Patrimonio Hoy: A Financial Perspective, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Patrimonio Hoy: A Financial Perspective, Spanish Version
Patrimonio Hoy, a program targeting the housing needs of low-income families launched by CEMEX, a major Mexican corporation and a leading global cement company, has gone from a market research project to a highly visible initiative in 22 cities and has earned public recognition. The president of Cemex North America must decide whether it is corporate social responsibility or a new business line. In the process, it allows analysis of the Patrimonio Hoy program versus the traditional alternatives from the perspectives of both the end-user and of the corporation. A rewritten version of an earlier case.
Authors :: Arthur I Segel, Michael Chu, Gustavo A. Herrero
Topics :: Innovation & Entrepreneurship
Tags :: Financial management, Innovation, Risk management, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Patrimonio Hoy: A Financial Perspective, Spanish Version" written by Arthur I Segel, Michael Chu, Gustavo A. Herrero includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hoy Patrimonio facing as an external strategic factors. Some of the topics covered in Patrimonio Hoy: A Financial Perspective, Spanish Version case study are - Strategic Management Strategies, Financial management, Innovation, Risk management, Social enterprise, Social responsibility and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Patrimonio Hoy: A Financial Perspective, Spanish Version casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, there is backlash against globalization, supply chains are disrupted by pandemic ,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Patrimonio Hoy: A Financial Perspective, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Patrimonio Hoy: A Financial Perspective, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hoy Patrimonio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hoy Patrimonio 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 Patrimonio Hoy: A Financial Perspective, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Patrimonio Hoy: A Financial Perspective, Spanish Version case study
2. Improving business portfolio management of Hoy Patrimonio
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hoy Patrimonio
Strengths Patrimonio Hoy: A Financial Perspective, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hoy Patrimonio in Patrimonio Hoy: A Financial Perspective, Spanish Version Harvard Business Review case study are -
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Patrimonio Hoy: A Financial Perspective, Spanish Version firm has clearly differentiated products in the market place. This has enabled Hoy Patrimonio to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hoy Patrimonio to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Hoy Patrimonio 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 Patrimonio Hoy: A Financial Perspective, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Patrimonio Hoy: A Financial Perspective, Spanish Version 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.
Ability to lead change in Innovation & Entrepreneurship field
– Hoy Patrimonio 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 Hoy Patrimonio in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Hoy Patrimonio 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 Hoy Patrimonio is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Patrimonio Hoy: A Financial Perspective, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Hoy Patrimonio is one of the most innovative firm in sector. Manager in Patrimonio Hoy: A Financial Perspective, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Hoy Patrimonio has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hoy Patrimonio to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Hoy Patrimonio has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Patrimonio Hoy: A Financial Perspective, Spanish Version 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
– Hoy Patrimonio is one of the leading recruiters in the industry. Managers in the Patrimonio Hoy: A Financial Perspective, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Hoy Patrimonio has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hoy Patrimonio 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.
Low bargaining power of suppliers
– Suppliers of Hoy Patrimonio in the sector have low bargaining power. Patrimonio Hoy: A Financial Perspective, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hoy Patrimonio to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hoy Patrimonio 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 Patrimonio Hoy: A Financial Perspective, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Patrimonio Hoy: A Financial Perspective, Spanish Version are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hoy Patrimonio supply chain. Even after few cautionary changes mentioned in the HBR case study - Patrimonio Hoy: A Financial Perspective, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hoy Patrimonio vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Hoy Patrimonio, firm in the HBR case study Patrimonio Hoy: A Financial Perspective, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Hoy Patrimonio 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hoy Patrimonio is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Patrimonio Hoy: A Financial Perspective, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Patrimonio Hoy: A Financial Perspective, Spanish Version, is just above the industry average. Hoy Patrimonio 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.
Need for greater diversity
– Hoy Patrimonio 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Patrimonio Hoy: A Financial Perspective, Spanish Version, in the dynamic environment Hoy Patrimonio has struggled to respond to the nimble upstart competition. Hoy Patrimonio 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 Hoy Patrimonio 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 bargaining power of channel partners
– Because of the regulatory requirements, Arthur I Segel, Michael Chu, Gustavo A. Herrero suggests that, Hoy Patrimonio 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.
Products dominated business model
– Even though Hoy Patrimonio has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Patrimonio Hoy: A Financial Perspective, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Hoy Patrimonio is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hoy Patrimonio needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hoy Patrimonio to focus more on services rather than just following the product oriented approach.
Opportunities Patrimonio Hoy: A Financial Perspective, Spanish Version | 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 Patrimonio Hoy: A Financial Perspective, Spanish Version are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Hoy Patrimonio 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hoy Patrimonio is facing challenges because of the dominance of functional experts in the organization. Patrimonio Hoy: A Financial Perspective, Spanish Version 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.
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 Hoy Patrimonio in the consumer business. Now Hoy Patrimonio can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hoy Patrimonio can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Hoy Patrimonio has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Patrimonio Hoy: A Financial Perspective, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hoy Patrimonio to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Hoy Patrimonio 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.
Buying journey improvements
– Hoy Patrimonio can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Patrimonio Hoy: A Financial Perspective, Spanish Version 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.
Building a culture of innovation
– managers at Hoy Patrimonio 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 Innovation & Entrepreneurship segment.
Better consumer reach
– The expansion of the 5G network will help Hoy Patrimonio to increase its market reach. Hoy Patrimonio 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.
Manufacturing automation
– Hoy Patrimonio can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hoy Patrimonio 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. Hoy Patrimonio 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hoy Patrimonio in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Hoy Patrimonio can develop new processes and procedures in Innovation & Entrepreneurship 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.
Threats Patrimonio Hoy: A Financial Perspective, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Patrimonio Hoy: A Financial Perspective, Spanish Version are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Patrimonio Hoy: A Financial Perspective, Spanish Version, Hoy Patrimonio may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Shortening product life cycle
– it is one of the major threat that Hoy Patrimonio is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hoy Patrimonio 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 Hoy Patrimonio 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.
Environmental challenges
– Hoy Patrimonio 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. Hoy Patrimonio can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Technology acceleration in Forth Industrial Revolution
– Hoy Patrimonio has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hoy Patrimonio needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Regulatory challenges
– Hoy Patrimonio 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 Innovation & Entrepreneurship industry regulations.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hoy Patrimonio with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hoy Patrimonio in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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 Hoy Patrimonio business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Hoy Patrimonio 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 Patrimonio Hoy: A Financial Perspective, Spanish Version 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 Patrimonio Hoy: A Financial Perspective, Spanish Version 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 Patrimonio Hoy: A Financial Perspective, Spanish Version 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 Patrimonio Hoy: A Financial Perspective, Spanish Version 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 Patrimonio Hoy: A Financial Perspective, Spanish Version 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 Hoy Patrimonio needs to make to build a sustainable competitive advantage.
