Swot Analysis of "Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B)" written by Kristiana Raube includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that B5789 Juhudi facing as an external strategic factors. Some of the topics covered in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) case study are - Strategic Management Strategies, Emerging markets, Financial management, Human resource management, Labor, Managing yourself, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) casestudy better are - – increasing energy prices, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, wage bills are increasing, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the B5789 Juhudi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which B5789 Juhudi 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) can be done for the following purposes –
1. Strategic planning using facts provided in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) case study
2. Improving business portfolio management of B5789 Juhudi
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 B5789 Juhudi
Strengths Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of B5789 Juhudi in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of B5789 Juhudi in the sector have low bargaining power. Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps B5789 Juhudi to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– B5789 Juhudi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled B5789 Juhudi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– B5789 Juhudi 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 Kristiana Raube 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.
Effective Research and Development (R&D)
– B5789 Juhudi 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– B5789 Juhudi is present in almost all the verticals within the industry. This has provided firm in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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.
High switching costs
– The high switching costs that B5789 Juhudi 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For B5789 Juhudi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. B5789 Juhudi has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Operational resilience
– The operational resilience strategy in the Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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.
Innovation driven organization
– B5789 Juhudi is one of the most innovative firm in sector. Manager in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of B5789 Juhudi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that B5789 Juhudi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– B5789 Juhudi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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.
Ability to recruit top talent
– B5789 Juhudi is one of the leading recruiters in the industry. Managers in the Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) are -
Increasing silos among functional specialists
– The organizational structure of B5789 Juhudi is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. B5789 Juhudi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help B5789 Juhudi to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at B5789 Juhudi 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.
Need for greater diversity
– B5789 Juhudi 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 bargaining power of channel partners
– Because of the regulatory requirements, Kristiana Raube suggests that, B5789 Juhudi 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.
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 B5789 Juhudi supply chain. Even after few cautionary changes mentioned in the HBR case study - Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left B5789 Juhudi vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, B5789 Juhudi 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.
Slow decision making process
– As mentioned earlier in the report, B5789 Juhudi 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. B5789 Juhudi 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.
Workers concerns about automation
– As automation is fast increasing in the segment, B5789 Juhudi 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.
Lack of clear differentiation of B5789 Juhudi products
– To increase the profitability and margins on the products, B5789 Juhudi needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 B5789 Juhudi 's lucrative customers.
High cash cycle compare to competitors
B5789 Juhudi 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.
Opportunities Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) | 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, B5789 Juhudi 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, Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– B5789 Juhudi 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, B5789 Juhudi is facing challenges because of the dominance of functional experts in the organization. Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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.
Learning at scale
– Online learning technologies has now opened space for B5789 Juhudi 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.
Buying journey improvements
– B5789 Juhudi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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.
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. B5789 Juhudi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– B5789 Juhudi has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects B5789 Juhudi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. B5789 Juhudi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at B5789 Juhudi 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 B5789 Juhudi to increase its market reach. B5789 Juhudi 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.
Manufacturing automation
– B5789 Juhudi 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.
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 B5789 Juhudi 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for B5789 Juhudi 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.
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 B5789 Juhudi in the Leadership & Managing People sector and impact the bottomline of the organization.
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. B5789 Juhudi needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 B5789 Juhudi business can come under increasing regulations regarding data privacy, data security, etc.
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. B5789 Juhudi 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.
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.
High dependence on third party suppliers
– B5789 Juhudi 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.
Regulatory challenges
– B5789 Juhudi 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.
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 B5789 Juhudi.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B), B5789 Juhudi 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 .
Shortening product life cycle
– it is one of the major threat that B5789 Juhudi 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
– B5789 Juhudi 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. B5789 Juhudi can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. B5789 Juhudi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 Juhudi Kilimo: Designing Microfinance Staff Incentive Plans (B) 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 B5789 Juhudi needs to make to build a sustainable competitive advantage.
