Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue
When the World Bank signed an agreement with the government of Peru in December, 1997 to provide a $22.5 million loan to help reform the country's antiquated and corrupt judicial system, the Bank knew it faced risks. Peru's President Alberto Fujimori was under fire and observers considered it possible that, rather than exhibiting real commitment to reform, the government may have been seeking the loan chiefly to lend a veneer of legitimacy to measures that in reality reduced judicial independence and concentrated more power in the executive. On balance, however, Bank officials who had to make the decision on whether to proceed with the agreement believed it offered a rare opportunity to address a variety of longstanding ills-including limited access to the justice system, a crumbling infrastructure, and inadequate training of judges and prosecutors. But just three months after the agreement had been signed, Peru's Congress-dominated by members loyal to the President-passed a measure which led Bank officials to question the good faith of the government. The new law limited the powers of one of the pillars of the loan agreement-the National Council of Magistrates, an independent entity mandated to , ratify and remove judges and prosecutors. The Council's members resigned en masse and, in response, the Bank postponed the effective date of the judicial reform loan by six months-halting any disbursement of funds. But in the days following the announcement, Peru's government put increasing pressure on the Bank to change its mind-and finally summoned the Bank's country director for Peru to a personal meeting with President Fujimori. The country director would have to decide whether to stick with the loan postponement-and, more broadly, take stock of what was really going on in Peru. Would the loan help a government sincerely embarked on reform? Or might it simply abet a government bent on subverting the judiciary to further its own political goals? HKS Case Number 1779.0
Swot Analysis of "Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue" written by Kirsten Lundberg, Philip Heymann includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Judicial Loan facing as an external strategic factors. Some of the topics covered in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study are - Strategic Management Strategies, Ethics, Government, International business, Leadership, Operations management, Project management, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is backlash against globalization, geopolitical disruptions, cloud computing is disrupting traditional business models, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Judicial Loan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Judicial Loan 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue can be done for the following purposes –
1. Strategic planning using facts provided in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study
2. Improving business portfolio management of Judicial Loan
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 Judicial Loan
Strengths Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Judicial Loan in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue Harvard Business Review case study are -
Successful track record of launching new products
– Judicial Loan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Judicial Loan 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.
Learning organization
- Judicial Loan 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 Judicial Loan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Judicial Loan 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.
Training and development
– Judicial Loan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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.
Ability to recruit top talent
– Judicial Loan is one of the leading recruiters in the industry. Managers in the Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Judicial Loan 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
– Judicial Loan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue firm has clearly differentiated products in the market place. This has enabled Judicial Loan to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Judicial Loan to invest into research and development (R&D) and innovation.
Innovation driven organization
– Judicial Loan is one of the most innovative firm in sector. Manager in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Judicial Loan 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 Kirsten Lundberg, Philip Heymann 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 Judicial Loan in the sector have low bargaining power. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Judicial Loan to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Global Business field
– Judicial Loan 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 Judicial Loan in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue are -
Capital Spending Reduction
– Even during the low interest decade, Judicial Loan 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.
High cash cycle compare to competitors
Judicial Loan 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Judicial Loan 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue can leverage the sales team experience to cultivate customer relationships as Judicial Loan is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue, is just above the industry average. Judicial Loan 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.
Lack of clear differentiation of Judicial Loan products
– To increase the profitability and margins on the products, Judicial Loan needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Judicial Loan, firm in the HBR case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue, in the dynamic environment Judicial Loan has struggled to respond to the nimble upstart competition. Judicial Loan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Judicial Loan 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Judicial Loan has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Judicial Loan 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. Judicial Loan 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.
Opportunities Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue | 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Judicial Loan 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.
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 Judicial Loan 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Judicial Loan 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.
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 Judicial Loan in the consumer business. Now Judicial Loan can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Judicial Loan can use these opportunities to build new business models that can help the communities that Judicial Loan operates in. Secondly it can use opportunities from government spending in Global Business sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Judicial Loan 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, Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Judicial Loan has opened avenues for new revenue streams for the organization in the industry. This can help Judicial Loan to build a more holistic ecosystem as suggested in the Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study. Judicial Loan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Judicial Loan to increase its market reach. Judicial Loan 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.
Learning at scale
– Online learning technologies has now opened space for Judicial Loan 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Judicial Loan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Judicial Loan is facing challenges because of the dominance of functional experts in the organization. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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.
Developing new processes and practices
– Judicial Loan 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.
Leveraging digital technologies
– Judicial Loan can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue are -
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.
High dependence on third party suppliers
– Judicial Loan 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 Judicial Loan in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue, Judicial Loan 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 Judicial Loan is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Judicial Loan 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.
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. Judicial Loan 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 Judicial Loan 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.
Regulatory challenges
– Judicial Loan 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.
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. Judicial Loan 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Judicial Loan 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, Judicial Loan 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue .
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.
Weighted SWOT Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue 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 Judicial Loan needs to make to build a sustainable competitive advantage.