Swot Analysis of "2001 Crisis in Argentina: An IMF-Sponsored Default? (B)" written by Rafael Di Tella, Ingrid Vogel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imf Sponsored facing as an external strategic factors. Some of the topics covered in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) case study are - Strategic Management Strategies, Economy, Government, International business and Global Business.
Some of the macro environment factors that can be used to understand the 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of 2001 Crisis in Argentina: An IMF-Sponsored Default? (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imf Sponsored, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imf Sponsored 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) can be done for the following purposes –
1. Strategic planning using facts provided in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) case study
2. Improving business portfolio management of Imf Sponsored
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Imf Sponsored
Strengths 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imf Sponsored in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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.
Analytics focus
– Imf Sponsored 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 Rafael Di Tella, Ingrid Vogel 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.
High switching costs
– The high switching costs that Imf Sponsored 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.
Training and development
– Imf Sponsored has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 Global Business industry
– 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) firm has clearly differentiated products in the market place. This has enabled Imf Sponsored to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Imf Sponsored to invest into research and development (R&D) and innovation.
Organizational Resilience of Imf Sponsored
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Imf Sponsored does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Imf Sponsored 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 Imf Sponsored is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Imf Sponsored in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Imf Sponsored 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Imf Sponsored is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Imf Sponsored has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imf Sponsored has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Global Business field
– Imf Sponsored 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 Imf Sponsored in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) are -
Low market penetration in new markets
– Outside its home market of Imf Sponsored, firm in the HBR case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B), it seems that the employees of Imf Sponsored 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 cash cycle compare to competitors
Imf Sponsored 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B), in the dynamic environment Imf Sponsored has struggled to respond to the nimble upstart competition. Imf Sponsored has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Imf Sponsored products
– To increase the profitability and margins on the products, Imf Sponsored needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Imf Sponsored 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Imf Sponsored is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Rafael Di Tella, Ingrid Vogel suggests that, Imf Sponsored 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.
Need for greater diversity
– Imf Sponsored 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.
Slow to strategic competitive environment developments
– As 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) HBR case study mentions - Imf Sponsored takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Imf Sponsored supply chain. Even after few cautionary changes mentioned in the HBR case study - 2001 Crisis in Argentina: An IMF-Sponsored Default? (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Imf Sponsored vulnerable to further global disruptions in South East Asia.
Opportunities 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) | 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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. Imf Sponsored can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Imf Sponsored is facing challenges because of the dominance of functional experts in the organization. 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Imf Sponsored 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.
Loyalty marketing
– Imf Sponsored 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.
Better consumer reach
– The expansion of the 5G network will help Imf Sponsored to increase its market reach. Imf Sponsored 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Imf Sponsored can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Imf Sponsored has opened avenues for new revenue streams for the organization in the industry. This can help Imf Sponsored to build a more holistic ecosystem as suggested in the 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) case study. Imf Sponsored can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Imf Sponsored can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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.
Developing new processes and practices
– Imf Sponsored can develop new processes and procedures in Global Business 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
– Imf Sponsored 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Imf Sponsored to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Imf Sponsored in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Imf Sponsored 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 Global Business segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Imf Sponsored 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, 2001 Crisis in Argentina: An IMF-Sponsored Default? (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study 2001 Crisis in Argentina: An IMF-Sponsored Default? (B), Imf Sponsored may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
High dependence on third party suppliers
– Imf Sponsored 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.
Regulatory challenges
– Imf Sponsored 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 Global Business industry regulations.
Environmental challenges
– Imf Sponsored 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. Imf Sponsored can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
Technology acceleration in Forth Industrial Revolution
– Imf Sponsored has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Imf Sponsored needs to keep up with the evolution of technology in the Global Business 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.
Consumer confidence and its impact on Imf Sponsored 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.
Stagnating economy with rate increase
– Imf Sponsored 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.
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 Imf Sponsored.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Imf Sponsored can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Imf Sponsored 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 wage structure of Imf Sponsored
– 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 Imf Sponsored.
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. Imf Sponsored needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 2001 Crisis in Argentina: An IMF-Sponsored Default? (B) 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 Imf Sponsored needs to make to build a sustainable competitive advantage.
