Artists for Humanity: A Non-Profit Corporation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Artists for Humanity: A Non-Profit Corporation
Artists for Humanity (AFH) is a nonprofit that hires 30 to 40 teenagers each year for after-school work and training in the arts and entrepreneurship. The young artists, working in six different studios, make and sell the art they produce. AFH was started in 1990 by local artist Susan Rodgerson and six middle school students in a Boston garage studio; in 1993, they were able to expand and move to two floors of a wharf-area warehouse. At the time of the case, Rodgerson, the executive director, is weighing issues of expansion, staff turnover, and a capital campaign to raise money to secure a building (the warehouse lease ran out in 2001). The case showcases the challenges that face many small nonprofit organizations, and outlines some of the particular characteristics that describe nonprofit organizations that also have an entrepreneurial arm.
Authors :: J. Gregory Dees, Shirley Brice Heath, Laura Smyth
Swot Analysis of "Artists for Humanity: A Non-Profit Corporation" written by J. Gregory Dees, Shirley Brice Heath, Laura Smyth includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Afh Rodgerson facing as an external strategic factors. Some of the topics covered in Artists for Humanity: A Non-Profit Corporation case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Artists for Humanity: A Non-Profit Corporation casestudy better are - – talent flight as more people leaving formal jobs, increasing energy prices, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Artists for Humanity: A Non-Profit Corporation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Artists for Humanity: A Non-Profit Corporation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Afh Rodgerson, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation can be done for the following purposes –
1. Strategic planning using facts provided in Artists for Humanity: A Non-Profit Corporation case study
2. Improving business portfolio management of Afh Rodgerson
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 Afh Rodgerson
Strengths Artists for Humanity: A Non-Profit Corporation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Afh Rodgerson in Artists for Humanity: A Non-Profit Corporation Harvard Business Review case study are -
High brand equity
– Afh Rodgerson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Afh Rodgerson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Afh Rodgerson 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 Afh Rodgerson in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Afh Rodgerson is one of the leading recruiters in the industry. Managers in the Artists for Humanity: A Non-Profit Corporation 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
– Afh Rodgerson is present in almost all the verticals within the industry. This has provided firm in Artists for Humanity: A Non-Profit Corporation 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 Afh Rodgerson digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Afh Rodgerson 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.
Highly skilled collaborators
– Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Afh Rodgerson in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Afh Rodgerson in the sector have low bargaining power. Artists for Humanity: A Non-Profit Corporation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Afh Rodgerson to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Afh Rodgerson 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 Afh Rodgerson is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Artists for Humanity: A Non-Profit Corporation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Afh Rodgerson is one of the most innovative firm in sector. Manager in Artists for Humanity: A Non-Profit Corporation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Afh Rodgerson is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Artists for Humanity: A Non-Profit Corporation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Artists for Humanity: A Non-Profit Corporation are -
Aligning sales with marketing
– It come across in the case study Artists for Humanity: A Non-Profit Corporation that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Artists for Humanity: A Non-Profit Corporation can leverage the sales team experience to cultivate customer relationships as Afh Rodgerson is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Artists for Humanity: A Non-Profit Corporation, is just above the industry average. Afh Rodgerson 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 cash cycle compare to competitors
Afh Rodgerson 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.
Products dominated business model
– Even though Afh Rodgerson 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 - Artists for Humanity: A Non-Profit Corporation should strive to include more intangible value offerings along with its core products and services.
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 Afh Rodgerson supply chain. Even after few cautionary changes mentioned in the HBR case study - Artists for Humanity: A Non-Profit Corporation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation 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 Afh Rodgerson has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Afh Rodgerson is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Artists for Humanity: A Non-Profit Corporation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, J. Gregory Dees, Shirley Brice Heath, Laura Smyth suggests that, Afh Rodgerson 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.
Lack of clear differentiation of Afh Rodgerson products
– To increase the profitability and margins on the products, Afh Rodgerson needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Afh Rodgerson is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Afh Rodgerson needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Afh Rodgerson to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Afh Rodgerson, firm in the HBR case study Artists for Humanity: A Non-Profit Corporation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Artists for Humanity: A Non-Profit Corporation | 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 Artists for Humanity: A Non-Profit Corporation are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Afh Rodgerson 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.
Using analytics as competitive advantage
– Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Afh Rodgerson to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Afh Rodgerson 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Afh Rodgerson 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, Artists for Humanity: A Non-Profit Corporation, 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
– Afh Rodgerson 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.
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. Afh Rodgerson can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Afh Rodgerson 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.
Manufacturing automation
– Afh Rodgerson 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Afh Rodgerson can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Afh Rodgerson in the consumer business. Now Afh Rodgerson can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Afh Rodgerson to increase its market reach. Afh Rodgerson 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Afh Rodgerson 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.
Buying journey improvements
– Afh Rodgerson can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Artists for Humanity: A Non-Profit Corporation 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.
Threats Artists for Humanity: A Non-Profit Corporation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Artists for Humanity: A Non-Profit Corporation are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Artists for Humanity: A Non-Profit Corporation, Afh Rodgerson 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 .
Regulatory challenges
– Afh Rodgerson 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.
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. Afh Rodgerson 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Afh Rodgerson in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Stagnating economy with rate increase
– Afh Rodgerson 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.
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 Afh Rodgerson business can come under increasing regulations regarding data privacy, data security, 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 Afh Rodgerson.
Shortening product life cycle
– it is one of the major threat that Afh Rodgerson is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation .
Consumer confidence and its impact on Afh Rodgerson demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Afh Rodgerson 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. Afh Rodgerson can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Afh Rodgerson needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Afh Rodgerson has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Afh Rodgerson 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 Artists for Humanity: A Non-Profit Corporation 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 Artists for Humanity: A Non-Profit Corporation 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 Artists for Humanity: A Non-Profit Corporation 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 Artists for Humanity: A Non-Profit Corporation 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 Artists for Humanity: A Non-Profit Corporation 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 Afh Rodgerson needs to make to build a sustainable competitive advantage.
