Case Study Description of AngloGold: Corporate Responsibility for HIV/AIDS (D)
Supplements the (A) case.
Authors :: Diana Barrett, Amanda Key
Topics :: Leadership & Managing People
Tags :: Health, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "AngloGold: Corporate Responsibility for HIV/AIDS (D)" written by Diana Barrett, Amanda Key includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Anglogold Hiv facing as an external strategic factors. Some of the topics covered in AngloGold: Corporate Responsibility for HIV/AIDS (D) case study are - Strategic Management Strategies, Health, Social enterprise, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the AngloGold: Corporate Responsibility for HIV/AIDS (D) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, technology disruption, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies,
supply chains are disrupted by pandemic , wage bills are increasing, etc
Introduction to SWOT Analysis of AngloGold: Corporate Responsibility for HIV/AIDS (D)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AngloGold: Corporate Responsibility for HIV/AIDS (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anglogold Hiv, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anglogold Hiv 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) can be done for the following purposes –
1. Strategic planning using facts provided in AngloGold: Corporate Responsibility for HIV/AIDS (D) case study
2. Improving business portfolio management of Anglogold Hiv
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anglogold Hiv
Strengths AngloGold: Corporate Responsibility for HIV/AIDS (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anglogold Hiv in AngloGold: Corporate Responsibility for HIV/AIDS (D) Harvard Business Review case study are -
Learning organization
- Anglogold Hiv 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 Anglogold Hiv is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AngloGold: Corporate Responsibility for HIV/AIDS (D) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Anglogold Hiv has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AngloGold: Corporate Responsibility for HIV/AIDS (D) 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.
Low bargaining power of suppliers
– Suppliers of Anglogold Hiv in the sector have low bargaining power. AngloGold: Corporate Responsibility for HIV/AIDS (D) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anglogold Hiv to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Anglogold Hiv is one of the most innovative firm in sector. Manager in AngloGold: Corporate Responsibility for HIV/AIDS (D) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Anglogold Hiv has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Anglogold Hiv to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Anglogold Hiv in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Anglogold Hiv 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.
Effective Research and Development (R&D)
– Anglogold Hiv 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Anglogold Hiv is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Anglogold Hiv
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Anglogold Hiv does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Anglogold Hiv 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.
Successful track record of launching new products
– Anglogold Hiv has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anglogold Hiv 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.
Weaknesses AngloGold: Corporate Responsibility for HIV/AIDS (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AngloGold: Corporate Responsibility for HIV/AIDS (D) are -
High operating costs
– Compare to the competitors, firm in the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 Anglogold Hiv 's lucrative customers.
Products dominated business model
– Even though Anglogold Hiv 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 - AngloGold: Corporate Responsibility for HIV/AIDS (D) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As AngloGold: Corporate Responsibility for HIV/AIDS (D) HBR case study mentions - Anglogold Hiv 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.
High cash cycle compare to competitors
Anglogold Hiv 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 Anglogold Hiv has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study AngloGold: Corporate Responsibility for HIV/AIDS (D), in the dynamic environment Anglogold Hiv has struggled to respond to the nimble upstart competition. Anglogold Hiv has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Anglogold Hiv has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Anglogold Hiv 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 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 Anglogold Hiv supply chain. Even after few cautionary changes mentioned in the HBR case study - AngloGold: Corporate Responsibility for HIV/AIDS (D), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Anglogold Hiv vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Anglogold Hiv, firm in the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (D) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (D), is just above the industry average. Anglogold Hiv 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.
Opportunities AngloGold: Corporate Responsibility for HIV/AIDS (D) | 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) are -
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 Anglogold Hiv 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.
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 Anglogold Hiv in the consumer business. Now Anglogold Hiv can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anglogold Hiv can use these opportunities to build new business models that can help the communities that Anglogold Hiv operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Anglogold Hiv to increase its market reach. Anglogold Hiv 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.
Developing new processes and practices
– Anglogold Hiv can develop new processes and procedures in Leadership & Managing People 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
– Anglogold Hiv can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Using analytics as competitive advantage
– Anglogold Hiv 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Anglogold Hiv to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Anglogold Hiv 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. Anglogold Hiv 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Anglogold Hiv can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Anglogold Hiv 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 Leadership & Managing People segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Anglogold Hiv can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anglogold Hiv is facing challenges because of the dominance of functional experts in the organization. AngloGold: Corporate Responsibility for HIV/AIDS (D) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anglogold Hiv in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Threats AngloGold: Corporate Responsibility for HIV/AIDS (D) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (D) are -
Consumer confidence and its impact on Anglogold Hiv 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.
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 Anglogold Hiv business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Anglogold Hiv 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. Anglogold Hiv can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Anglogold Hiv 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.
Increasing wage structure of Anglogold Hiv
– 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 Anglogold Hiv.
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. Anglogold Hiv needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Anglogold Hiv has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Anglogold Hiv needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Anglogold Hiv is facing in Leadership & Managing People 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 Anglogold Hiv.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Anglogold Hiv 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) .
High dependence on third party suppliers
– Anglogold Hiv 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.
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.
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 Anglogold Hiv in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 AngloGold: Corporate Responsibility for HIV/AIDS (D) 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 Anglogold Hiv needs to make to build a sustainable competitive advantage.
