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 household debt because of falling income levels, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, geopolitical disruptions, wage bills are increasing,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, 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 -
Highly skilled collaborators
– Codesser Desarrollo 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Codesser Desarrollo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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.
Successful track record of launching new products
– Codesser Desarrollo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Codesser Desarrollo 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.
Low bargaining power of suppliers
– Suppliers of Codesser Desarrollo in the sector have low bargaining power. Corporacion de Desarrollo Social del Sector Rural (Codesser) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Codesser Desarrollo to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
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 -
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporacion de Desarrollo Social del Sector Rural (Codesser), it seems that the employees of Codesser Desarrollo 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.
Aligning sales with marketing
– It come across in the case study Corporacion de Desarrollo Social del Sector Rural (Codesser) 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 Corporacion de Desarrollo Social del Sector Rural (Codesser) can leverage the sales team experience to cultivate customer relationships as Codesser Desarrollo is planning to shift buying processes online.
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.
Skills based hiring
– The stress on hiring functional specialists at Codesser Desarrollo 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Codesser Desarrollo needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow 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.
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.
High cash cycle compare to competitors
Codesser Desarrollo 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.
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.
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.
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 -
Developing new processes and practices
– Codesser Desarrollo can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Codesser Desarrollo 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.
Building a culture of innovation
– managers at Codesser Desarrollo 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 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.
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.
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. Codesser Desarrollo 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. Codesser Desarrollo 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.
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Codesser Desarrollo 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.
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.
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.
Stagnating economy with rate increase
– Codesser Desarrollo 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 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.
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.
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 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) .
Consumer confidence and its impact on Codesser Desarrollo 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.
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.
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.
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.
