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 - – challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, increasing household debt because of falling income levels, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
Increasing silos among functional specialists
– The organizational structure of Pfi Partly is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Pfi Partly needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pfi Partly to focus more on services rather than just following the product oriented approach.
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.
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.
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.
Slow to strategic competitive environment developments
– As Delivering Innovation in Hospital Construction: Contracts and Collaboration in the UK's Private Finance Initiative Hospitals Program HBR case study mentions - Pfi Partly takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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.
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.
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.
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.
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.
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 -
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pfi Partly 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 Pfi Partly to hire the very best people irrespective of their geographical location.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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 .
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 .
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.
High dependence on third party suppliers
– Pfi Partly 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.
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.
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.
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.
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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