PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani
Confidential Instructions for the Representative of Hawani for product #PON374.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 - Confidential Instructions for the Representative of Hawani" written by Ericka Gray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hawani Rice facing as an external strategic factors. Some of the topics covered in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing commodity prices,
central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hawani Rice, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hawani Rice 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 - Confidential Instructions for the Representative of Hawani can be done for the following purposes –
1. Strategic planning using facts provided in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani case study
2. Improving business portfolio management of Hawani Rice
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 Hawani Rice
Strengths PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hawani Rice in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani Harvard Business Review case study are -
Highly skilled collaborators
– Hawani Rice 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 - Confidential Instructions for the Representative of Hawani HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Hawani Rice 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 - Confidential Instructions for the Representative of Hawani - 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 Hawani Rice 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.
High brand equity
– Hawani Rice has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hawani Rice to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Hawani Rice digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hawani Rice 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.
Training and development
– Hawani Rice has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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 Strategy & Execution field
– Hawani Rice 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 Hawani Rice in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Hawani Rice is present in almost all the verticals within the industry. This has provided firm in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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.
Successful track record of launching new products
– Hawani Rice has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hawani Rice 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.
Learning organization
- Hawani Rice 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 Hawani Rice is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Hawani Rice 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.
Ability to recruit top talent
– Hawani Rice is one of the leading recruiters in the industry. Managers in the PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani are -
Slow decision making process
– As mentioned earlier in the report, Hawani Rice 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. Hawani Rice 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.
Interest costs
– Compare to the competition, Hawani Rice 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.
Products dominated business model
– Even though Hawani Rice 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 - Confidential Instructions for the Representative of Hawani should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Hawani Rice products
– To increase the profitability and margins on the products, Hawani Rice needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hawani Rice 's lucrative customers.
Aligning sales with marketing
– It come across in the case study PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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 PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani can leverage the sales team experience to cultivate customer relationships as Hawani Rice is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani, is just above the industry average. Hawani Rice 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani, in the dynamic environment Hawani Rice has struggled to respond to the nimble upstart competition. Hawani Rice has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Hawani Rice 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.
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 Hawani Rice supply chain. Even after few cautionary changes mentioned in the HBR case study - PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hawani Rice vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Hawani Rice 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.
Opportunities PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani | 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 - Confidential Instructions for the Representative of Hawani are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hawani Rice 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, PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Hawani Rice 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.
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. Hawani Rice can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hawani Rice 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hawani Rice is facing challenges because of the dominance of functional experts in the organization. PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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, Hawani Rice can use these opportunities to build new business models that can help the communities that Hawani Rice operates in. Secondly it can use opportunities from government spending in Strategy & Execution 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 Hawani Rice in the consumer business. Now Hawani Rice can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Hawani Rice 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.
Leveraging digital technologies
– Hawani Rice 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.
Learning at scale
– Online learning technologies has now opened space for Hawani Rice 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.
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 Hawani Rice 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
– Hawani Rice 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.
Creating value in data economy
– The success of analytics program of Hawani Rice has opened avenues for new revenue streams for the organization in the industry. This can help Hawani Rice to build a more holistic ecosystem as suggested in the PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani case study. Hawani Rice can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani are -
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. Hawani Rice 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hawani Rice with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hawani Rice 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 - Confidential Instructions for the Representative of Hawani .
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 Hawani Rice in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Hawani Rice 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. Hawani Rice can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Hawani Rice 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.
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.
Shortening product life cycle
– it is one of the major threat that Hawani Rice is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Hawani Rice 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.
High dependence on third party suppliers
– Hawani Rice 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.
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 Hawani Rice.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hawani Rice can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Hawani Rice has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Hawani Rice 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.
Weighted SWOT Analysis of PACRIM DISPUTE - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani 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 - Confidential Instructions for the Representative of Hawani 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 Hawani Rice needs to make to build a sustainable competitive advantage.
