Case Study Description of HealthReach and HABLA (A)
This is a Darden case study.In 2004, there were 50 million non-English speakers in the United States and an additional 22 million who had marginal English proficiency. Many had no health insurance or access to low-cost, affordable health care. This case describes the dilemma faced in 2004 by Jim Zimmerman, the executive director of the Illinois-based HealthReach clinic, which served the area's uninsured poor, in deciding what initiatives to continue funding. One of these was Healthcare Access by Language Advocacy (HABLA), a medical interpretation program developed in 2001 to bridge the language gap between the volunteer medical staff and their Hispanic patients, many of whom spoke little or no English. This had proved an invaluable program, but Zimmerman's funds were tight.
Authors :: Pat Werhane, Justin Sheehan, Jenny Mead
Swot Analysis of "HealthReach and HABLA (A)" written by Pat Werhane, Justin Sheehan, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Habla Healthreach facing as an external strategic factors. Some of the topics covered in HealthReach and HABLA (A) case study are - Strategic Management Strategies, Ethics, Leadership, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the HealthReach and HABLA (A) casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing energy prices, challanges to central banks by blockchain based private currencies,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of HealthReach and HABLA (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HealthReach and HABLA (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Habla Healthreach, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Habla Healthreach 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 HealthReach and HABLA (A) can be done for the following purposes –
1. Strategic planning using facts provided in HealthReach and HABLA (A) case study
2. Improving business portfolio management of Habla Healthreach
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 Habla Healthreach
Strengths HealthReach and HABLA (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Habla Healthreach in HealthReach and HABLA (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Habla Healthreach in the sector have low bargaining power. HealthReach and HABLA (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Habla Healthreach to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Habla Healthreach has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HealthReach and HABLA (A) 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.
Highly skilled collaborators
– Habla Healthreach 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 HealthReach and HABLA (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Habla Healthreach 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.
Successful track record of launching new products
– Habla Healthreach has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Habla Healthreach 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.
High brand equity
– Habla Healthreach has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Habla Healthreach to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Habla Healthreach digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Habla Healthreach 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.
Ability to recruit top talent
– Habla Healthreach is one of the leading recruiters in the industry. Managers in the HealthReach and HABLA (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Habla Healthreach
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Habla Healthreach does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Habla Healthreach in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– HealthReach and HABLA (A) firm has clearly differentiated products in the market place. This has enabled Habla Healthreach to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Habla Healthreach to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Habla Healthreach 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 HealthReach and HABLA (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HealthReach and HABLA (A) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HealthReach and HABLA (A), in the dynamic environment Habla Healthreach has struggled to respond to the nimble upstart competition. Habla Healthreach 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 HealthReach and HABLA (A), 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Habla Healthreach is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HealthReach and HABLA (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Habla Healthreach 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 decision making process
– As mentioned earlier in the report, Habla Healthreach 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. Habla Healthreach 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HealthReach and HABLA (A) 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 Habla Healthreach has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Habla Healthreach is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Habla Healthreach needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Habla Healthreach to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Habla Healthreach 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.
High operating costs
– Compare to the competitors, firm in the HBR case study HealthReach and HABLA (A) 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 Habla Healthreach 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Habla Healthreach 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, Pat Werhane, Justin Sheehan, Jenny Mead suggests that, Habla Healthreach 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.
Opportunities HealthReach and HABLA (A) | 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 HealthReach and HABLA (A) are -
Learning at scale
– Online learning technologies has now opened space for Habla Healthreach to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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 Habla Healthreach 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.
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. Habla Healthreach can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Habla Healthreach 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Habla Healthreach 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Habla Healthreach can use these opportunities to build new business models that can help the communities that Habla Healthreach operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Habla Healthreach can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Buying journey improvements
– Habla Healthreach can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HealthReach and HABLA (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Habla Healthreach 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, HealthReach and HABLA (A), 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 Habla Healthreach 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.
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. Habla Healthreach can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Habla Healthreach to increase its market reach. Habla Healthreach 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Habla Healthreach 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 Habla Healthreach to hire the very best people irrespective of their geographical location.
Threats HealthReach and HABLA (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HealthReach and HABLA (A) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Habla Healthreach with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Habla Healthreach needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Habla Healthreach 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.
Increasing wage structure of Habla Healthreach
– 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 Habla Healthreach.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Habla Healthreach 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 HealthReach and HABLA (A) .
Technology acceleration in Forth Industrial Revolution
– Habla Healthreach has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Habla Healthreach 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.
Stagnating economy with rate increase
– Habla Healthreach 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 Habla Healthreach is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Habla Healthreach in the Leadership & Managing People sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Habla Healthreach business can come under increasing regulations regarding data privacy, data security, etc.
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.
Regulatory challenges
– Habla Healthreach 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.
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 Habla Healthreach.
Weighted SWOT Analysis of HealthReach and HABLA (A) 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 HealthReach and HABLA (A) 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 HealthReach and HABLA (A) 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 HealthReach and HABLA (A) 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 HealthReach and HABLA (A) 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 Habla Healthreach needs to make to build a sustainable competitive advantage.
