Country Analysis in a "Global Village" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Country Analysis in a "Global Village"
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.Substantially rewritten to establish the relevance of countries in the global context. It does so in terms of their differing economic performance in recent decades, and also by contrasting those that have "converged" toward the rich country norm (as theory would predict) from those that have not. It then develops the country analysis framework, with a scheme to identify context, strategy, and performance. Adds a political dimension, following Sam Huntington's emphasis on the strength of a state/government rather than its form; Hernando de Soto's notion that property rights are more important for most Third World countries than FDI receipts; and Joe Stiglitz's thesis that the notion of differing positions on a common production function is simply not plausible. Thus, advantages remain to be created, and substandard returns should be expected in order to catch up. In addition, provides an economic strategy matrix for the classification of strategies, or for the analysis of their evolution through time. A short bibliography is included. A rewritten version of an earlier note.
Swot Analysis of "Country Analysis in a "Global Village"" written by Bruce R. Scott includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Notion Differing facing as an external strategic factors. Some of the topics covered in Country Analysis in a "Global Village" case study are - Strategic Management Strategies, Economics, International business, Market research, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the Country Analysis in a "Global Village" casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs,
geopolitical disruptions, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Country Analysis in a "Global Village"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Country Analysis in a "Global Village" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Notion Differing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Notion Differing 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 Country Analysis in a "Global Village" can be done for the following purposes –
1. Strategic planning using facts provided in Country Analysis in a "Global Village" case study
2. Improving business portfolio management of Notion Differing
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 Notion Differing
Strengths Country Analysis in a "Global Village" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Notion Differing in Country Analysis in a "Global Village" Harvard Business Review case study are -
Highly skilled collaborators
– Notion Differing has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Country Analysis in a "Global Village" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Notion Differing 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 Notion Differing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Country Analysis in a "Global Village" Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Notion Differing is one of the leading recruiters in the industry. Managers in the Country Analysis in a "Global Village" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Notion Differing in the sector have low bargaining power. Country Analysis in a "Global Village" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Notion Differing to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Notion Differing is present in almost all the verticals within the industry. This has provided firm in Country Analysis in a "Global Village" 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.
Superior customer experience
– The customer experience strategy of Notion Differing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– Country Analysis in a "Global Village" firm has clearly differentiated products in the market place. This has enabled Notion Differing to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Notion Differing to invest into research and development (R&D) and innovation.
Innovation driven organization
– Notion Differing is one of the most innovative firm in sector. Manager in Country Analysis in a "Global Village" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Notion Differing 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 Country Analysis in a "Global Village" - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Notion Differing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Notion Differing has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Notion Differing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Country Analysis in a "Global Village" Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Country Analysis in a "Global Village" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Country Analysis in a "Global Village" are -
Need for greater diversity
– Notion Differing 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Country Analysis in a "Global Village", it seems that the employees of Notion Differing 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.
No frontier risks strategy
– After analyzing the HBR case study Country Analysis in a "Global Village", 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Country Analysis in a "Global Village" 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 Notion Differing has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Country Analysis in a "Global Village" 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 Notion Differing 's lucrative customers.
Slow to strategic competitive environment developments
– As Country Analysis in a "Global Village" HBR case study mentions - Notion Differing 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.
Slow decision making process
– As mentioned earlier in the report, Notion Differing 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. Notion Differing even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Notion Differing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Country Analysis in a "Global Village" can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Notion Differing 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.
Lack of clear differentiation of Notion Differing products
– To increase the profitability and margins on the products, Notion Differing 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 Notion Differing, firm in the HBR case study Country Analysis in a "Global Village" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Country Analysis in a "Global Village" | 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 Country Analysis in a "Global Village" are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Notion Differing can use these opportunities to build new business models that can help the communities that Notion Differing operates in. Secondly it can use opportunities from government spending in Global Business sector.
Buying journey improvements
– Notion Differing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Country Analysis in a "Global Village" suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Notion Differing 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 Notion Differing to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Notion Differing 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 Notion Differing in the consumer business. Now Notion Differing can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Notion Differing 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.
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. Notion Differing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Notion Differing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Notion Differing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Notion Differing is facing challenges because of the dominance of functional experts in the organization. Country Analysis in a "Global Village" 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Notion Differing 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, Country Analysis in a "Global Village", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Notion Differing 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.
Better consumer reach
– The expansion of the 5G network will help Notion Differing to increase its market reach. Notion Differing 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 Country Analysis in a "Global Village" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Country Analysis in a "Global Village" 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.
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. Notion Differing 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 Notion Differing 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Country Analysis in a "Global Village", Notion Differing 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 .
Increasing wage structure of Notion Differing
– 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 Notion Differing.
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.
Shortening product life cycle
– it is one of the major threat that Notion Differing is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Notion Differing 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.
Environmental challenges
– Notion Differing 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. Notion Differing can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Notion Differing 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.
Stagnating economy with rate increase
– Notion Differing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Notion Differing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Notion Differing in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Country Analysis in a "Global Village" 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 Country Analysis in a "Global Village" 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 Country Analysis in a "Global Village" 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 Country Analysis in a "Global Village" 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 Country Analysis in a "Global Village" 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 Notion Differing needs to make to build a sustainable competitive advantage.
