Case Study Description of Canada Border Services Agency: The Reorganization
In 2009, after six years of operation and two negative audits, the president of the Canada Border Services Agency is thinking about initiating a reorganization to improve the way the agency is operated. Formed in 2003 from three government departments, the agency has been responsible for a range of activities represented by 90 acts and regulations that cover, for example, border security, immigration, food and plant inspection, intelligence and tax collection. Since its founding, the agency has grown substantially in the number of employees, who are spread out across the country in eight regions; some of them are in unions that are expert in the use of the news media to protect their members' interests. The lack of up-to-date communication equipment and the complexity of the organizational structure have resulted in an increased response time to matters that need immediate attention both within Canada and with international partners. No attempt has been made to streamline processes; every major initiative thus far has been focused on ensuring that nothing from the current workload gets dropped, processes remain intact and stronger controls are put in place. The president's challenge is to determine how to initiate anticipatory change. He has a limited term and needs to prepare a detailed action plan if he wants the changes to take effect before he leaves.
Swot Analysis of "Canada Border Services Agency: The Reorganization" written by Jean-Louis Schaan, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Agency Border facing as an external strategic factors. Some of the topics covered in Canada Border Services Agency: The Reorganization case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Canada Border Services Agency: The Reorganization casestudy better are - – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, geopolitical disruptions, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, increasing energy prices, etc
Introduction to SWOT Analysis of Canada Border Services Agency: The Reorganization
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Canada Border Services Agency: The Reorganization case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Agency Border, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Agency Border 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 Canada Border Services Agency: The Reorganization can be done for the following purposes –
1. Strategic planning using facts provided in Canada Border Services Agency: The Reorganization case study
2. Improving business portfolio management of Agency Border
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 Agency Border
Strengths Canada Border Services Agency: The Reorganization | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Agency Border in Canada Border Services Agency: The Reorganization Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Agency Border in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Agency Border is present in almost all the verticals within the industry. This has provided firm in Canada Border Services Agency: The Reorganization 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.
Low bargaining power of suppliers
– Suppliers of Agency Border in the sector have low bargaining power. Canada Border Services Agency: The Reorganization has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Agency Border to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Agency Border is one of the leading recruiters in the industry. Managers in the Canada Border Services Agency: The Reorganization are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– Canada Border Services Agency: The Reorganization firm has clearly differentiated products in the market place. This has enabled Agency Border to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Agency Border to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Agency Border 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.
Ability to lead change in Leadership & Managing People field
– Agency Border is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Agency Border in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Agency Border
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Agency Border does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Agency Border has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Agency Border 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 Canada Border Services Agency: The Reorganization 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.
High brand equity
– Agency Border has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Agency Border to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Agency Border 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.
Weaknesses Canada Border Services Agency: The Reorganization | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Canada Border Services Agency: The Reorganization are -
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 Agency Border supply chain. Even after few cautionary changes mentioned in the HBR case study - Canada Border Services Agency: The Reorganization, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Agency Border vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Agency Border 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. Agency Border 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.
Interest costs
– Compare to the competition, Agency Border 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Agency Border 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.
Lack of clear differentiation of Agency Border products
– To increase the profitability and margins on the products, Agency Border needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Canada Border Services Agency: The Reorganization 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 Agency Border 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Jean-Louis Schaan, Ken Mark suggests that, Agency Border 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 Canada Border Services Agency: The Reorganization, it seems that the employees of Agency Border 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Canada Border Services Agency: The Reorganization, in the dynamic environment Agency Border has struggled to respond to the nimble upstart competition. Agency Border 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 Canada Border Services Agency: The Reorganization, 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.
Products dominated business model
– Even though Agency Border 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 - Canada Border Services Agency: The Reorganization should strive to include more intangible value offerings along with its core products and services.
Opportunities Canada Border Services Agency: The Reorganization | 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 Canada Border Services Agency: The Reorganization are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Agency Border is facing challenges because of the dominance of functional experts in the organization. Canada Border Services Agency: The Reorganization 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.
Developing new processes and practices
– Agency Border 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 Agency Border 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 Agency Border to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Agency Border 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 Canada Border Services Agency: The Reorganization - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Agency Border to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Agency Border 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.
Creating value in data economy
– The success of analytics program of Agency Border has opened avenues for new revenue streams for the organization in the industry. This can help Agency Border to build a more holistic ecosystem as suggested in the Canada Border Services Agency: The Reorganization case study. Agency Border can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Agency Border 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.
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. Agency Border 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. Agency Border 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Agency Border 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, Canada Border Services Agency: The Reorganization, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Agency Border has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Agency Border in the consumer business. Now Agency Border can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Agency Border 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.
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. Agency Border can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Canada Border Services Agency: The Reorganization External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Canada Border Services Agency: The Reorganization are -
Stagnating economy with rate increase
– Agency Border 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.
Shortening product life cycle
– it is one of the major threat that Agency Border 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 Agency Border 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.
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 Agency Border in the Leadership & Managing People sector and impact the bottomline of the organization.
Environmental challenges
– Agency Border 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. Agency Border can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Agency Border with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Agency Border needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Agency Border can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Agency Border.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Canada Border Services Agency: The Reorganization, Agency Border 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 .
High dependence on third party suppliers
– Agency Border 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.
Technology acceleration in Forth Industrial Revolution
– Agency Border has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Agency Border 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.
Weighted SWOT Analysis of Canada Border Services Agency: The Reorganization 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 Canada Border Services Agency: The Reorganization 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 Canada Border Services Agency: The Reorganization 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 Canada Border Services Agency: The Reorganization 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 Canada Border Services Agency: The Reorganization 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 Agency Border needs to make to build a sustainable competitive advantage.