FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens
The director of the FundaciA?n Bringas Haghenback (FBH), a non-profit community service organization in Mexico City, was preparing to present alternative market strategies to the board of directors for the three senior citizen homes run by the foundation. She hired a consulting team to research the services and marketing of each home as well as the external environment. She knew the demographic shifts in the Mexican population projected a drastic need for senior living facilities but had not yet decided how to meet the need. She faced the challenge of compiling the information into a convincing recommendation.
Swot Analysis of "FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens" written by Mary Conway Dato-on includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bringas Fbh facing as an external strategic factors. Some of the topics covered in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens case study are - Strategic Management Strategies, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens casestudy better are - – increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing energy prices, technology disruption, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bringas Fbh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bringas Fbh 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens can be done for the following purposes –
1. Strategic planning using facts provided in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens case study
2. Improving business portfolio management of Bringas Fbh
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bringas Fbh
Strengths FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bringas Fbh in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens Harvard Business Review case study are -
Training and development
– Bringas Fbh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 lead change in Sales & Marketing field
– Bringas Fbh 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 Bringas Fbh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Bringas Fbh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bringas Fbh 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Bringas Fbh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bringas Fbh 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.
Innovation driven organization
– Bringas Fbh is one of the most innovative firm in sector. Manager in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Bringas Fbh in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens firm has clearly differentiated products in the market place. This has enabled Bringas Fbh to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Bringas Fbh to invest into research and development (R&D) and innovation.
Strong track record of project management
– Bringas Fbh is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Bringas Fbh 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.
Cross disciplinary teams
– Horizontal connected teams at the Bringas Fbh 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.
Diverse revenue streams
– Bringas Fbh is present in almost all the verticals within the industry. This has provided firm in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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.
Learning organization
- Bringas Fbh 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 Bringas Fbh is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens are -
Workers concerns about automation
– As automation is fast increasing in the segment, Bringas Fbh 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens, is just above the industry average. Bringas Fbh 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.
Low market penetration in new markets
– Outside its home market of Bringas Fbh, firm in the HBR case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens, in the dynamic environment Bringas Fbh has struggled to respond to the nimble upstart competition. Bringas Fbh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Bringas Fbh 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 - FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bringas Fbh has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens HBR case study mentions - Bringas Fbh 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.
Aligning sales with marketing
– It come across in the case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens can leverage the sales team experience to cultivate customer relationships as Bringas Fbh is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Bringas Fbh is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Bringas Fbh needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bringas Fbh to focus more on services rather than just following the product oriented approach.
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 Bringas Fbh supply chain. Even after few cautionary changes mentioned in the HBR case study - FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bringas Fbh vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Bringas Fbh 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.
Opportunities FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens | 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens are -
Using analytics as competitive advantage
– Bringas Fbh 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bringas Fbh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bringas Fbh in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Loyalty marketing
– Bringas Fbh 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.
Leveraging digital technologies
– Bringas Fbh 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Bringas Fbh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bringas Fbh is facing challenges because of the dominance of functional experts in the organization. FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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.
Creating value in data economy
– The success of analytics program of Bringas Fbh has opened avenues for new revenue streams for the organization in the industry. This can help Bringas Fbh to build a more holistic ecosystem as suggested in the FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens case study. Bringas Fbh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bringas Fbh 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, FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Bringas Fbh to increase its market reach. Bringas Fbh 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bringas Fbh 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. Bringas Fbh 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.
Learning at scale
– Online learning technologies has now opened space for Bringas Fbh 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 Bringas Fbh can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bringas Fbh 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.
Threats FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens are -
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 Bringas Fbh.
Shortening product life cycle
– it is one of the major threat that Bringas Fbh is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens, Bringas Fbh may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Increasing wage structure of Bringas Fbh
– 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 Bringas Fbh.
Environmental challenges
– Bringas Fbh 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. Bringas Fbh can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Regulatory challenges
– Bringas Fbh 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 Sales & Marketing industry regulations.
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. Bringas Fbh needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bringas Fbh 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens .
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.
Technology acceleration in Forth Industrial Revolution
– Bringas Fbh has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Bringas Fbh needs to keep up with the evolution of technology in the Sales & Marketing 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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bringas Fbh 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. Bringas Fbh 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.
Consumer confidence and its impact on Bringas Fbh 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 FundaciA?n Bringas Hahgenbeck (FBH): Serving the Needs of Mexican Senior Citizens 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 Bringas Fbh needs to make to build a sustainable competitive advantage.