Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version

In 2002, Telemig Cellular was a mobile telephone company operating in the Brazilian state of Minas Gerais. The company had founded its operations on the "capillarity" principle: reaching to consumers spread throughout the state to cater to their needs effectively. This principle also applied to the Telemig Institute, the company's social division, which focused on children's and teenagers' rights. To uphold this mission, the institute decided to work for the creation and strengthening of Tutoring Councils (local government bodies in charge of guaranteeing children's rights) and Municipal Councils for Children's and Youths' Rights in the Minas Gerais state. For its Pro-Council Program, the institute gathered civil society organizations from every one of the 12 regions in the state to build the so-called Volunteer Support Groups. Under the institute's leadership and counseling, these groups worked with local administrations and provided operational support for council creation.

Authors :: Rosa Maria Fischer, Joao Teixeira Pires, Luciana Rocha De Mendonca, Monica Bose

Topics :: Strategy & Execution

Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version" written by Rosa Maria Fischer, Joao Teixeira Pires, Luciana Rocha De Mendonca, Monica Bose includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telemig Children's facing as an external strategic factors. Some of the topics covered in Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version casestudy better are - – increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, wage bills are increasing, technology disruption, central banks are concerned over increasing inflation, etc

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Introduction to SWOT Analysis of Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telemig Children's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telemig Children's 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version can be done for the following purposes –
1. Strategic planning using facts provided in Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version case study
2. Improving business portfolio management of Telemig Children's
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 Telemig Children's

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Strengths Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Telemig Children's in Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version Harvard Business Review case study are -

Highly skilled collaborators

– Telemig Children's 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

High brand equity

– Telemig Children's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telemig Children's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Superior customer experience

– The customer experience strategy of Telemig Children's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Successful track record of launching new products

– Telemig Children's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telemig Children's 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.

Effective Research and Development (R&D)

– Telemig Children's 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Operational resilience

– The operational resilience strategy in the Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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.

Organizational Resilience of Telemig Children's

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Telemig Children's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Telemig Children's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Telemig Children's 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.

Ability to lead change in Strategy & Execution field

– Telemig Children's 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 Telemig Children's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Learning organization

- Telemig Children's 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 Telemig Children's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Telemig Children's 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 Rosa Maria Fischer, Joao Teixeira Pires, Luciana Rocha De Mendonca, Monica Bose 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 Telemig Children's 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.

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Weaknesses Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version, is just above the industry average. Telemig Children's 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.

Low market penetration in new markets

– Outside its home market of Telemig Children's, firm in the HBR case study Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Workers concerns about automation

– As automation is fast increasing in the segment, Telemig Children's 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 strategic competitive environment developments

– As Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version HBR case study mentions - Telemig Children's 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.

Aligning sales with marketing

– It come across in the case study Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version can leverage the sales team experience to cultivate customer relationships as Telemig Children's is planning to shift buying processes online.

Skills based hiring

– The stress on hiring functional specialists at Telemig Children's 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.

Interest costs

– Compare to the competition, Telemig Children's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

High cash cycle compare to competitors

Telemig Children's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Slow decision making process

– As mentioned earlier in the report, Telemig Children's 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. Telemig Children's 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 operating costs

– Compare to the competitors, firm in the HBR case study Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Children's 's lucrative customers.

Lack of clear differentiation of Telemig Children's products

– To increase the profitability and margins on the products, Telemig Children's needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version | 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Telemig Children's 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 Telemig Children's to hire the very best people irrespective of their geographical location.

Learning at scale

– Online learning technologies has now opened space for Telemig Children's 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.

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. Telemig Children's can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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 Telemig Children's in the consumer business. Now Telemig Children's can target international markets with far fewer capital restrictions requirements than the existing system.

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 Telemig Children's 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Telemig Children's 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, Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Building a culture of innovation

– managers at Telemig Children's 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.

Manufacturing automation

– Telemig Children's 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.

Leveraging digital technologies

– Telemig Children's 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.

Using analytics as competitive advantage

– Telemig Children's 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telemig Children's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Buying journey improvements

– Telemig Children's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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.

Better consumer reach

– The expansion of the 5G network will help Telemig Children's to increase its market reach. Telemig Children's 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

– Telemig Children's 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.

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Threats Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version are -

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. Telemig Children's 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.

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.

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. Telemig Children's 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

– Telemig Children's 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 Telemig Children's.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telemig Children's 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.

Easy access to finance

– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Telemig Children's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Telemig Children's 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version .

Environmental challenges

– Telemig Children's 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. Telemig Children's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Technology acceleration in Forth Industrial Revolution

– Telemig Children's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Telemig Children's 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.

Increasing wage structure of Telemig Children's

– 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 Telemig Children's.

Regulatory challenges

– Telemig Children's 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.

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Weighted SWOT Analysis of Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Cellular and the Guarantee of Children's and Adolescents' Rights, Portuguese Version 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 Telemig Children's needs to make to build a sustainable competitive advantage.

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