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The case discusses the public-private partnership to build the New Royal Adelaide Hospital (NRAH) (replacing the outdated Royal Adelaide Hospital) at a cost of A$1.7 billion in 2009.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 - – wage bills are increasing, increasing commodity prices, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs,
technology disruption, geopolitical disruptions, 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 -
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.
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.
Effective Research and Development (R&D)
– Adelaide Nrah 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 New Royal Adelaide Hospital: Australia's Largest Health PPP - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Ability to recruit top talent
– Adelaide Nrah is one of the leading recruiters in the industry. Managers in the New Royal Adelaide Hospital: Australia's Largest Health PPP are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
High switching costs
– The high switching costs that Adelaide Nrah 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.
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.
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.
Strong track record of project management
– Adelaide Nrah 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 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.
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.
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 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study New Royal Adelaide Hospital: Australia's Largest Health PPP, in the dynamic environment Adelaide Nrah has struggled to respond to the nimble upstart competition. Adelaide Nrah has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study New Royal Adelaide Hospital: Australia's Largest Health PPP 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 Adelaide Nrah 's lucrative customers.
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.
High cash cycle compare to competitors
Adelaide Nrah 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.
Low market penetration in new markets
– Outside its home market of Adelaide Nrah, firm in the HBR case study New Royal Adelaide Hospital: Australia's Largest Health PPP needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Adelaide Nrah 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.
Skills based hiring
– The stress on hiring functional specialists at Adelaide Nrah 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.
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 -
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.
Manufacturing automation
– Adelaide Nrah can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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
– 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.
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.
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.
Loyalty marketing
– Adelaide Nrah 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Adelaide Nrah can use these opportunities to build new business models that can help the communities that Adelaide Nrah operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Adelaide Nrah is facing challenges because of the dominance of functional experts in the organization. New Royal Adelaide Hospital: Australia's Largest Health PPP 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.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Adelaide Nrah can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Adelaide Nrah can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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 -
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 Adelaide Nrah business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 .
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 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.
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.
High dependence on third party suppliers
– Adelaide Nrah 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.
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 .
Stagnating economy with rate increase
– Adelaide Nrah 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.
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. Adelaide Nrah needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
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.
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.