Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Soccer Balls Made for Children by Children? Child Labor in Pakistan (A)
The case describes an international agreement to phase out child labor in soccer-ball manufacturing. This high-profile agreement, which resolves major brand manufacturers, has been hailed as an example of socially responsible corporate policy.
Authors :: Olivier Cadot, Robert Crawford, Daniel Traca
Topics :: Strategy & Execution
Tags :: International business, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Soccer Balls Made for Children by Children? Child Labor in Pakistan (A)" written by Olivier Cadot, Robert Crawford, Daniel Traca includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Soccer Child facing as an external strategic factors. Some of the topics covered in Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) case study are - Strategic Management Strategies, International business, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing household debt because of falling income levels,
increasing commodity prices, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Soccer Balls Made for Children by Children? Child Labor in Pakistan (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Soccer Child, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Soccer Child 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) can be done for the following purposes –
1. Strategic planning using facts provided in Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) case study
2. Improving business portfolio management of Soccer Child
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 Soccer Child
Strengths Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Soccer Child in Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Soccer Child 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 Soccer Child in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Soccer Child 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Soccer Child in the sector have low bargaining power. Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Soccer Child to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Soccer Child is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Soccer Child 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 Soccer Child is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Soccer Child has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Soccer Child 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.
Cross disciplinary teams
– Horizontal connected teams at the Soccer Child 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)
– Soccer Child 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Soccer Child digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Soccer Child has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Analytics focus
– Soccer Child is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Olivier Cadot, Robert Crawford, Daniel Traca can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Soccer Child has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Soccer Child to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Child supply chain. Even after few cautionary changes mentioned in the HBR case study - Soccer Balls Made for Children by Children? Child Labor in Pakistan (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Soccer Child vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Soccer Child is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A), is just above the industry average. Soccer Child 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.
Lack of clear differentiation of Soccer Child products
– To increase the profitability and margins on the products, Soccer Child needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Soccer Child 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 operating costs
– Compare to the competitors, firm in the HBR case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Child 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Soccer Child, firm in the HBR case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Soccer Child 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.
Slow decision making process
– As mentioned earlier in the report, Soccer Child 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. Soccer Child 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.
Slow to strategic competitive environment developments
– As Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) HBR case study mentions - Soccer Child 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.
Skills based hiring
– The stress on hiring functional specialists at Soccer Child 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.
Opportunities Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) | 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) are -
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. Soccer Child can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Soccer Child 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.
Learning at scale
– Online learning technologies has now opened space for Soccer Child 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. Soccer Child can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Soccer Child is facing challenges because of the dominance of functional experts in the organization. Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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
– Soccer Child 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.
Loyalty marketing
– Soccer Child 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 Soccer Child can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Soccer Child 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Soccer Child 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, Soccer Balls Made for Children by Children? Child Labor in Pakistan (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Soccer Child 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 Soccer Child to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Soccer Child 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.
Creating value in data economy
– The success of analytics program of Soccer Child has opened avenues for new revenue streams for the organization in the industry. This can help Soccer Child to build a more holistic ecosystem as suggested in the Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) case study. Soccer Child can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) are -
Increasing wage structure of Soccer Child
– 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 Soccer Child.
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. Soccer Child 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, Soccer Child 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) .
Technology acceleration in Forth Industrial Revolution
– Soccer Child has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Soccer Child 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.
Regulatory challenges
– Soccer Child 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.
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 Soccer Child business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Soccer Child 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.
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 Soccer Child.
High dependence on third party suppliers
– Soccer Child 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Soccer Balls Made for Children by Children? Child Labor in Pakistan (A), Soccer Child 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Soccer Child 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.
Shortening product life cycle
– it is one of the major threat that Soccer Child 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 Soccer Child with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Balls Made for Children by Children? Child Labor in Pakistan (A) 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 Soccer Child needs to make to build a sustainable competitive advantage.