Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version
Portrays the difficult situation that Crear Vale la Pena (CVLP) underwent in 2002 as a result of the 2001 Argentine economic crisis. Also describes the corrective measures designed to overcome the crisis for the organization to continue its operations, considering its specific goals and the stakeholder groups involved in the Community Cultural Centers (CCCs) it had created. Describes CVLP's evolution under Ines Sanguinetti's leadership, as well as her vision of art as a transforming force for social identity development. The foundation first offered an art course embedded in a school support program. It later expanded into several art, communication, and social organization workshops delivered at CCCs. Funded by public and private donations, CVLP offered art education to over 4,800 students while training more than 45 teachers and 120 individuals in art-related crafts. In the late 1990s, Argentina succumbed to a severe economic crisis, featuring a significant rise in unemployment and poverty rates. A sharp drop in demand and, hence, in corporate and individual income consequently affected domestic nonprofits, especially those that relied on private and institutional funding. This economic and financial blow suddenly struck CVLP harder when its key donor, accounting for 80% of its revenues, announced a 50% contribution cut for the next period. To deal with this turn of events, CVLP's executive committee met to analyze several courses of action using projected financial statements as a strategic tool.
Swot Analysis of "Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version" written by Maria Cristina Wirth, Luis E. Sanchez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cvlp Art facing as an external strategic factors. Some of the topics covered in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version case study are - Strategic Management Strategies, Costs, Crisis management, Economy, Performance measurement and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version casestudy better are - – talent flight as more people leaving formal jobs, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cvlp Art, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cvlp Art 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version case study
2. Improving business portfolio management of Cvlp Art
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 Cvlp Art
Strengths Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cvlp Art in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version Harvard Business Review case study are -
Ability to recruit top talent
– Cvlp Art is one of the leading recruiters in the industry. Managers in the Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Cvlp Art 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Cvlp Art has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version firm has clearly differentiated products in the market place. This has enabled Cvlp Art to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Cvlp Art to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Cvlp Art in the sector have low bargaining power. Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cvlp Art to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Finance & Accounting field
– Cvlp Art 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 Cvlp Art in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Cvlp Art
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cvlp Art does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Cvlp Art has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cvlp Art to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Cvlp Art is one of the most innovative firm in sector. Manager in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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.
Learning organization
- Cvlp Art 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 Cvlp Art is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Cvlp Art 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.
Weaknesses Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version are -
Interest costs
– Compare to the competition, Cvlp Art 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 star products
– The top 2 products and services of the firm as mentioned in the Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Cvlp Art has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Cvlp Art, firm in the HBR case study Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Cvlp Art supply chain. Even after few cautionary changes mentioned in the HBR case study - Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cvlp Art vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version HBR case study mentions - Cvlp Art 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cvlp Art is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Cvlp Art 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 - Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Cvlp Art 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.
Need for greater diversity
– Cvlp Art 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.
Lack of clear differentiation of Cvlp Art products
– To increase the profitability and margins on the products, Cvlp Art needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Cvlp Art 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.
Opportunities Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version | 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version are -
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. Cvlp Art can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Cvlp Art 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cvlp Art to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Cvlp Art 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.
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 Cvlp Art 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, Cvlp Art 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 Cvlp Art can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Cvlp Art 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.
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 Cvlp Art in the consumer business. Now Cvlp Art can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Cvlp Art can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cvlp Art 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, Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Cvlp Art 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 Cvlp Art has opened avenues for new revenue streams for the organization in the industry. This can help Cvlp Art to build a more holistic ecosystem as suggested in the Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version case study. Cvlp Art can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Cvlp Art to increase its market reach. Cvlp Art 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.
Threats Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cvlp Art with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Increasing wage structure of Cvlp Art
– 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 Cvlp Art.
Technology acceleration in Forth Industrial Revolution
– Cvlp Art has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Cvlp Art 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.
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 Cvlp Art.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version, Cvlp Art 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, Cvlp Art 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version .
Shortening product life cycle
– it is one of the major threat that Cvlp Art is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Cvlp Art 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. Cvlp Art can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Stagnating economy with rate increase
– Cvlp Art 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.
Consumer confidence and its impact on Cvlp Art 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cvlp Art 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.
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. Cvlp Art can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Crear Vale la Pena: Using Budgets as Management Tools, Spanish Version 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 Cvlp Art needs to make to build a sustainable competitive advantage.
