Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
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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 - – 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%, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing energy prices,
increasing transportation and logistics costs, increasing commodity prices, 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 -
Organizational Resilience of Beijing Limits
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Beijing Limits does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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.
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.
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.
Ability to recruit top talent
– Beijing Limits is one of the leading recruiters in the industry. Managers in the Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Beijing Limits is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Organizational Development industry
– Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group firm has clearly differentiated products in the market place. This has enabled Beijing Limits to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Beijing Limits to invest into research and development (R&D) and innovation.
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.
Training and development
– Beijing Limits has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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.
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.
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.
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.
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 -
Skills based hiring
– The stress on hiring functional specialists at Beijing Limits 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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Beijing Limits is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Gilbert Wong, Scarlet Chan, Mary Ho suggests that, Beijing Limits 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Beijing Limits 's lucrative customers.
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.
High cash cycle compare to competitors
Beijing Limits 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.
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.
Aligning sales with marketing
– It come across in the case study Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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 Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group can leverage the sales team experience to cultivate customer relationships as Beijing Limits is planning to shift buying processes online.
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 -
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.
Building a culture of innovation
– managers at Beijing Limits 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.
Buying journey improvements
– Beijing Limits can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing a New State-owned Enterprise: A Daring Experiment by the Beijing Capital Group 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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Limits can use these opportunities to build new business models that can help the communities that Beijing Limits operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beijing Limits 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 Beijing Limits to hire the very best people irrespective of their geographical location.
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.
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.
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 -
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.
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.
Increasing wage structure of Beijing Limits
– 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 Beijing Limits.
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 Beijing Limits.
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.
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.
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.
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 Beijing Limits in the Organizational Development sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Beijing Limits 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.
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 .
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.
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.
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 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.
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