Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration
The American public raised serious concerns about product safety in 2007, when the number of product recalls broke a new record. Following a temporary drop in 2008, both the number and retail value of recalled units have been increasing, despite various efforts exerted by government agencies and private companies to combat this trend. Currently, many countries--including China itself--are expressing serious concern over adulterated or unsafe food made or sold in China. What are the underlying reasons for some Chinese suppliers to adulterate product? When law enforcement is still weak in China, what can western manufacturers do to reduce the risk of product adulteration? To develop effective deterrence mechanisms, we first identify four underlying factors that create incentives for some Chinese suppliers to produce unsafe products. Then we propose ideas to discourage Chinese suppliers from producing adulterated products based on two underlying strategies: (1) creating economic incentives through contingent payments, and (2) creating a social incentive by threatening public exposure through the power of the Internet and social networking sites.
Swot Analysis of "Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration" written by Christopher S. Tang, Volodymyr Babich includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Adulteration Adulterated facing as an external strategic factors. Some of the topics covered in Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration case study are - Strategic Management Strategies, Product development and Global Business.
Some of the macro environment factors that can be used to understand the Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration casestudy better are - – wage bills are increasing, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing energy prices, there is backlash against globalization,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Adulteration Adulterated, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Adulteration Adulterated 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration can be done for the following purposes –
1. Strategic planning using facts provided in Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration case study
2. Improving business portfolio management of Adulteration Adulterated
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 Adulteration Adulterated
Strengths Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Adulteration Adulterated in Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration Harvard Business Review case study are -
Highly skilled collaborators
– Adulteration Adulterated 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Adulteration Adulterated is one of the most innovative firm in sector. Manager in Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Adulteration Adulterated 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Adulteration Adulterated digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Adulteration Adulterated 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 brand equity
– Adulteration Adulterated has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Adulteration Adulterated to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Adulteration Adulterated
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Adulteration Adulterated does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Global Business industry
– Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration firm has clearly differentiated products in the market place. This has enabled Adulteration Adulterated to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Adulteration Adulterated to invest into research and development (R&D) and innovation.
Analytics focus
– Adulteration Adulterated 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 Christopher S. Tang, Volodymyr Babich 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.
Successful track record of launching new products
– Adulteration Adulterated has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Adulteration Adulterated 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.
Strong track record of project management
– Adulteration Adulterated is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Global Business field
– Adulteration Adulterated 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 Adulteration Adulterated in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Adulteration Adulterated 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration are -
Products dominated business model
– Even though Adulteration Adulterated 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 - Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Christopher S. Tang, Volodymyr Babich suggests that, Adulteration Adulterated 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Adulteration Adulterated 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.
Slow decision making process
– As mentioned earlier in the report, Adulteration Adulterated 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. Adulteration Adulterated 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.
Aligning sales with marketing
– It come across in the case study Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration can leverage the sales team experience to cultivate customer relationships as Adulteration Adulterated is planning to shift buying processes online.
Interest costs
– Compare to the competition, Adulteration Adulterated 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Adulteration Adulterated is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Adulteration Adulterated has relatively successful track record of launching new products.
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 Adulteration Adulterated supply chain. Even after few cautionary changes mentioned in the HBR case study - Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Adulteration Adulterated vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Adulteration Adulterated 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration, it seems that the employees of Adulteration Adulterated 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.
Opportunities Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration | 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration are -
Loyalty marketing
– Adulteration Adulterated 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.
Learning at scale
– Online learning technologies has now opened space for Adulteration Adulterated 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.
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. Adulteration Adulterated can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Adulteration Adulterated 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Adulteration Adulterated can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Adulteration Adulterated 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.
Leveraging digital technologies
– Adulteration Adulterated 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.
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. Adulteration Adulterated 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. Adulteration Adulterated 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.
Creating value in data economy
– The success of analytics program of Adulteration Adulterated has opened avenues for new revenue streams for the organization in the industry. This can help Adulteration Adulterated to build a more holistic ecosystem as suggested in the Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration case study. Adulteration Adulterated 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 Adulteration Adulterated 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.
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 Adulteration Adulterated 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Adulteration Adulterated 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 Adulteration Adulterated to increase its market reach. Adulteration Adulterated 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.
Threats Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Adulteration Adulterated 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.
Technology acceleration in Forth Industrial Revolution
– Adulteration Adulterated has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Adulteration Adulterated 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.
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 Adulteration Adulterated in the Global Business sector and impact the bottomline of the organization.
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. Adulteration Adulterated needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing wage structure of Adulteration Adulterated
– 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 Adulteration Adulterated.
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.
High dependence on third party suppliers
– Adulteration Adulterated 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.
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.
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 Adulteration Adulterated.
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 Adulteration Adulterated business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Adulteration Adulterated 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.
Consumer confidence and its impact on Adulteration Adulterated 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Adulteration Adulterated with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration 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 Adulteration Adulterated needs to make to build a sustainable competitive advantage.
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