Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation
The president of Taino Construction has to make several strategic decisions that can guide the firm during very difficult times for the construction industry - globally and locally. He is trying to find ways to capitalize on the company's innovations and international advantages. At the same time, he is trying to adapt the company to the needs of the local market, which requires smaller volumes and simpler products. In order to do this, management must assess the level of risk inherent in the company's portfolio of innovations by estimating the potential of the markets for these products, determining how to strategically position the products in the markets and making a sober assessment of the company's financial strength. The case can be used in a management of innovation course as well as in an international business or marketing strategy or integrative strategy course. It could also be used in a family business course. It lends itself to use in a green products/sustainability module. The objectives of the case are 1) to allow students an opportunity to analyze a company's innovation portfolio and, more specifically, the level of risk inherent in market opportunities 2) to explore how innovative international strategies can help a company survive adverse local market conditions, though it may add to the overall risk of the innovation portfolio of the company 3) to showcase a company committed to green products, allowing for a discussion on sustainability in the construction industry, as well as on how what is considered a "green product" by some stakeholders is not considered a green product by others 4) to showcase the complexity of the relationship between a company's clients/competitors/partners and the way in which government initiative can offer opportunities and challenges to a company 5) to offer an opportunity to conduct financial performance analysis.
Swot Analysis of "Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation" written by Carmen Rios Figueroa, Julia Sagebien includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Taino Green facing as an external strategic factors. Some of the topics covered in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation case study are - Strategic Management Strategies, Innovation, International business, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation casestudy better are - – wage bills are increasing, increasing transportation and logistics costs, supply chains are disrupted by pandemic , there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing energy prices,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Taino Green, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Taino Green 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation can be done for the following purposes –
1. Strategic planning using facts provided in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation case study
2. Improving business portfolio management of Taino Green
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 Taino Green
Strengths Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Taino Green in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Taino Green in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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.
Low bargaining power of suppliers
– Suppliers of Taino Green in the sector have low bargaining power. Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Taino Green to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Taino Green is present in almost all the verticals within the industry. This has provided firm in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Taino Green digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Taino Green 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
– Taino Green is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Innovation & Entrepreneurship field
– Taino Green 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 Taino Green in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Taino Green has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Taino Green to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Taino Green 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.
Ability to recruit top talent
– Taino Green is one of the leading recruiters in the industry. Managers in the Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Taino Green is one of the most innovative firm in sector. Manager in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Taino Green has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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.
Weaknesses Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Green has relatively successful track record of launching new products.
Need for greater diversity
– Taino Green 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.
Low market penetration in new markets
– Outside its home market of Taino Green, firm in the HBR case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Carmen Rios Figueroa, Julia Sagebien suggests that, Taino Green 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.
No frontier risks strategy
– After analyzing the HBR case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation, it seems that the employees of Taino Green 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.
Products dominated business model
– Even though Taino Green 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 - Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation HBR case study mentions - Taino Green 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 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 Taino Green supply chain. Even after few cautionary changes mentioned in the HBR case study - Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Taino Green vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Green 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Taino Green is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation | 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Taino Green 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, Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Taino Green 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.
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 Taino Green 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.
Learning at scale
– Online learning technologies has now opened space for Taino Green 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Taino Green 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.
Building a culture of innovation
– managers at Taino Green 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.
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 Taino Green in the consumer business. Now Taino Green can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Taino Green 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Taino Green can use these opportunities to build new business models that can help the communities that Taino Green operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Taino Green can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Taino Green 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
– Taino Green can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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.
Better consumer reach
– The expansion of the 5G network will help Taino Green to increase its market reach. Taino Green 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation are -
Consumer confidence and its impact on Taino Green 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 wage structure of Taino Green
– 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 Taino Green.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Taino Green 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation .
Shortening product life cycle
– it is one of the major threat that Taino Green is facing in Innovation & Entrepreneurship 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 Taino Green.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Taino Green with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Taino Green 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.
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. Taino Green needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Taino Green in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Taino Green can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Taino Green 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. Taino Green can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Taino Green 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.
Weighted SWOT Analysis of Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Construction Supplies: Managing Innovation Risks at an SME in a Small, Developing Nation 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 Taino Green needs to make to build a sustainable competitive advantage.
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