Corporate Social Responsibility at CANTV, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Corporate Social Responsibility at CANTV, Spanish Version

At the close of 2004, CANTV was Venezuela's largest privately owned company. It operated in the telecom market, the only economic sector other than oil that enjoyed sustained growth in the 1990s. At the start of 2000, it faced growing competition, regulated tariffs, and deteriorating consumer purchasing power. The company focused efforts on cost containment and the introduction of new services. Although in 2004 the telecom sector rebounded, political instability, currency devaluation, and tariff regulation affected investment plans. Poses the challenge of designing a social responsibility strategy for a large, publicly traded Latin American company operating in a context of political instability, financial volatility, and growing poverty. President Gustavo Roosen felt CANTV should project a "grand and friendly" image to its stakeholders (customers, government, and suppliers, among others). The aim was to align the social portfolio with the image of a company that generated social (friendly) and economic value (grand). The company's social responsibility was implemented through a variety of programs. CANTV had placed emphasis on philanthropy by means of the Social Fund and other sponsorships, run from the Institutional Relations Department. In 2004 CANTV launched Super@ulas, a program aligned with the telecom business and managed from the Executive Vice President's office. Some of the company's top managers expressed concern in 2004 over the results generated by social contributions, and looked for synergistic opportunities--among them improved relations with the regulating agency and alignment with business objectives. The idea was to continue providing support to social agencies, many of which were at risk as a result of the shrinking number of grant sources and a government policy that sought total control over social programs.

Authors :: Maria H. Jaen, Patricia Marquez

Topics :: Organizational Development

Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Corporate Social Responsibility at CANTV, Spanish Version" written by Maria H. Jaen, Patricia Marquez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cantv Social facing as an external strategic factors. Some of the topics covered in Corporate Social Responsibility at CANTV, Spanish Version case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Organizational Development.

Some of the macro environment factors that can be used to understand the Corporate Social Responsibility at CANTV, Spanish Version casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, technology disruption, increasing commodity prices, talent flight as more people leaving formal jobs, increasing energy prices, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Corporate Social Responsibility at CANTV, Spanish Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Social Responsibility at CANTV, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cantv Social, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cantv Social 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Corporate Social Responsibility at CANTV, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Social Responsibility at CANTV, Spanish Version case study
2. Improving business portfolio management of Cantv Social
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 Cantv Social

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Strengths Corporate Social Responsibility at CANTV, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Cantv Social in Corporate Social Responsibility at CANTV, Spanish Version Harvard Business Review case study are -

High switching costs

– The high switching costs that Cantv Social 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.

Superior customer experience

– The customer experience strategy of Cantv Social in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to recruit top talent

– Cantv Social is one of the leading recruiters in the industry. Managers in the Corporate Social Responsibility at CANTV, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Cantv Social

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cantv Social does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Effective Research and Development (R&D)

– Cantv Social 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 Corporate Social Responsibility at CANTV, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Cross disciplinary teams

– Horizontal connected teams at the Cantv Social 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.

Innovation driven organization

– Cantv Social is one of the most innovative firm in sector. Manager in Corporate Social Responsibility at CANTV, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Low bargaining power of suppliers

– Suppliers of Cantv Social in the sector have low bargaining power. Corporate Social Responsibility at CANTV, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cantv Social to manage not only supply disruptions but also source products at highly competitive prices.

Strong track record of project management

– Cantv Social is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Training and development

– Cantv Social has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Social Responsibility at CANTV, Spanish Version 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.

Sustainable margins compare to other players in Organizational Development industry

– Corporate Social Responsibility at CANTV, Spanish Version firm has clearly differentiated products in the market place. This has enabled Cantv Social to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Cantv Social to invest into research and development (R&D) and innovation.

Ability to lead change in Organizational Development field

– Cantv Social 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 Cantv Social in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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Weaknesses Corporate Social Responsibility at CANTV, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Corporate Social Responsibility at CANTV, Spanish Version are -

No frontier risks strategy

– After analyzing the HBR case study Corporate Social Responsibility at CANTV, Spanish Version, 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.

Skills based hiring

– The stress on hiring functional specialists at Cantv Social 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.

Need for greater diversity

– Cantv Social has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Products dominated business model

– Even though Cantv Social 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 - Corporate Social Responsibility at CANTV, Spanish Version should strive to include more intangible value offerings along with its core products and services.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Corporate Social Responsibility at CANTV, Spanish Version, is just above the industry average. Cantv Social 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 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 Cantv Social supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Social Responsibility at CANTV, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cantv Social vulnerable to further global disruptions in South East Asia.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Corporate Social Responsibility at CANTV, Spanish Version, in the dynamic environment Cantv Social has struggled to respond to the nimble upstart competition. Cantv Social has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Workers concerns about automation

– As automation is fast increasing in the segment, Cantv Social 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.

Lack of clear differentiation of Cantv Social products

– To increase the profitability and margins on the products, Cantv Social needs to provide more differentiated products than what it is currently offering in the marketplace.

Capital Spending Reduction

– Even during the low interest decade, Cantv Social 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Corporate Social Responsibility at CANTV, Spanish Version, it seems that the employees of Cantv Social 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.

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Opportunities Corporate Social Responsibility at CANTV, Spanish Version | 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 Corporate Social Responsibility at CANTV, Spanish Version are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Cantv Social 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

– Cantv Social can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Social Responsibility at CANTV, Spanish Version 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 Cantv Social 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.

Loyalty marketing

– Cantv Social 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. Cantv Social can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Cantv Social can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Corporate Social Responsibility at CANTV, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Cantv Social is facing challenges because of the dominance of functional experts in the organization. Corporate Social Responsibility at CANTV, Spanish Version 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.

Learning at scale

– Online learning technologies has now opened space for Cantv Social to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cantv Social 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. Cantv Social 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.

Building a culture of innovation

– managers at Cantv Social 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.

Using analytics as competitive advantage

– Cantv Social 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 Corporate Social Responsibility at CANTV, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cantv Social to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cantv Social 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 Cantv Social to hire the very best people irrespective of their geographical location.

Leveraging digital technologies

– Cantv Social can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

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Threats Corporate Social Responsibility at CANTV, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Corporate Social Responsibility at CANTV, Spanish Version are -

Technology acceleration in Forth Industrial Revolution

– Cantv Social has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Cantv Social 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.

Increasing wage structure of Cantv Social

– 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 Cantv Social.

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 Cantv Social in the Organizational Development sector and impact the bottomline of the organization.

Stagnating economy with rate increase

– Cantv Social 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Cantv Social 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 Corporate Social Responsibility at CANTV, Spanish Version .

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. Cantv Social 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.

Shortening product life cycle

– it is one of the major threat that Cantv Social is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Cantv Social can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

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 Cantv Social.

Environmental challenges

– Cantv Social 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. Cantv Social can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Social Responsibility at CANTV, Spanish Version, Cantv Social may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .

High dependence on third party suppliers

– Cantv Social 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.

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Weighted SWOT Analysis of Corporate Social Responsibility at CANTV, Spanish Version 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 Corporate Social Responsibility at CANTV, Spanish Version 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 Corporate Social Responsibility at CANTV, Spanish Version 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 Corporate Social Responsibility at CANTV, Spanish Version 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 Corporate Social Responsibility at CANTV, Spanish Version 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 Cantv Social needs to make to build a sustainable competitive advantage.

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