In Loco Parentis?: The Purchaser Role in Managed Care SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of In Loco Parentis?: The Purchaser Role in Managed Care
The role of American corporations as purchasers of health insurance for their employees has changed dramatically over the past several decades from a passive stance to an aggressive purchasing and policy-making role. The transformation has caused purchasers to question the appropriateness of their health benefit interventions for legal, ethical, and financial reasons. Recent research about the role of "medical necessity" in California managed care decision making reveals a number of problems purchasers face and describes solutions recommended by some purchasers to those problems.
Authors :: Linda Bergthold, Suzanne Olson Koebler, Sara J. Singer
Swot Analysis of "In Loco Parentis?: The Purchaser Role in Managed Care" written by Linda Bergthold, Suzanne Olson Koebler, Sara J. Singer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Purchasers Role facing as an external strategic factors. Some of the topics covered in In Loco Parentis?: The Purchaser Role in Managed Care case study are - Strategic Management Strategies, Personnel policies and Technology & Operations.
Some of the macro environment factors that can be used to understand the In Loco Parentis?: The Purchaser Role in Managed Care casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
increasing energy prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of In Loco Parentis?: The Purchaser Role in Managed Care
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in In Loco Parentis?: The Purchaser Role in Managed Care case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Purchasers Role, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Purchasers Role 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 In Loco Parentis?: The Purchaser Role in Managed Care can be done for the following purposes –
1. Strategic planning using facts provided in In Loco Parentis?: The Purchaser Role in Managed Care case study
2. Improving business portfolio management of Purchasers Role
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Purchasers Role
Strengths In Loco Parentis?: The Purchaser Role in Managed Care | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Purchasers Role in In Loco Parentis?: The Purchaser Role in Managed Care Harvard Business Review case study are -
Learning organization
- Purchasers Role 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 Purchasers Role is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in In Loco Parentis?: The Purchaser Role in Managed Care Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Purchasers Role 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.
Innovation driven organization
– Purchasers Role is one of the most innovative firm in sector. Manager in In Loco Parentis?: The Purchaser Role in Managed Care Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Purchasers Role 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 In Loco Parentis?: The Purchaser Role in Managed Care HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Purchasers Role is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Purchasers Role in the sector have low bargaining power. In Loco Parentis?: The Purchaser Role in Managed Care has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Purchasers Role to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Purchasers Role 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 In Loco Parentis?: The Purchaser Role in Managed Care - 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
– Purchasers Role has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in In Loco Parentis?: The Purchaser Role in Managed Care 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 In Loco Parentis?: The Purchaser Role in Managed Care 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.
Ability to lead change in Technology & Operations field
– Purchasers Role 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 Purchasers Role in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Purchasers Role digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Purchasers Role 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.
High switching costs
– The high switching costs that Purchasers Role 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.
Weaknesses In Loco Parentis?: The Purchaser Role in Managed Care | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of In Loco Parentis?: The Purchaser Role in Managed Care are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study In Loco Parentis?: The Purchaser Role in Managed Care, is just above the industry average. Purchasers Role 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.
Slow to strategic competitive environment developments
– As In Loco Parentis?: The Purchaser Role in Managed Care HBR case study mentions - Purchasers Role 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.
Increasing silos among functional specialists
– The organizational structure of Purchasers Role is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Purchasers Role needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Purchasers Role to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Purchasers Role 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.
High cash cycle compare to competitors
Purchasers Role 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 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 Purchasers Role supply chain. Even after few cautionary changes mentioned in the HBR case study - In Loco Parentis?: The Purchaser Role in Managed Care, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Purchasers Role vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Purchasers Role 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.
Products dominated business model
– Even though Purchasers Role 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 - In Loco Parentis?: The Purchaser Role in Managed Care should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study In Loco Parentis?: The Purchaser Role in Managed Care 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 Purchasers Role 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study In Loco Parentis?: The Purchaser Role in Managed Care, in the dynamic environment Purchasers Role has struggled to respond to the nimble upstart competition. Purchasers Role has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Purchasers Role 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. Purchasers Role 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.
Opportunities In Loco Parentis?: The Purchaser Role in Managed Care | 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 In Loco Parentis?: The Purchaser Role in Managed Care are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Purchasers Role 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
– Purchasers Role 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 In Loco Parentis?: The Purchaser Role in Managed Care - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Purchasers Role to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Purchasers Role can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Purchasers Role to increase its market reach. Purchasers Role 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Purchasers Role can use these opportunities to build new business models that can help the communities that Purchasers Role operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Purchasers Role 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.
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 Purchasers Role 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.
Building a culture of innovation
– managers at Purchasers Role 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 Technology & Operations segment.
Developing new processes and practices
– Purchasers Role can develop new processes and procedures in Technology & Operations 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.
Buying journey improvements
– Purchasers Role can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. In Loco Parentis?: The Purchaser Role in Managed Care 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Purchasers Role is facing challenges because of the dominance of functional experts in the organization. In Loco Parentis?: The Purchaser Role in Managed Care 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.
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 Purchasers Role in the consumer business. Now Purchasers Role can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Purchasers Role 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.
Threats In Loco Parentis?: The Purchaser Role in Managed Care External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study In Loco Parentis?: The Purchaser Role in Managed Care 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.
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. Purchasers Role needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Purchasers Role has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Purchasers Role needs to keep up with the evolution of technology in the Technology & Operations 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.
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 Purchasers Role.
Increasing wage structure of Purchasers Role
– 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 Purchasers Role.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Purchasers Role 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 In Loco Parentis?: The Purchaser Role in Managed Care .
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Purchasers Role can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Purchasers Role in the Technology & Operations sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Purchasers Role with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Purchasers Role 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. Purchasers Role can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Purchasers Role business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study In Loco Parentis?: The Purchaser Role in Managed Care, Purchasers Role may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Weighted SWOT Analysis of In Loco Parentis?: The Purchaser Role in Managed Care 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 In Loco Parentis?: The Purchaser Role in Managed Care 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 In Loco Parentis?: The Purchaser Role in Managed Care 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 In Loco Parentis?: The Purchaser Role in Managed Care 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 In Loco Parentis?: The Purchaser Role in Managed Care 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 Purchasers Role needs to make to build a sustainable competitive advantage.
