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 - – there is backlash against globalization, increasing household debt because of falling income levels, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, 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 -
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.
Ability to lead change in Global Business field
– Hospital Lesotho 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 Hospital Lesotho in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
Analytics focus
– Hospital Lesotho 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 Henry Lee 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.
Cross disciplinary teams
– Horizontal connected teams at the Hospital Lesotho 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.
Innovation driven organization
– Hospital Lesotho is one of the most innovative firm in sector. Manager in Lesotho Hospital and Filter Clinics: A Public-Private Partnership Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Superior customer experience
– The customer experience strategy of Hospital Lesotho in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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 -
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.
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 Hospital Lesotho supply chain. Even after few cautionary changes mentioned in the HBR case study - Lesotho Hospital and Filter Clinics: A Public-Private Partnership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hospital Lesotho vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Hospital Lesotho products
– To increase the profitability and margins on the products, Hospital Lesotho needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership, it seems that the employees of Hospital Lesotho 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.
Aligning sales with marketing
– It come across in the case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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 Lesotho Hospital and Filter Clinics: A Public-Private Partnership can leverage the sales team experience to cultivate customer relationships as Hospital Lesotho is planning to shift buying processes online.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Hospital Lesotho 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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hospital Lesotho is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Lesotho Hospital and Filter Clinics: A Public-Private Partnership can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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 -
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.
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.
Creating value in data economy
– The success of analytics program of Hospital Lesotho has opened avenues for new revenue streams for the organization in the industry. This can help Hospital Lesotho to build a more holistic ecosystem as suggested in the Lesotho Hospital and Filter Clinics: A Public-Private Partnership case study. Hospital Lesotho can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hospital Lesotho 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 Hospital Lesotho to hire the very best people irrespective of their geographical location.
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.
Loyalty marketing
– Hospital Lesotho 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hospital Lesotho is facing challenges because of the dominance of functional experts in the organization. Lesotho Hospital and Filter Clinics: A Public-Private Partnership 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.
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.
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.
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 Hospital Lesotho in the consumer business. Now Hospital Lesotho can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hospital Lesotho can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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 -
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hospital Lesotho with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
Increasing wage structure of Hospital Lesotho
– 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 Hospital Lesotho.
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 .
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.
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.
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.
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.
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. Hospital Lesotho needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.