Case Study Description of Profamilia: Planning to Survive
The Association for the Wellbeing of the Colombian Family, Profamilia, is a private, nonprofit organization founded in September 1965 by Dr. Fernando Tamayo Ogliastri with the objective of distributing family planning to low income families. Profamilia was a pioneer in its field; its impact increased as it became both organizationally and administratively stronger, and as its focus on family planning was expanded to include sexual and reproductive health. After four decades of operation, Profamilia continued to offer services to attend to the sexual and reproductive health of Colombians. By mid-2003, Profamilia, spurred by changes in the health sector in Colombia with the implementation of Law 100 of 1993, needed to redefine its strategy. The health sector reform encouraged the entry of other organizations that competed directly with Profamilia, resulting in the organization's loss of its relative monopoly as a provider of reproductive health services and family planning products. The most visible consequence was the reduction of its participation in the market. Changes in the sector gave impulse to the process of strategic redefinition to face critical tradeoffs between social and economic value generation.
Authors :: Ivan Dario Lobo, Roberto Gutierrez, Raul Sanabria
Swot Analysis of "Profamilia: Planning to Survive" written by Ivan Dario Lobo, Roberto Gutierrez, Raul Sanabria includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Profamilia Reproductive facing as an external strategic factors. Some of the topics covered in Profamilia: Planning to Survive case study are - Strategic Management Strategies, Social enterprise, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Profamilia: Planning to Survive casestudy better are - – there is increasing trade war between United States & China, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
increasing energy prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Profamilia: Planning to Survive
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Profamilia: Planning to Survive case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Profamilia Reproductive, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Profamilia Reproductive 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 Profamilia: Planning to Survive can be done for the following purposes –
1. Strategic planning using facts provided in Profamilia: Planning to Survive case study
2. Improving business portfolio management of Profamilia Reproductive
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 Profamilia Reproductive
Strengths Profamilia: Planning to Survive | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Profamilia Reproductive in Profamilia: Planning to Survive Harvard Business Review case study are -
Analytics focus
– Profamilia Reproductive 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 Ivan Dario Lobo, Roberto Gutierrez, Raul Sanabria 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.
Ability to recruit top talent
– Profamilia Reproductive is one of the leading recruiters in the industry. Managers in the Profamilia: Planning to Survive are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Profamilia Reproductive is present in almost all the verticals within the industry. This has provided firm in Profamilia: Planning to Survive 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.
Strong track record of project management
– Profamilia Reproductive is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Profamilia: Planning to Survive firm has clearly differentiated products in the market place. This has enabled Profamilia Reproductive to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Profamilia Reproductive to invest into research and development (R&D) and innovation.
Innovation driven organization
– Profamilia Reproductive is one of the most innovative firm in sector. Manager in Profamilia: Planning to Survive Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Profamilia Reproductive has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Profamilia Reproductive to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Profamilia: Planning to Survive Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Profamilia Reproductive has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Profamilia Reproductive 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
- Profamilia Reproductive 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 Profamilia Reproductive is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Profamilia: Planning to Survive Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Profamilia Reproductive
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Profamilia Reproductive does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Profamilia Reproductive has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Profamilia: Planning to Survive 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.
Weaknesses Profamilia: Planning to Survive | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Profamilia: Planning to Survive are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Profamilia: Planning to Survive, in the dynamic environment Profamilia Reproductive has struggled to respond to the nimble upstart competition. Profamilia Reproductive has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Profamilia Reproductive, firm in the HBR case study Profamilia: Planning to Survive needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Profamilia Reproductive 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. Profamilia Reproductive 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.
Increasing silos among functional specialists
– The organizational structure of Profamilia Reproductive is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Profamilia Reproductive needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Profamilia Reproductive to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Profamilia: Planning to Survive 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 Profamilia Reproductive 's lucrative customers.
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 Profamilia Reproductive supply chain. Even after few cautionary changes mentioned in the HBR case study - Profamilia: Planning to Survive, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Profamilia Reproductive vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Profamilia Reproductive 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.
Lack of clear differentiation of Profamilia Reproductive products
– To increase the profitability and margins on the products, Profamilia Reproductive needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Profamilia Reproductive 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Profamilia: Planning to Survive, is just above the industry average. Profamilia Reproductive 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Profamilia Reproductive is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Profamilia: Planning to Survive can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Profamilia: Planning to Survive | 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 Profamilia: Planning to Survive 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, Profamilia Reproductive can use these opportunities to build new business models that can help the communities that Profamilia Reproductive operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Profamilia Reproductive 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 Profamilia: Planning to Survive - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Profamilia Reproductive to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Profamilia Reproductive 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 Profamilia Reproductive to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Profamilia Reproductive 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.
Developing new processes and practices
– Profamilia Reproductive 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Profamilia Reproductive 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, Profamilia: Planning to Survive, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Profamilia Reproductive 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.
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. Profamilia Reproductive 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
– Profamilia Reproductive can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Profamilia: Planning to Survive 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.
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. Profamilia Reproductive can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Profamilia Reproductive can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Profamilia Reproductive 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.
Better consumer reach
– The expansion of the 5G network will help Profamilia Reproductive to increase its market reach. Profamilia Reproductive 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.
Threats Profamilia: Planning to Survive External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Profamilia: Planning to Survive are -
Technology acceleration in Forth Industrial Revolution
– Profamilia Reproductive has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Profamilia Reproductive 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.
Consumer confidence and its impact on Profamilia Reproductive 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.
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 Profamilia Reproductive 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 Profamilia Reproductive with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Profamilia Reproductive 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.
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. Profamilia Reproductive 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.
Shortening product life cycle
– it is one of the major threat that Profamilia Reproductive 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
– Profamilia Reproductive 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.
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 Profamilia Reproductive.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Profamilia: Planning to Survive, Profamilia Reproductive 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 .
Environmental challenges
– Profamilia Reproductive 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. Profamilia Reproductive can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Profamilia Reproductive 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.
Weighted SWOT Analysis of Profamilia: Planning to Survive 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 Profamilia: Planning to Survive 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 Profamilia: Planning to Survive 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 Profamilia: Planning to Survive 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 Profamilia: Planning to Survive 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 Profamilia Reproductive needs to make to build a sustainable competitive advantage.
