Centro de Gestion Hospitalaria SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Centro de Gestion Hospitalaria
The Centro de Gestion Hospitalaria (Hospital Management Center), a nonprofit organization created in Colombia in 1992 "to promote and lead health management transformation in order to contribute to the overall development of the sector," registered a loss of about $91,000 in 2001. Top management needed a strategy to put an end to operating losses and ensure its survival. To trigger alternative courses of action, the case provides information on the organization's background, activities, and achievements in its 10 years of existence; its structure and daily operation; and its associations with several companies. Outlines the center's main features to provide the necessary background for strategic decisions on how to tackle its operating losses and how to keep providing the training, consulting, research, and informational products needed by industry players. Covers up to mid-2002, and discussions may close with the developments that took place when the new government took office in August of that year.
Swot Analysis of "Centro de Gestion Hospitalaria" written by Roberto Gutierrez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gestion Hospitalaria facing as an external strategic factors. Some of the topics covered in Centro de Gestion Hospitalaria case study are - Strategic Management Strategies, Leadership, Organizational structure, Social enterprise, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Centro de Gestion Hospitalaria casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , technology disruption, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies,
there is backlash against globalization, geopolitical disruptions, etc
Introduction to SWOT Analysis of Centro de Gestion Hospitalaria
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Centro de Gestion Hospitalaria case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gestion Hospitalaria, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gestion Hospitalaria 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 Centro de Gestion Hospitalaria can be done for the following purposes –
1. Strategic planning using facts provided in Centro de Gestion Hospitalaria case study
2. Improving business portfolio management of Gestion Hospitalaria
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 Gestion Hospitalaria
Strengths Centro de Gestion Hospitalaria | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gestion Hospitalaria in Centro de Gestion Hospitalaria Harvard Business Review case study are -
Strong track record of project management
– Gestion Hospitalaria is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Gestion Hospitalaria 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 Roberto Gutierrez 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.
High switching costs
– The high switching costs that Gestion Hospitalaria 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.
Cross disciplinary teams
– Horizontal connected teams at the Gestion Hospitalaria 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.
Highly skilled collaborators
– Gestion Hospitalaria 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 Centro de Gestion Hospitalaria HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Gestion Hospitalaria is present in almost all the verticals within the industry. This has provided firm in Centro de Gestion Hospitalaria 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 brand equity
– Gestion Hospitalaria has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gestion Hospitalaria 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 Gestion Hospitalaria digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gestion Hospitalaria 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
– Gestion Hospitalaria has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Centro de Gestion Hospitalaria 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.
Successful track record of launching new products
– Gestion Hospitalaria has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gestion Hospitalaria 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.
Ability to recruit top talent
– Gestion Hospitalaria is one of the leading recruiters in the industry. Managers in the Centro de Gestion Hospitalaria are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Gestion Hospitalaria 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 Gestion Hospitalaria in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Centro de Gestion Hospitalaria | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Centro de Gestion Hospitalaria are -
Slow to strategic competitive environment developments
– As Centro de Gestion Hospitalaria HBR case study mentions - Gestion Hospitalaria takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Products dominated business model
– Even though Gestion Hospitalaria 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 - Centro de Gestion Hospitalaria should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Centro de Gestion Hospitalaria, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Aligning sales with marketing
– It come across in the case study Centro de Gestion Hospitalaria 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 Centro de Gestion Hospitalaria can leverage the sales team experience to cultivate customer relationships as Gestion Hospitalaria is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Gestion Hospitalaria 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Centro de Gestion Hospitalaria, is just above the industry average. Gestion Hospitalaria 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.
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 Gestion Hospitalaria supply chain. Even after few cautionary changes mentioned in the HBR case study - Centro de Gestion Hospitalaria, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gestion Hospitalaria vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Gestion Hospitalaria is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Gestion Hospitalaria needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gestion Hospitalaria to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Roberto Gutierrez suggests that, Gestion Hospitalaria 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Gestion Hospitalaria 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Centro de Gestion Hospitalaria, in the dynamic environment Gestion Hospitalaria has struggled to respond to the nimble upstart competition. Gestion Hospitalaria has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Centro de Gestion Hospitalaria | 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 Centro de Gestion Hospitalaria are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gestion Hospitalaria in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gestion Hospitalaria 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.
Building a culture of innovation
– managers at Gestion Hospitalaria 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gestion Hospitalaria can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Gestion Hospitalaria can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Gestion Hospitalaria 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gestion Hospitalaria 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 Gestion Hospitalaria to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Gestion Hospitalaria to increase its market reach. Gestion Hospitalaria 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.
Learning at scale
– Online learning technologies has now opened space for Gestion Hospitalaria 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.
Loyalty marketing
– Gestion Hospitalaria 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. Gestion Hospitalaria 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. Gestion Hospitalaria 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.
Creating value in data economy
– The success of analytics program of Gestion Hospitalaria has opened avenues for new revenue streams for the organization in the industry. This can help Gestion Hospitalaria to build a more holistic ecosystem as suggested in the Centro de Gestion Hospitalaria case study. Gestion Hospitalaria can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Gestion Hospitalaria in the consumer business. Now Gestion Hospitalaria can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Centro de Gestion Hospitalaria External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Centro de Gestion Hospitalaria are -
Regulatory challenges
– Gestion Hospitalaria 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gestion Hospitalaria with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Gestion Hospitalaria 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 Gestion Hospitalaria business can come under increasing regulations regarding data privacy, data security, etc.
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. Gestion Hospitalaria 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.
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. Gestion Hospitalaria needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Gestion Hospitalaria 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.
Increasing wage structure of Gestion Hospitalaria
– 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 Gestion Hospitalaria.
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 Gestion Hospitalaria.
Consumer confidence and its impact on Gestion Hospitalaria 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.
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.
Shortening product life cycle
– it is one of the major threat that Gestion Hospitalaria is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Centro de Gestion Hospitalaria 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 Centro de Gestion Hospitalaria 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 Centro de Gestion Hospitalaria 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 Centro de Gestion Hospitalaria 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 Centro de Gestion Hospitalaria 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 Gestion Hospitalaria needs to make to build a sustainable competitive advantage.
