Canadian Institute of Business and Technology in China (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Canadian Institute of Business and Technology in China (A)
After a decade of establishing itself in China's foreign education market, the Canadian Institute of Business and Technology (CIBT) Education Group was finding that the market for Western-style education in major Chinese cities was becoming saturated. The enrolment rate in CIBT's MBA programs in Beijing declined sharply by 20% in 2004. Toby Chu, president and CEO of CIBT, believed that the company needed a significant change in strategy and a new business model for future growth in China. One option was to shift attention to the relatively unexplored second- and third-tier cities where less competition was expected. In 2004, Weifang University (WU) based in Weifang, an inland, third-tier city in Shandong province, was interested in collaborating with CIBT to provide vocational programs. Chu and his executive team had to respond to WU and Chu was wondering if Weifang could be a start to test CIBT's new model for education in China. Case B provides a follow up and an update.
Swot Analysis of "Canadian Institute of Business and Technology in China (A)" written by Charles Dhanaraj, Jing Li includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cibt Weifang facing as an external strategic factors. Some of the topics covered in Canadian Institute of Business and Technology in China (A) case study are - Strategic Management Strategies, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Canadian Institute of Business and Technology in China (A) casestudy better are - – there is backlash against globalization, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Canadian Institute of Business and Technology in China (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Canadian Institute of Business and Technology in China (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cibt Weifang, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cibt Weifang 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 Canadian Institute of Business and Technology in China (A) can be done for the following purposes –
1. Strategic planning using facts provided in Canadian Institute of Business and Technology in China (A) case study
2. Improving business portfolio management of Cibt Weifang
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 Cibt Weifang
Strengths Canadian Institute of Business and Technology in China (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cibt Weifang in Canadian Institute of Business and Technology in China (A) Harvard Business Review case study are -
Ability to recruit top talent
– Cibt Weifang is one of the leading recruiters in the industry. Managers in the Canadian Institute of Business and Technology in China (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Cibt Weifang in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Cibt Weifang has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cibt Weifang to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Cibt Weifang is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Cibt Weifang has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cibt Weifang 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.
Sustainable margins compare to other players in Global Business industry
– Canadian Institute of Business and Technology in China (A) firm has clearly differentiated products in the market place. This has enabled Cibt Weifang to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Cibt Weifang to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Cibt Weifang digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cibt Weifang 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.
Analytics focus
– Cibt Weifang 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 Charles Dhanaraj, Jing Li 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.
Highly skilled collaborators
– Cibt Weifang 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 Canadian Institute of Business and Technology in China (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Cibt Weifang in the sector have low bargaining power. Canadian Institute of Business and Technology in China (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cibt Weifang to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Cibt Weifang is one of the most innovative firm in sector. Manager in Canadian Institute of Business and Technology in China (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Cibt Weifang 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.
Weaknesses Canadian Institute of Business and Technology in China (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Canadian Institute of Business and Technology in China (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Canadian Institute of Business and Technology in China (A) 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 Cibt Weifang 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Cibt Weifang 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.
Aligning sales with marketing
– It come across in the case study Canadian Institute of Business and Technology in China (A) 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 Canadian Institute of Business and Technology in China (A) can leverage the sales team experience to cultivate customer relationships as Cibt Weifang is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Cibt Weifang 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. Cibt Weifang 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.
Products dominated business model
– Even though Cibt Weifang 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 - Canadian Institute of Business and Technology in China (A) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Canadian Institute of Business and Technology in China (A), in the dynamic environment Cibt Weifang has struggled to respond to the nimble upstart competition. Cibt Weifang has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Canadian Institute of Business and Technology in China (A), is just above the industry average. Cibt Weifang 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 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 Cibt Weifang supply chain. Even after few cautionary changes mentioned in the HBR case study - Canadian Institute of Business and Technology in China (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cibt Weifang vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Cibt Weifang 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Canadian Institute of Business and Technology in China (A), it seems that the employees of Cibt Weifang 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.
Capital Spending Reduction
– Even during the low interest decade, Cibt Weifang 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.
Opportunities Canadian Institute of Business and Technology in China (A) | 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 Canadian Institute of Business and Technology in China (A) are -
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. Cibt Weifang 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 Cibt Weifang can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Cibt Weifang to increase its market reach. Cibt Weifang 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.
Creating value in data economy
– The success of analytics program of Cibt Weifang has opened avenues for new revenue streams for the organization in the industry. This can help Cibt Weifang to build a more holistic ecosystem as suggested in the Canadian Institute of Business and Technology in China (A) case study. Cibt Weifang can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Cibt Weifang 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cibt Weifang 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cibt Weifang 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.
Learning at scale
– Online learning technologies has now opened space for Cibt Weifang 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.
Using analytics as competitive advantage
– Cibt Weifang 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 Canadian Institute of Business and Technology in China (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cibt Weifang to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Cibt Weifang in the consumer business. Now Cibt Weifang can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Cibt Weifang 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. Cibt Weifang can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cibt Weifang 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, Canadian Institute of Business and Technology in China (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Canadian Institute of Business and Technology in China (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Canadian Institute of Business and Technology in China (A) are -
Consumer confidence and its impact on Cibt Weifang 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.
Stagnating economy with rate increase
– Cibt Weifang 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.
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 Cibt Weifang business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cibt Weifang 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 Canadian Institute of Business and Technology in China (A), Cibt Weifang 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 .
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. Cibt Weifang needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Cibt Weifang 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. Cibt Weifang can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cibt Weifang 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 Canadian Institute of Business and Technology in China (A) .
Regulatory challenges
– Cibt Weifang 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.
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 Cibt Weifang.
High dependence on third party suppliers
– Cibt Weifang 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.
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. Cibt Weifang 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cibt Weifang 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.
Weighted SWOT Analysis of Canadian Institute of Business and Technology in China (A) 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 Canadian Institute of Business and Technology in China (A) 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 Canadian Institute of Business and Technology in China (A) 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 Canadian Institute of Business and Technology in China (A) 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 Canadian Institute of Business and Technology in China (A) 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 Cibt Weifang needs to make to build a sustainable competitive advantage.
