PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta
Confidential Instructions for the Representative of Indocarta 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 Indocarta" written by Ericka Gray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Indocarta Rice facing as an external strategic factors. Some of the topics covered in PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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 Indocarta casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, wage bills are increasing, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, technology disruption,
increasing government debt because of Covid-19 spendings, increasing energy prices, etc
Introduction to SWOT Analysis of PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta
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 Indocarta case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Indocarta Rice, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Indocarta 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 Indocarta can be done for the following purposes –
1. Strategic planning using facts provided in PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta case study
2. Improving business portfolio management of Indocarta 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 Indocarta Rice
Strengths PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Indocarta Rice in PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta Harvard Business Review case study are -
Training and development
– Indocarta 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 Indocarta 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 recruit top talent
– Indocarta Rice is one of the leading recruiters in the industry. Managers in the PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Indocarta Rice in the sector have low bargaining power. PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Indocarta Rice to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Indocarta 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.
Strong track record of project management
– Indocarta Rice is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Indocarta 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 Indocarta - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Indocarta Rice 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.
Diverse revenue streams
– Indocarta Rice is present in almost all the verticals within the industry. This has provided firm in PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Indocarta Rice digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Indocarta 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.
Learning organization
- Indocarta 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 Indocarta 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 Indocarta Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Indocarta Rice has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Indocarta Rice to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Indocarta 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 Indocarta HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta | 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 Indocarta are -
High cash cycle compare to competitors
Indocarta 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Indocarta Rice is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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 Indocarta Rice has relatively successful track record of launching new products.
Products dominated business model
– Even though Indocarta 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 Indocarta should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Indocarta Rice 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
– Indocarta Rice 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta, it seems that the employees of Indocarta Rice don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow decision making process
– As mentioned earlier in the report, Indocarta 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. Indocarta 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.
Lack of clear differentiation of Indocarta Rice products
– To increase the profitability and margins on the products, Indocarta Rice needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta, is just above the industry average. Indocarta 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.
Increasing silos among functional specialists
– The organizational structure of Indocarta Rice is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Indocarta Rice needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Indocarta Rice to focus more on services rather than just following the product oriented approach.
Opportunities PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta | 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 Indocarta are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Indocarta 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 Indocarta, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Indocarta Rice in the consumer business. Now Indocarta Rice can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Indocarta Rice 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.
Building a culture of innovation
– managers at Indocarta 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.
Using analytics as competitive advantage
– Indocarta Rice 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 - Confidential Instructions for the Representative of Indocarta - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Indocarta Rice to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Indocarta 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.
Better consumer reach
– The expansion of the 5G network will help Indocarta Rice to increase its market reach. Indocarta Rice 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.
Loyalty marketing
– Indocarta 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.
Buying journey improvements
– Indocarta Rice can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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.
Learning at scale
– Online learning technologies has now opened space for Indocarta 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Indocarta 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.
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. Indocarta Rice can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Indocarta 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.
Threats PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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 Indocarta are -
Shortening product life cycle
– it is one of the major threat that Indocarta Rice is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Indocarta Rice
– 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 Indocarta Rice.
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 Indocarta Rice in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Indocarta Rice with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Indocarta Rice 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.
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 - Confidential Instructions for the Representative of Indocarta, Indocarta Rice 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 .
High dependence on third party suppliers
– Indocarta 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.
Consumer confidence and its impact on Indocarta 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.
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 Indocarta Rice business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Indocarta Rice 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.
Technology acceleration in Forth Industrial Revolution
– Indocarta Rice has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Indocarta 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.
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 Indocarta Rice.
Stagnating economy with rate increase
– Indocarta 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.
Weighted SWOT Analysis of PACRIM DISPUTE - Confidential Instructions for the Representative of Indocarta 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 Indocarta 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 Indocarta 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 Indocarta 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 Indocarta 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 Indocarta Rice needs to make to build a sustainable competitive advantage.
