When Governance Rhymes with Turbulence SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of When Governance Rhymes with Turbulence
Tunisia has been the only country to emerge from the Arab Spring with a successful transition to democracy. This case focuses on a critical period in this transition process, when the country appointed an interim government. The case zooms in on the leadership and governance challenges of this "caretaker" administration during its one-year mandate in 2014-2015. In order to convey the highly turbulent environment this government faced, the story centers on one of the cabinet ministers and his struggle to deal with students' protests, labor strikes and threats to national security. It also outlines the challenge of making ethical decisions and pursuing much-needed reforms in this context. The protagonist of the case - the Minister of Higher Education, Scientific Research and Information & Communication Technologies, Mr Tawfik Jelassi - is unusual in that he was a business school professor and dean with no political experience, who was plunged into a new environment and expected to "sink or swim." He had to learn to map out the constellation of stakeholders who were important to his decision-making and to understand the dynamics of political conflicts. He was a member of a diverse team: non-partisan "technocrats" coming from different sectors and countries. An esprit-de-corps and high-level coordination enabled the government team to achieve the objectives set by the country's National Dialogue Quartet at the outset of their mandate. In 2015, Tunisia was awarded the Nobel Peace Prize for having built a pluralistic democracy. The Norwegian Nobel Committee stated that: "The ultimate validation of the Quartet's historical effort came in the autumn of 2014, when the parliamentary and presidential elections were carried out. Both the technocratic government and the interim president resigned and were replaced by lawfully elected successors." This case offers a window into the governance challenges that this achievement entailed, given the highly turbulent environment of post-revolutionary Tunisia.
Swot Analysis of "When Governance Rhymes with Turbulence" written by Tawfik Jelassi, Anouk Lavoie Orlick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tunisia Nobel facing as an external strategic factors. Some of the topics covered in When Governance Rhymes with Turbulence case study are - Strategic Management Strategies, Leadership and Strategy & Execution.
Some of the macro environment factors that can be used to understand the When Governance Rhymes with Turbulence casestudy better are - – increasing commodity prices, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, central banks are concerned over increasing inflation, wage bills are increasing, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of When Governance Rhymes with Turbulence
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in When Governance Rhymes with Turbulence case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tunisia Nobel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tunisia Nobel 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 When Governance Rhymes with Turbulence can be done for the following purposes –
1. Strategic planning using facts provided in When Governance Rhymes with Turbulence case study
2. Improving business portfolio management of Tunisia Nobel
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 Tunisia Nobel
Strengths When Governance Rhymes with Turbulence | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tunisia Nobel in When Governance Rhymes with Turbulence Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– When Governance Rhymes with Turbulence firm has clearly differentiated products in the market place. This has enabled Tunisia Nobel to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tunisia Nobel to invest into research and development (R&D) and innovation.
Strong track record of project management
– Tunisia Nobel 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 Tunisia Nobel in the sector have low bargaining power. When Governance Rhymes with Turbulence has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tunisia Nobel to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Tunisia Nobel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tunisia Nobel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Tunisia Nobel 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 When Governance Rhymes with Turbulence - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Tunisia Nobel 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.
Superior customer experience
– The customer experience strategy of Tunisia Nobel 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
– Tunisia Nobel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tunisia Nobel 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 switching costs
– The high switching costs that Tunisia Nobel 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.
Operational resilience
– The operational resilience strategy in the When Governance Rhymes with Turbulence 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.
Training and development
– Tunisia Nobel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in When Governance Rhymes with Turbulence 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.
Learning organization
- Tunisia Nobel 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 Tunisia Nobel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in When Governance Rhymes with Turbulence Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses When Governance Rhymes with Turbulence | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of When Governance Rhymes with Turbulence are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study When Governance Rhymes with Turbulence, in the dynamic environment Tunisia Nobel has struggled to respond to the nimble upstart competition. Tunisia Nobel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study When Governance Rhymes with Turbulence, it seems that the employees of Tunisia Nobel don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Tunisia Nobel 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.
Increasing silos among functional specialists
– The organizational structure of Tunisia Nobel is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tunisia Nobel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tunisia Nobel to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tunisia Nobel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study When Governance Rhymes with Turbulence can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study When Governance Rhymes with Turbulence 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 Tunisia Nobel 's lucrative customers.
Aligning sales with marketing
– It come across in the case study When Governance Rhymes with Turbulence 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 When Governance Rhymes with Turbulence can leverage the sales team experience to cultivate customer relationships as Tunisia Nobel is planning to shift buying processes online.
Interest costs
– Compare to the competition, Tunisia Nobel 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.
No frontier risks strategy
– After analyzing the HBR case study When Governance Rhymes with Turbulence, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Tunisia Nobel 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.
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 Tunisia Nobel supply chain. Even after few cautionary changes mentioned in the HBR case study - When Governance Rhymes with Turbulence, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tunisia Nobel vulnerable to further global disruptions in South East Asia.
Opportunities When Governance Rhymes with Turbulence | 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 When Governance Rhymes with Turbulence are -
Learning at scale
– Online learning technologies has now opened space for Tunisia Nobel 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. Tunisia Nobel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tunisia Nobel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Loyalty marketing
– Tunisia Nobel 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tunisia Nobel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tunisia Nobel 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, When Governance Rhymes with Turbulence, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Tunisia Nobel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. When Governance Rhymes with Turbulence 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.
Building a culture of innovation
– managers at Tunisia Nobel 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.
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 Tunisia Nobel 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.
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. Tunisia Nobel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Tunisia Nobel to increase its market reach. Tunisia Nobel 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, Tunisia Nobel 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.
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. Tunisia Nobel 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. Tunisia Nobel 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 When Governance Rhymes with Turbulence External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study When Governance Rhymes with Turbulence are -
Shortening product life cycle
– it is one of the major threat that Tunisia Nobel is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Tunisia Nobel needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tunisia Nobel 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.
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 Tunisia Nobel.
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.
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. Tunisia Nobel 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, Tunisia Nobel 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 When Governance Rhymes with Turbulence .
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 Tunisia Nobel business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tunisia Nobel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Tunisia Nobel 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. Tunisia Nobel can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study When Governance Rhymes with Turbulence, Tunisia Nobel 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 .
High dependence on third party suppliers
– Tunisia Nobel 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.
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 Tunisia Nobel in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of When Governance Rhymes with Turbulence 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 When Governance Rhymes with Turbulence 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 When Governance Rhymes with Turbulence 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 When Governance Rhymes with Turbulence 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 When Governance Rhymes with Turbulence 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 Tunisia Nobel needs to make to build a sustainable competitive advantage.