Teabox - Running Tuck Shops in Hong Kong Schools (B) 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 (B)
This is a supplemental case to TeaBox - Running Tuck Shops in Hong Kong Schools (A), product 908M32. TeaBox management had identified employee dissatisfaction as a major reason for its poor first-year evaluation. Manpower reallocation was seen as a key success factor, and properly executed it could prove to the stakeholders that it was capable of running a successful social venture. The superintendent of TeaBox, formed a committee to decide upon a new manager, and to provide ideas for future expansion.
Swot Analysis of "Teabox - Running Tuck Shops in Hong Kong Schools (B)" written by Kevin Au, Mingles Tsoi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Teabox Tuck facing as an external strategic factors. Some of the topics covered in Teabox - Running Tuck Shops in Hong Kong Schools (B) 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 (B) casestudy better are - – central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Teabox - Running Tuck Shops in Hong Kong Schools (B)
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 (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Teabox Tuck, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Teabox Tuck 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 (B) can be done for the following purposes –
1. Strategic planning using facts provided in Teabox - Running Tuck Shops in Hong Kong Schools (B) case study
2. Improving business portfolio management of Teabox Tuck
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 Tuck
Strengths Teabox - Running Tuck Shops in Hong Kong Schools (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Teabox Tuck in Teabox - Running Tuck Shops in Hong Kong Schools (B) Harvard Business Review case study are -
Organizational Resilience of Teabox Tuck
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Teabox Tuck does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Teabox Tuck is one of the leading recruiters in the industry. Managers in the Teabox - Running Tuck Shops in Hong Kong Schools (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.
Highly skilled collaborators
– Teabox Tuck 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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Teabox Tuck 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 Teabox Tuck is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Teabox - Running Tuck Shops in Hong Kong Schools (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Teabox Tuck 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 (B) firm has clearly differentiated products in the market place. This has enabled Teabox Tuck to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Teabox Tuck to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Teabox Tuck in the sector have low bargaining power. Teabox - Running Tuck Shops in Hong Kong Schools (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Teabox Tuck to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Teabox Tuck 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 (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
– Teabox Tuck is present in almost all the verticals within the industry. This has provided firm in Teabox - Running Tuck Shops in Hong Kong Schools (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.
Cross disciplinary teams
– Horizontal connected teams at the Teabox Tuck 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Teabox Tuck digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Teabox Tuck 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.
Successful track record of launching new products
– Teabox Tuck has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Teabox Tuck 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.
Weaknesses Teabox - Running Tuck Shops in Hong Kong Schools (B) | 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 (B) are -
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 (B), in the dynamic environment Teabox Tuck has struggled to respond to the nimble upstart competition. Teabox Tuck has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Teabox - Running Tuck Shops in Hong Kong Schools (B), 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.
Slow to strategic competitive environment developments
– As Teabox - Running Tuck Shops in Hong Kong Schools (B) HBR case study mentions - Teabox Tuck takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Teabox - Running Tuck Shops in Hong Kong Schools (B), is just above the industry average. Teabox Tuck 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.
Need for greater diversity
– Teabox Tuck 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.
Capital Spending Reduction
– Even during the low interest decade, Teabox Tuck has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High 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 Tuck supply chain. Even after few cautionary changes mentioned in the HBR case study - Teabox - Running Tuck Shops in Hong Kong Schools (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Teabox Tuck vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Teabox Tuck needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Teabox - Running Tuck Shops in Hong Kong Schools (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Teabox - Running Tuck Shops in Hong Kong Schools (B) can leverage the sales team experience to cultivate customer relationships as Teabox Tuck is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Kevin Au, Mingles Tsoi suggests that, Teabox Tuck 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Teabox Tuck 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 (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox - Running Tuck Shops in Hong Kong Schools (B) are -
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 Tuck 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.
Better consumer reach
– The expansion of the 5G network will help Teabox Tuck to increase its market reach. Teabox Tuck 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 Tuck can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Teabox Tuck 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Teabox Tuck in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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 Tuck can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Teabox Tuck 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.
Creating value in data economy
– The success of analytics program of Teabox Tuck has opened avenues for new revenue streams for the organization in the industry. This can help Teabox Tuck to build a more holistic ecosystem as suggested in the Teabox - Running Tuck Shops in Hong Kong Schools (B) case study. Teabox Tuck can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Teabox Tuck 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Teabox Tuck can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Teabox Tuck 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Teabox Tuck 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 Tuck to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Teabox Tuck 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, Teabox - Running Tuck Shops in Hong Kong Schools (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.
Threats Teabox - Running Tuck Shops in Hong Kong Schools (B) 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 (B) are -
Environmental challenges
– Teabox Tuck 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 Tuck can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Teabox Tuck 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 (B) .
Regulatory challenges
– Teabox Tuck 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.
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. Teabox Tuck needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Teabox Tuck 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.
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 Tuck.
Shortening product life cycle
– it is one of the major threat that Teabox Tuck is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Tuck can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Tuck business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Teabox Tuck 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.
Stagnating economy with rate increase
– Teabox Tuck 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.
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 Teabox Tuck in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox Tuck needs to make to build a sustainable competitive advantage.
