Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program
This article discusses the relationship between the system for planning, financing, constructing, and operating new hospitals and the design and construction innovation. It focuses on the UK's Private Finance Initiative (PFI), where consortia of private companies invest in, build, and operate public sector hospital facilities. The PFI was partly introduced to inject increased innovation into the delivery of healthcare infrastructure. Case studies of eight schemes developed over the last decade demonstrate that the PFI model has not generated the anticipated innovation benefits. This is partly due to the way risk is allocated between the project stakeholders and partly to the lack of integration between the hospital trust and the consortium. These represent structural features of PFI that could be improved upon in order to produce better outcomes.
Swot Analysis of "Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program" written by James Barlow, Martina Koberle-Gaiser includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pfi Partly facing as an external strategic factors. Some of the topics covered in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program case study are - Strategic Management Strategies, Financial management, International business, Project management, Risk management, Strategic planning and Organizational Development.
Some of the macro environment factors that can be used to understand the Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing energy prices, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pfi Partly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pfi Partly 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program can be done for the following purposes –
1. Strategic planning using facts provided in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program case study
2. Improving business portfolio management of Pfi Partly
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 Pfi Partly
Strengths Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pfi Partly in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program Harvard Business Review case study are -
Diverse revenue streams
– Pfi Partly is present in almost all the verticals within the industry. This has provided firm in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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
– Pfi Partly has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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.
Analytics focus
– Pfi Partly 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 James Barlow, Martina Koberle-Gaiser 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.
Strong track record of project management
– Pfi Partly 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
– Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program firm has clearly differentiated products in the market place. This has enabled Pfi Partly to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Pfi Partly to invest into research and development (R&D) and innovation.
Innovation driven organization
– Pfi Partly is one of the most innovative firm in sector. Manager in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Pfi Partly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pfi Partly 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 brand equity
– Pfi Partly has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pfi Partly to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Pfi Partly 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Pfi Partly in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Pfi Partly 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 Pfi Partly is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, it seems that the employees of Pfi Partly 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.
Products dominated business model
– Even though Pfi Partly 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 - Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program can leverage the sales team experience to cultivate customer relationships as Pfi Partly is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Pfi Partly 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Pfi Partly 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, in the dynamic environment Pfi Partly has struggled to respond to the nimble upstart competition. Pfi Partly has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Pfi Partly products
– To increase the profitability and margins on the products, Pfi Partly needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, James Barlow, Martina Koberle-Gaiser suggests that, Pfi Partly 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 cash cycle compare to competitors
Pfi Partly 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.
Capital Spending Reduction
– Even during the low interest decade, Pfi Partly 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pfi Partly is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program | 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program are -
Buying journey improvements
– Pfi Partly can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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.
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. Pfi Partly 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. Pfi Partly 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.
Manufacturing automation
– Pfi Partly 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.
Better consumer reach
– The expansion of the 5G network will help Pfi Partly to increase its market reach. Pfi Partly 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pfi Partly 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.
Learning at scale
– Online learning technologies has now opened space for Pfi Partly 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pfi Partly can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Pfi Partly can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Pfi Partly 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pfi Partly can use these opportunities to build new business models that can help the communities that Pfi Partly operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Building a culture of innovation
– managers at Pfi Partly 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.
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 Pfi Partly 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.
Developing new processes and practices
– Pfi Partly 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.
Threats Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program are -
Technology acceleration in Forth Industrial Revolution
– Pfi Partly has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Pfi Partly 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.
Shortening product life cycle
– it is one of the major threat that Pfi Partly is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Pfi Partly
– 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 Pfi Partly.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, Pfi Partly 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 .
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.
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. Pfi Partly can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Pfi Partly 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.
Environmental challenges
– Pfi Partly 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. Pfi Partly can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Regulatory challenges
– Pfi Partly 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.
Stagnating economy with rate increase
– Pfi Partly 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.
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 Pfi Partly in the Organizational Development sector and impact the bottomline of the organization.
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 Pfi Partly.
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.
Weighted SWOT Analysis of Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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 Pfi Partly needs to make to build a sustainable competitive advantage.
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