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Embracing the Business of Health: An Economic Imperative SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Embracing the Business of Health: An Economic Imperative


Peter Drucker once said that healthcare organizations "are the most complex form of organization that we have ever attempted to manage." In this wide-ranging interview, an American health-sector strategy expert working in Canada explains why Drucker's statement is true. He goes on to describe the need for patient-centric care and the importance of focusing on the social determinants of health. He also compares the Canadian and U.S. systems, the pros and cons of each, and what a truly sustainable healthcare system would look like. In the end, he shows the power of markets in the quest for population health.

Authors :: Brian Golden, Karen Christensen

Topics :: Innovation & Entrepreneurship

Tags :: Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Embracing the Business of Health: An Economic Imperative" written by Brian Golden, Karen Christensen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Health Drucker's facing as an external strategic factors. Some of the topics covered in Embracing the Business of Health: An Economic Imperative case study are - Strategic Management Strategies, Strategy and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the Embracing the Business of Health: An Economic Imperative casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, central banks are concerned over increasing inflation, etc



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Introduction to SWOT Analysis of Embracing the Business of Health: An Economic Imperative


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Embracing the Business of Health: An Economic Imperative case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Health Drucker's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Health Drucker's 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 Embracing the Business of Health: An Economic Imperative can be done for the following purposes –
1. Strategic planning using facts provided in Embracing the Business of Health: An Economic Imperative case study
2. Improving business portfolio management of Health Drucker's
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 Health Drucker's




Strengths Embracing the Business of Health: An Economic Imperative | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Health Drucker's in Embracing the Business of Health: An Economic Imperative Harvard Business Review case study are -

Organizational Resilience of Health Drucker's

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Health Drucker's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Learning organization

- Health Drucker's 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 Health Drucker's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Embracing the Business of Health: An Economic Imperative Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Ability to recruit top talent

– Health Drucker's is one of the leading recruiters in the industry. Managers in the Embracing the Business of Health: An Economic Imperative are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

High brand equity

– Health Drucker's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Health Drucker's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Effective Research and Development (R&D)

– Health Drucker's 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 Embracing the Business of Health: An Economic Imperative - 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 switching costs

– The high switching costs that Health Drucker's 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.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Embracing the Business of Health: An Economic Imperative firm has clearly differentiated products in the market place. This has enabled Health Drucker's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Health Drucker's to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Health Drucker's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Health Drucker's 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.

Highly skilled collaborators

– Health Drucker's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Embracing the Business of Health: An Economic Imperative HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management

– Health Drucker's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Low bargaining power of suppliers

– Suppliers of Health Drucker's in the sector have low bargaining power. Embracing the Business of Health: An Economic Imperative has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Health Drucker's to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Health Drucker's 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.






Weaknesses Embracing the Business of Health: An Economic Imperative | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Embracing the Business of Health: An Economic Imperative are -

High cash cycle compare to competitors

Health Drucker's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Need for greater diversity

– Health Drucker's 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.

Slow to strategic competitive environment developments

– As Embracing the Business of Health: An Economic Imperative HBR case study mentions - Health Drucker's 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.

Skills based hiring

– The stress on hiring functional specialists at Health Drucker's 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Embracing the Business of Health: An Economic Imperative, it seems that the employees of Health Drucker's 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.

Increasing silos among functional specialists

– The organizational structure of Health Drucker's is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Health Drucker's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Health Drucker's to focus more on services rather than just following the product oriented approach.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Embracing the Business of Health: An Economic Imperative, is just above the industry average. Health Drucker's 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Brian Golden, Karen Christensen suggests that, Health Drucker's 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.

Interest costs

– Compare to the competition, Health Drucker's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Products dominated business model

– Even though Health Drucker's 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 - Embracing the Business of Health: An Economic Imperative should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Embracing the Business of Health: An Economic Imperative, in the dynamic environment Health Drucker's has struggled to respond to the nimble upstart competition. Health Drucker's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.




Opportunities Embracing the Business of Health: An Economic Imperative | 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 Embracing the Business of Health: An Economic Imperative are -

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 Health Drucker's in the consumer business. Now Health Drucker's can target international markets with far fewer capital restrictions requirements than the existing system.

Leveraging digital technologies

– Health Drucker's 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Health Drucker's can use these opportunities to build new business models that can help the communities that Health Drucker's operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Health Drucker's is facing challenges because of the dominance of functional experts in the organization. Embracing the Business of Health: An Economic Imperative case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Health Drucker's 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.

Creating value in data economy

– The success of analytics program of Health Drucker's has opened avenues for new revenue streams for the organization in the industry. This can help Health Drucker's to build a more holistic ecosystem as suggested in the Embracing the Business of Health: An Economic Imperative case study. Health Drucker's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Developing new processes and practices

– Health Drucker's 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Health Drucker's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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. Health Drucker's 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. Health Drucker's 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.

Building a culture of innovation

– managers at Health Drucker's 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.

Using analytics as competitive advantage

– Health Drucker's 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 Embracing the Business of Health: An Economic Imperative - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Health Drucker's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Health Drucker's can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Manufacturing automation

– Health Drucker's 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.




Threats Embracing the Business of Health: An Economic Imperative External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Embracing the Business of Health: An Economic Imperative are -

Regulatory challenges

– Health Drucker's 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.

High dependence on third party suppliers

– Health Drucker's 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.

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 Health Drucker's business can come under increasing regulations regarding data privacy, data security, 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. Health Drucker's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Shortening product life cycle

– it is one of the major threat that Health Drucker's is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Consumer confidence and its impact on Health Drucker's 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.

Stagnating economy with rate increase

– Health Drucker's 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.

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 Health Drucker's.

Increasing wage structure of Health Drucker's

– 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 Health Drucker's.

Environmental challenges

– Health Drucker's 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. Health Drucker's can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

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.

Technology acceleration in Forth Industrial Revolution

– Health Drucker's has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Health Drucker's 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.




Weighted SWOT Analysis of Embracing the Business of Health: An Economic Imperative 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 Embracing the Business of Health: An Economic Imperative 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 Embracing the Business of Health: An Economic Imperative 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 Embracing the Business of Health: An Economic Imperative 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 Embracing the Business of Health: An Economic Imperative 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 Health Drucker's needs to make to build a sustainable competitive advantage.



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