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 - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is increasing trade war between United States & China, increasing commodity prices, 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 -
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Public Takes on Private: The Philadelphia Behavioral Health System 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.
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.
Organizational Resilience of Philadelphia Public
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Philadelphia Public does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Philadelphia Public 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.
Successful track record of launching new products
– Philadelphia Public has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Philadelphia Public 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.
Learning organization
- Philadelphia Public 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 Philadelphia Public is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Public Takes on Private: The Philadelphia Behavioral Health System Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Carol Chetkovich, Kitty Guckenberger suggests that, Philadelphia Public is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to 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.
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.
Aligning sales with marketing
– It come across in the case study Public Takes on Private: The Philadelphia Behavioral Health System 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 Public Takes on Private: The Philadelphia Behavioral Health System can leverage the sales team experience to cultivate customer relationships as Philadelphia Public is planning to shift buying processes online.
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.
Low market penetration in new markets
– Outside its home market of Philadelphia Public, firm in the HBR case study Public Takes on Private: The Philadelphia Behavioral Health System needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Public Takes on Private: The Philadelphia Behavioral Health System 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 Philadelphia Public 's lucrative customers.
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 Philadelphia Public supply chain. Even after few cautionary changes mentioned in the HBR case study - Public Takes on Private: The Philadelphia Behavioral Health System, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Philadelphia Public vulnerable to further global disruptions in South East Asia.
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 -
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Philadelphia Public 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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Philadelphia Public 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 Philadelphia Public 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. 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.
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.
Building a culture of innovation
– managers at Philadelphia Public 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.
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.
Using analytics as competitive advantage
– Philadelphia Public 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 Public Takes on Private: The Philadelphia Behavioral Health System - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Philadelphia Public to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 -
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.
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.
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 Philadelphia Public 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. Philadelphia Public can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 .
Technology acceleration in Forth Industrial Revolution
– Philadelphia Public has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Philadelphia Public 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 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.
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.
Stagnating economy with rate increase
– Philadelphia Public 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.
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.
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.
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.
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.
