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 - – increasing energy prices, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, wage bills are increasing, increasing household debt because of falling income levels, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, 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 -
Operational resilience
– The operational resilience strategy in the HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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.
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.
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.
Highly skilled collaborators
– Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution HBR case study have helped the firm to develop new products and bring them quickly to 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.
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.
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.
Diverse revenue streams
– Hkcaa Accreditation is present in almost all the verticals within the industry. This has provided firm in HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
Low bargaining power of suppliers
– Suppliers of Hkcaa Accreditation in the sector have low bargaining power. HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hkcaa Accreditation to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hkcaa Accreditation 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.
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 -
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, in the dynamic environment Hkcaa Accreditation has struggled to respond to the nimble upstart competition. Hkcaa Accreditation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Lack of clear differentiation of Hkcaa Accreditation products
– To increase the profitability and margins on the products, Hkcaa Accreditation needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
No frontier risks strategy
– After analyzing the HBR case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hkcaa Accreditation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Hkcaa Accreditation 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.
Interest costs
– Compare to the competition, Hkcaa Accreditation 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 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.
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 -
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 Hkcaa Accreditation 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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hkcaa Accreditation 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hkcaa Accreditation is facing challenges because of the dominance of functional experts in the organization. HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hkcaa Accreditation in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hkcaa Accreditation 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 Hkcaa Accreditation to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Hkcaa Accreditation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution 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.
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.
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 -
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.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hkcaa Accreditation 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 HKCAA: Organizational Change and Re-positioning of a Quasi-Government Institution .
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 Hkcaa Accreditation in the Finance & Accounting sector and impact the bottomline of the organization.
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.
Consumer confidence and its impact on Hkcaa Accreditation 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.
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.
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.
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.
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.