Lesotho Hospital and Filter Clinics: A Public-Private Partnership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Lesotho Hospital and Filter Clinics: A Public-Private Partnership
This case looks at the public-private partnership (PPP) between the Health Ministry for the government of Lesotho and a private consortium headed up by Netcare, a South African company, to build and operate a new referral hospital and four feeder clinics in Maseru, the nation's capital. The project was one of the first efforts to design a PPP in Africa for the construction and the operation of a major hospital plus the clinical services. The project is perceived by the International Finance Corporation as a major success. The case focuses on three issues: 1. the steps taken by the government, IFC, and the private parties to form a workable public-private partnership; 2. the design and implementation of the key performance indicators contained in the contract; and 3. the sustainability of the project in light of higher than anticipated costs and lower quality health services in other areas of the country, which have resulted in a demand for services from the new clinic and hospital far in excess of the numbers originally forecast. Case number 1999.0
Swot Analysis of "Lesotho Hospital and Filter Clinics: A Public-Private Partnership" written by Henry Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hospital Lesotho facing as an external strategic factors. Some of the topics covered in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Lesotho Hospital and Filter Clinics: A Public-Private Partnership casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, increasing energy prices, increasing transportation and logistics costs, technology disruption,
increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hospital Lesotho, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hospital Lesotho operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study
2. Improving business portfolio management of Hospital Lesotho
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hospital Lesotho
Strengths Lesotho Hospital and Filter Clinics: A Public-Private Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hospital Lesotho in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Harvard Business Review case study are -
Learning organization
- Hospital Lesotho 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 Hospital Lesotho is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Hospital Lesotho
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hospital Lesotho does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Hospital Lesotho is present in almost all the verticals within the industry. This has provided firm in Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 recruit top talent
– Hospital Lesotho is one of the leading recruiters in the industry. Managers in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Hospital Lesotho digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hospital Lesotho has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Global Business industry
– Lesotho Hospital and Filter Clinics: A Public-Private Partnership firm has clearly differentiated products in the market place. This has enabled Hospital Lesotho to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Hospital Lesotho to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Hospital Lesotho has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Hospital Lesotho is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Hospital Lesotho has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hospital Lesotho 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.
Low bargaining power of suppliers
– Suppliers of Hospital Lesotho in the sector have low bargaining power. Lesotho Hospital and Filter Clinics: A Public-Private Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hospital Lesotho to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hospital Lesotho has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Hospital Lesotho has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hospital Lesotho to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Lesotho Hospital and Filter Clinics: A Public-Private Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, in the dynamic environment Hospital Lesotho has struggled to respond to the nimble upstart competition. Hospital Lesotho has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, is just above the industry average. Hospital Lesotho needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Products dominated business model
– Even though Hospital Lesotho has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Lesotho Hospital and Filter Clinics: A Public-Private Partnership should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Hospital Lesotho 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. Hospital Lesotho 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.
No frontier risks strategy
– After analyzing the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Hospital Lesotho 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.
Increasing silos among functional specialists
– The organizational structure of Hospital Lesotho is dominated by functional specialists. It is not different from other players in the Global Business segment. Hospital Lesotho needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hospital Lesotho to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Hospital Lesotho 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.
Skills based hiring
– The stress on hiring functional specialists at Hospital Lesotho has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry Lee suggests that, Hospital Lesotho 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hospital Lesotho 's lucrative customers.
Opportunities Lesotho Hospital and Filter Clinics: A Public-Private Partnership | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hospital Lesotho can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Hospital Lesotho 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.
Developing new processes and practices
– Hospital Lesotho can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hospital Lesotho 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hospital Lesotho can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hospital Lesotho can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Leveraging digital technologies
– Hospital Lesotho 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.
Learning at scale
– Online learning technologies has now opened space for Hospital Lesotho to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hospital Lesotho can use these opportunities to build new business models that can help the communities that Hospital Lesotho operates in. Secondly it can use opportunities from government spending in Global Business sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Hospital Lesotho can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hospital Lesotho can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Lesotho Hospital and Filter Clinics: A Public-Private Partnership, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Hospital Lesotho 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hospital Lesotho in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Hospital Lesotho to increase its market reach. Hospital Lesotho 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership are -
Regulatory challenges
– Hospital Lesotho needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hospital Lesotho can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Hospital Lesotho business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Hospital Lesotho can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hospital Lesotho in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, Hospital Lesotho 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 .
Shortening product life cycle
– it is one of the major threat that Hospital Lesotho is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Hospital Lesotho demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Hospital Lesotho high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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 Hospital Lesotho in the Global Business sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Hospital Lesotho has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Hospital Lesotho 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.
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 Hospital Lesotho.
Weighted SWOT Analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Lesotho Hospital and Filter Clinics: A Public-Private Partnership is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hospital Lesotho needs to make to build a sustainable competitive advantage.
