Lesotho Hospital and Filter Clinics: A Public-Private Partnership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lesotho Hospital and Filter Clinics: A Public-Private Partnership
This case looks at the public-private partnership (PPP) between the Health Ministry for the government of Lesotho and a private consortium headed up by Netcare, a South African company, to build and operate a new referral hospital and four feeder clinics in Maseru, the nation's capital. The project was one of the first efforts to design a PPP in Africa for the construction and the operation of a major hospital plus the clinical services. The project is perceived by the International Finance Corporation as a major success. The case focuses on three issues: 1. the steps taken by the government, IFC, and the private parties to form a workable public-private partnership; 2. the design and implementation of the key performance indicators contained in the contract; and 3. the sustainability of the project in light of higher than anticipated costs and lower quality health services in other areas of the country, which have resulted in a demand for services from the new clinic and hospital far in excess of the numbers originally forecast. Case number 1999.0
Swot Analysis of "Lesotho Hospital and Filter Clinics: A Public-Private Partnership" written by Henry Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospital Lesotho facing as an external strategic factors. Some of the topics covered in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Lesotho Hospital and Filter Clinics: A Public-Private Partnership casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing commodity prices, increasing transportation and logistics costs,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospital Lesotho, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study
2. Improving business portfolio management of Hospital Lesotho
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 Hospital Lesotho
Strengths Lesotho Hospital and Filter Clinics: A Public-Private Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospital Lesotho in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Harvard Business Review case study are -
Ability to lead change in Global Business field
– Hospital Lesotho 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 Hospital Lesotho in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Hospital Lesotho 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 Hospital Lesotho is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Hospital Lesotho has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospital Lesotho to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Hospital Lesotho in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Hospital Lesotho 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 Henry Lee 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 Hospital Lesotho digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospital Lesotho 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.
Operational resilience
– The operational resilience strategy in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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.
Ability to recruit top talent
– Hospital Lesotho is one of the leading recruiters in the industry. Managers in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Hospital Lesotho has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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.
Effective Research and Development (R&D)
– Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Hospital Lesotho
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hospital Lesotho 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 Hospital Lesotho in the sector have low bargaining power. Lesotho Hospital and Filter Clinics: A Public-Private Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hospital Lesotho to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Lesotho Hospital and Filter Clinics: A Public-Private Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Products dominated business model
– Even though Hospital Lesotho 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 - Lesotho Hospital and Filter Clinics: A Public-Private Partnership should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Hospital Lesotho 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hospital Lesotho is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 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 Hospital Lesotho supply chain. Even after few cautionary changes mentioned in the HBR case study - Lesotho Hospital and Filter Clinics: A Public-Private Partnership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospital Lesotho vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, in the dynamic environment Hospital Lesotho has struggled to respond to the nimble upstart competition. Hospital Lesotho has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership can leverage the sales team experience to cultivate customer relationships as Hospital Lesotho is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Hospital Lesotho 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, it seems that the employees of Hospital Lesotho 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, is just above the industry average. Hospital Lesotho 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.
No frontier risks strategy
– After analyzing the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry Lee suggests that, Hospital Lesotho is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Lesotho Hospital and Filter Clinics: A Public-Private Partnership | 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Hospital Lesotho can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospital Lesotho is facing challenges because of the dominance of functional experts in the organization. Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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.
Better consumer reach
– The expansion of the 5G network will help Hospital Lesotho to increase its market reach. Hospital Lesotho 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.
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 Hospital Lesotho 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.
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. Hospital Lesotho 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. Hospital Lesotho 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.
Leveraging digital technologies
– Hospital Lesotho 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.
Using analytics as competitive advantage
– Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hospital Lesotho to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Hospital Lesotho 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hospital Lesotho 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 Hospital Lesotho to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hospital Lesotho can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Hospital Lesotho 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.
Buying journey improvements
– Hospital Lesotho can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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.
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 Hospital Lesotho in the consumer business. Now Hospital Lesotho can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Lesotho Hospital and Filter Clinics: A Public-Private Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Shortening product life cycle
– it is one of the major threat that Hospital Lesotho is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hospital Lesotho 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, Hospital Lesotho 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 .
Technology acceleration in Forth Industrial Revolution
– Hospital Lesotho has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Hospital Lesotho 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.
High dependence on third party suppliers
– Hospital Lesotho 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership .
Increasing wage structure of Hospital Lesotho
– 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 Hospital Lesotho.
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. Hospital Lesotho 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.
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. Hospital Lesotho needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Stagnating economy with rate increase
– Hospital Lesotho 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 Hospital Lesotho 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.
Weighted SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Hospital Lesotho needs to make to build a sustainable competitive advantage.