The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B)

This is a Darden case study.The increasing problems of millions of HIV/AIDS orphans and the perceived need for an innovative and creative solution to tackle the psychological, social, and economic needs of vulnerable children tipped the scales in favor of accepting sociologist Kurt Madorin's proposal: Klaus Leisinger and Karin Schmitt of the Novartis Foundation for Sustainable Development gave Madorin the go-ahead for setting up a pilot program in Tanzania to address the psychosocial needs of children who had lost parents to AIDS. This case describes the pilot program in Tanzania, Novartis's role in creating it, and-in 2001-the launch of a Regional Psychosocial Support Initiative (REPSSI) to address the psychosocial problems on a wider scale. The Novartis Foundation and the other organizations involved had to assess different countries and determine which one would be the best headquarters for REPSSI, and they had to focus on creating a strong and effective organizational operation.

Authors :: Pat Werhane, Jenny Mead

Topics :: Global Business

Tags :: Ethics, Generational issues, Health, Innovation, Leadership, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B)" written by Pat Werhane, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Psychosocial Repssi facing as an external strategic factors. Some of the topics covered in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) case study are - Strategic Management Strategies, Ethics, Generational issues, Health, Innovation, Leadership, Social enterprise, Social responsibility and Global Business.

Some of the macro environment factors that can be used to understand the The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) casestudy better are - – there is backlash against globalization, geopolitical disruptions, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc

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Introduction to SWOT Analysis of The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B)

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Psychosocial Repssi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Psychosocial Repssi 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) can be done for the following purposes –
1. Strategic planning using facts provided in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) case study
2. Improving business portfolio management of Psychosocial Repssi
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 Psychosocial Repssi

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Strengths The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Psychosocial Repssi in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) Harvard Business Review case study are -

High brand equity

– Psychosocial Repssi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Psychosocial Repssi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Strong track record of project management

– Psychosocial Repssi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Low bargaining power of suppliers

– Suppliers of Psychosocial Repssi in the sector have low bargaining power. The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Psychosocial Repssi to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy in the The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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.

Training and development

– Psychosocial Repssi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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.

Analytics focus

– Psychosocial Repssi 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 Pat Werhane, Jenny Mead 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.

Learning organization

- Psychosocial Repssi 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 Psychosocial Repssi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Psychosocial Repssi is present in almost all the verticals within the industry. This has provided firm in The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Ability to recruit top talent

– Psychosocial Repssi is one of the leading recruiters in the industry. Managers in the The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Psychosocial Repssi

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Psychosocial Repssi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Highly skilled collaborators

– Psychosocial Repssi 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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

High switching costs

– The high switching costs that Psychosocial Repssi 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.

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Weaknesses The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Psychosocial Repssi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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.

Aligning sales with marketing

– It come across in the case study The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) 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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) can leverage the sales team experience to cultivate customer relationships as Psychosocial Repssi is planning to shift buying processes online.

Products dominated business model

– Even though Psychosocial Repssi 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 - The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) should strive to include more intangible value offerings along with its core products and services.

Slow to strategic competitive environment developments

– As The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) HBR case study mentions - Psychosocial Repssi 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.

Capital Spending Reduction

– Even during the low interest decade, Psychosocial Repssi 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.

High cash cycle compare to competitors

Psychosocial Repssi 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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B), in the dynamic environment Psychosocial Repssi has struggled to respond to the nimble upstart competition. Psychosocial Repssi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Increasing silos among functional specialists

– The organizational structure of Psychosocial Repssi is dominated by functional specialists. It is not different from other players in the Global Business segment. Psychosocial Repssi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Psychosocial Repssi 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 Psychosocial Repssi supply chain. Even after few cautionary changes mentioned in the HBR case study - The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Psychosocial Repssi vulnerable to further global disruptions in South East Asia.

Workers concerns about automation

– As automation is fast increasing in the segment, Psychosocial Repssi 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 bargaining power of channel partners

– Because of the regulatory requirements, Pat Werhane, Jenny Mead suggests that, Psychosocial Repssi 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.

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Opportunities The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Psychosocial Repssi 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Psychosocial Repssi is facing challenges because of the dominance of functional experts in the organization. The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Psychosocial Repssi 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, The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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.

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. Psychosocial Repssi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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 Psychosocial Repssi 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.

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 Psychosocial Repssi in the consumer business. Now Psychosocial Repssi can target international markets with far fewer capital restrictions requirements than the existing system.

Better consumer reach

– The expansion of the 5G network will help Psychosocial Repssi to increase its market reach. Psychosocial Repssi 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.

Learning at scale

– Online learning technologies has now opened space for Psychosocial Repssi 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.

Building a culture of innovation

– managers at Psychosocial Repssi 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.

Loyalty marketing

– Psychosocial Repssi 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.

Developing new processes and practices

– Psychosocial Repssi 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.

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. Psychosocial Repssi 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. Psychosocial Repssi 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. Psychosocial Repssi 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.

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Threats The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B) are -

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 Psychosocial Repssi business can come under increasing regulations regarding data privacy, data security, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (B), Psychosocial Repssi 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 .

Consumer confidence and its impact on Psychosocial Repssi 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.

Regulatory challenges

– Psychosocial Repssi 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.

Shortening product life cycle

– it is one of the major threat that Psychosocial Repssi is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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. Psychosocial Repssi 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. Psychosocial Repssi 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

– Psychosocial Repssi 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 Psychosocial Repssi 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

– Psychosocial Repssi 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 wage structure of Psychosocial Repssi

– 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 Psychosocial Repssi.

Environmental challenges

– Psychosocial Repssi 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. Psychosocial Repssi can take advantage of this fund but it will also bring new competitors in the Global Business industry.

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Weighted SWOT Analysis of The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 The Novartis Foundation for Sustainable Development: Tackling HIV/AIDS and Poverty in South Africa (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 Psychosocial Repssi needs to make to build a sustainable competitive advantage.

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