Management Costs at CHIP: A Way Forward for a Pakistani NGO SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Management Costs at CHIP: A Way Forward for a Pakistani NGO
The three founding members of the Civil Society Human and Institutional Development Programme (CHIP), a Pakistani not-for-profit organization, need to determine how to satisfy management and operational costs. CHIP is a mainstream development organization in Pakistan, with a focus on Human and Institutional Development. CHIP became successful by maintaining high standards of management practices. Such standards require regular financial support to account for the cost of institutional necessities, such as staff positions in financial and administration management and human resources. While international donors are willing to work with CHIP due to its high management standards, they are not willing to meet the costs of these standards. Zunaira Saqib is affiliated with National University of Sciences and Technology, NUST Business School. Nabiha Khattak is affiliated with National University of Sciences and Technology.
Swot Analysis of "Management Costs at CHIP: A Way Forward for a Pakistani NGO" written by Zunaira Saqib, Nabiha Khattak includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chip Standards facing as an external strategic factors. Some of the topics covered in Management Costs at CHIP: A Way Forward for a Pakistani NGO case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Management Costs at CHIP: A Way Forward for a Pakistani NGO casestudy better are - – central banks are concerned over increasing inflation, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing energy prices, geopolitical disruptions, technology disruption,
increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Management Costs at CHIP: A Way Forward for a Pakistani NGO
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Management Costs at CHIP: A Way Forward for a Pakistani NGO case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chip Standards, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chip Standards 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO can be done for the following purposes –
1. Strategic planning using facts provided in Management Costs at CHIP: A Way Forward for a Pakistani NGO case study
2. Improving business portfolio management of Chip Standards
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 Chip Standards
Strengths Management Costs at CHIP: A Way Forward for a Pakistani NGO | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chip Standards in Management Costs at CHIP: A Way Forward for a Pakistani NGO Harvard Business Review case study are -
Innovation driven organization
– Chip Standards is one of the most innovative firm in sector. Manager in Management Costs at CHIP: A Way Forward for a Pakistani NGO Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Chip Standards has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Management Costs at CHIP: A Way Forward for a Pakistani NGO 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.
Low bargaining power of suppliers
– Suppliers of Chip Standards in the sector have low bargaining power. Management Costs at CHIP: A Way Forward for a Pakistani NGO has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chip Standards to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Chip Standards 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.
Ability to recruit top talent
– Chip Standards is one of the leading recruiters in the industry. Managers in the Management Costs at CHIP: A Way Forward for a Pakistani NGO are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Chip Standards 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Chip Standards
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chip Standards does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Management Costs at CHIP: A Way Forward for a Pakistani NGO 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
– Chip Standards has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chip Standards 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.
Superior customer experience
– The customer experience strategy of Chip Standards in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Chip Standards 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 Chip Standards is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Management Costs at CHIP: A Way Forward for a Pakistani NGO Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Management Costs at CHIP: A Way Forward for a Pakistani NGO firm has clearly differentiated products in the market place. This has enabled Chip Standards to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Chip Standards to invest into research and development (R&D) and innovation.
Weaknesses Management Costs at CHIP: A Way Forward for a Pakistani NGO | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Management Costs at CHIP: A Way Forward for a Pakistani NGO are -
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 Chip Standards supply chain. Even after few cautionary changes mentioned in the HBR case study - Management Costs at CHIP: A Way Forward for a Pakistani NGO, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chip Standards vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Chip Standards 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 - Management Costs at CHIP: A Way Forward for a Pakistani NGO should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Chip Standards 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.
Skills based hiring
– The stress on hiring functional specialists at Chip Standards 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.
Slow to strategic competitive environment developments
– As Management Costs at CHIP: A Way Forward for a Pakistani NGO HBR case study mentions - Chip Standards 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.
High cash cycle compare to competitors
Chip Standards 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Chip Standards 's lucrative customers.
Need for greater diversity
– Chip Standards has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Management Costs at CHIP: A Way Forward for a Pakistani NGO, is just above the industry average. Chip Standards 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, Chip Standards 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. Chip Standards 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.
Low market penetration in new markets
– Outside its home market of Chip Standards, firm in the HBR case study Management Costs at CHIP: A Way Forward for a Pakistani NGO needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Management Costs at CHIP: A Way Forward for a Pakistani NGO | 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO are -
Using analytics as competitive advantage
– Chip Standards 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chip Standards to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Chip Standards 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.
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 Chip Standards 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.
Loyalty marketing
– Chip Standards 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.
Better consumer reach
– The expansion of the 5G network will help Chip Standards to increase its market reach. Chip Standards 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chip Standards can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Chip Standards in the consumer business. Now Chip Standards can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Chip Standards 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.
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. Chip Standards 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. Chip Standards 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.
Building a culture of innovation
– managers at Chip Standards 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.
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. Chip Standards can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Chip Standards 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chip Standards 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.
Threats Management Costs at CHIP: A Way Forward for a Pakistani NGO External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Management Costs at CHIP: A Way Forward for a Pakistani NGO are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Management Costs at CHIP: A Way Forward for a Pakistani NGO, Chip Standards 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chip Standards 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO .
Technology acceleration in Forth Industrial Revolution
– Chip Standards has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Chip Standards 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. Chip Standards needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Chip Standards can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Stagnating economy with rate increase
– Chip Standards 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.
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 Chip Standards business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Chip Standards 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. Chip Standards can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Chip Standards.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chip Standards 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.
Increasing wage structure of Chip Standards
– 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 Chip Standards.
Shortening product life cycle
– it is one of the major threat that Chip Standards 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Management Costs at CHIP: A Way Forward for a Pakistani NGO 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 Chip Standards needs to make to build a sustainable competitive advantage.
