Case Study Description of AngloGold: Corporate Responsibility for HIV/AIDS (A)
AngloGold, a South African gold-mining corporation, faces a decision to provide its workforce, 30% of which is infected with HIV, with antiretroviral treatment.
Authors :: Diana Barrett, Amanda Key
Topics :: Leadership & Managing People
Tags :: Health, Labor, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "AngloGold: Corporate Responsibility for HIV/AIDS (A)" 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 (A) case study are - Strategic Management Strategies, Health, Labor, 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 (A) casestudy better are - – technology disruption, challanges to central banks by blockchain based private currencies, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of AngloGold: Corporate Responsibility for HIV/AIDS (A)
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 (A) 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 (A) can be done for the following purposes –
1. Strategic planning using facts provided in AngloGold: Corporate Responsibility for HIV/AIDS (A) 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 (A) | 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 (A) Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– AngloGold: Corporate Responsibility for HIV/AIDS (A) firm has clearly differentiated products in the market place. This has enabled Anglogold Hiv to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Anglogold Hiv to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Anglogold Hiv 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 AngloGold: Corporate Responsibility for HIV/AIDS (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 (A) 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.
Analytics focus
– Anglogold Hiv 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 Diana Barrett, Amanda Key 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.
Ability to recruit top talent
– Anglogold Hiv is one of the leading recruiters in the industry. Managers in the AngloGold: Corporate Responsibility for HIV/AIDS (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
Innovation driven organization
– Anglogold Hiv is one of the most innovative firm in sector. Manager in AngloGold: Corporate Responsibility for HIV/AIDS (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the AngloGold: Corporate Responsibility for HIV/AIDS (A) 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.
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.
Low bargaining power of suppliers
– Suppliers of Anglogold Hiv in the sector have low bargaining power. AngloGold: Corporate Responsibility for HIV/AIDS (A) 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.
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.
Weaknesses AngloGold: Corporate Responsibility for HIV/AIDS (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AngloGold: Corporate Responsibility for HIV/AIDS (A) are -
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.
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.
Need for greater diversity
– Anglogold Hiv 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.
High operating costs
– Compare to the competitors, firm in the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (A) 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Anglogold Hiv needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study AngloGold: Corporate Responsibility for HIV/AIDS (A) 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 AngloGold: Corporate Responsibility for HIV/AIDS (A) can leverage the sales team experience to cultivate customer relationships as Anglogold Hiv is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the AngloGold: Corporate Responsibility for HIV/AIDS (A) 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.
Slow decision making process
– As mentioned earlier in the report, Anglogold Hiv 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. Anglogold Hiv 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Anglogold Hiv is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study AngloGold: Corporate Responsibility for HIV/AIDS (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Anglogold Hiv has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
No frontier risks strategy
– After analyzing the HBR case study AngloGold: Corporate Responsibility for HIV/AIDS (A), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Opportunities AngloGold: Corporate Responsibility for HIV/AIDS (A) | 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 (A) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Anglogold Hiv 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.
Leveraging digital technologies
– Anglogold Hiv 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Anglogold Hiv 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 Anglogold Hiv to hire the very best people irrespective of their geographical location.
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.
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.
Creating value in data economy
– The success of analytics program of Anglogold Hiv has opened avenues for new revenue streams for the organization in the industry. This can help Anglogold Hiv to build a more holistic ecosystem as suggested in the AngloGold: Corporate Responsibility for HIV/AIDS (A) case study. Anglogold Hiv can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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 (A) - 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.
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.
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. Anglogold Hiv can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Anglogold Hiv 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, AngloGold: Corporate Responsibility for HIV/AIDS (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Buying journey improvements
– Anglogold Hiv can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AngloGold: Corporate Responsibility for HIV/AIDS (A) 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 AngloGold: Corporate Responsibility for HIV/AIDS (A) 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 (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Anglogold Hiv in the Leadership & Managing People industry. The Leadership & Managing People 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.
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.
Stagnating economy with rate increase
– Anglogold Hiv 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.
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.
Regulatory challenges
– Anglogold Hiv 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 Leadership & Managing People industry regulations.
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 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.
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AngloGold: Corporate Responsibility for HIV/AIDS (A), Anglogold Hiv may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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.
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 (A) .
Weighted SWOT Analysis of AngloGold: Corporate Responsibility for HIV/AIDS (A) 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 (A) 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 (A) 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 (A) 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 (A) 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.