Remaking the Rainbow Nation: South Africa 2002 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Remaking the Rainbow Nation: South Africa 2002
In April 1994, the world witnessed a political milestone in South Africa. After decades of repression and racial segregation, South Africa's black majority came to power at last, as the African National Congress (ANC), led by the celebrated Nelson Mandela, rode into power with 63% of the vote in the country's first racially inclusive election. Eight years after this electoral victory, however, many South Africans are starting to question the shifting priorities of the ANC. Although the political situation of the country has vastly improved, the economy remains fragile, and some of the ANC's most loyal allies are decrying what they see as a change of faith. Thabo Mbeki, a former political exile who became president in 1999, must now decide what democracy means for South Africa and how best to preserve it.
Authors :: Rawi Abdelal, Katherine E. Cousins, Debora L. Spar
Swot Analysis of "Remaking the Rainbow Nation: South Africa 2002" written by Rawi Abdelal, Katherine E. Cousins, Debora L. Spar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that South Anc facing as an external strategic factors. Some of the topics covered in Remaking the Rainbow Nation: South Africa 2002 case study are - Strategic Management Strategies, Economics, Emerging markets, Entrepreneurship, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Remaking the Rainbow Nation: South Africa 2002 casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Remaking the Rainbow Nation: South Africa 2002
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Remaking the Rainbow Nation: South Africa 2002 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the South Anc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which South Anc 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 Remaking the Rainbow Nation: South Africa 2002 can be done for the following purposes –
1. Strategic planning using facts provided in Remaking the Rainbow Nation: South Africa 2002 case study
2. Improving business portfolio management of South Anc
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 South Anc
Strengths Remaking the Rainbow Nation: South Africa 2002 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of South Anc in Remaking the Rainbow Nation: South Africa 2002 Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of South Anc in the sector have low bargaining power. Remaking the Rainbow Nation: South Africa 2002 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps South Anc to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– South Anc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. South Anc 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
– South Anc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Remaking the Rainbow Nation: South Africa 2002 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.
Ability to lead change in Global Business field
– South Anc 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 South Anc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– South Anc 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 Rawi Abdelal, Katherine E. Cousins, Debora L. Spar 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For South Anc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. South Anc 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
- South Anc 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 South Anc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Remaking the Rainbow Nation: South Africa 2002 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– South Anc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– South Anc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled South Anc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of South Anc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that South Anc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the South Anc 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.
Effective Research and Development (R&D)
– South Anc 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 Remaking the Rainbow Nation: South Africa 2002 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Remaking the Rainbow Nation: South Africa 2002 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Remaking the Rainbow Nation: South Africa 2002 are -
High operating costs
– Compare to the competitors, firm in the HBR case study Remaking the Rainbow Nation: South Africa 2002 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 South Anc 's lucrative customers.
Interest costs
– Compare to the competition, South Anc 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.
Low market penetration in new markets
– Outside its home market of South Anc, firm in the HBR case study Remaking the Rainbow Nation: South Africa 2002 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Remaking the Rainbow Nation: South Africa 2002, is just above the industry average. South Anc needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Remaking the Rainbow Nation: South Africa 2002, in the dynamic environment South Anc has struggled to respond to the nimble upstart competition. South Anc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, South Anc is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Remaking the Rainbow Nation: South Africa 2002 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Remaking the Rainbow Nation: South Africa 2002, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Capital Spending Reduction
– Even during the low interest decade, South Anc has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study Remaking the Rainbow Nation: South Africa 2002 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 Remaking the Rainbow Nation: South Africa 2002 can leverage the sales team experience to cultivate customer relationships as South Anc is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, South Anc 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.
High cash cycle compare to competitors
South Anc 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.
Opportunities Remaking the Rainbow Nation: South Africa 2002 | 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 Remaking the Rainbow Nation: South Africa 2002 are -
Buying journey improvements
– South Anc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Remaking the Rainbow Nation: South Africa 2002 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.
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. South Anc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, South Anc 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.
Creating value in data economy
– The success of analytics program of South Anc has opened avenues for new revenue streams for the organization in the industry. This can help South Anc to build a more holistic ecosystem as suggested in the Remaking the Rainbow Nation: South Africa 2002 case study. South Anc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects South Anc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 South Anc in the consumer business. Now South Anc can target international markets with far fewer capital restrictions requirements than the existing system.
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. South Anc 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. South Anc 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for South Anc 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.
Leveraging digital technologies
– South Anc 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.
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 South Anc 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.
Building a culture of innovation
– managers at South Anc 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for South Anc 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 South Anc to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help South Anc to increase its market reach. South Anc 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 Remaking the Rainbow Nation: South Africa 2002 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Remaking the Rainbow Nation: South Africa 2002 are -
Stagnating economy with rate increase
– South Anc 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.
High dependence on third party suppliers
– South Anc 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.
Technology acceleration in Forth Industrial Revolution
– South Anc has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, South Anc 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.
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. South Anc 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 South Anc is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– South Anc 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. South Anc can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 South Anc.
Consumer confidence and its impact on South Anc 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.
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. South Anc needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. South Anc 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents South Anc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 South Anc in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Remaking the Rainbow Nation: South Africa 2002 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 Remaking the Rainbow Nation: South Africa 2002 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 Remaking the Rainbow Nation: South Africa 2002 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 Remaking the Rainbow Nation: South Africa 2002 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 Remaking the Rainbow Nation: South Africa 2002 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 South Anc needs to make to build a sustainable competitive advantage.
