Cultivating Social Enterprise in Peru: A Portfolio Approach SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cultivating Social Enterprise in Peru: A Portfolio Approach
A consultant with CARE Enterprise Partners (CEP) is tasked to provide consulting for three social enterprises in different stages of development, each benefiting from CEP funding and support. CONASE - an oatmeal manufacturer selling to the government's vaso de leche free breakfast program - asked for advice on strategic analysis and creative approaches to customer relations. Seviagro - a market linkage social enterprise aggregating produce from smallholder artichoke farmers for resale to a large processing and export company - requested support with cost analysis and accounting. Corporacion Solar - initially established as a buyer and reseller of spinach produced by Andean farmers but currently transitioning from a market linkage model to a hybrid model - was looking for assistance in reshaping its growth strategy to target major buyers in Lima with a more diversified product offering. The three for-profit social enterprises profiled in this case sample a new breed of locally-reliant, market-driven models, which could further Peru's rural development in mountainous regions like the Ancash province. Their success could be tremendously influential in charting a new approach to development in the Andes. Success here could also endorse CEP's pioneering approach to development around the world. But despite careful start-up planning and very promising triple-bottom line projections, each enterprise confronted unexpected challenges in customer relations, cost management, sourcing and distribution. As these social ventures were getting off the ground, their founders' ability to simultaneously meet their social goals and remain economically viable was in jeopardy. The case asks students to put themselves in the consultant role and reposition these social ventures for sustainable growth.
Swot Analysis of "Cultivating Social Enterprise in Peru: A Portfolio Approach" written by Oana Branzei, Jan Dutkiewicz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cep Social facing as an external strategic factors. Some of the topics covered in Cultivating Social Enterprise in Peru: A Portfolio Approach case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Cultivating Social Enterprise in Peru: A Portfolio Approach casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, geopolitical disruptions, etc
Introduction to SWOT Analysis of Cultivating Social Enterprise in Peru: A Portfolio Approach
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cultivating Social Enterprise in Peru: A Portfolio Approach case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cep Social, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach can be done for the following purposes –
1. Strategic planning using facts provided in Cultivating Social Enterprise in Peru: A Portfolio Approach case study
2. Improving business portfolio management of Cep Social
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 Cep Social
Strengths Cultivating Social Enterprise in Peru: A Portfolio Approach | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cep Social in Cultivating Social Enterprise in Peru: A Portfolio Approach Harvard Business Review case study are -
Training and development
– Cep Social has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cultivating Social Enterprise in Peru: A Portfolio Approach 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.
Superior customer experience
– The customer experience strategy of Cep Social in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Cep Social is one of the leading recruiters in the industry. Managers in the Cultivating Social Enterprise in Peru: A Portfolio Approach are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Cep Social is present in almost all the verticals within the industry. This has provided firm in Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cep Social digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cep Social 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.
Successful track record of launching new products
– Cep Social has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cep Social 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.
Organizational Resilience of Cep Social
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cep Social does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Cep Social in the sector have low bargaining power. Cultivating Social Enterprise in Peru: A Portfolio Approach has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cep Social to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Cep Social is one of the most innovative firm in sector. Manager in Cultivating Social Enterprise in Peru: A Portfolio Approach Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cultivating Social Enterprise in Peru: A Portfolio Approach are -
High operating costs
– Compare to the competitors, firm in the HBR case study Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cep Social 's lucrative customers.
Products dominated business model
– Even though Cep Social 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 - Cultivating Social Enterprise in Peru: A Portfolio Approach should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Cep Social, firm in the HBR case study Cultivating Social Enterprise in Peru: A Portfolio Approach needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Cep Social supply chain. Even after few cautionary changes mentioned in the HBR case study - Cultivating Social Enterprise in Peru: A Portfolio Approach, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cep Social vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cep Social has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Cep Social 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.
Increasing silos among functional specialists
– The organizational structure of Cep Social is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Cep Social needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cep Social to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Cep Social products
– To increase the profitability and margins on the products, Cep Social needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Cep Social has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cep Social even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cultivating Social Enterprise in Peru: A Portfolio Approach, is just above the industry average. Cep Social 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.
Slow to strategic competitive environment developments
– As Cultivating Social Enterprise in Peru: A Portfolio Approach HBR case study mentions - Cep Social 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.
Opportunities Cultivating Social Enterprise in Peru: A Portfolio Approach | 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 Cultivating Social Enterprise in Peru: A Portfolio Approach are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cep Social is facing challenges because of the dominance of functional experts in the organization. Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cep Social in the consumer business. Now Cep Social can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Cep Social can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Cep Social 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.
Buying journey improvements
– Cep Social can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cultivating Social Enterprise in Peru: A Portfolio Approach 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.
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. Cep Social can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Cep Social has opened avenues for new revenue streams for the organization in the industry. This can help Cep Social to build a more holistic ecosystem as suggested in the Cultivating Social Enterprise in Peru: A Portfolio Approach case study. Cep Social can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Cep Social can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cep Social can use these opportunities to build new business models that can help the communities that Cep Social operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Learning at scale
– Online learning technologies has now opened space for Cep Social 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.
Using analytics as competitive advantage
– Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cep Social to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cep Social to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cep Social to hire the very best people irrespective of their geographical location.
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 Cep Social to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Cultivating Social Enterprise in Peru: A Portfolio Approach External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cultivating Social Enterprise in Peru: A Portfolio Approach are -
Increasing wage structure of Cep Social
– 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 Cep Social.
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. Cep Social can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cep Social with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Cep Social 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.
Regulatory challenges
– Cep Social 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.
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 Cep Social in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cep Social 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 Cultivating Social Enterprise in Peru: A Portfolio Approach .
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.
Shortening product life cycle
– it is one of the major threat that Cep Social 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 Cep Social.
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. Cep Social needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cultivating Social Enterprise in Peru: A Portfolio Approach, Cep Social 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 .
Weighted SWOT Analysis of Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cultivating Social Enterprise in Peru: A Portfolio Approach 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 Cep Social needs to make to build a sustainable competitive advantage.