Competing for Development (B1): The Intermediate Technology Development Group/Practical Action SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Competing for Development (B1): The Intermediate Technology Development Group/Practical Action
This a role play supplement to Competing for Development (A): Fuel Efficient Stoves for Darfur, product # 908M61. The role plays feature additional background, motivations and decision priorities from the key local and international players in Darfur's fuel efficient stove interventions, including the Intermediate Technology Group , renamed to Practical Action in 2005 (ITDG/PA), the Lawrence Berkeley National Lab, Aprovecho, the International Lifeline Fund, the United States Agency for International Development (USAID), and organizations representing local, female, internally displaced persons (IDPs).
Swot Analysis of "Competing for Development (B1): The Intermediate Technology Development Group/Practical Action" written by Oana Branzei, Samer Abdelnour includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intermediate Fuel facing as an external strategic factors. Some of the topics covered in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action case study are - Strategic Management Strategies, Economic development, Emerging markets, Social enterprise, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Competing for Development (B1): The Intermediate Technology Development Group/Practical Action casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, geopolitical disruptions,
competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, etc
Introduction to SWOT Analysis of Competing for Development (B1): The Intermediate Technology Development Group/Practical Action
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intermediate Fuel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intermediate Fuel 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action can be done for the following purposes –
1. Strategic planning using facts provided in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action case study
2. Improving business portfolio management of Intermediate Fuel
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 Intermediate Fuel
Strengths Competing for Development (B1): The Intermediate Technology Development Group/Practical Action | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intermediate Fuel in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action Harvard Business Review case study are -
Ability to recruit top talent
– Intermediate Fuel is one of the leading recruiters in the industry. Managers in the Competing for Development (B1): The Intermediate Technology Development Group/Practical Action are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Intermediate Fuel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intermediate Fuel 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.
Training and development
– Intermediate Fuel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Intermediate Fuel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intermediate Fuel 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.
Learning organization
- Intermediate Fuel 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 Intermediate Fuel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Competing for Development (B1): The Intermediate Technology Development Group/Practical Action Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Intermediate Fuel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Intermediate Fuel 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 Oana Branzei, Samer Abdelnour 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 Intermediate Fuel 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.
Organizational Resilience of Intermediate Fuel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intermediate Fuel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Intermediate Fuel in the sector have low bargaining power. Competing for Development (B1): The Intermediate Technology Development Group/Practical Action has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intermediate Fuel to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Intermediate Fuel 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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.
Weaknesses Competing for Development (B1): The Intermediate Technology Development Group/Practical Action | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competing for Development (B1): The Intermediate Technology Development Group/Practical Action are -
Increasing silos among functional specialists
– The organizational structure of Intermediate Fuel is dominated by functional specialists. It is not different from other players in the Global Business segment. Intermediate Fuel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intermediate Fuel to focus more on services rather than just following the product 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 Intermediate Fuel supply chain. Even after few cautionary changes mentioned in the HBR case study - Competing for Development (B1): The Intermediate Technology Development Group/Practical Action, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Intermediate Fuel vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Intermediate Fuel 's lucrative customers.
Lack of clear differentiation of Intermediate Fuel products
– To increase the profitability and margins on the products, Intermediate Fuel needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Intermediate Fuel 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 - Competing for Development (B1): The Intermediate Technology Development Group/Practical Action should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action, it seems that the employees of Intermediate Fuel 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Intermediate Fuel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Intermediate Fuel 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.
Interest costs
– Compare to the competition, Intermediate Fuel 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action, in the dynamic environment Intermediate Fuel has struggled to respond to the nimble upstart competition. Intermediate Fuel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Competing for Development (B1): The Intermediate Technology Development Group/Practical Action HBR case study mentions - Intermediate Fuel 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.
Opportunities Competing for Development (B1): The Intermediate Technology Development Group/Practical Action | 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action are -
Learning at scale
– Online learning technologies has now opened space for Intermediate Fuel 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.
Better consumer reach
– The expansion of the 5G network will help Intermediate Fuel to increase its market reach. Intermediate Fuel 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.
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. Intermediate Fuel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Intermediate Fuel 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. Intermediate Fuel 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.
Building a culture of innovation
– managers at Intermediate Fuel 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intermediate Fuel can use these opportunities to build new business models that can help the communities that Intermediate Fuel operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Intermediate Fuel 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 Intermediate Fuel to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Intermediate Fuel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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.
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 Intermediate Fuel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intermediate Fuel is facing challenges because of the dominance of functional experts in the organization. Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Intermediate Fuel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Intermediate Fuel 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intermediate Fuel to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Intermediate Fuel has opened avenues for new revenue streams for the organization in the industry. This can help Intermediate Fuel to build a more holistic ecosystem as suggested in the Competing for Development (B1): The Intermediate Technology Development Group/Practical Action case study. Intermediate Fuel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Competing for Development (B1): The Intermediate Technology Development Group/Practical Action External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action are -
Shortening product life cycle
– it is one of the major threat that Intermediate Fuel is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Intermediate Fuel 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Intermediate Fuel in the Global Business industry. The Global Business 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.
High dependence on third party suppliers
– Intermediate Fuel 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.
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. Intermediate Fuel needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Intermediate Fuel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Intermediate Fuel 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.
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.
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 Intermediate Fuel in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Competing for Development (B1): The Intermediate Technology Development Group/Practical Action, Intermediate Fuel 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 .
Environmental challenges
– Intermediate Fuel 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. Intermediate Fuel can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Technology acceleration in Forth Industrial Revolution
– Intermediate Fuel has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Intermediate Fuel 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.
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 Intermediate Fuel business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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 Competing for Development (B1): The Intermediate Technology Development Group/Practical Action 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 Intermediate Fuel needs to make to build a sustainable competitive advantage.
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