Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF)

HDIF is one of the few Armenia-based organizations that falls under the vague definition of a social enterprise. HDIF is focusing its activity in three areas: selling handicrafts; tourism development through organizing festivals; and, empowering rural communities in Armenia. The founder, Tim Straight, is leaving the foundation and the executive director will have to assume responsibility for the emerging new strategy that she and the founder had begun discussing. Should she continue down the same path and remain heavily dependent on the continuing financial investments from Tim Straight, or should she shift to a new and economically promising area of eco-tourism in order to become financially sustainable?

Authors :: Sergey Tantushyan

Topics :: Strategy & Execution

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

Swot Analysis of "Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF)" written by Sergey Tantushyan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hdif Armenia facing as an external strategic factors. Some of the topics covered in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) case study are - Strategic Management Strategies, International business, Social enterprise, Social responsibility and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, etc

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Introduction to SWOT Analysis of Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF)

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hdif Armenia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hdif Armenia 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) can be done for the following purposes –
1. Strategic planning using facts provided in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) case study
2. Improving business portfolio management of Hdif Armenia
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 Hdif Armenia

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Strengths Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hdif Armenia in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) Harvard Business Review case study are -

High brand equity

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

Organizational Resilience of Hdif Armenia

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

Cross disciplinary teams

– Horizontal connected teams at the Hdif Armenia 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.

Effective Research and Development (R&D)

– Hdif Armenia 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Innovation driven organization

– Hdif Armenia is one of the most innovative firm in sector. Manager in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Operational resilience

– The operational resilience strategy in the Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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.

Ability to lead change in Strategy & Execution field

– Hdif Armenia 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 Hdif Armenia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– Hdif Armenia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hdif Armenia 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.

Highly skilled collaborators

– Hdif Armenia 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management

– Hdif Armenia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Low bargaining power of suppliers

– Suppliers of Hdif Armenia in the sector have low bargaining power. Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hdif Armenia to manage not only supply disruptions but also source products at highly competitive prices.

Diverse revenue streams

– Hdif Armenia is present in almost all the verticals within the industry. This has provided firm in Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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.

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Weaknesses Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) are -

Interest costs

– Compare to the competition, Hdif Armenia 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

Hdif Armenia 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 to strategic competitive environment developments

– As Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) HBR case study mentions - Hdif Armenia 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.

Lack of clear differentiation of Hdif Armenia products

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

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 Hdif Armenia supply chain. Even after few cautionary changes mentioned in the HBR case study - Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hdif Armenia vulnerable to further global disruptions in South East Asia.

Capital Spending Reduction

– Even during the low interest decade, Hdif Armenia 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.

Aligning sales with marketing

– It come across in the case study Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) can leverage the sales team experience to cultivate customer relationships as Hdif Armenia is planning to shift buying processes online.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hdif Armenia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Workers concerns about automation

– As automation is fast increasing in the segment, Hdif Armenia 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 decision making process

– As mentioned earlier in the report, Hdif Armenia 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. Hdif Armenia 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Hdif Armenia 's lucrative customers.

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Opportunities Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) | 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Hdif Armenia is facing challenges because of the dominance of functional experts in the organization. Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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

– Hdif Armenia 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.

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. Hdif Armenia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hdif Armenia can use these opportunities to build new business models that can help the communities that Hdif Armenia operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Developing new processes and practices

– Hdif Armenia 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.

Loyalty marketing

– Hdif Armenia 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.

Learning at scale

– Online learning technologies has now opened space for Hdif Armenia 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.

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 Hdif Armenia 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.

Using analytics as competitive advantage

– Hdif Armenia 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hdif Armenia 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 Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hdif Armenia 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. Hdif Armenia 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, Hdif Armenia 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, Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Hdif Armenia to increase its market reach. Hdif Armenia 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hdif Armenia 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.

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Threats Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) are -

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. Hdif Armenia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Hdif Armenia needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Regulatory challenges

– Hdif Armenia 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.

Environmental challenges

– Hdif Armenia 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. Hdif Armenia can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

High dependence on third party suppliers

– Hdif Armenia 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.

Increasing wage structure of Hdif Armenia

– 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 Hdif Armenia.

Shortening product life cycle

– it is one of the major threat that Hdif Armenia is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hdif Armenia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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 Hdif Armenia in the Strategy & Execution sector and impact the bottomline of the organization.

Technology acceleration in Forth Industrial Revolution

– Hdif Armenia has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Hdif Armenia 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF), Hdif Armenia 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 .

Stagnating economy with rate increase

– Hdif Armenia 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.

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.

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Weighted SWOT Analysis of Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Seeking Balance between Social Purpose and Entrepreneurship: Homeland Development Initiative Foundation (HDIF) 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 Hdif Armenia needs to make to build a sustainable competitive advantage.

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