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 - – competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, wage bills are increasing, supply chains are disrupted by pandemic , increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, 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 -
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.
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.
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.
Analytics focus
– Bop Iip 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 Francis Warnock 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.
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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Bop Iip digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bop Iip 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.
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.
Training and development
– Bop Iip has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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.
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.
Organizational Resilience of Bop Iip
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bop Iip does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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 -
High cash cycle compare to competitors
Bop Iip 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.
Capital Spending Reduction
– Even during the low interest decade, Bop Iip has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 can leverage the sales team experience to cultivate customer relationships as Bop Iip is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Bop Iip is dominated by functional specialists. It is not different from other players in the Global Business segment. Bop Iip needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bop Iip to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Bop Iip 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. Bop Iip 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.
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.
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.
Need for greater diversity
– Bop Iip 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.
High operating costs
– Compare to the competitors, firm in the HBR case study A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6 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 Bop Iip 's lucrative customers.
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.
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.
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 -
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.
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.
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.
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.
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 Bop Iip in the consumer business. Now Bop Iip 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, 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.
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. Bop Iip 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. Bop Iip 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.
Building a culture of innovation
– managers at Bop Iip 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bop Iip 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, A User's Guide to the BOP and IIP: The (Incomplete) Transition from BPM5 to BPM6, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Bop Iip can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bop Iip can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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 -
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.
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.
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. Bop Iip 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.
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.
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.
High dependence on third party suppliers
– Bop Iip 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.
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.
Environmental challenges
– Bop Iip 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. Bop Iip can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bop Iip 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, 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 .
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.