Case Study Description of International Profit Associates
Describes the work environment, systems, and processes that allow International Profit Associates (IPA) to follow a systematic four-step approach to providing advisory service to small business owners.
Authors :: Ashish Nanda, Thomas J. DeLong, Monica Mullick
Swot Analysis of "International Profit Associates" written by Ashish Nanda, Thomas J. DeLong, Monica Mullick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Associates Ipa facing as an external strategic factors. Some of the topics covered in International Profit Associates case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the International Profit Associates casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, increasing commodity prices, etc
Introduction to SWOT Analysis of International Profit Associates
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in International Profit Associates case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Associates Ipa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Associates Ipa 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 International Profit Associates can be done for the following purposes –
1. Strategic planning using facts provided in International Profit Associates case study
2. Improving business portfolio management of Associates Ipa
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 Associates Ipa
Strengths International Profit Associates | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Associates Ipa in International Profit Associates Harvard Business Review case study are -
High brand equity
– Associates Ipa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Associates Ipa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Associates Ipa 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 Associates Ipa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in International Profit Associates Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the International Profit Associates 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 Associates Ipa 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.
Strong track record of project management
– Associates Ipa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Associates Ipa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Technology & Operations industry
– International Profit Associates firm has clearly differentiated products in the market place. This has enabled Associates Ipa to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Associates Ipa to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Associates Ipa 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 International Profit Associates HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Associates Ipa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Associates Ipa 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Associates Ipa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Associates Ipa 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.
Ability to recruit top talent
– Associates Ipa is one of the leading recruiters in the industry. Managers in the International Profit Associates are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Associates Ipa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in International Profit Associates 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.
Weaknesses International Profit Associates | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of International Profit Associates are -
Aligning sales with marketing
– It come across in the case study International Profit Associates 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 International Profit Associates can leverage the sales team experience to cultivate customer relationships as Associates Ipa is planning to shift buying processes online.
Lack of clear differentiation of Associates Ipa products
– To increase the profitability and margins on the products, Associates Ipa needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As International Profit Associates HBR case study mentions - Associates Ipa 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.
Products dominated business model
– Even though Associates Ipa 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 - International Profit Associates should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Associates Ipa 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Associates Ipa is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study International Profit Associates can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study International Profit Associates, in the dynamic environment Associates Ipa has struggled to respond to the nimble upstart competition. Associates Ipa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Associates Ipa supply chain. Even after few cautionary changes mentioned in the HBR case study - International Profit Associates, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Associates Ipa vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Associates Ipa is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Associates Ipa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Associates Ipa to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the International Profit Associates 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 Associates Ipa has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Ashish Nanda, Thomas J. DeLong, Monica Mullick suggests that, Associates Ipa is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities International Profit Associates | 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 International Profit Associates are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Associates Ipa 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, International Profit Associates, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Associates Ipa 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Associates Ipa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Associates Ipa to increase its market reach. Associates Ipa 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Associates Ipa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Associates Ipa has opened avenues for new revenue streams for the organization in the industry. This can help Associates Ipa to build a more holistic ecosystem as suggested in the International Profit Associates case study. Associates Ipa can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Associates Ipa in the consumer business. Now Associates Ipa can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Associates Ipa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. International Profit Associates 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.
Developing new processes and practices
– Associates Ipa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Associates Ipa can use these opportunities to build new business models that can help the communities that Associates Ipa operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Building a culture of innovation
– managers at Associates Ipa 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.
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. Associates Ipa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Associates Ipa 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.
Threats International Profit Associates External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study International Profit Associates are -
Stagnating economy with rate increase
– Associates Ipa 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.
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. Associates Ipa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Associates Ipa
– 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 Associates Ipa.
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. Associates Ipa 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.
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.
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 Associates Ipa in the Technology & Operations sector and impact the bottomline of the organization.
Consumer confidence and its impact on Associates Ipa 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. Associates Ipa 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
– Associates Ipa has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Associates Ipa 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.
Shortening product life cycle
– it is one of the major threat that Associates Ipa is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Associates Ipa 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 International Profit Associates .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Associates Ipa 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.
Weighted SWOT Analysis of International Profit Associates 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 International Profit Associates 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 International Profit Associates 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 International Profit Associates 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 International Profit Associates 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 Associates Ipa needs to make to build a sustainable competitive advantage.
