The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version

Asociacion Civil Labor is a private non-profit organization founded in 1981 in llo, a city located in an important mining and fishing region in southern Peru. Its original mission was to defend labor rights and promote leadership among workers in the mining industry, but during its first decade of operation this evolved into the defense of sustainable community development and the rights of communities affected by extractive activities. The labor case is particularly relevant for the analysis of some of the typical challenges faced by organizations whose institutional performance is oriented towards advocacy and the defense of basic citizen rights. Over the years, Labor consolidated itself as an institution and had an important impact on the defense of the environment, the creation of greater awareness of the impact of the extractive activities, and the generation of public policy towards this sector in Peru. This case is particularly interesting because of the close relationship that the NGO maintained with the municipal government, which generated favorable results for the population of llo but also produced dilemmas with regard to the identity, mission, and autonomy of Labor. These dilemmas reached a critical point in 1997, when the proposal to build a new coal-fueled energy plant in an area zoned for tourism and recreation generated contrary opinions among the municipal authorities and the NGO staff, and divided the local population. The decisions that Labor made on this issue would have long term repercussions for the organization, which would have to redefine its relationship with a significant part of the population as well as with municipal authorities and the NGO's Donors.

Authors :: Felipe Portocarrero, Cynthia Sanborn, Elsa Del Castillo, Martha Chavez

Topics :: Global Business

Tags :: Decision making, International business, Social responsibility, Sustainability, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version" written by Felipe Portocarrero, Cynthia Sanborn, Elsa Del Castillo, Martha Chavez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Labor Llo facing as an external strategic factors. Some of the topics covered in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version case study are - Strategic Management Strategies, Decision making, International business, Social responsibility, Sustainability and Global Business.

Some of the macro environment factors that can be used to understand the The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing commodity prices, supply chains are disrupted by pandemic , geopolitical disruptions, there is backlash against globalization, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Labor Llo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Labor Llo 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version case study
2. Improving business portfolio management of Labor Llo
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 Labor Llo

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Strengths The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Labor Llo in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version Harvard Business Review case study are -

Digital Transformation in Global Business segment

- digital transformation varies from industry to industry. For Labor Llo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Labor Llo 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.

Low bargaining power of suppliers

– Suppliers of Labor Llo in the sector have low bargaining power. The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Labor Llo to manage not only supply disruptions but also source products at highly competitive prices.

Strong track record of project management

– Labor Llo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Diverse revenue streams

– Labor Llo is present in almost all the verticals within the industry. This has provided firm in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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.

Ability to lead change in Global Business field

– Labor Llo 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 Labor Llo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Training and development

– Labor Llo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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.

Learning organization

- Labor Llo 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 Labor Llo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Innovation driven organization

– Labor Llo is one of the most innovative firm in sector. Manager in The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to recruit top talent

– Labor Llo is one of the leading recruiters in the industry. Managers in the The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Operational resilience

– The operational resilience strategy in the The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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.

Sustainable margins compare to other players in Global Business industry

– The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version firm has clearly differentiated products in the market place. This has enabled Labor Llo to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Labor Llo to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Labor Llo 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version are -

Workers concerns about automation

– As automation is fast increasing in the segment, Labor Llo 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 operating costs

– Compare to the competitors, firm in the HBR case study The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 Labor Llo 's lucrative customers.

Increasing silos among functional specialists

– The organizational structure of Labor Llo is dominated by functional specialists. It is not different from other players in the Global Business segment. Labor Llo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Labor Llo to focus more on services rather than just following the product oriented approach.

Skills based hiring

– The stress on hiring functional specialists at Labor Llo 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version, it seems that the employees of Labor Llo 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.

Need for greater diversity

– Labor Llo has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version, in the dynamic environment Labor Llo has struggled to respond to the nimble upstart competition. Labor Llo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High cash cycle compare to competitors

Labor Llo 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Felipe Portocarrero, Cynthia Sanborn, Elsa Del Castillo, Martha Chavez suggests that, Labor Llo 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.

Slow decision making process

– As mentioned earlier in the report, Labor Llo 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. Labor Llo 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 Labor Llo 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 - The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version should strive to include more intangible value offerings along with its core products and services.

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Opportunities The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version | 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version are -

Loyalty marketing

– Labor Llo 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.

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. Labor Llo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Labor Llo 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. Labor Llo 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.

Buying journey improvements

– Labor Llo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Labor Llo 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 Labor Llo to hire the very best people irrespective of their geographical location.

Low interest rates

– Even though inflation is raising its head in most developed economies, Labor Llo 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.

Better consumer reach

– The expansion of the 5G network will help Labor Llo to increase its market reach. Labor Llo 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Labor Llo 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, The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Leveraging digital technologies

– Labor Llo 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.

Developing new processes and practices

– Labor Llo 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Labor Llo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Labor Llo can use these opportunities to build new business models that can help the communities that Labor Llo operates in. Secondly it can use opportunities from government spending in Global Business sector.

Building a culture of innovation

– managers at Labor Llo 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.

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Threats The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version are -

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 Labor Llo.

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.

Shortening product life cycle

– it is one of the major threat that Labor Llo is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 Labor Llo business can come under increasing regulations regarding data privacy, data security, etc.

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. Labor Llo needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Labor Llo 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version .

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. Labor Llo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Labor Llo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Labor Llo 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.

Stagnating economy with rate increase

– Labor Llo 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.

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. Labor Llo 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.

High dependence on third party suppliers

– Labor Llo 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version, Labor Llo 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 .

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Weighted SWOT Analysis of The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 The Environment, Development and Participation: the Dilemmas of Asociacion Civil Labor, Spanish Version 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 Labor Llo needs to make to build a sustainable competitive advantage.

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