Partnerships Victoria: The Public Sector Comparator SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Partnerships Victoria: The Public Sector Comparator
The government of the State of Victoria in Australia has been a pioneer in using the private sector to provide public infrastructure through "public-private partnerships" (PPPs). Under PPP programs the government contracts with a private company not just to build a facility but to operate it over its expected life, as well. PPPs are used for "social" infrastructure such as courthouses and hospitals as well as for "economic" infrastructure such as toll roads or public transport. The Department of Treasury required that agencies pursuing a PPP demonstrate that the PPP would save money compared to traditional procurement options. But critics argued that the Treasury's guidelines for such cost comparisons were flawed. The debate raised issues about how to compare the risks assumed by the government under different procurement options and how the differences in risks should be reflected in the discount rates. HKS Case Number 1822.0
Swot Analysis of "Partnerships Victoria: The Public Sector Comparator" written by Ian Davidoff, Jose Gomez-Ibanez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ppp Ppps facing as an external strategic factors. Some of the topics covered in Partnerships Victoria: The Public Sector Comparator case study are - Strategic Management Strategies, Financial management, International business, Joint ventures, Policy, Project management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Partnerships Victoria: The Public Sector Comparator casestudy better are - – increasing government debt because of Covid-19 spendings, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Partnerships Victoria: The Public Sector Comparator
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Partnerships Victoria: The Public Sector Comparator case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ppp Ppps, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ppp Ppps 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 Partnerships Victoria: The Public Sector Comparator can be done for the following purposes –
1. Strategic planning using facts provided in Partnerships Victoria: The Public Sector Comparator case study
2. Improving business portfolio management of Ppp Ppps
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 Ppp Ppps
Strengths Partnerships Victoria: The Public Sector Comparator | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ppp Ppps in Partnerships Victoria: The Public Sector Comparator Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Ppp Ppps in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Ppp Ppps
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ppp Ppps does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Partnerships Victoria: The Public Sector Comparator 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.
Low bargaining power of suppliers
– Suppliers of Ppp Ppps in the sector have low bargaining power. Partnerships Victoria: The Public Sector Comparator has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ppp Ppps to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Ppp Ppps 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 Ian Davidoff, Jose Gomez-Ibanez 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.
Learning organization
- Ppp Ppps 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 Ppp Ppps is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Partnerships Victoria: The Public Sector Comparator Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Ppp Ppps has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Partnerships Victoria: The Public Sector Comparator 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.
Strong track record of project management
– Ppp Ppps is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Ppp Ppps 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.
High brand equity
– Ppp Ppps has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ppp Ppps to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Ppp Ppps 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 Ppp Ppps in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Ppp Ppps is present in almost all the verticals within the industry. This has provided firm in Partnerships Victoria: The Public Sector Comparator 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.
Weaknesses Partnerships Victoria: The Public Sector Comparator | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Partnerships Victoria: The Public Sector Comparator are -
Lack of clear differentiation of Ppp Ppps products
– To increase the profitability and margins on the products, Ppp Ppps 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 Ppp Ppps supply chain. Even after few cautionary changes mentioned in the HBR case study - Partnerships Victoria: The Public Sector Comparator, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ppp Ppps vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Ppp Ppps 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.
Increasing silos among functional specialists
– The organizational structure of Ppp Ppps is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Ppp Ppps needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ppp Ppps to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Ppp Ppps 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 Partnerships Victoria: The Public Sector Comparator 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 Ppp Ppps 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Ppp Ppps 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.
Low market penetration in new markets
– Outside its home market of Ppp Ppps, firm in the HBR case study Partnerships Victoria: The Public Sector Comparator needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Ppp Ppps 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 - Partnerships Victoria: The Public Sector Comparator should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Ppp Ppps 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 bargaining power of channel partners
– Because of the regulatory requirements, Ian Davidoff, Jose Gomez-Ibanez suggests that, Ppp Ppps 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.
Opportunities Partnerships Victoria: The Public Sector Comparator | 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 Partnerships Victoria: The Public Sector Comparator are -
Building a culture of innovation
– managers at Ppp Ppps 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.
Better consumer reach
– The expansion of the 5G network will help Ppp Ppps to increase its market reach. Ppp Ppps 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ppp Ppps 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.
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 Ppp Ppps in the consumer business. Now Ppp Ppps can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Ppp Ppps 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.
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. Ppp Ppps can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ppp Ppps can use these opportunities to build new business models that can help the communities that Ppp Ppps operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Manufacturing automation
– Ppp Ppps 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ppp Ppps 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, Partnerships Victoria: The Public Sector Comparator, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Ppp Ppps has opened avenues for new revenue streams for the organization in the industry. This can help Ppp Ppps to build a more holistic ecosystem as suggested in the Partnerships Victoria: The Public Sector Comparator case study. Ppp Ppps can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Ppp Ppps 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.
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 Ppp Ppps 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ppp Ppps 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 Ppp Ppps to hire the very best people irrespective of their geographical location.
Threats Partnerships Victoria: The Public Sector Comparator External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Partnerships Victoria: The Public Sector Comparator are -
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ppp Ppps can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Ppp Ppps is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ppp Ppps business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Ppp Ppps 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.
Increasing wage structure of Ppp Ppps
– 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 Ppp Ppps.
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 Ppp Ppps in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– Ppp Ppps 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.
Stagnating economy with rate increase
– Ppp Ppps 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.
Environmental challenges
– Ppp Ppps 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. Ppp Ppps can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Ppp Ppps 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ppp Ppps 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 Partnerships Victoria: The Public Sector Comparator .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ppp Ppps with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Partnerships Victoria: The Public Sector Comparator 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 Partnerships Victoria: The Public Sector Comparator 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 Partnerships Victoria: The Public Sector Comparator 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 Partnerships Victoria: The Public Sector Comparator 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 Partnerships Victoria: The Public Sector Comparator 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 Ppp Ppps needs to make to build a sustainable competitive advantage.
