INDE and the Emprededores Juveniles de Nicaragua, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version
The Emprendedores Juveniles de Nicaragua (EJN, Nicaragua's Young Entrepreneurs) program was created in 1991 as an affiliate of Junior Achievement International (JAI). Since 1997, EJN developed a new approach to JAI's traditional model for young entrepreneurs' education by choosing youths at risk to participate in its programs. Although the new young entrepreneurs' model managed to get ongoing support from UNICEF, the traditional program, basically funded by private sector contributions, lost momentum and finally had no beneficiaries in 2000. In late 2002, the program's executive director had to find strong support for the traditional program and expected to keep or increase the number of beneficiaries in the new format. Provides information on the social programs developed by three private companies--Texaco, Pizza Hut, and Coca Cola--and their relationship with EJN.
Authors :: Monica Azofeifa, Francisco Leguizamon
Topics :: Innovation & Entrepreneurship
Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "INDE and the Emprededores Juveniles de Nicaragua, Spanish Version" written by Monica Azofeifa, Francisco Leguizamon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ejn Juveniles facing as an external strategic factors. Some of the topics covered in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version casestudy better are - – talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, there is backlash against globalization, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices,
increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ejn Juveniles, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study
2. Improving business portfolio management of Ejn Juveniles
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 Ejn Juveniles
Strengths INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ejn Juveniles in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– INDE and the Emprededores Juveniles de Nicaragua, Spanish Version firm has clearly differentiated products in the market place. This has enabled Ejn Juveniles to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Ejn Juveniles to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Ejn Juveniles 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.
Organizational Resilience of Ejn Juveniles
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ejn Juveniles does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ejn Juveniles has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ejn Juveniles to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Ejn Juveniles is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Ejn Juveniles 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 Ejn Juveniles is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Ejn Juveniles is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Monica Azofeifa, Francisco Leguizamon can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Ejn Juveniles in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Ejn Juveniles is one of the leading recruiters in the industry. Managers in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Ejn Juveniles in the sector have low bargaining power. INDE and the Emprededores Juveniles de Nicaragua, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ejn Juveniles to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
Lack of clear differentiation of Ejn Juveniles products
– To increase the profitability and margins on the products, Ejn Juveniles needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Ejn Juveniles supply chain. Even after few cautionary changes mentioned in the HBR case study - INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ejn Juveniles vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, it seems that the employees of Ejn Juveniles 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.
Slow to strategic competitive environment developments
– As INDE and the Emprededores Juveniles de Nicaragua, Spanish Version HBR case study mentions - Ejn Juveniles 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 Ejn Juveniles 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.
High operating costs
– Compare to the competitors, firm in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles 's lucrative customers.
Aligning sales with marketing
– It come across in the case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version can leverage the sales team experience to cultivate customer relationships as Ejn Juveniles is planning to shift buying processes online.
Need for greater diversity
– Ejn Juveniles 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, is just above the industry average. Ejn Juveniles 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.
No frontier risks strategy
– After analyzing the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, in the dynamic environment Ejn Juveniles has struggled to respond to the nimble upstart competition. Ejn Juveniles has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
Creating value in data economy
– The success of analytics program of Ejn Juveniles has opened avenues for new revenue streams for the organization in the industry. This can help Ejn Juveniles to build a more holistic ecosystem as suggested in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study. Ejn Juveniles can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Ejn Juveniles 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ejn Juveniles 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ejn Juveniles can use these opportunities to build new business models that can help the communities that Ejn Juveniles operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Manufacturing automation
– Ejn Juveniles 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 Ejn Juveniles can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ejn Juveniles 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 Ejn Juveniles to hire the very best people irrespective of their geographical location.
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 Ejn Juveniles in the consumer business. Now Ejn Juveniles can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Ejn Juveniles 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.
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. Ejn Juveniles can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Ejn Juveniles to increase its market reach. Ejn Juveniles 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.
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. Ejn Juveniles can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
Increasing wage structure of Ejn Juveniles
– 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 Ejn Juveniles.
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 Ejn Juveniles in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Ejn Juveniles 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.
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. Ejn Juveniles 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.
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. Ejn Juveniles can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Ejn Juveniles 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.
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.
Shortening product life cycle
– it is one of the major threat that Ejn Juveniles is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ejn Juveniles 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.
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 Ejn Juveniles business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Ejn Juveniles 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, Ejn Juveniles 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 .
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. Ejn Juveniles needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles needs to make to build a sustainable competitive advantage.
