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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, there is backlash against globalization,
digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, 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 -
Diverse revenue streams
– Teabox Enterprise is present in almost all the verticals within the industry. This has provided firm in TeaBox - Running Tuck Shops in Hong Kong Schools (A) 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 brand equity
– Teabox Enterprise has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Teabox Enterprise to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
Highly skilled collaborators
– Teabox Enterprise 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 TeaBox - Running Tuck Shops in Hong Kong Schools (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Successful track record of launching new products
– Teabox Enterprise has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Teabox Enterprise has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the TeaBox - Running Tuck Shops in Hong Kong Schools (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.
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 -
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TeaBox - Running Tuck Shops in Hong Kong Schools (A), is just above the industry average. Teabox Enterprise needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Teabox Enterprise is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TeaBox - Running Tuck Shops in Hong Kong Schools (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.
Slow decision making process
– As mentioned earlier in the report, Teabox Enterprise 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. Teabox Enterprise 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Teabox Enterprise 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 Teabox Enterprise is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Teabox Enterprise needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Teabox Enterprise to focus more on services rather than just following the product oriented approach.
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.
Products dominated business model
– Even though Teabox Enterprise 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 - TeaBox - Running Tuck Shops in Hong Kong Schools (A) should strive to include more intangible value offerings along with its core products and services.
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.
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.
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 -
Buying journey improvements
– Teabox Enterprise can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TeaBox - Running Tuck Shops in Hong Kong Schools (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.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Teabox Enterprise 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 Teabox Enterprise to hire the very best people irrespective of their geographical location.
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.
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.
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. Teabox Enterprise can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
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.
Leveraging digital technologies
– Teabox Enterprise 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.
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 -
High dependence on third party suppliers
– Teabox Enterprise 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.
Shortening product life cycle
– it is one of the major threat that Teabox Enterprise is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Teabox Enterprise 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.
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.
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.
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.
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.
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.
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.
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.
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 Teabox Enterprise business can come under increasing regulations regarding data privacy, data security, etc.
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) .
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.