Public Takes on Private: The Philadelphia Behavioral Health System SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Public Takes on Private: The Philadelphia Behavioral Health System
In response to growing public criticism of the way health maintenance organizations handle behavioral (mental) health problems, public officials in Philadelphia propose a dramatic initiative: a new public agency to replace what had been a privately-run system, albeit supported by public Medicaid funds. But would this be a better way to ensure that some of the city's most deeply-disturbed residents-many with drug, alcohol, and psychiatric problems, many among the ranks of the homeless-get the care they need?
Swot Analysis of "Public Takes on Private: The Philadelphia Behavioral Health System" written by Carol Chetkovich, Kitty Guckenberger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Philadelphia Public facing as an external strategic factors. Some of the topics covered in Public Takes on Private: The Philadelphia Behavioral Health System case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Public Takes on Private: The Philadelphia Behavioral Health System casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing commodity prices, technology disruption,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Public Takes on Private: The Philadelphia Behavioral Health System
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Public Takes on Private: The Philadelphia Behavioral Health System case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Philadelphia Public, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Philadelphia Public 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 Public Takes on Private: The Philadelphia Behavioral Health System can be done for the following purposes –
1. Strategic planning using facts provided in Public Takes on Private: The Philadelphia Behavioral Health System case study
2. Improving business portfolio management of Philadelphia Public
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 Philadelphia Public
Strengths Public Takes on Private: The Philadelphia Behavioral Health System | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Philadelphia Public in Public Takes on Private: The Philadelphia Behavioral Health System Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Philadelphia Public digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Philadelphia Public 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.
Superior customer experience
– The customer experience strategy of Philadelphia Public in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Philadelphia Public is one of the leading recruiters in the industry. Managers in the Public Takes on Private: The Philadelphia Behavioral Health System are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Philadelphia Public has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Philadelphia Public to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Philadelphia Public 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 Public Takes on Private: The Philadelphia Behavioral Health System - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Philadelphia Public 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 Carol Chetkovich, Kitty Guckenberger 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.
Strong track record of project management
– Philadelphia Public is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Philadelphia Public 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 Philadelphia Public in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– Public Takes on Private: The Philadelphia Behavioral Health System firm has clearly differentiated products in the market place. This has enabled Philadelphia Public to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Philadelphia Public to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Philadelphia Public 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.
Low bargaining power of suppliers
– Suppliers of Philadelphia Public in the sector have low bargaining power. Public Takes on Private: The Philadelphia Behavioral Health System has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Philadelphia Public to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Philadelphia Public has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Public Takes on Private: The Philadelphia Behavioral Health System 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.
Weaknesses Public Takes on Private: The Philadelphia Behavioral Health System | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Public Takes on Private: The Philadelphia Behavioral Health System are -
No frontier risks strategy
– After analyzing the HBR case study Public Takes on Private: The Philadelphia Behavioral Health System, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Public Takes on Private: The Philadelphia Behavioral Health System, it seems that the employees of Philadelphia Public 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Philadelphia Public 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 Philadelphia Public products
– To increase the profitability and margins on the products, Philadelphia Public needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Public Takes on Private: The Philadelphia Behavioral Health System, in the dynamic environment Philadelphia Public has struggled to respond to the nimble upstart competition. Philadelphia Public has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Public Takes on Private: The Philadelphia Behavioral Health System 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 Philadelphia Public has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Philadelphia Public 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.
Skills based hiring
– The stress on hiring functional specialists at Philadelphia Public has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Public Takes on Private: The Philadelphia Behavioral Health System HBR case study mentions - Philadelphia Public 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.
Need for greater diversity
– Philadelphia Public 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 Philadelphia Public is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Philadelphia Public needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Philadelphia Public to focus more on services rather than just following the product oriented approach.
Opportunities Public Takes on Private: The Philadelphia Behavioral Health System | 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 Public Takes on Private: The Philadelphia Behavioral Health System are -
Developing new processes and practices
– Philadelphia Public 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.
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. Philadelphia Public can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Philadelphia Public can use these opportunities to build new business models that can help the communities that Philadelphia Public operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Philadelphia Public is facing challenges because of the dominance of functional experts in the organization. Public Takes on Private: The Philadelphia Behavioral Health System 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.
Creating value in data economy
– The success of analytics program of Philadelphia Public has opened avenues for new revenue streams for the organization in the industry. This can help Philadelphia Public to build a more holistic ecosystem as suggested in the Public Takes on Private: The Philadelphia Behavioral Health System case study. Philadelphia Public can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Philadelphia Public 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 Philadelphia Public to increase its market reach. Philadelphia Public 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.
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. Philadelphia Public can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Philadelphia Public 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. Philadelphia Public 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, Philadelphia Public 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, Public Takes on Private: The Philadelphia Behavioral Health System, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Philadelphia Public 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.
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 Philadelphia Public in the consumer business. Now Philadelphia Public can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Philadelphia Public can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Public Takes on Private: The Philadelphia Behavioral Health System External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Public Takes on Private: The Philadelphia Behavioral Health System are -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Philadelphia Public 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 Public Takes on Private: The Philadelphia Behavioral Health System .
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. Philadelphia Public will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Philadelphia Public 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.
Shortening product life cycle
– it is one of the major threat that Philadelphia Public is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Public Takes on Private: The Philadelphia Behavioral Health System, Philadelphia Public 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
– Philadelphia Public 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Philadelphia Public 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.
Increasing wage structure of Philadelphia Public
– 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 Philadelphia Public.
Regulatory challenges
– Philadelphia Public 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Philadelphia Public with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Philadelphia Public.
Weighted SWOT Analysis of Public Takes on Private: The Philadelphia Behavioral Health System 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 Public Takes on Private: The Philadelphia Behavioral Health System 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 Public Takes on Private: The Philadelphia Behavioral Health System 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 Public Takes on Private: The Philadelphia Behavioral Health System 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 Public Takes on Private: The Philadelphia Behavioral Health System 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 Philadelphia Public needs to make to build a sustainable competitive advantage.