TeaBox - Running Tuck Shops in Hong Kong Schools (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TeaBox - Running Tuck Shops in Hong Kong Schools (A)
TeaBox was a small, food-selling retail shop located in secondary schools in Hong Kong. It was considered a bold enterprise as it was ran by a non-governmental organization using social workers to test social enterprise as a way of servicing the community. After one year in business, an evaluation of the enterprise identified poor management as the cause of financial losses and complaints in employee surveys. The superintendent of TeaBox was determined to save the venture and began by investigating the financial statements and employee surveys in depth to find a way to make TeaBox a viable enterprise and differentiate it from other, similar providers. Based on this analysis, he wanted to develop a concrete plan to become successful.
Swot Analysis of "TeaBox - Running Tuck Shops in Hong Kong Schools (A)" written by Kevin Au, Mingles Tsoi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Teabox Enterprise facing as an external strategic factors. Some of the topics covered in TeaBox - Running Tuck Shops in Hong Kong Schools (A) case study are - Strategic Management Strategies, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TeaBox - Running Tuck Shops in Hong Kong Schools (A) casestudy better are - – increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, increasing household debt because of falling income levels, technology disruption, increasing commodity prices,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of TeaBox - Running Tuck Shops in Hong Kong Schools (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TeaBox - Running Tuck Shops in Hong Kong Schools (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Teabox Enterprise, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Teabox Enterprise 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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) can be done for the following purposes –
1. Strategic planning using facts provided in TeaBox - Running Tuck Shops in Hong Kong Schools (A) case study
2. Improving business portfolio management of Teabox Enterprise
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 Teabox Enterprise
Strengths TeaBox - Running Tuck Shops in Hong Kong Schools (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Teabox Enterprise in TeaBox - Running Tuck Shops in Hong Kong Schools (A) Harvard Business Review case study are -
Strong track record of project management
– Teabox Enterprise is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– TeaBox - Running Tuck Shops in Hong Kong Schools (A) firm has clearly differentiated products in the market place. This has enabled Teabox Enterprise to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Teabox Enterprise to invest into research and development (R&D) and innovation.
Organizational Resilience of Teabox Enterprise
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Teabox Enterprise does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Teabox Enterprise 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 Teabox Enterprise in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Teabox Enterprise is one of the most innovative firm in sector. Manager in TeaBox - Running Tuck Shops in Hong Kong Schools (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Teabox Enterprise digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Teabox Enterprise 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.
Training and development
– Teabox Enterprise has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TeaBox - Running Tuck Shops in Hong Kong Schools (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.
Effective Research and Development (R&D)
– Teabox Enterprise 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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Teabox Enterprise is one of the leading recruiters in the industry. Managers in the TeaBox - Running Tuck Shops in Hong Kong Schools (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.
Analytics focus
– Teabox Enterprise 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 Kevin Au, Mingles Tsoi 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.
Low bargaining power of suppliers
– Suppliers of Teabox Enterprise in the sector have low bargaining power. TeaBox - Running Tuck Shops in Hong Kong Schools (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Teabox Enterprise to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Teabox Enterprise 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.
Weaknesses TeaBox - Running Tuck Shops in Hong Kong Schools (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TeaBox - Running Tuck Shops in Hong Kong Schools (A) are -
Workers concerns about automation
– As automation is fast increasing in the segment, Teabox Enterprise 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.
No frontier risks strategy
– After analyzing the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TeaBox - Running Tuck Shops in Hong Kong Schools (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 Teabox Enterprise has relatively successful track record of launching new products.
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 Teabox Enterprise supply chain. Even after few cautionary changes mentioned in the HBR case study - TeaBox - Running Tuck Shops in Hong Kong Schools (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Teabox Enterprise vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Kevin Au, Mingles Tsoi suggests that, Teabox Enterprise 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TeaBox - Running Tuck Shops in Hong Kong Schools (A), in the dynamic environment Teabox Enterprise has struggled to respond to the nimble upstart competition. Teabox Enterprise has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Teabox Enterprise, firm in the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (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 Teabox Enterprise 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (A), it seems that the employees of Teabox Enterprise don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Teabox Enterprise 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.
Skills based hiring
– The stress on hiring functional specialists at Teabox Enterprise 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.
Opportunities TeaBox - Running Tuck Shops in Hong Kong Schools (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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) are -
Creating value in data economy
– The success of analytics program of Teabox Enterprise has opened avenues for new revenue streams for the organization in the industry. This can help Teabox Enterprise to build a more holistic ecosystem as suggested in the TeaBox - Running Tuck Shops in Hong Kong Schools (A) case study. Teabox Enterprise can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Teabox Enterprise 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.
Building a culture of innovation
– managers at Teabox Enterprise 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.
Loyalty marketing
– Teabox Enterprise 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.
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 Teabox Enterprise in the consumer business. Now Teabox Enterprise can target international markets with far fewer capital restrictions requirements than the existing system.
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. Teabox Enterprise can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Teabox Enterprise 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.
Developing new processes and practices
– Teabox Enterprise 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.
Better consumer reach
– The expansion of the 5G network will help Teabox Enterprise to increase its market reach. Teabox Enterprise 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.
Learning at scale
– Online learning technologies has now opened space for Teabox Enterprise 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.
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 Teabox Enterprise 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.
Using analytics as competitive advantage
– Teabox Enterprise 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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Teabox Enterprise to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Teabox Enterprise can use these opportunities to build new business models that can help the communities that Teabox Enterprise operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats TeaBox - Running Tuck Shops in Hong Kong Schools (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (A) are -
Stagnating economy with rate increase
– Teabox Enterprise 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Teabox Enterprise 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 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, Teabox Enterprise 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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TeaBox - Running Tuck Shops in Hong Kong Schools (A), Teabox Enterprise 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 acceleration in Forth Industrial Revolution
– Teabox Enterprise has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Teabox Enterprise 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.
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. Teabox Enterprise can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Teabox Enterprise.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Teabox Enterprise with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Teabox Enterprise 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.
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. Teabox Enterprise 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.
Environmental challenges
– Teabox Enterprise 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. Teabox Enterprise can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Teabox Enterprise
– 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 Teabox Enterprise.
Weighted SWOT Analysis of TeaBox - Running Tuck Shops in Hong Kong Schools (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 TeaBox - Running Tuck Shops in Hong Kong Schools (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 TeaBox - Running Tuck Shops in Hong Kong Schools (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 TeaBox - Running Tuck Shops in Hong Kong Schools (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 TeaBox - Running Tuck Shops in Hong Kong Schools (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 Teabox Enterprise needs to make to build a sustainable competitive advantage.