CEO Decision-making at Prairie Health Services SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of CEO Decision-making at Prairie Health Services
This case focuses on a significant problem faced by county-owned Prairie Health Service's administrators: What could be done to reduce multiple billings and other redundancies among the four divisions of the organization? The administrators' goal was to implement an integrated records management system that would streamline the registration and billing processes for patients thereby increasing efficiency and timeliness, as well as reducing financial losses. While this was a fiscally responsible goal for the organization, the records management software package selected by the CEO was inadequate for the task. Rather than listen to the recommendations of his division administrators who had spent considerable time researching potential software, the CEO seemed to be basing his selection decision on the personal relationship he had developed with sales representatives from one of the software firms.
Swot Analysis of "CEO Decision-making at Prairie Health Services" written by Valerie Wallingford, Sharon Gritzmacher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Administrators Prairie facing as an external strategic factors. Some of the topics covered in CEO Decision-making at Prairie Health Services case study are - Strategic Management Strategies, Leadership, Organizational culture, Performance measurement, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the CEO Decision-making at Prairie Health Services casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing commodity prices, geopolitical disruptions, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of CEO Decision-making at Prairie Health Services
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CEO Decision-making at Prairie Health Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Administrators Prairie, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Administrators Prairie 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 CEO Decision-making at Prairie Health Services can be done for the following purposes –
1. Strategic planning using facts provided in CEO Decision-making at Prairie Health Services case study
2. Improving business portfolio management of Administrators Prairie
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 Administrators Prairie
Strengths CEO Decision-making at Prairie Health Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Administrators Prairie in CEO Decision-making at Prairie Health Services Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– CEO Decision-making at Prairie Health Services firm has clearly differentiated products in the market place. This has enabled Administrators Prairie to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Administrators Prairie to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Administrators Prairie is present in almost all the verticals within the industry. This has provided firm in CEO Decision-making at Prairie Health Services 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.
High switching costs
– The high switching costs that Administrators Prairie 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
– Administrators Prairie is one of the leading recruiters in the industry. Managers in the CEO Decision-making at Prairie Health Services are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Administrators Prairie 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.
Learning organization
- Administrators Prairie 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 Administrators Prairie is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CEO Decision-making at Prairie Health Services Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Administrators Prairie has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Administrators Prairie to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Administrators Prairie has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CEO Decision-making at Prairie Health Services 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Administrators Prairie digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Administrators Prairie 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.
Strong track record of project management
– Administrators Prairie is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Administrators Prairie 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 CEO Decision-making at Prairie Health Services HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Administrators Prairie 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 CEO Decision-making at Prairie Health Services - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses CEO Decision-making at Prairie Health Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CEO Decision-making at Prairie Health Services are -
Lack of clear differentiation of Administrators Prairie products
– To increase the profitability and margins on the products, Administrators Prairie needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study CEO Decision-making at Prairie Health Services, in the dynamic environment Administrators Prairie has struggled to respond to the nimble upstart competition. Administrators Prairie has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Administrators Prairie 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. Administrators Prairie 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Valerie Wallingford, Sharon Gritzmacher suggests that, Administrators Prairie 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CEO Decision-making at Prairie Health Services, it seems that the employees of Administrators Prairie 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.
Low market penetration in new markets
– Outside its home market of Administrators Prairie, firm in the HBR case study CEO Decision-making at Prairie Health Services needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Administrators Prairie is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Administrators Prairie needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Administrators Prairie to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Administrators Prairie has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study CEO Decision-making at Prairie Health Services 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 CEO Decision-making at Prairie Health Services can leverage the sales team experience to cultivate customer relationships as Administrators Prairie is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study CEO Decision-making at Prairie Health Services 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 Administrators Prairie 's lucrative customers.
High cash cycle compare to competitors
Administrators Prairie 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.
Opportunities CEO Decision-making at Prairie Health Services | 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 CEO Decision-making at Prairie Health Services are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Administrators Prairie can use these opportunities to build new business models that can help the communities that Administrators Prairie operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Administrators Prairie 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.
Building a culture of innovation
– managers at Administrators Prairie 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.
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 Administrators Prairie in the consumer business. Now Administrators Prairie can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Administrators Prairie 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Administrators Prairie 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.
Developing new processes and practices
– Administrators Prairie 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.
Loyalty marketing
– Administrators Prairie 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.
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. Administrators Prairie 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. Administrators Prairie 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Administrators Prairie can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Administrators Prairie to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Administrators Prairie to hire the very best people irrespective of their geographical location.
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. Administrators Prairie can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Administrators Prairie can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CEO Decision-making at Prairie Health Services 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.
Threats CEO Decision-making at Prairie Health Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CEO Decision-making at Prairie Health Services are -
Technology acceleration in Forth Industrial Revolution
– Administrators Prairie has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Administrators Prairie 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.
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 Administrators Prairie in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CEO Decision-making at Prairie Health Services, Administrators Prairie 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Administrators Prairie 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 CEO Decision-making at Prairie Health Services .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Administrators Prairie with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Administrators Prairie 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.
Environmental challenges
– Administrators Prairie 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. Administrators Prairie can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Administrators Prairie needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Administrators Prairie 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.
High dependence on third party suppliers
– Administrators Prairie 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.
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 Administrators Prairie business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Weighted SWOT Analysis of CEO Decision-making at Prairie Health Services 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 CEO Decision-making at Prairie Health Services 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 CEO Decision-making at Prairie Health Services 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 CEO Decision-making at Prairie Health Services 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 CEO Decision-making at Prairie Health Services 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 Administrators Prairie needs to make to build a sustainable competitive advantage.
