HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution
The Hong Kong Council for Academic Accreditation ("HKCAA") was established in June 1990 as a statutory body to carry out academic accreditation for non-university institutions in Hong Kong and to provide advice to government on education standards and qualifications in general. With tertiary institutions gaining self-accrediting status and the proliferation of post-secondary education, there has been a broadening of the HKCAA's clientele beyond the established institutions. The expanded accreditation duties and the introduction of the Qualifications Framework in Hong Kong to include vocational training programs and the incorporation of applied learning studies in the new secondary school system in 2009 means that the HKCAA is continuously assuming new roles and responsibilities. The case traces the HKCAA's expanding roles, from being an accreditation authority spanning different levels and domains to becoming the gatekeeper for the Qualifications Framework in Hong Kong. These new developments have created a set of challenges for the HKCAA, including new staffing, new work culture, new management systems, new partners, new clients, new policy and a new operational environment. These changes cover both the internal and external environments for the HKCAA, which needs to prepare itself for what lies ahead. With so many changes taking place, is the HKCAA ready to face up to all the new challenges lying ahead? Has the HKCAA done enough to equip itself or gone too far, overloading its staff and preventing them from doing a good job?
Swot Analysis of "HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution" written by Derek Man, MacY Wong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hkcaa Accreditation facing as an external strategic factors. Some of the topics covered in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution case study are - Strategic Management Strategies, Corporate governance, Developing employees, Government, Leadership, Leadership development, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution casestudy better are - – talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, geopolitical disruptions, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, technology disruption, increasing transportation and logistics costs,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hkcaa Accreditation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution can be done for the following purposes –
1. Strategic planning using facts provided in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution case study
2. Improving business portfolio management of Hkcaa Accreditation
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 Hkcaa Accreditation
Strengths HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hkcaa Accreditation in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution Harvard Business Review case study are -
Organizational Resilience of Hkcaa Accreditation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hkcaa Accreditation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Hkcaa Accreditation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Hkcaa Accreditation is one of the leading recruiters in the industry. Managers in the HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Hkcaa Accreditation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hkcaa Accreditation 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.
Sustainable margins compare to other players in Finance & Accounting industry
– HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution firm has clearly differentiated products in the market place. This has enabled Hkcaa Accreditation to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Hkcaa Accreditation to invest into research and development (R&D) and innovation.
Analytics focus
– Hkcaa Accreditation 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 Derek Man, MacY Wong 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
– Hkcaa Accreditation 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 Hkcaa Accreditation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Hkcaa Accreditation 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.
High brand equity
– Hkcaa Accreditation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hkcaa Accreditation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Hkcaa Accreditation is one of the most innovative firm in sector. Manager in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Hkcaa Accreditation 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 Hkcaa Accreditation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution are -
Products dominated business model
– Even though Hkcaa Accreditation 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 - HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Hkcaa Accreditation 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. Hkcaa Accreditation 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.
Slow to strategic competitive environment developments
– As HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution HBR case study mentions - Hkcaa Accreditation 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 star products
– The top 2 products and services of the firm as mentioned in the HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 Hkcaa Accreditation has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Hkcaa Accreditation 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 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 Hkcaa Accreditation supply chain. Even after few cautionary changes mentioned in the HBR case study - HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hkcaa Accreditation vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution can leverage the sales team experience to cultivate customer relationships as Hkcaa Accreditation is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, is just above the industry average. Hkcaa Accreditation 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.
High cash cycle compare to competitors
Hkcaa Accreditation 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, it seems that the employees of Hkcaa Accreditation don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, Derek Man, MacY Wong suggests that, Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution | 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution are -
Manufacturing automation
– Hkcaa Accreditation 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.
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. Hkcaa Accreditation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hkcaa Accreditation 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. Hkcaa Accreditation 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. Hkcaa Accreditation 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.
Better consumer reach
– The expansion of the 5G network will help Hkcaa Accreditation to increase its market reach. Hkcaa Accreditation 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.
Loyalty marketing
– Hkcaa Accreditation 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.
Building a culture of innovation
– managers at Hkcaa Accreditation 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 Finance & Accounting 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. Hkcaa Accreditation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Hkcaa Accreditation 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.
Using analytics as competitive advantage
– Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hkcaa Accreditation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Hkcaa Accreditation 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.
Creating value in data economy
– The success of analytics program of Hkcaa Accreditation has opened avenues for new revenue streams for the organization in the industry. This can help Hkcaa Accreditation to build a more holistic ecosystem as suggested in the HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution case study. Hkcaa Accreditation 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 Hkcaa Accreditation in the consumer business. Now Hkcaa Accreditation can target international markets with far fewer capital restrictions requirements than the existing system.
Threats HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution are -
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. Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, Hkcaa Accreditation 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 wage structure of Hkcaa Accreditation
– 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 Hkcaa Accreditation.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hkcaa Accreditation 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
– Hkcaa Accreditation has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Hkcaa Accreditation 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.
High dependence on third party suppliers
– Hkcaa Accreditation 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.
Environmental challenges
– Hkcaa Accreditation 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. Hkcaa Accreditation can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Hkcaa Accreditation needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Hkcaa Accreditation 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. Hkcaa Accreditation 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.
Shortening product life cycle
– it is one of the major threat that Hkcaa Accreditation is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Hkcaa Accreditation 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.
Regulatory challenges
– Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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 Hkcaa Accreditation needs to make to build a sustainable competitive advantage.