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 - – increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies,
challanges to central banks by blockchain based private currencies, increasing energy prices, 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 -
Training and development
– Teabox Tuck 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 (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.
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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Teabox Tuck in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Innovation driven organization
– Teabox Tuck is one of the most innovative firm in sector. Manager in Teabox - Running Tuck Shops in Hong Kong Schools (B) 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 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.
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.
High switching costs
– The high switching costs that Teabox Tuck 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 (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.
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.
High cash cycle compare to competitors
Teabox Tuck 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.
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 operating costs
– Compare to the competitors, firm in the HBR case study Teabox - Running Tuck Shops in Hong Kong Schools (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 Teabox Tuck 's lucrative customers.
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.
Lack of clear differentiation of Teabox Tuck products
– To increase the profitability and margins on the products, Teabox Tuck needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Teabox - Running Tuck Shops in Hong Kong Schools (B), it seems that the employees of Teabox Tuck 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.
Increasing silos among functional specialists
– The organizational structure of Teabox Tuck is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Teabox Tuck needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Teabox Tuck to focus more on services rather than just following the product oriented approach.
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.
Low market penetration in new markets
– Outside its home market of Teabox Tuck, firm in the HBR case study Teabox - Running Tuck Shops in Hong Kong Schools (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
Buying journey improvements
– Teabox Tuck can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Teabox - Running Tuck Shops in Hong Kong Schools (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.
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.
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.
Using analytics as competitive advantage
– Teabox Tuck 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 (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Teabox Tuck 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 Tuck can use these opportunities to build new business models that can help the communities that Teabox Tuck operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Tuck in the consumer business. Now Teabox Tuck can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Teabox Tuck can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Teabox Tuck can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Teabox Tuck is facing challenges because of the dominance of functional experts in the organization. Teabox - Running Tuck Shops in Hong Kong Schools (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.
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 -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Teabox Tuck with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Tuck 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.
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.
Increasing wage structure of Teabox Tuck
– 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 Tuck.
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) .
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.
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.
Technology acceleration in Forth Industrial Revolution
– Teabox Tuck 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 Tuck 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.
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 (B), Teabox Tuck 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 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.
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.