market reach. Beijing Limits 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Beijing Limits 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, Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Beijing Limits 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.
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. Beijing Limits 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. Beijing Limits 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.
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 Beijing Limits in the consumer business. Now Beijing Limits can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Beijing Limits 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Beijing Limits is facing challenges because of the dominance of functional experts in the organization. Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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.
Developing new processes and practices
– Beijing Limits 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
– Beijing Limits 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.
Manufacturing automation
– Beijing Limits can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group are -
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. Beijing Limits can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Beijing Limits with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Beijing Limits is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Beijing Limits 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Beijing Limits 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group, Beijing Limits 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 .
High dependence on third party suppliers
– Beijing Limits 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.
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.
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 Beijing Limits business can come under increasing regulations regarding data privacy, data security, etc.
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. Beijing Limits needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Environmental challenges
– Beijing Limits 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. Beijing Limits can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Technology acceleration in Forth Industrial Revolution
– Beijing Limits has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Beijing Limits 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.
Weighted SWOT Analysis of Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Beijing Limits needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group