Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso
McKinsey is an international consulting company that operates in 43 countries. Fundacion Compromiso is an nonprofit entity that provides training, counseling, and technical assistance to improve the management and impact of other nonprofit entities of Argentina. A third organization, Ashoka Association, supports social entrepreneurs and has a global alliance with McKinsey. Ashoka's intermediation is responsible for a cooperation program through which McKinsey applies its central skills to provide technical assistance to Fundacion Compromiso. The objectives of this activity are to evaluate one of Fundacion Compromiso's most important programs and establish a long-term growth strategy for this nonprofit entity. However, following the technical assistance work developed by McKinsey is a dramatic change in Argentina's social, political, and economic situations, which limit the agreed-on strategic plan, forcing Fundacion Compromiso to reconsider its growth strategy.
Authors :: Fernando Frydman, Guillermo Arnaudo, Cecilia Rena, Gabriel Berger
Topics :: Strategy & Execution
Tags :: International business, Joint ventures, Leadership, Public relations, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso" written by Fernando Frydman, Guillermo Arnaudo, Cecilia Rena, Gabriel Berger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fundacion Compromiso facing as an external strategic factors. Some of the topics covered in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso case study are - Strategic Management Strategies, International business, Joint ventures, Leadership, Public relations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso casestudy better are - – increasing commodity prices, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing energy prices, geopolitical disruptions, wage bills are increasing,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fundacion Compromiso, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso can be done for the following purposes –
1. Strategic planning using facts provided in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso case study
2. Improving business portfolio management of Fundacion Compromiso
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 Fundacion Compromiso
Strengths Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fundacion Compromiso in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso Harvard Business Review case study are -
High switching costs
– The high switching costs that Fundacion Compromiso 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.
Learning organization
- Fundacion Compromiso 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 Fundacion Compromiso is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso - 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
– Fundacion Compromiso 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 Fernando Frydman, Guillermo Arnaudo, Cecilia Rena, Gabriel Berger 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.
Superior customer experience
– The customer experience strategy of Fundacion Compromiso in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Fundacion Compromiso has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fundacion Compromiso 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.
Diverse revenue streams
– Fundacion Compromiso is present in almost all the verticals within the industry. This has provided firm in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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.
Organizational Resilience of Fundacion Compromiso
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fundacion Compromiso does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Fundacion Compromiso is one of the most innovative firm in sector. Manager in Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Fundacion Compromiso is one of the leading recruiters in the industry. Managers in the Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Fundacion Compromiso 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.
Weaknesses Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso are -
Increasing silos among functional specialists
– The organizational structure of Fundacion Compromiso is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Fundacion Compromiso needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fundacion Compromiso to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso, it seems that the employees of Fundacion Compromiso 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Fundacion Compromiso 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fundacion Compromiso is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 operating costs
– Compare to the competitors, firm in the HBR case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Fundacion Compromiso 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Fundacion Compromiso, firm in the HBR case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso, in the dynamic environment Fundacion Compromiso has struggled to respond to the nimble upstart competition. Fundacion Compromiso has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Fundacion Compromiso products
– To increase the profitability and margins on the products, Fundacion Compromiso 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 Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso, is just above the industry average. Fundacion Compromiso 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.
Aligning sales with marketing
– It come across in the case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso can leverage the sales team experience to cultivate customer relationships as Fundacion Compromiso is planning to shift buying processes online.
Opportunities Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso | 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fundacion Compromiso 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 Fundacion Compromiso to hire the very best people irrespective of their geographical location.
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 Fundacion Compromiso in the consumer business. Now Fundacion Compromiso can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fundacion Compromiso 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.
Loyalty marketing
– Fundacion Compromiso 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fundacion Compromiso can use these opportunities to build new business models that can help the communities that Fundacion Compromiso operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Fundacion Compromiso 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. Fundacion Compromiso 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fundacion Compromiso 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, Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fundacion Compromiso to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Fundacion Compromiso can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fundacion Compromiso is facing challenges because of the dominance of functional experts in the organization. Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Fundacion Compromiso 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 Fundacion Compromiso to increase its market reach. Fundacion Compromiso 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.
Developing new processes and practices
– Fundacion Compromiso 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.
Threats Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso are -
Technology acceleration in Forth Industrial Revolution
– Fundacion Compromiso has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Fundacion Compromiso 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.
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. Fundacion Compromiso needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Fundacion Compromiso in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Fundacion Compromiso is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Fundacion Compromiso business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso, Fundacion Compromiso 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 .
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 Fundacion Compromiso.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fundacion Compromiso 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fundacion Compromiso with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Fundacion Compromiso 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. Fundacion Compromiso can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Fundacion Compromiso 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 Fundacion Compromiso
– 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 Fundacion Compromiso.
Weighted SWOT Analysis of Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Alliances That Build Alliances: McKinsey-Ashoka and the Fundacion Compromiso 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 Fundacion Compromiso needs to make to build a sustainable competitive advantage.