A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6
Balance of payments (BOP) accounting conventions, never straightforward, have been complicated recently by the introduction of new standards. This note presents a short description of BOP and international investment position (IIP) data. It refers to data for the United States, Brazil, and South Africa, but given that there are worldwide standards for countries that report BOP and IIP, it should provide guidance for understanding the data of just about any country. It is meant to be a resource that students can refer to time and time again as they gain a deeper understanding of BOP data.
Swot Analysis of "A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6" written by Francis Warnock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bop Iip facing as an external strategic factors. Some of the topics covered in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bop Iip, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bop Iip 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 can be done for the following purposes –
1. Strategic planning using facts provided in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 case study
2. Improving business portfolio management of Bop Iip
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 Bop Iip
Strengths A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bop Iip in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 Harvard Business Review case study are -
Learning organization
- Bop Iip 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 Bop Iip is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 firm has clearly differentiated products in the market place. This has enabled Bop Iip to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Bop Iip to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Bop Iip 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Bop Iip 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
– Bop Iip has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bop Iip 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.
Effective Research and Development (R&D)
– Bop Iip 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Global Business field
– Bop Iip 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 Bop Iip in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Bop Iip is one of the most innovative firm in sector. Manager in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Bop Iip in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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.
Low bargaining power of suppliers
– Suppliers of Bop Iip in the sector have low bargaining power. A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bop Iip to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Bop Iip is present in almost all the verticals within the industry. This has provided firm in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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.
Weaknesses A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 are -
Interest costs
– Compare to the competition, Bop Iip 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Francis Warnock suggests that, Bop Iip is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Products dominated business model
– Even though Bop Iip 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 - A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 Bop Iip has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6, is just above the industry average. Bop Iip 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.
Low market penetration in new markets
– Outside its home market of Bop Iip, firm in the HBR case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6, in the dynamic environment Bop Iip has struggled to respond to the nimble upstart competition. Bop Iip has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Bop Iip supply chain. Even after few cautionary changes mentioned in the HBR case study - A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bop Iip vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 HBR case study mentions - Bop Iip 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bop Iip 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.
Skills based hiring
– The stress on hiring functional specialists at Bop Iip 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.
Opportunities A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 | 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bop Iip can use these opportunities to build new business models that can help the communities that Bop Iip operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bop Iip 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 Bop Iip to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Bop Iip 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bop Iip is facing challenges because of the dominance of functional experts in the organization. A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bop Iip can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Bop Iip 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.
Better consumer reach
– The expansion of the 5G network will help Bop Iip to increase its market reach. Bop Iip 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 Bop Iip has opened avenues for new revenue streams for the organization in the industry. This can help Bop Iip to build a more holistic ecosystem as suggested in the A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 case study. Bop Iip can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Bop Iip 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.
Buying journey improvements
– Bop Iip can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bop Iip 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.
Loyalty marketing
– Bop Iip 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.
Leveraging digital technologies
– Bop Iip 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.
Threats A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 are -
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. Bop Iip 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 Bop Iip with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Bop Iip 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.
Technology acceleration in Forth Industrial Revolution
– Bop Iip has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Bop Iip 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bop Iip 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 .
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 Bop Iip in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6, Bop Iip 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 .
Increasing wage structure of Bop Iip
– 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 Bop Iip.
Stagnating economy with rate increase
– Bop Iip 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.
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.
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 Bop Iip business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Bop Iip is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 Bop Iip needs to make to build a sustainable competitive advantage.
