Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A)
Capital Coast Health Limited is a public healthcare facility in central New Zealand. The new chief executive is confronted with serious internal problems and a persistent annual financial deficit that has been with the organization since its inception. Working in an uncertain and rapidly changing healthcare environment and constrained by government regulations, the chief executive officer must find a way to deliver quality care to the community and at the same time, motivate a large team of professionals who were already weary after years of change. The supplement "Capital Coast Health Limited: Being a Good Employer in the Midst of Change (B)", product 905M10 looks at one of the policies the chief executive officer must focus on.
Swot Analysis of "Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A)" written by Anne Marie Francesco, Alvin Hwang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Coast Employer facing as an external strategic factors. Some of the topics covered in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) case study are - Strategic Management Strategies, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) casestudy better are - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing government debt because of Covid-19 spendings,
competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, etc
Introduction to SWOT Analysis of Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Coast Employer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Coast Employer 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) can be done for the following purposes –
1. Strategic planning using facts provided in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) case study
2. Improving business portfolio management of Coast Employer
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 Coast Employer
Strengths Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Coast Employer in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) Harvard Business Review case study are -
Strong track record of project management
– Coast Employer 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
– Coast Employer has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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.
Superior customer experience
– The customer experience strategy of Coast Employer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Coast Employer has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Coast Employer 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.
Organizational Resilience of Coast Employer
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Coast Employer does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Coast Employer is one of the most innovative firm in sector. Manager in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Coast Employer 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 Coast Employer is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Coast Employer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Coast Employer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Coast Employer 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 Anne Marie Francesco, Alvin Hwang 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.
Low bargaining power of suppliers
– Suppliers of Coast Employer in the sector have low bargaining power. Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Coast Employer to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Global Business industry
– Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) firm has clearly differentiated products in the market place. This has enabled Coast Employer to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Coast Employer to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Coast Employer 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.
Weaknesses Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) are -
Lack of clear differentiation of Coast Employer products
– To increase the profitability and margins on the products, Coast Employer needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) HBR case study mentions - Coast Employer 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), in the dynamic environment Coast Employer has struggled to respond to the nimble upstart competition. Coast Employer has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Coast Employer 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 - Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) can leverage the sales team experience to cultivate customer relationships as Coast Employer is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), is just above the industry average. Coast Employer 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.
Slow decision making process
– As mentioned earlier in the report, Coast Employer 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. Coast Employer 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.
Low market penetration in new markets
– Outside its home market of Coast Employer, firm in the HBR case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Coast Employer 's lucrative customers.
Interest costs
– Compare to the competition, Coast Employer 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), it seems that the employees of Coast Employer don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) | 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) are -
Developing new processes and practices
– Coast Employer 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.
Better consumer reach
– The expansion of the 5G network will help Coast Employer to increase its market reach. Coast Employer 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.
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 Coast Employer 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.
Leveraging digital technologies
– Coast Employer 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Coast Employer 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Coast Employer 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, Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Coast Employer has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Coast Employer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Coast Employer 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Coast Employer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Coast Employer can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Coast Employer 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.
Creating value in data economy
– The success of analytics program of Coast Employer has opened avenues for new revenue streams for the organization in the industry. This can help Coast Employer to build a more holistic ecosystem as suggested in the Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) case study. Coast Employer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Coast Employer can use these opportunities to build new business models that can help the communities that Coast Employer operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) are -
High dependence on third party suppliers
– Coast Employer 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.
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 Coast Employer business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Coast Employer 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Coast Employer 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.
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 Coast Employer.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A), Coast Employer 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 .
Environmental challenges
– Coast Employer 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. Coast Employer can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Technology acceleration in Forth Industrial Revolution
– Coast Employer has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Coast Employer needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Coast Employer in the Global Business sector and impact the bottomline of the organization.
Increasing wage structure of Coast Employer
– 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 Coast Employer.
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.
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.
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. Coast Employer can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Capital Coast Health Limited: Being a Good Employer in the Midst of Change (A) 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 Coast Employer needs to make to build a sustainable competitive advantage.
