Peoplepower, Inc.: The Republic of the Philippines SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Peoplepower, Inc.: The Republic of the Philippines
In 2006, the Philippines faces a difficult choice. Japan has offered the country a trade agreement that includes access to the Japanese labor market for Philippine nurses and other professionals. The same trade agreement, however, means opening the country's manufacturing enterprises to Japanese exports, which is bitterly opposed by some of the nation's largest foreign investors. President Gloria Arroyo--embattled by coup attempts and political scandals--must decide whether to advance the nation's three-decade-old strategy of encouraging the export of its labor resources or whether to attenuate that strategy to meet the demands of large foreign investors.
Swot Analysis of "Peoplepower, Inc.: The Republic of the Philippines" written by Noel Maurer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Philippines Nation's facing as an external strategic factors. Some of the topics covered in Peoplepower, Inc.: The Republic of the Philippines case study are - Strategic Management Strategies, Global strategy, Globalization, Labor and Global Business.
Some of the macro environment factors that can be used to understand the Peoplepower, Inc.: The Republic of the Philippines casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings,
wage bills are increasing, geopolitical disruptions, etc
Introduction to SWOT Analysis of Peoplepower, Inc.: The Republic of the Philippines
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Peoplepower, Inc.: The Republic of the Philippines case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Philippines Nation's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines can be done for the following purposes –
1. Strategic planning using facts provided in Peoplepower, Inc.: The Republic of the Philippines case study
2. Improving business portfolio management of Philippines Nation's
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 Philippines Nation's
Strengths Peoplepower, Inc.: The Republic of the Philippines | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Philippines Nation's in Peoplepower, Inc.: The Republic of the Philippines Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Philippines Nation's 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.
Innovation driven organization
– Philippines Nation's is one of the most innovative firm in sector. Manager in Peoplepower, Inc.: The Republic of the Philippines Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Philippines Nation's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Philippines Nation's 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.
Effective Research and Development (R&D)
– Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Philippines Nation's 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 Noel Maurer 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
- Philippines Nation's 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 Philippines Nation's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Peoplepower, Inc.: The Republic of the Philippines Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Philippines Nation's is present in almost all the verticals within the industry. This has provided firm in Peoplepower, Inc.: The Republic of the Philippines 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.
Organizational Resilience of Philippines Nation's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Philippines Nation's 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 Philippines Nation's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Philippines Nation's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Philippines Nation's is one of the leading recruiters in the industry. Managers in the Peoplepower, Inc.: The Republic of the Philippines are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Peoplepower, Inc.: The Republic of the Philippines firm has clearly differentiated products in the market place. This has enabled Philippines Nation's to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Philippines Nation's to invest into research and development (R&D) and innovation.
Weaknesses Peoplepower, Inc.: The Republic of the Philippines | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Peoplepower, Inc.: The Republic of the Philippines are -
High bargaining power of channel partners
– Because of the regulatory requirements, Noel Maurer suggests that, Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines 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 Philippines Nation's 's lucrative customers.
Lack of clear differentiation of Philippines Nation's products
– To increase the profitability and margins on the products, Philippines Nation's needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Philippines Nation's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers 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 Philippines Nation's supply chain. Even after few cautionary changes mentioned in the HBR case study - Peoplepower, Inc.: The Republic of the Philippines, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Philippines Nation's vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Peoplepower, Inc.: The Republic of the Philippines 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 Peoplepower, Inc.: The Republic of the Philippines can leverage the sales team experience to cultivate customer relationships as Philippines Nation's is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Philippines Nation's 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.
Slow to strategic competitive environment developments
– As Peoplepower, Inc.: The Republic of the Philippines HBR case study mentions - Philippines Nation's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Peoplepower, Inc.: The Republic of the Philippines, in the dynamic environment Philippines Nation's has struggled to respond to the nimble upstart competition. Philippines Nation's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Philippines Nation's 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 - Peoplepower, Inc.: The Republic of the Philippines should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines | 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 Peoplepower, Inc.: The Republic of the Philippines are -
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. Philippines Nation's 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. Philippines Nation's 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.
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. Philippines Nation's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Philippines Nation's 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 Philippines Nation's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Philippines Nation's to increase its market reach. Philippines Nation's 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.
Buying journey improvements
– Philippines Nation's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Peoplepower, Inc.: The Republic of the Philippines 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.
Leveraging digital technologies
– Philippines Nation's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Philippines Nation's is facing challenges because of the dominance of functional experts in the organization. Peoplepower, Inc.: The Republic of the Philippines 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Philippines Nation's 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.
Using analytics as competitive advantage
– Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Philippines Nation's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Philippines Nation's 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.
Creating value in data economy
– The success of analytics program of Philippines Nation's has opened avenues for new revenue streams for the organization in the industry. This can help Philippines Nation's to build a more holistic ecosystem as suggested in the Peoplepower, Inc.: The Republic of the Philippines case study. Philippines Nation's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Philippines Nation's 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.
Threats Peoplepower, Inc.: The Republic of the Philippines External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Peoplepower, Inc.: The Republic of the Philippines are -
Technology acceleration in Forth Industrial Revolution
– Philippines Nation's has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Philippines Nation's 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
– Philippines Nation's 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 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.
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
– Philippines Nation's 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines .
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 Philippines Nation's business can come under increasing regulations regarding data privacy, data security, 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. Philippines Nation's 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.
Shortening product life cycle
– it is one of the major threat that Philippines Nation's is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Philippines Nation's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Philippines Nation's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Philippines Nation's.
Consumer confidence and its impact on Philippines Nation's 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 Peoplepower, Inc.: The Republic of the Philippines 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 Peoplepower, Inc.: The Republic of the Philippines 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 Peoplepower, Inc.: The Republic of the Philippines 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 Peoplepower, Inc.: The Republic of the Philippines 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 Peoplepower, Inc.: The Republic of the Philippines 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 Philippines Nation's needs to make to build a sustainable competitive advantage.