Water Policy Priorities Along the U.S.-Mexico Border SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Water Policy Priorities Along the U.S.-Mexico Border
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.The United States and Mexico face the challenges of managing shared water resources. The supply is limited and demand is growing on both sides of the border as a result of increased irrigated acreage and population growth.
Swot Analysis of "Water Policy Priorities Along the U.S.-Mexico Border" written by Ray A. Goldberg, Jose Miguel Porraz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Border Acreage facing as an external strategic factors. Some of the topics covered in Water Policy Priorities Along the U.S.-Mexico Border case study are - Strategic Management Strategies, Negotiations, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the Water Policy Priorities Along the U.S.-Mexico Border casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, technology disruption,
talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Water Policy Priorities Along the U.S.-Mexico Border
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Water Policy Priorities Along the U.S.-Mexico Border case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Border Acreage, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Border Acreage 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 Water Policy Priorities Along the U.S.-Mexico Border can be done for the following purposes –
1. Strategic planning using facts provided in Water Policy Priorities Along the U.S.-Mexico Border case study
2. Improving business portfolio management of Border Acreage
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 Border Acreage
Strengths Water Policy Priorities Along the U.S.-Mexico Border | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Border Acreage in Water Policy Priorities Along the U.S.-Mexico Border Harvard Business Review case study are -
Effective Research and Development (R&D)
– Border Acreage 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 Water Policy Priorities Along the U.S.-Mexico Border - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Global Business industry
– Water Policy Priorities Along the U.S.-Mexico Border firm has clearly differentiated products in the market place. This has enabled Border Acreage to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Border Acreage to invest into research and development (R&D) and innovation.
High brand equity
– Border Acreage has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Border Acreage to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Border Acreage 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.
Learning organization
- Border Acreage 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 Border Acreage is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Water Policy Priorities Along the U.S.-Mexico Border Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Border Acreage is one of the leading recruiters in the industry. Managers in the Water Policy Priorities Along the U.S.-Mexico Border 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 Border Acreage 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
– Border Acreage 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
– Border Acreage has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Water Policy Priorities Along the U.S.-Mexico Border 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.
Successful track record of launching new products
– Border Acreage has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Border Acreage 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.
Operational resilience
– The operational resilience strategy in the Water Policy Priorities Along the U.S.-Mexico Border 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.
High switching costs
– The high switching costs that Border Acreage 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 Water Policy Priorities Along the U.S.-Mexico Border | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Water Policy Priorities Along the U.S.-Mexico Border are -
No frontier risks strategy
– After analyzing the HBR case study Water Policy Priorities Along the U.S.-Mexico Border, 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.
Capital Spending Reduction
– Even during the low interest decade, Border Acreage 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 bargaining power of channel partners
– Because of the regulatory requirements, Ray A. Goldberg, Jose Miguel Porraz suggests that, Border Acreage is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Border Acreage is dominated by functional specialists. It is not different from other players in the Global Business segment. Border Acreage needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Border Acreage to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Water Policy Priorities Along the U.S.-Mexico Border 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 Water Policy Priorities Along the U.S.-Mexico Border can leverage the sales team experience to cultivate customer relationships as Border Acreage is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Water Policy Priorities Along the U.S.-Mexico Border, in the dynamic environment Border Acreage has struggled to respond to the nimble upstart competition. Border Acreage has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Water Policy Priorities Along the U.S.-Mexico Border HBR case study mentions - Border Acreage 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Water Policy Priorities Along the U.S.-Mexico Border 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 Border Acreage 's lucrative customers.
Lack of clear differentiation of Border Acreage products
– To increase the profitability and margins on the products, Border Acreage needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Border Acreage is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Water Policy Priorities Along the U.S.-Mexico Border can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Border Acreage, firm in the HBR case study Water Policy Priorities Along the U.S.-Mexico Border needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Water Policy Priorities Along the U.S.-Mexico Border | 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 Water Policy Priorities Along the U.S.-Mexico Border 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. Border Acreage can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Border Acreage can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Border Acreage can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Border Acreage 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Border Acreage 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 Border Acreage to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Border Acreage 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.
Manufacturing automation
– Border Acreage 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.
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. Border Acreage can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Border Acreage 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.
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 Border Acreage in the consumer business. Now Border Acreage can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Border Acreage 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, Water Policy Priorities Along the U.S.-Mexico Border, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Border Acreage 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Border Acreage can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Border Acreage 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.
Threats Water Policy Priorities Along the U.S.-Mexico Border External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Water Policy Priorities Along the U.S.-Mexico Border are -
Environmental challenges
– Border Acreage 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. Border Acreage can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Border Acreage 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.
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. Border Acreage 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.
Consumer confidence and its impact on Border Acreage 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Border Acreage 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 Water Policy Priorities Along the U.S.-Mexico Border .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Border Acreage 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 Border Acreage.
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 Border Acreage in the Global Business sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Border Acreage has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Border Acreage 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.
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. Border Acreage needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Border Acreage is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Border Acreage with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Border Acreage
– 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 Border Acreage.
Weighted SWOT Analysis of Water Policy Priorities Along the U.S.-Mexico Border 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 Water Policy Priorities Along the U.S.-Mexico Border 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 Water Policy Priorities Along the U.S.-Mexico Border 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 Water Policy Priorities Along the U.S.-Mexico Border 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 Water Policy Priorities Along the U.S.-Mexico Border 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 Border Acreage needs to make to build a sustainable competitive advantage.
