Child in Need Institute: Non-Profit or Hybrid? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Child in Need Institute: Non-Profit or Hybrid?
In February 2009, the additional director at the Child In Need Institute (CINI) received the most challenging assignment that CINI's board of governors had ever given him - to prepare a comprehensive proposal recommending whether the organization should continue as a non-government organization (NGO) driven primarily by donations and grants, or should venture into social business. He had a month to give his recommendations. CINI was a reputable 37-year-old NGO from Kolkata (Calcutta), India, with a mission of "sustainable development in education, protection, health and nutrition of child, adolescent and woman in need." Over the years, CINI had fought child malnutrition through health clinics and educating mothers, and had provided shelters and a path to betterment for street children. Despite recognition at CINI that donor funding was becoming scarce, any proposed social business was controversial because it ran the risk of alienating existing donors and replacing CINI's existing purpose with a profit motive. This case has global relevance, as the challenges that CINI met in 2009 are faced by thousands of social enterprises across the world. Authors Anjan Ghosh, Sougata Ray, and Indranil Biswas are affiliated with Indian Institute of Management Calcutta
Swot Analysis of "Child in Need Institute: Non-Profit or Hybrid?" written by Anjan Ghosh, Sougata Ray, Indranil Biswas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cini Child facing as an external strategic factors. Some of the topics covered in Child in Need Institute: Non-Profit or Hybrid? case study are - Strategic Management Strategies, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Child in Need Institute: Non-Profit or Hybrid? casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, technology disruption, increasing household debt because of falling income levels,
increasing transportation and logistics costs, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Child in Need Institute: Non-Profit or Hybrid?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Child in Need Institute: Non-Profit or Hybrid? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cini Child, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cini Child 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 Child in Need Institute: Non-Profit or Hybrid? can be done for the following purposes –
1. Strategic planning using facts provided in Child in Need Institute: Non-Profit or Hybrid? case study
2. Improving business portfolio management of Cini Child
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 Cini Child
Strengths Child in Need Institute: Non-Profit or Hybrid? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cini Child in Child in Need Institute: Non-Profit or Hybrid? Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Cini Child in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Cini Child 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 Anjan Ghosh, Sougata Ray, Indranil Biswas 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.
Highly skilled collaborators
– Cini Child 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 Child in Need Institute: Non-Profit or Hybrid? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Cini Child is present in almost all the verticals within the industry. This has provided firm in Child in Need Institute: Non-Profit or Hybrid? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High switching costs
– The high switching costs that Cini Child 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.
High brand equity
– Cini Child has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cini Child to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Cini Child is one of the most innovative firm in sector. Manager in Child in Need Institute: Non-Profit or Hybrid? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Cini Child 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 Child in Need Institute: Non-Profit or Hybrid? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Cini Child in the sector have low bargaining power. Child in Need Institute: Non-Profit or Hybrid? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cini Child to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Cini Child has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cini Child 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.
Ability to recruit top talent
– Cini Child is one of the leading recruiters in the industry. Managers in the Child in Need Institute: Non-Profit or Hybrid? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Cini Child 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 Cini Child is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Child in Need Institute: Non-Profit or Hybrid? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Child in Need Institute: Non-Profit or Hybrid? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Child in Need Institute: Non-Profit or Hybrid? are -
Workers concerns about automation
– As automation is fast increasing in the segment, Cini Child 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.
Need for greater diversity
– Cini Child 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.
Increasing silos among functional specialists
– The organizational structure of Cini Child is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Cini Child needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cini Child to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Cini Child has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Child in Need Institute: Non-Profit or Hybrid?, it seems that the employees of Cini Child 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Child in Need Institute: Non-Profit or Hybrid? 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 Cini Child has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Child in Need Institute: Non-Profit or Hybrid?, is just above the industry average. Cini Child 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 operating costs
– Compare to the competitors, firm in the HBR case study Child in Need Institute: Non-Profit or Hybrid? 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 Cini Child 's lucrative customers.
Slow to strategic competitive environment developments
– As Child in Need Institute: Non-Profit or Hybrid? HBR case study mentions - Cini Child 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.
Products dominated business model
– Even though Cini Child 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 - Child in Need Institute: Non-Profit or Hybrid? should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Child in Need Institute: Non-Profit or Hybrid?, in the dynamic environment Cini Child has struggled to respond to the nimble upstart competition. Cini Child has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Child in Need Institute: Non-Profit or Hybrid? | 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 Child in Need Institute: Non-Profit or Hybrid? are -
Building a culture of innovation
– managers at Cini Child 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cini Child 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, Child in Need Institute: Non-Profit or Hybrid?, 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 Cini Child 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cini Child 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.
Buying journey improvements
– Cini Child can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Child in Need Institute: Non-Profit or Hybrid? 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.
Developing new processes and practices
– Cini Child 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cini Child 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 Cini Child to hire the very best people irrespective of their geographical location.
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. Cini Child can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Cini Child 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. Cini Child 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.
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. Cini Child can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cini Child is facing challenges because of the dominance of functional experts in the organization. Child in Need Institute: Non-Profit or Hybrid? 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cini Child 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.
Creating value in data economy
– The success of analytics program of Cini Child has opened avenues for new revenue streams for the organization in the industry. This can help Cini Child to build a more holistic ecosystem as suggested in the Child in Need Institute: Non-Profit or Hybrid? case study. Cini Child can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Child in Need Institute: Non-Profit or Hybrid? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Child in Need Institute: Non-Profit or Hybrid? are -
Consumer confidence and its impact on Cini Child 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.
Technology acceleration in Forth Industrial Revolution
– Cini Child has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Cini Child 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cini Child 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cini Child with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Cini Child 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.
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 Cini Child.
Increasing wage structure of Cini Child
– 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 Cini Child.
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.
Environmental challenges
– Cini Child 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. Cini Child can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
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 Cini Child in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Cini Child can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Child in Need Institute: Non-Profit or Hybrid?, Cini Child 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 .
Weighted SWOT Analysis of Child in Need Institute: Non-Profit or Hybrid? 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 Child in Need Institute: Non-Profit or Hybrid? 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 Child in Need Institute: Non-Profit or Hybrid? 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 Child in Need Institute: Non-Profit or Hybrid? 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 Child in Need Institute: Non-Profit or Hybrid? 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 Cini Child needs to make to build a sustainable competitive advantage.
