Convention on Biological Diversity: Engaging the Private Sector SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Convention on Biological Diversity: Engaging the Private Sector
The Convention on Biological Diversity (CBD) was a U.N. treaty that by 2006 had been signed by virtually every country in the world except for the United States. The treaty established three main goals: the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of the benefits arising from the use of genetic resources. Although the treaty had been in effect for almost 15 years, progress was slow. CBD Executive Secretary Ahmed Djoghlaf needed to increase the participation of the private sector in order to meet the treaty's "2010 Target," which called for a significant reduction in the loss of biodiversity at all levels (global, regional, and national). Provides background on the relationship between biodiversity and agriculture.
Swot Analysis of "Convention on Biological Diversity: Engaging the Private Sector" written by David E. Bell, Mary Shelman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Treaty Biological facing as an external strategic factors. Some of the topics covered in Convention on Biological Diversity: Engaging the Private Sector case study are - Strategic Management Strategies, Regulation, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Convention on Biological Diversity: Engaging the Private Sector casestudy better are - – wage bills are increasing, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Convention on Biological Diversity: Engaging the Private Sector
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Convention on Biological Diversity: Engaging the Private Sector case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Treaty Biological, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Treaty Biological 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 Convention on Biological Diversity: Engaging the Private Sector can be done for the following purposes –
1. Strategic planning using facts provided in Convention on Biological Diversity: Engaging the Private Sector case study
2. Improving business portfolio management of Treaty Biological
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 Treaty Biological
Strengths Convention on Biological Diversity: Engaging the Private Sector | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Treaty Biological in Convention on Biological Diversity: Engaging the Private Sector Harvard Business Review case study are -
Analytics focus
– Treaty Biological 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 David E. Bell, Mary Shelman 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.
Effective Research and Development (R&D)
– Treaty Biological 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 Convention on Biological Diversity: Engaging the Private Sector - 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 Treaty Biological 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
– Convention on Biological Diversity: Engaging the Private Sector firm has clearly differentiated products in the market place. This has enabled Treaty Biological to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Treaty Biological to invest into research and development (R&D) and innovation.
Innovation driven organization
– Treaty Biological is one of the most innovative firm in sector. Manager in Convention on Biological Diversity: Engaging the Private Sector Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Treaty Biological
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Treaty Biological does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Treaty Biological is one of the leading recruiters in the industry. Managers in the Convention on Biological Diversity: Engaging the Private Sector are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Treaty Biological 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.
High brand equity
– Treaty Biological has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Treaty Biological to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Treaty Biological has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Convention on Biological Diversity: Engaging the Private Sector 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 lead change in Global Business field
– Treaty Biological 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 Treaty Biological in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Treaty Biological in the sector have low bargaining power. Convention on Biological Diversity: Engaging the Private Sector has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Treaty Biological to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Convention on Biological Diversity: Engaging the Private Sector | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Convention on Biological Diversity: Engaging the Private Sector are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Convention on Biological Diversity: Engaging the Private Sector, in the dynamic environment Treaty Biological has struggled to respond to the nimble upstart competition. Treaty Biological has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Treaty Biological is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Convention on Biological Diversity: Engaging the Private Sector can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Treaty Biological 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Convention on Biological Diversity: Engaging the Private Sector 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 Treaty Biological has relatively successful track record of launching new products.
Need for greater diversity
– Treaty Biological 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 Convention on Biological Diversity: Engaging the Private Sector, it seems that the employees of Treaty Biological 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 Convention on Biological Diversity: Engaging the Private Sector 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 Convention on Biological Diversity: Engaging the Private Sector can leverage the sales team experience to cultivate customer relationships as Treaty Biological is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Treaty Biological 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. Treaty Biological 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Treaty Biological 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.
High cash cycle compare to competitors
Treaty Biological 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.
Increasing silos among functional specialists
– The organizational structure of Treaty Biological is dominated by functional specialists. It is not different from other players in the Global Business segment. Treaty Biological needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Treaty Biological to focus more on services rather than just following the product oriented approach.
Opportunities Convention on Biological Diversity: Engaging the Private Sector | 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 Convention on Biological Diversity: Engaging the Private Sector are -
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. Treaty Biological can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Treaty Biological 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, Convention on Biological Diversity: Engaging the Private Sector, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Treaty Biological is facing challenges because of the dominance of functional experts in the organization. Convention on Biological Diversity: Engaging the Private Sector 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.
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 Treaty Biological 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.
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. Treaty Biological can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Treaty Biological 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.
Learning at scale
– Online learning technologies has now opened space for Treaty Biological 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.
Loyalty marketing
– Treaty Biological 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Treaty Biological 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.
Leveraging digital technologies
– Treaty Biological 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.
Buying journey improvements
– Treaty Biological can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Convention on Biological Diversity: Engaging the Private Sector 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 Treaty Biological 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 Treaty Biological to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Treaty Biological 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.
Threats Convention on Biological Diversity: Engaging the Private Sector External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Convention on Biological Diversity: Engaging the Private Sector are -
Consumer confidence and its impact on Treaty Biological 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.
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 Treaty Biological in the Global Business sector and impact the bottomline of the organization.
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. Treaty Biological needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Treaty Biological can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Treaty Biological
– 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 Treaty Biological.
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. Treaty Biological 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Treaty Biological with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Treaty Biological 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, Treaty Biological 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 Convention on Biological Diversity: Engaging the Private Sector .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Convention on Biological Diversity: Engaging the Private Sector, Treaty Biological 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 Treaty Biological is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Treaty Biological.
High dependence on third party suppliers
– Treaty Biological 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.
Weighted SWOT Analysis of Convention on Biological Diversity: Engaging the Private Sector 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 Convention on Biological Diversity: Engaging the Private Sector 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 Convention on Biological Diversity: Engaging the Private Sector 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 Convention on Biological Diversity: Engaging the Private Sector 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 Convention on Biological Diversity: Engaging the Private Sector 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 Treaty Biological needs to make to build a sustainable competitive advantage.
