Case Study Description of PACRIM DISPUTE - General Instructions
This case includes supplements.Three-party, multi-issue international trade negotiation among three culturally different countries over which of two countries will export rice to the third; inculdes coalition and ongoing relationship issues. Fuji, the regional power in the "Pacrim" trading block, is a large island nation that imports significant quantities of rice, but that is constitutionally bound to import rice from only one country at a time. The smaller, historically unfriendly island nations of Indocarta and Hawani both wish to export their rice to Fuji. In a series of one-on-one and tripartite meetings, representatives of the three nations must determine not only whether and how Fuji will import rice, but also whether Indocarta and Hawani will cooperate or compete with each other in such an arrangement. The changing economy and the cultural differences among the three nations play a crucial role in the negotiations. This is a role play case.
Swot Analysis of "PACRIM DISPUTE - General Instructions" written by Ericka Gray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rice Fuji facing as an external strategic factors. Some of the topics covered in PACRIM DISPUTE - General Instructions case study are - Strategic Management Strategies, Government, International business, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the PACRIM DISPUTE - General Instructions casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing energy prices, increasing commodity prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of PACRIM DISPUTE - General Instructions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PACRIM DISPUTE - General Instructions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rice Fuji, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rice Fuji 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 PACRIM DISPUTE - General Instructions can be done for the following purposes –
1. Strategic planning using facts provided in PACRIM DISPUTE - General Instructions case study
2. Improving business portfolio management of Rice Fuji
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Rice Fuji
Strengths PACRIM DISPUTE - General Instructions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rice Fuji in PACRIM DISPUTE - General Instructions Harvard Business Review case study are -
Organizational Resilience of Rice Fuji
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rice Fuji does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– PACRIM DISPUTE - General Instructions firm has clearly differentiated products in the market place. This has enabled Rice Fuji to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Rice Fuji to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Rice Fuji has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rice Fuji 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.
High switching costs
– The high switching costs that Rice Fuji 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.
Effective Research and Development (R&D)
– Rice Fuji 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 PACRIM DISPUTE - General Instructions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Rice Fuji in the sector have low bargaining power. PACRIM DISPUTE - General Instructions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rice Fuji to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Rice Fuji 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 Rice Fuji is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PACRIM DISPUTE - General Instructions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Rice Fuji is one of the most innovative firm in sector. Manager in PACRIM DISPUTE - General Instructions 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
– Rice Fuji 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 PACRIM DISPUTE - General Instructions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Rice Fuji in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Rice Fuji has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PACRIM DISPUTE - General Instructions Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Rice Fuji is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Ericka Gray can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses PACRIM DISPUTE - General Instructions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PACRIM DISPUTE - General Instructions are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PACRIM DISPUTE - General Instructions, is just above the industry average. Rice Fuji 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.
Products dominated business model
– Even though Rice Fuji 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 - PACRIM DISPUTE - General Instructions should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Rice Fuji is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Rice Fuji needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rice Fuji to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Rice Fuji products
– To increase the profitability and margins on the products, Rice Fuji needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Rice Fuji, firm in the HBR case study PACRIM DISPUTE - General Instructions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Rice Fuji 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Rice Fuji 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 bargaining power of channel partners
– Because of the regulatory requirements, Ericka Gray suggests that, Rice Fuji is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Rice Fuji 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 PACRIM DISPUTE - General Instructions, it seems that the employees of Rice Fuji 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.
No frontier risks strategy
– After analyzing the HBR case study PACRIM DISPUTE - General Instructions, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities PACRIM DISPUTE - General Instructions | 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 PACRIM DISPUTE - General Instructions are -
Better consumer reach
– The expansion of the 5G network will help Rice Fuji to increase its market reach. Rice Fuji 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.
Manufacturing automation
– Rice Fuji can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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. Rice Fuji can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Rice Fuji can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PACRIM DISPUTE - General Instructions 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Rice Fuji 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Rice Fuji 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
– Rice Fuji 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 PACRIM DISPUTE - General Instructions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rice Fuji to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Rice Fuji 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 Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Rice Fuji has opened avenues for new revenue streams for the organization in the industry. This can help Rice Fuji to build a more holistic ecosystem as suggested in the PACRIM DISPUTE - General Instructions case study. Rice Fuji can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Rice Fuji 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. Rice Fuji 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.
Developing new processes and practices
– Rice Fuji can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rice Fuji is facing challenges because of the dominance of functional experts in the organization. PACRIM DISPUTE - General Instructions 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, Rice Fuji can use these opportunities to build new business models that can help the communities that Rice Fuji operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats PACRIM DISPUTE - General Instructions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PACRIM DISPUTE - General Instructions are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rice Fuji with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Rice Fuji 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 Strategy & Execution industry regulations.
Technology acceleration in Forth Industrial Revolution
– Rice Fuji has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Rice Fuji needs to keep up with the evolution of technology in the Strategy & Execution 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
– Rice Fuji 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. Rice Fuji can take advantage of this fund but it will also bring new competitors in the Strategy & Execution 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 PACRIM DISPUTE - General Instructions, Rice Fuji may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Stagnating economy with rate increase
– Rice Fuji 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rice Fuji in the Strategy & Execution industry. The Strategy & Execution 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.
Consumer confidence and its impact on Rice Fuji 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.
Shortening product life cycle
– it is one of the major threat that Rice Fuji is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Rice Fuji business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Rice Fuji
– 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 Rice Fuji.
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. Rice Fuji needs to understand the core reasons impacting the Strategy & Execution 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, Rice Fuji 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 PACRIM DISPUTE - General Instructions .
Weighted SWOT Analysis of PACRIM DISPUTE - General Instructions 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 PACRIM DISPUTE - General Instructions 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 PACRIM DISPUTE - General Instructions 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 PACRIM DISPUTE - General Instructions 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 PACRIM DISPUTE - General Instructions 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 Rice Fuji needs to make to build a sustainable competitive advantage.
