Corporacion de Desarrollo Social del Sector Rural (Codesser) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporacion de Desarrollo Social del Sector Rural (Codesser)
Provides an overview of the Corporacion de Desarrollo Social del Sector Rural (Codesser), a nonprofit organization that was created in the 1970s to run vocational, agrarian schools in rural areas in Chile. In the years following, Codesser broadened its administrative scope by forming alliances with other nonprofits to run schools with other specializations in high school technical education, specifically industrial and cooking schools. In 2003, Codesser board members were evaluating an offer that would lead to a new business niche for their organization: buying a school (instead of just administering it) and offering elementary and college-track secondary education (instead of technical secondary education). Focuses on this decision and its implications. Requires evaluating mission coherency, organizational competencies, financial viability, and growth opportunities.
Swot Analysis of "Corporacion de Desarrollo Social del Sector Rural (Codesser)" written by Mladen Koljatic, Monica Silva includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Codesser Desarrollo facing as an external strategic factors. Some of the topics covered in Corporacion de Desarrollo Social del Sector Rural (Codesser) case study are - Strategic Management Strategies, Financial management, Growth strategy, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporacion de Desarrollo Social del Sector Rural (Codesser) casestudy better are - – increasing commodity prices, challanges to central banks by blockchain based private currencies, technology disruption, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing energy prices, geopolitical disruptions,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Corporacion de Desarrollo Social del Sector Rural (Codesser)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporacion de Desarrollo Social del Sector Rural (Codesser) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Codesser Desarrollo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) can be done for the following purposes –
1. Strategic planning using facts provided in Corporacion de Desarrollo Social del Sector Rural (Codesser) case study
2. Improving business portfolio management of Codesser Desarrollo
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 Codesser Desarrollo
Strengths Corporacion de Desarrollo Social del Sector Rural (Codesser) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Codesser Desarrollo in Corporacion de Desarrollo Social del Sector Rural (Codesser) Harvard Business Review case study are -
Analytics focus
– Codesser Desarrollo 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 Mladen Koljatic, Monica Silva 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.
Effective Research and Development (R&D)
– Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Codesser Desarrollo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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.
High switching costs
– The high switching costs that Codesser Desarrollo 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.
Innovation driven organization
– Codesser Desarrollo is one of the most innovative firm in sector. Manager in Corporacion de Desarrollo Social del Sector Rural (Codesser) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Codesser Desarrollo is present in almost all the verticals within the industry. This has provided firm in Corporacion de Desarrollo Social del Sector Rural (Codesser) 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.
High brand equity
– Codesser Desarrollo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Codesser Desarrollo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Corporacion de Desarrollo Social del Sector Rural (Codesser) firm has clearly differentiated products in the market place. This has enabled Codesser Desarrollo to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Codesser Desarrollo to invest into research and development (R&D) and innovation.
Organizational Resilience of Codesser Desarrollo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Codesser Desarrollo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Codesser Desarrollo is one of the leading recruiters in the industry. Managers in the Corporacion de Desarrollo Social del Sector Rural (Codesser) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Codesser Desarrollo 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 Codesser Desarrollo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Corporacion de Desarrollo Social del Sector Rural (Codesser) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporacion de Desarrollo Social del Sector Rural (Codesser) are -
Capital Spending Reduction
– Even during the low interest decade, Codesser Desarrollo 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.
Interest costs
– Compare to the competition, Codesser Desarrollo 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Codesser Desarrollo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser), is just above the industry average. Codesser Desarrollo 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.
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 Codesser Desarrollo supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporacion de Desarrollo Social del Sector Rural (Codesser), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Codesser Desarrollo vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Codesser Desarrollo, firm in the HBR case study Corporacion de Desarrollo Social del Sector Rural (Codesser) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Codesser Desarrollo 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 - Corporacion de Desarrollo Social del Sector Rural (Codesser) should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Corporacion de Desarrollo Social del Sector Rural (Codesser) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Codesser Desarrollo has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Codesser Desarrollo is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Codesser Desarrollo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Codesser Desarrollo to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Corporacion de Desarrollo Social del Sector Rural (Codesser) HBR case study mentions - Codesser Desarrollo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Codesser Desarrollo 's lucrative customers.
Opportunities Corporacion de Desarrollo Social del Sector Rural (Codesser) | 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Codesser Desarrollo 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 Codesser Desarrollo to hire the very best people irrespective of their geographical location.
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. Codesser Desarrollo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Codesser Desarrollo in the consumer business. Now Codesser Desarrollo can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Codesser Desarrollo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Codesser Desarrollo is facing challenges because of the dominance of functional experts in the organization. Corporacion de Desarrollo Social del Sector Rural (Codesser) 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.
Leveraging digital technologies
– Codesser Desarrollo 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.
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. Codesser Desarrollo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Codesser Desarrollo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporacion de Desarrollo Social del Sector Rural (Codesser) 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.
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 Codesser Desarrollo 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.
Creating value in data economy
– The success of analytics program of Codesser Desarrollo has opened avenues for new revenue streams for the organization in the industry. This can help Codesser Desarrollo to build a more holistic ecosystem as suggested in the Corporacion de Desarrollo Social del Sector Rural (Codesser) case study. Codesser Desarrollo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Codesser Desarrollo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Codesser Desarrollo 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
– Codesser Desarrollo 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.
Threats Corporacion de Desarrollo Social del Sector Rural (Codesser) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporacion de Desarrollo Social del Sector Rural (Codesser) are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporacion de Desarrollo Social del Sector Rural (Codesser), Codesser Desarrollo 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 .
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. Codesser Desarrollo 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.
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. Codesser Desarrollo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Codesser Desarrollo has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Codesser Desarrollo 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.
Environmental challenges
– Codesser Desarrollo 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. Codesser Desarrollo can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Codesser Desarrollo needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Codesser Desarrollo in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) .
Increasing wage structure of Codesser Desarrollo
– 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 Codesser Desarrollo.
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 Codesser Desarrollo business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Codesser Desarrollo 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Codesser Desarrollo needs to make to build a sustainable competitive advantage.