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 - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, increasing commodity prices, there is backlash against globalization,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, 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 -
High switching costs
– The high switching costs that Pfi Partly 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.
Low bargaining power of suppliers
– Suppliers of Pfi Partly in the sector have low bargaining power. Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pfi Partly to manage not only supply disruptions but also source products at highly competitive prices.
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.
Organizational Resilience of Pfi Partly
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pfi Partly does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Ability to recruit top talent
– Pfi Partly is one of the leading recruiters in the industry. Managers in the Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Pfi Partly 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.
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.
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.
Successful track record of launching new products
– Pfi Partly has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pfi Partly 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.
Effective Research and Development (R&D)
– Pfi Partly 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 -
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, is just above the industry average. Pfi Partly needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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.
No frontier risks strategy
– After analyzing the HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Pfi Partly 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. Pfi Partly 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.
Low market penetration in new markets
– Outside its home market of Pfi Partly, firm in the HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Pfi Partly 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.
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 Pfi Partly supply chain. Even after few cautionary changes mentioned in the HBR case study - Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pfi Partly vulnerable to further global disruptions in South East Asia.
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.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pfi Partly is facing challenges because of the dominance of functional experts in the organization. Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program 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.
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Pfi Partly has opened avenues for new revenue streams for the organization in the industry. This can help Pfi Partly to build a more holistic ecosystem as suggested in the Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program case study. Pfi Partly can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Pfi Partly 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 Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pfi Partly to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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 Pfi Partly in the consumer business. Now Pfi Partly can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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. Pfi Partly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pfi Partly can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pfi Partly 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.
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.
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. Pfi Partly needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Consumer confidence and its impact on Pfi Partly demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
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 Pfi Partly business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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 .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pfi Partly 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 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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program
