In the early 1970s BRAC was a startup nongovernmental organization (NGO) working in Bangladesh. By 2014, it was the world's largest NGO. It had a strong presence in Bangladesh and had begun to deliver social development programs in nine other countries. Its founder and chairperson Fazle Hasan Abed was knighted in 2010 by the British Crown for his service in reducing poverty. The organization took a holistic approach to alleviating poverty, which depended on providing the poor with a portfolio of services including education, agriculture development, healthcare, community empowerment, and microfinance. Around 70% of the funding to deliver BRAc's development programs and services came from its own for-profit social enterprises. The case study allows students to examine the organization's evolution and its business model.
Tags :: Economy, Growth strategy, Innovation, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "BRAC in 2014" written by Tarun Khanna, Rachna Tahilyani, Reeti Roy, Aldo Sesia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brac Bangladesh facing as an external strategic factors. Some of the topics covered in BRAC in 2014 case study are - Strategic Management Strategies, Economy, Growth strategy, Innovation, Social enterprise, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the BRAC in 2014 casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing commodity prices, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, talent flight as more people leaving formal jobs,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BRAC in 2014 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brac Bangladesh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brac Bangladesh 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 BRAC in 2014 can be done for the following purposes –
1. Strategic planning using facts provided in BRAC in 2014 case study
2. Improving business portfolio management of Brac Bangladesh
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 Brac Bangladesh
Strengths BRAC in 2014 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brac Bangladesh in BRAC in 2014 Harvard Business Review case study are -
Diverse revenue streams
– Brac Bangladesh is present in almost all the verticals within the industry. This has provided firm in BRAC in 2014 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.
Organizational Resilience of Brac Bangladesh
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Brac Bangladesh does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– BRAC in 2014 firm has clearly differentiated products in the market place. This has enabled Brac Bangladesh to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Brac Bangladesh to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Brac Bangladesh 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 BRAC in 2014 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Brac Bangladesh 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
– Brac Bangladesh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Brac Bangladesh 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 Brac Bangladesh 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.
Training and development
– Brac Bangladesh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BRAC in 2014 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.
Operational resilience
– The operational resilience strategy in the BRAC in 2014 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.
Innovation driven organization
– Brac Bangladesh is one of the most innovative firm in sector. Manager in BRAC in 2014 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Brac Bangladesh 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 Brac Bangladesh is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BRAC in 2014 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Strategy & Execution field
– Brac Bangladesh 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 Brac Bangladesh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses BRAC in 2014 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BRAC in 2014 are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study BRAC in 2014, in the dynamic environment Brac Bangladesh has struggled to respond to the nimble upstart competition. Brac Bangladesh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Brac Bangladesh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study BRAC in 2014 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Brac Bangladesh 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 - BRAC in 2014 should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Brac Bangladesh is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Brac Bangladesh needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brac Bangladesh to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study BRAC in 2014 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 Brac Bangladesh 's lucrative customers.
Aligning sales with marketing
– It come across in the case study BRAC in 2014 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 BRAC in 2014 can leverage the sales team experience to cultivate customer relationships as Brac Bangladesh is planning to shift buying processes online.
Interest costs
– Compare to the competition, Brac Bangladesh 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 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 Brac Bangladesh supply chain. Even after few cautionary changes mentioned in the HBR case study - BRAC in 2014, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Brac Bangladesh vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Brac Bangladesh, firm in the HBR case study BRAC in 2014 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Brac Bangladesh 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.
Lack of clear differentiation of Brac Bangladesh products
– To increase the profitability and margins on the products, Brac Bangladesh needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities BRAC in 2014 | 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 BRAC in 2014 are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Brac Bangladesh 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.
Leveraging digital technologies
– Brac Bangladesh 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.
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. Brac Bangladesh can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Brac Bangladesh 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Brac Bangladesh is facing challenges because of the dominance of functional experts in the organization. BRAC in 2014 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.
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 Brac Bangladesh 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Brac Bangladesh 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 Brac Bangladesh to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Brac Bangladesh 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 Brac Bangladesh in the consumer business. Now Brac Bangladesh can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Brac Bangladesh to increase its market reach. Brac Bangladesh 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.
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. Brac Bangladesh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Brac Bangladesh 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 BRAC in 2014 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Brac Bangladesh 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. Brac Bangladesh 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. Brac Bangladesh 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 BRAC in 2014 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BRAC in 2014 are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Brac Bangladesh 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 BRAC in 2014 .
High dependence on third party suppliers
– Brac Bangladesh 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.
Environmental challenges
– Brac Bangladesh 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. Brac Bangladesh can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Brac Bangladesh 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Brac Bangladesh
– 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 Brac Bangladesh.
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.
Technology acceleration in Forth Industrial Revolution
– Brac Bangladesh has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Brac Bangladesh 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.
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. Brac Bangladesh 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BRAC in 2014, Brac Bangladesh 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Brac Bangladesh with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Brac Bangladesh business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Brac Bangladesh 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.
Weighted SWOT Analysis of BRAC in 2014 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 BRAC in 2014 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 BRAC in 2014 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 BRAC in 2014 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 BRAC in 2014 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 Brac Bangladesh needs to make to build a sustainable competitive advantage.
