Jerry Rao: Diaspora and Entrepreneurship in the Global Economy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jerry Rao: Diaspora and Entrepreneurship in the Global Economy
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.Focusing on one entrepreneur, Jerry Rao, this case examines the international career paths of Indian business professionals and engineers since the development of public policies beginning in the 1960s to attract them to developed countries like the United States. Explores why these professionals often chose to leave India in pursuit of economic opportunities abroad in the 1960s through 1980s and why many seem now to be returning to their homeland to start or run businesses. Also, considers the role of Diaspora of Indian professionals in contributing to the development of the export-oriented Indian IT sector.
Swot Analysis of "Jerry Rao: Diaspora and Entrepreneurship in the Global Economy" written by R. Daniel Wadhwani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diaspora Rao facing as an external strategic factors. Some of the topics covered in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy case study are - Strategic Management Strategies, Entrepreneurship, Globalization, IT, Managing people, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the Jerry Rao: Diaspora and Entrepreneurship in the Global Economy casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, increasing commodity prices, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Jerry Rao: Diaspora and Entrepreneurship in the Global Economy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diaspora Rao, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diaspora Rao 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy can be done for the following purposes –
1. Strategic planning using facts provided in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy case study
2. Improving business portfolio management of Diaspora Rao
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 Diaspora Rao
Strengths Jerry Rao: Diaspora and Entrepreneurship in the Global Economy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diaspora Rao in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy Harvard Business Review case study are -
Ability to recruit top talent
– Diaspora Rao is one of the leading recruiters in the industry. Managers in the Jerry Rao: Diaspora and Entrepreneurship in the Global Economy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Diaspora Rao 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 R. Daniel Wadhwani 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.
Cross disciplinary teams
– Horizontal connected teams at the Diaspora Rao 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.
Ability to lead change in Global Business field
– Diaspora Rao 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 Diaspora Rao in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Diaspora Rao 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 Diaspora Rao is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– Jerry Rao: Diaspora and Entrepreneurship in the Global Economy firm has clearly differentiated products in the market place. This has enabled Diaspora Rao to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Diaspora Rao to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Diaspora Rao digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diaspora Rao 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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.
Superior customer experience
– The customer experience strategy of Diaspora Rao 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
– Diaspora Rao is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Diaspora Rao has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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.
Highly skilled collaborators
– Diaspora Rao 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Jerry Rao: Diaspora and Entrepreneurship in the Global Economy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jerry Rao: Diaspora and Entrepreneurship in the Global Economy are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy, in the dynamic environment Diaspora Rao has struggled to respond to the nimble upstart competition. Diaspora Rao has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Diaspora Rao 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Diaspora Rao 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Jerry Rao: Diaspora and Entrepreneurship in the Global Economy HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Diaspora Rao has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Diaspora Rao 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. Diaspora Rao 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy, is just above the industry average. Diaspora Rao 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.
High bargaining power of channel partners
– Because of the regulatory requirements, R. Daniel Wadhwani suggests that, Diaspora Rao 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.
Products dominated business model
– Even though Diaspora Rao 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 - Jerry Rao: Diaspora and Entrepreneurship in the Global Economy should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Diaspora Rao, firm in the HBR case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy can leverage the sales team experience to cultivate customer relationships as Diaspora Rao is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Diaspora Rao 's lucrative customers.
Opportunities Jerry Rao: Diaspora and Entrepreneurship in the Global Economy | 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy are -
Leveraging digital technologies
– Diaspora Rao 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.
Loyalty marketing
– Diaspora Rao 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Diaspora Rao 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 Diaspora Rao to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Diaspora Rao 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diaspora Rao to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Diaspora Rao 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 Diaspora Rao to increase its market reach. Diaspora Rao 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diaspora Rao 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.
Buying journey improvements
– Diaspora Rao can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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.
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 Diaspora Rao 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Diaspora Rao 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, Jerry Rao: Diaspora and Entrepreneurship in the Global Economy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Diaspora Rao can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Diaspora Rao 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.
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 Diaspora Rao in the consumer business. Now Diaspora Rao can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Jerry Rao: Diaspora and Entrepreneurship in the Global Economy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy are -
Consumer confidence and its impact on Diaspora Rao 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.
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. Diaspora Rao can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Diaspora Rao in the Global Business sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Diaspora Rao is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Diaspora Rao 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jerry Rao: Diaspora and Entrepreneurship in the Global Economy, Diaspora Rao 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 .
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 Diaspora Rao business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Diaspora Rao has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Diaspora Rao 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.
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 Diaspora Rao.
Environmental challenges
– Diaspora Rao 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. Diaspora Rao can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 wage structure of Diaspora Rao
– 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 Diaspora Rao.
Stagnating economy with rate increase
– Diaspora Rao 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.
Weighted SWOT Analysis of Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Jerry Rao: Diaspora and Entrepreneurship in the Global Economy 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 Diaspora Rao needs to make to build a sustainable competitive advantage.
