New Royal Adelaide Hospital: Australia's Largest Health PPP SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New Royal Adelaide Hospital: Australia's Largest Health PPP
The case discusses the public-private partnership to build the New Royal Adelaide Hospital (NRAH) (replacing the outdated Royal Adelaide Hospital) at a cost of A$1.7 billion in 2009. The 35-year concession was eventually awarded to a consortium, the South Australian Health Partnership (SAHP), and the government agreed to make an annual service payment to the consortium of A$397 million a year once the hospital was completed in 2016. Rising state debt in the wake of the global financial crisis led to protests by opposition politicians when the cost of the NRAH was said to have ballooned.
Swot Analysis of "New Royal Adelaide Hospital: Australia's Largest Health PPP" written by Pierre Hillion, Jean Wee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Adelaide Nrah facing as an external strategic factors. Some of the topics covered in New Royal Adelaide Hospital: Australia's Largest Health PPP case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the New Royal Adelaide Hospital: Australia's Largest Health PPP casestudy better are - – challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , technology disruption, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, there is backlash against globalization,
banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of New Royal Adelaide Hospital: Australia's Largest Health PPP
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New Royal Adelaide Hospital: Australia's Largest Health PPP case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Adelaide Nrah, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Adelaide Nrah 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 New Royal Adelaide Hospital: Australia's Largest Health PPP can be done for the following purposes –
1. Strategic planning using facts provided in New Royal Adelaide Hospital: Australia's Largest Health PPP case study
2. Improving business portfolio management of Adelaide Nrah
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Adelaide Nrah
Strengths New Royal Adelaide Hospital: Australia's Largest Health PPP | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Adelaide Nrah in New Royal Adelaide Hospital: Australia's Largest Health PPP Harvard Business Review case study are -
High brand equity
– Adelaide Nrah has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Adelaide Nrah to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Adelaide Nrah in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Adelaide Nrah 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
– Adelaide Nrah 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 New Royal Adelaide Hospital: Australia's Largest Health PPP HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Adelaide Nrah
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Adelaide Nrah does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Adelaide Nrah 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 Adelaide Nrah is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in New Royal Adelaide Hospital: Australia's Largest Health PPP Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Adelaide Nrah in the sector have low bargaining power. New Royal Adelaide Hospital: Australia's Largest Health PPP has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Adelaide Nrah to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Adelaide Nrah is one of the most innovative firm in sector. Manager in New Royal Adelaide Hospital: Australia's Largest Health PPP Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Adelaide Nrah has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New Royal Adelaide Hospital: Australia's Largest Health PPP 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.
Analytics focus
– Adelaide Nrah 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 Pierre Hillion, Jean Wee 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.
Ability to lead change in Finance & Accounting field
– Adelaide Nrah 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 Adelaide Nrah in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Adelaide Nrah digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Adelaide Nrah 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.
Weaknesses New Royal Adelaide Hospital: Australia's Largest Health PPP | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New Royal Adelaide Hospital: Australia's Largest Health PPP are -
Slow decision making process
– As mentioned earlier in the report, Adelaide Nrah 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. Adelaide Nrah 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.
Increasing silos among functional specialists
– The organizational structure of Adelaide Nrah is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Adelaide Nrah needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Adelaide Nrah to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As New Royal Adelaide Hospital: Australia's Largest Health PPP HBR case study mentions - Adelaide Nrah takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High 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 Adelaide Nrah supply chain. Even after few cautionary changes mentioned in the HBR case study - New Royal Adelaide Hospital: Australia's Largest Health PPP, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Adelaide Nrah vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Adelaide Nrah 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study New Royal Adelaide Hospital: Australia's Largest Health PPP, is just above the industry average. Adelaide Nrah 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.
Aligning sales with marketing
– It come across in the case study New Royal Adelaide Hospital: Australia's Largest Health PPP 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 New Royal Adelaide Hospital: Australia's Largest Health PPP can leverage the sales team experience to cultivate customer relationships as Adelaide Nrah is planning to shift buying processes online.
Need for greater diversity
– Adelaide Nrah 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.
Capital Spending Reduction
– Even during the low interest decade, Adelaide Nrah 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Adelaide Nrah is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study New Royal Adelaide Hospital: Australia's Largest Health PPP can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Adelaide Nrah 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 - New Royal Adelaide Hospital: Australia's Largest Health PPP should strive to include more intangible value offerings along with its core products and services.
Opportunities New Royal Adelaide Hospital: Australia's Largest Health PPP | 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 New Royal Adelaide Hospital: Australia's Largest Health PPP are -
Better consumer reach
– The expansion of the 5G network will help Adelaide Nrah to increase its market reach. Adelaide Nrah 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.
Creating value in data economy
– The success of analytics program of Adelaide Nrah has opened avenues for new revenue streams for the organization in the industry. This can help Adelaide Nrah to build a more holistic ecosystem as suggested in the New Royal Adelaide Hospital: Australia's Largest Health PPP case study. Adelaide Nrah can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Adelaide Nrah to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Adelaide Nrah to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Adelaide Nrah can develop new processes and procedures in Finance & Accounting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Adelaide Nrah 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, New Royal Adelaide Hospital: Australia's Largest Health PPP, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Adelaide Nrah in the consumer business. Now Adelaide Nrah can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Adelaide Nrah 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.
Leveraging digital technologies
– Adelaide Nrah 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.
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 Adelaide Nrah 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Adelaide Nrah 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Adelaide Nrah can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Adelaide Nrah can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Adelaide Nrah can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats New Royal Adelaide Hospital: Australia's Largest Health PPP External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New Royal Adelaide Hospital: Australia's Largest Health PPP 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.
Shortening product life cycle
– it is one of the major threat that Adelaide Nrah is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Adelaide Nrah in the Finance & Accounting 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 Adelaide Nrah with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Adelaide Nrah.
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. Adelaide Nrah 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 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 Adelaide Nrah in the Finance & Accounting industry. The Finance & Accounting 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.
Technology acceleration in Forth Industrial Revolution
– Adelaide Nrah has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Adelaide Nrah needs to keep up with the evolution of technology in the Finance & Accounting 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Adelaide Nrah can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study New Royal Adelaide Hospital: Australia's Largest Health PPP, Adelaide Nrah may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Adelaide Nrah 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 New Royal Adelaide Hospital: Australia's Largest Health PPP .
Regulatory challenges
– Adelaide Nrah 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 Finance & Accounting industry regulations.
Weighted SWOT Analysis of New Royal Adelaide Hospital: Australia's Largest Health PPP 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 New Royal Adelaide Hospital: Australia's Largest Health PPP 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 New Royal Adelaide Hospital: Australia's Largest Health PPP 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 New Royal Adelaide Hospital: Australia's Largest Health PPP 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 New Royal Adelaide Hospital: Australia's Largest Health PPP 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 Adelaide Nrah needs to make to build a sustainable competitive advantage.
