Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel
This sequel accompanies case number 1999 (HKS766). This case looks at public-private partnership (PPP) between the Health Ministry for the government of Lesotho and a private consortium headed up by Netcare, a South African company, to build and operate a new referral hospital and four feeder clinics in Maseru, the nation's capital. The project was one of the first efforts to design a PPP in Africa for the construction and the operation of a major hospital plus the clinical services. The project is perceived by the International Finance Corporation as a major success. The case focuses on three issues: 1. the steps taken by the government, IFC, and the private parties to form a workable public-private partnership; 2. the design and implementation of the key performance indicators contained in the contract; and 3. the sustainability of the project in light of higher than anticipated costs and lower quality health services in other areas of the country, which have resulted in a demand for services from the new clinic and hospital far in excess of the numbers originally forecast. Case number 1999.2
Swot Analysis of "Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel" written by Henry Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospital Lesotho facing as an external strategic factors. Some of the topics covered in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel case study are - Strategic Management Strategies, Joint ventures and Global Business.
Some of the macro environment factors that can be used to understand the Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospital Lesotho, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel can be done for the following purposes –
1. Strategic planning using facts provided in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel case study
2. Improving business portfolio management of Hospital Lesotho
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 Hospital Lesotho
Strengths Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospital Lesotho in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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.
Effective Research and Development (R&D)
– Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel - 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
– Hospital Lesotho 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 Henry Lee 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.
Sustainable margins compare to other players in Global Business industry
– Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel firm has clearly differentiated products in the market place. This has enabled Hospital Lesotho to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Hospital Lesotho to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Hospital Lesotho 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.
Training and development
– Hospital Lesotho has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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.
Ability to lead change in Global Business field
– Hospital Lesotho 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 Hospital Lesotho in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Hospital Lesotho is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Hospital Lesotho has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospital Lesotho to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Hospital Lesotho digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospital Lesotho 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.
High switching costs
– The high switching costs that Hospital Lesotho has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel are -
High operating costs
– Compare to the competitors, firm in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Hospital Lesotho 's lucrative customers.
Interest costs
– Compare to the competition, Hospital Lesotho 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.
Products dominated business model
– Even though Hospital Lesotho 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 - Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Hospital Lesotho has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel, in the dynamic environment Hospital Lesotho has struggled to respond to the nimble upstart competition. Hospital Lesotho has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Hospital Lesotho 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel, is just above the industry average. Hospital Lesotho 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 Hospital Lesotho supply chain. Even after few cautionary changes mentioned in the HBR case study - Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospital Lesotho vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Hospital Lesotho, firm in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel HBR case study mentions - Hospital Lesotho 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.
Opportunities Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel | 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hospital Lesotho 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, Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hospital Lesotho 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.
Manufacturing automation
– Hospital Lesotho 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.
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. Hospital Lesotho 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. Hospital Lesotho 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. Hospital Lesotho can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Hospital Lesotho in the consumer business. Now Hospital Lesotho can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospital Lesotho is facing challenges because of the dominance of functional experts in the organization. Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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.
Developing new processes and practices
– Hospital Lesotho 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hospital Lesotho can use these opportunities to build new business models that can help the communities that Hospital Lesotho operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for Hospital Lesotho 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hospital Lesotho 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 Hospital Lesotho to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Hospital Lesotho 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.
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. Hospital Lesotho can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel are -
High dependence on third party suppliers
– Hospital Lesotho 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.
Shortening product life cycle
– it is one of the major threat that Hospital Lesotho is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hospital Lesotho 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel .
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.
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. Hospital Lesotho can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Hospital Lesotho needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Hospital Lesotho 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.
Consumer confidence and its impact on Hospital Lesotho 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
– Hospital Lesotho 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 Hospital Lesotho business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Hospital Lesotho 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. Hospital Lesotho can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Weighted SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership Sequel 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 Hospital Lesotho needs to make to build a sustainable competitive advantage.
