International Rivers Network and the Bujagali Dam Project (A), Chinese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of International Rivers Network and the Bujagali Dam Project (A), Chinese Version
In the summer of 2002, the International Rivers Network (IRN), an environmental NGO located in Berkeley, California, was engaged in what appeared to be the last hours of a three year campaign to stop a $582 million dam and hydropower project at Bujagali Falls in Uganda. The final piece of the financing puzzle was about to be put in place as the World Bank was set to approve a $250 million loan guarantee for the project. Although the project would have some adverse environmental and social impacts, IRN contended that the power deal between the government of Uganda and AES was the real problem. As IRN saw it, the cost of the project was too high and Ugandans would bear most of the risk, which would add to the country's debt burden. However, without the power purchase agreement, which remained undisclosed despite requests for it to be made public, IRN had little economic data on the project to bolster its argument. Still, there were compelling reasons, such as economic development and poverty alleviation, for the Ugandan government to go ahead with the deal it had with AES, the project sponsor. AES, with its social mission and reputation for delivering low-cost energy to the world, seemed like the ideal sponsor.
Swot Analysis of "International Rivers Network and the Bujagali Dam Project (A), Chinese Version" written by Benjamin C. Esty, Aldo Sesia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Irn Aes facing as an external strategic factors. Some of the topics covered in International Rivers Network and the Bujagali Dam Project (A), Chinese Version case study are - Strategic Management Strategies, Emerging markets, Ethics, Government, Negotiations, Project management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the International Rivers Network and the Bujagali Dam Project (A), Chinese Version casestudy better are - – increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing energy prices, technology disruption, supply chains are disrupted by pandemic ,
wage bills are increasing, geopolitical disruptions, etc
Introduction to SWOT Analysis of International Rivers Network and the Bujagali Dam Project (A), Chinese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in International Rivers Network and the Bujagali Dam Project (A), Chinese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Irn Aes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Irn Aes 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version can be done for the following purposes –
1. Strategic planning using facts provided in International Rivers Network and the Bujagali Dam Project (A), Chinese Version case study
2. Improving business portfolio management of Irn Aes
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Irn Aes
Strengths International Rivers Network and the Bujagali Dam Project (A), Chinese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Irn Aes in International Rivers Network and the Bujagali Dam Project (A), Chinese Version Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Irn Aes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Irn Aes has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Irn Aes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Irn Aes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in International Rivers Network and the Bujagali Dam Project (A), Chinese Version 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.
Sustainable margins compare to other players in Finance & Accounting industry
– International Rivers Network and the Bujagali Dam Project (A), Chinese Version firm has clearly differentiated products in the market place. This has enabled Irn Aes to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Irn Aes to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the International Rivers Network and the Bujagali Dam Project (A), Chinese 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.
Successful track record of launching new products
– Irn Aes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Irn Aes 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.
High brand equity
– Irn Aes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Irn Aes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Finance & Accounting field
– Irn Aes 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 Irn Aes in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Irn Aes 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 Irn Aes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in International Rivers Network and the Bujagali Dam Project (A), Chinese Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Irn Aes in the sector have low bargaining power. International Rivers Network and the Bujagali Dam Project (A), Chinese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Irn Aes to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Irn Aes 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 International Rivers Network and the Bujagali Dam Project (A), Chinese 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.
High switching costs
– The high switching costs that Irn Aes 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.
Weaknesses International Rivers Network and the Bujagali Dam Project (A), Chinese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of International Rivers Network and the Bujagali Dam Project (A), Chinese Version are -
Slow to strategic competitive environment developments
– As International Rivers Network and the Bujagali Dam Project (A), Chinese Version HBR case study mentions - Irn Aes 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.
Capital Spending Reduction
– Even during the low interest decade, Irn Aes 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.
Low market penetration in new markets
– Outside its home market of Irn Aes, firm in the HBR case study International Rivers Network and the Bujagali Dam Project (A), Chinese Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version can leverage the sales team experience to cultivate customer relationships as Irn Aes is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the International Rivers Network and the Bujagali Dam Project (A), Chinese Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Irn Aes has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Irn Aes 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study International Rivers Network and the Bujagali Dam Project (A), Chinese Version, is just above the industry average. Irn Aes 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 decision making process
– As mentioned earlier in the report, Irn Aes 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. Irn Aes even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Benjamin C. Esty, Aldo Sesia suggests that, Irn Aes 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.
Lack of clear differentiation of Irn Aes products
– To increase the profitability and margins on the products, Irn Aes needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Irn Aes 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 - International Rivers Network and the Bujagali Dam Project (A), Chinese Version should strive to include more intangible value offerings along with its core products and services.
Opportunities International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version 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, Irn Aes can use these opportunities to build new business models that can help the communities that Irn Aes operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Irn Aes 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 Irn Aes 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 Irn Aes in the consumer business. Now Irn Aes can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Irn Aes has opened avenues for new revenue streams for the organization in the industry. This can help Irn Aes to build a more holistic ecosystem as suggested in the International Rivers Network and the Bujagali Dam Project (A), Chinese Version case study. Irn Aes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Irn Aes 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, International Rivers Network and the Bujagali Dam Project (A), Chinese 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.
Loyalty marketing
– Irn Aes 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Irn Aes 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 Irn Aes 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 Finance & Accounting segment.
Better consumer reach
– The expansion of the 5G network will help Irn Aes to increase its market reach. Irn Aes 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.
Manufacturing automation
– Irn Aes can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Irn Aes is facing challenges because of the dominance of functional experts in the organization. International Rivers Network and the Bujagali Dam Project (A), Chinese Version 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.
Using analytics as competitive advantage
– Irn Aes 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Irn Aes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Irn Aes 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. Irn Aes 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.
Threats International Rivers Network and the Bujagali Dam Project (A), Chinese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study International Rivers Network and the Bujagali Dam Project (A), Chinese Version are -
Environmental challenges
– Irn Aes 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. Irn Aes can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Irn Aes 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 Finance & Accounting industry regulations.
Consumer confidence and its impact on Irn Aes 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 acceleration in Forth Industrial Revolution
– Irn Aes has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Irn Aes needs to keep up with the evolution of technology in the Finance & Accounting 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.
Shortening product life cycle
– it is one of the major threat that Irn Aes is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version, Irn Aes may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Irn Aes in the Finance & Accounting sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Irn Aes 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Irn Aes 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, Irn Aes 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 International Rivers Network and the Bujagali Dam Project (A), Chinese Version .
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. Irn Aes 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.
Increasing wage structure of Irn Aes
– 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 Irn Aes.
Stagnating economy with rate increase
– Irn Aes 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.
Weighted SWOT Analysis of International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese 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 International Rivers Network and the Bujagali Dam Project (A), Chinese 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 Irn Aes needs to make to build a sustainable competitive advantage.