President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States
This article highlights the President's formal and informal capacity to act unilaterally, and thus potentially to regulate managed care on his own, through the government's role as a buyer--what is referred to here as the "power of the purchaser." Presidents can act independently to shift policy in any way they wish, and there it will stay until and unless either Congress, the courts, or the market effectively responds. By the strategic use of executive orders and directives to the federal bureaucracy, President Clinton used the "power of the purchaser" to implement a range of consumer protections as a condition in any contract between federal "public" purchasers and health plans. In practice, those health plans and insurers wishing to do business with the federal government must meet the President's terms; others either need not enter into a contract or exit ex-post when they oppose the nature of the new provisions.
Swot Analysis of "President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States" written by Daniel P. Gitterman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Purchaser Federal facing as an external strategic factors. Some of the topics covered in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States case study are - Strategic Management Strategies, Health, Personnel policies and Technology & Operations.
Some of the macro environment factors that can be used to understand the President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Purchaser Federal, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Purchaser Federal 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States can be done for the following purposes –
1. Strategic planning using facts provided in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States case study
2. Improving business portfolio management of Purchaser Federal
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 Purchaser Federal
Strengths President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Purchaser Federal in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States Harvard Business Review case study are -
Organizational Resilience of Purchaser Federal
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Purchaser Federal does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Purchaser Federal is present in almost all the verticals within the industry. This has provided firm in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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.
Ability to recruit top talent
– Purchaser Federal is one of the leading recruiters in the industry. Managers in the President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 Technology & Operations industry
– President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States firm has clearly differentiated products in the market place. This has enabled Purchaser Federal to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Purchaser Federal to invest into research and development (R&D) and innovation.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Purchaser Federal digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Purchaser Federal 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.
Strong track record of project management
– Purchaser Federal is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Purchaser Federal 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.
Highly skilled collaborators
– Purchaser Federal 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Purchaser Federal 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 Daniel P. Gitterman 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.
Operational resilience
– The operational resilience strategy in the President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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.
Superior customer experience
– The customer experience strategy of Purchaser Federal in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Purchaser Federal 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 Purchaser Federal is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States are -
Skills based hiring
– The stress on hiring functional specialists at Purchaser Federal 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
Purchaser Federal 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.
Need for greater diversity
– Purchaser Federal has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Increasing silos among functional specialists
– The organizational structure of Purchaser Federal is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Purchaser Federal needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Purchaser Federal to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States HBR case study mentions - Purchaser Federal 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.
Capital Spending Reduction
– Even during the low interest decade, Purchaser Federal 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States, is just above the industry average. Purchaser Federal 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States, in the dynamic environment Purchaser Federal has struggled to respond to the nimble upstart competition. Purchaser Federal has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Purchaser Federal is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Purchaser Federal 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.
Opportunities President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States | 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Purchaser Federal 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, President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Purchaser Federal can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Developing new processes and practices
– Purchaser Federal 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.
Loyalty marketing
– Purchaser Federal 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Purchaser Federal can use these opportunities to build new business models that can help the communities that Purchaser Federal operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Purchaser Federal can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Purchaser Federal 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.
Creating value in data economy
– The success of analytics program of Purchaser Federal has opened avenues for new revenue streams for the organization in the industry. This can help Purchaser Federal to build a more holistic ecosystem as suggested in the President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States case study. Purchaser Federal can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Purchaser Federal can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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.
Building a culture of innovation
– managers at Purchaser Federal 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.
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 Purchaser Federal 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.
Better consumer reach
– The expansion of the 5G network will help Purchaser Federal to increase its market reach. Purchaser Federal 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.
Using analytics as competitive advantage
– Purchaser Federal 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Purchaser Federal to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States, Purchaser Federal 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 .
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 Purchaser Federal.
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 Purchaser Federal in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Purchaser Federal in the Technology & Operations industry. The Technology & Operations 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.
Environmental challenges
– Purchaser Federal 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. Purchaser Federal can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Purchaser Federal can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Purchaser Federal 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.
Technology acceleration in Forth Industrial Revolution
– Purchaser Federal has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Purchaser Federal 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.
Regulatory challenges
– Purchaser Federal 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 Technology & Operations industry regulations.
Increasing wage structure of Purchaser Federal
– 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 Purchaser Federal.
High dependence on third party suppliers
– Purchaser Federal 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.
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.
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. Purchaser Federal needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 President and the Power of the Purchaser: Consumer Protection and Managed Care in the United States 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 Purchaser Federal needs to make to build a sustainable competitive advantage.
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