La Hacienda Del Sol SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of La Hacienda Del Sol
The vice-president of a resort hotel in San Felipe, Mexico must deal with low winter sales levels. Students will gain experience in assessing the current marketing strategy, analyzing the fit of a new opportunity, making pricing decisions, designing a promotional campaign and calculating market share; and receive practice in using breakeven analysis and in analyzing an opportunity from both a qualitative and quantitative standpoint.
Swot Analysis of "La Hacienda Del Sol" written by Elizabeth M.A. Grasby, Neeta Khera includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Analyzing Hacienda facing as an external strategic factors. Some of the topics covered in La Hacienda Del Sol case study are - Strategic Management Strategies, Marketing, Pricing and Global Business.
Some of the macro environment factors that can be used to understand the La Hacienda Del Sol casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, technology disruption, cloud computing is disrupting traditional business models,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of La Hacienda Del Sol
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in La Hacienda Del Sol case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Analyzing Hacienda, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Analyzing Hacienda 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 La Hacienda Del Sol can be done for the following purposes –
1. Strategic planning using facts provided in La Hacienda Del Sol case study
2. Improving business portfolio management of Analyzing Hacienda
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 Analyzing Hacienda
Strengths La Hacienda Del Sol | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Analyzing Hacienda in La Hacienda Del Sol Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Analyzing Hacienda digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Analyzing Hacienda 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.
Ability to recruit top talent
– Analyzing Hacienda is one of the leading recruiters in the industry. Managers in the La Hacienda Del Sol 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 Analyzing Hacienda
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Analyzing Hacienda does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Analyzing Hacienda in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– La Hacienda Del Sol firm has clearly differentiated products in the market place. This has enabled Analyzing Hacienda to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Analyzing Hacienda to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Analyzing Hacienda in the sector have low bargaining power. La Hacienda Del Sol has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Analyzing Hacienda to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Analyzing Hacienda 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 Elizabeth M.A. Grasby, Neeta Khera 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.
Strong track record of project management
– Analyzing Hacienda is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the La Hacienda Del Sol 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 lead change in Global Business field
– Analyzing Hacienda 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 Analyzing Hacienda in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Analyzing Hacienda has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Analyzing Hacienda 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
– Analyzing Hacienda has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in La Hacienda Del Sol 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.
Weaknesses La Hacienda Del Sol | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of La Hacienda Del Sol are -
Slow decision making process
– As mentioned earlier in the report, Analyzing Hacienda has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Analyzing Hacienda even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study La Hacienda Del Sol, it seems that the employees of Analyzing Hacienda 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.
Increasing silos among functional specialists
– The organizational structure of Analyzing Hacienda is dominated by functional specialists. It is not different from other players in the Global Business segment. Analyzing Hacienda needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Analyzing Hacienda to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Analyzing Hacienda 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.
Lack of clear differentiation of Analyzing Hacienda products
– To increase the profitability and margins on the products, Analyzing Hacienda needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Analyzing Hacienda 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, Analyzing Hacienda 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Elizabeth M.A. Grasby, Neeta Khera suggests that, Analyzing Hacienda 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.
High operating costs
– Compare to the competitors, firm in the HBR case study La Hacienda Del Sol 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 Analyzing Hacienda 's lucrative 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 Analyzing Hacienda supply chain. Even after few cautionary changes mentioned in the HBR case study - La Hacienda Del Sol, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Analyzing Hacienda 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 La Hacienda Del Sol, in the dynamic environment Analyzing Hacienda has struggled to respond to the nimble upstart competition. Analyzing Hacienda has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities La Hacienda Del Sol | 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 La Hacienda Del Sol are -
Better consumer reach
– The expansion of the 5G network will help Analyzing Hacienda to increase its market reach. Analyzing Hacienda 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.
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. Analyzing Hacienda 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 Analyzing Hacienda 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, Analyzing Hacienda is facing challenges because of the dominance of functional experts in the organization. La Hacienda Del Sol 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.
Manufacturing automation
– Analyzing Hacienda can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Analyzing Hacienda can use these opportunities to build new business models that can help the communities that Analyzing Hacienda operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Analyzing Hacienda can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Analyzing Hacienda 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 La Hacienda Del Sol - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Analyzing Hacienda to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Analyzing Hacienda can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Analyzing Hacienda in the consumer business. Now Analyzing Hacienda can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Analyzing Hacienda 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Analyzing Hacienda 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.
Creating value in data economy
– The success of analytics program of Analyzing Hacienda has opened avenues for new revenue streams for the organization in the industry. This can help Analyzing Hacienda to build a more holistic ecosystem as suggested in the La Hacienda Del Sol case study. Analyzing Hacienda can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats La Hacienda Del Sol External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study La Hacienda Del Sol are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Analyzing Hacienda 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 acceleration in Forth Industrial Revolution
– Analyzing Hacienda has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Analyzing Hacienda 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 Analyzing Hacienda business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Analyzing Hacienda 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 La Hacienda Del Sol .
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 Analyzing Hacienda.
Stagnating economy with rate increase
– Analyzing Hacienda 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.
Increasing wage structure of Analyzing Hacienda
– 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 Analyzing Hacienda.
Shortening product life cycle
– it is one of the major threat that Analyzing Hacienda is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Analyzing Hacienda 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.
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. Analyzing Hacienda can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Analyzing Hacienda with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study La Hacienda Del Sol, Analyzing Hacienda 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 .
Weighted SWOT Analysis of La Hacienda Del Sol 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 La Hacienda Del Sol 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 La Hacienda Del Sol 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 La Hacienda Del Sol 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 La Hacienda Del Sol 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 Analyzing Hacienda needs to make to build a sustainable competitive advantage.