Paresh Patel: Building a Life in the Context of Global Business - October 2007 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Paresh Patel: Building a Life in the Context of Global Business - October 2007
This case tells the story of Paresh Patel, born in Boston to an Indian immigrant family, as he develops an entrepreneurial career, participates in the Indian diaspora, and builds a family life. It provides background on Paresh's heritage; describes his youth and education (including HBS); his learning experience as the manager of a large family fund; his decision to launch a hedge fund in India; and the first years of the venture. It also profiles Nirva Patel, and describes how they met, married, and managed the transition to a new life in Mumbai, including the impact on her career and personal aspirations. The case issue, set in October 2007, is whether to have their first child in Mumbai, or return to the U.S. for the delivery.
Swot Analysis of "Paresh Patel: Building a Life in the Context of Global Business - October 2007" written by Howard H. Stevenson, Shirley M. Spence includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Patel Paresh facing as an external strategic factors. Some of the topics covered in Paresh Patel: Building a Life in the Context of Global Business - October 2007 case study are - Strategic Management Strategies, Work-life balance and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Paresh Patel: Building a Life in the Context of Global Business - October 2007 casestudy better are - – supply chains are disrupted by pandemic , wage bills are increasing, geopolitical disruptions, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, there is backlash against globalization, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Paresh Patel: Building a Life in the Context of Global Business - October 2007
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Paresh Patel: Building a Life in the Context of Global Business - October 2007 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Patel Paresh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Patel Paresh 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 can be done for the following purposes –
1. Strategic planning using facts provided in Paresh Patel: Building a Life in the Context of Global Business - October 2007 case study
2. Improving business portfolio management of Patel Paresh
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 Patel Paresh
Strengths Paresh Patel: Building a Life in the Context of Global Business - October 2007 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Patel Paresh in Paresh Patel: Building a Life in the Context of Global Business - October 2007 Harvard Business Review case study are -
Ability to lead change in Innovation & Entrepreneurship field
– Patel Paresh 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 Patel Paresh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Patel Paresh 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.
Effective Research and Development (R&D)
– Patel Paresh 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Patel Paresh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Patel Paresh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Patel Paresh 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
– Patel Paresh is one of the leading recruiters in the industry. Managers in the Paresh Patel: Building a Life in the Context of Global Business - October 2007 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Patel Paresh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Patel Paresh 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.
Low bargaining power of suppliers
– Suppliers of Patel Paresh in the sector have low bargaining power. Paresh Patel: Building a Life in the Context of Global Business - October 2007 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Patel Paresh to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Patel Paresh is present in almost all the verticals within the industry. This has provided firm in Paresh Patel: Building a Life in the Context of Global Business - October 2007 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.
Organizational Resilience of Patel Paresh
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Patel Paresh does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Patel Paresh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Patel Paresh 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Paresh Patel: Building a Life in the Context of Global Business - October 2007 firm has clearly differentiated products in the market place. This has enabled Patel Paresh to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Patel Paresh to invest into research and development (R&D) and innovation.
Weaknesses Paresh Patel: Building a Life in the Context of Global Business - October 2007 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Paresh Patel: Building a Life in the Context of Global Business - October 2007 are -
High bargaining power of channel partners
– Because of the regulatory requirements, Howard H. Stevenson, Shirley M. Spence suggests that, Patel Paresh 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Patel Paresh 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Patel Paresh has relatively successful track record of launching new products.
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 Patel Paresh supply chain. Even after few cautionary changes mentioned in the HBR case study - Paresh Patel: Building a Life in the Context of Global Business - October 2007, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Patel Paresh vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Patel Paresh, firm in the HBR case study Paresh Patel: Building a Life in the Context of Global Business - October 2007 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Paresh Patel: Building a Life in the Context of Global Business - October 2007 HBR case study mentions - Patel Paresh 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.
Capital Spending Reduction
– Even during the low interest decade, Patel Paresh 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Paresh Patel: Building a Life in the Context of Global Business - October 2007, is just above the industry average. Patel Paresh 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Paresh Patel: Building a Life in the Context of Global Business - October 2007, it seems that the employees of Patel Paresh 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Patel Paresh 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Patel Paresh 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.
Opportunities Paresh Patel: Building a Life in the Context of Global Business - October 2007 | 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Patel Paresh is facing challenges because of the dominance of functional experts in the organization. Paresh Patel: Building a Life in the Context of Global Business - October 2007 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.
Loyalty marketing
– Patel Paresh 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.
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 Patel Paresh in the consumer business. Now Patel Paresh can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Patel Paresh has opened avenues for new revenue streams for the organization in the industry. This can help Patel Paresh to build a more holistic ecosystem as suggested in the Paresh Patel: Building a Life in the Context of Global Business - October 2007 case study. Patel Paresh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Patel Paresh can use these opportunities to build new business models that can help the communities that Patel Paresh operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Patel Paresh 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. Patel Paresh 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.
Developing new processes and practices
– Patel Paresh 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.
Leveraging digital technologies
– Patel Paresh can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Patel Paresh to increase its market reach. Patel Paresh 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.
Building a culture of innovation
– managers at Patel Paresh 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.
Learning at scale
– Online learning technologies has now opened space for Patel Paresh 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.
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. Patel Paresh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Patel Paresh 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.
Threats Paresh Patel: Building a Life in the Context of Global Business - October 2007 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Paresh Patel: Building a Life in the Context of Global Business - October 2007 are -
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. Patel Paresh needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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. Patel Paresh will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Patel Paresh 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. Patel Paresh can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Patel Paresh can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Patel Paresh.
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.
Regulatory challenges
– Patel Paresh 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.
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 Patel Paresh 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, Patel Paresh 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 .
Shortening product life cycle
– it is one of the major threat that Patel Paresh is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Patel Paresh has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Patel Paresh 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.
Stagnating economy with rate increase
– Patel Paresh can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Paresh Patel: Building a Life in the Context of Global Business - October 2007 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 Patel Paresh needs to make to build a sustainable competitive advantage.