Abbott and the AIDS Crisis (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Abbott and the AIDS Crisis (B)
This is a Darden case study.In 1999 and 2000, Abbott Laboratories' senior management considered a number of philanthropic options that could make a difference and define the focus for Abbott and the Abbott Fund's charitable programs. Although the cause was humanitarian, it was considered important that the programs align strategically with Abbott's leadership in the HIV/AIDS arena. The Abbott Fund officially launched the Program for Orphans and Vulnerable Children in June 2000. The program assisted orphans and vulnerable children infected and affected by HIV/AIDS as well as the communities that cared for them. They chose Tanzania as host for a pilot program, which involved updating the country's community health care infrastructure. Abbott partnered with Tanzania's Ministry of Health over the next five years to upgrade the facilities at Muhimbili National Hospital in Dar Es Salaam, the Tanzanian capital; build an HIV center comprising an outpatient clinic and counseling/support facilities; create a national HIV teaching center; and introduce pharmacy, health information, and management systems. The dramatic growth of the Abbott Fund HIV/AIDS programs suggested a strategic turning point for the Abbott Fund, transforming it from a domestic philanthropic program to one with a global focus, now aligned with Abbott's international business focus. By 2003, nearly $20 million from the Abbott Fund was being invested in its developing-world AIDS programs.
Authors :: Pat Werhane, Jenny Mead
Topics :: Leadership & Managing People
Tags :: Ethics, Innovation, International business, Leadership, Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Abbott and the AIDS Crisis (B)" written by Pat Werhane, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Abbott Hiv facing as an external strategic factors. Some of the topics covered in Abbott and the AIDS Crisis (B) case study are - Strategic Management Strategies, Ethics, Innovation, International business, Leadership, Social enterprise, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Abbott and the AIDS Crisis (B) casestudy better are - – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices,
supply chains are disrupted by pandemic , increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Abbott and the AIDS Crisis (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Abbott and the AIDS Crisis (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Abbott Hiv, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Abbott Hiv 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 Abbott and the AIDS Crisis (B) can be done for the following purposes –
1. Strategic planning using facts provided in Abbott and the AIDS Crisis (B) case study
2. Improving business portfolio management of Abbott Hiv
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 Abbott Hiv
Strengths Abbott and the AIDS Crisis (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Abbott Hiv in Abbott and the AIDS Crisis (B) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Abbott and the AIDS Crisis (B) 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.
Successful track record of launching new products
– Abbott Hiv has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Abbott Hiv 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.
Low bargaining power of suppliers
– Suppliers of Abbott Hiv in the sector have low bargaining power. Abbott and the AIDS Crisis (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Abbott Hiv to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Abbott Hiv has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Abbott and the AIDS Crisis (B) 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.
Innovation driven organization
– Abbott Hiv is one of the most innovative firm in sector. Manager in Abbott and the AIDS Crisis (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Abbott Hiv 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 Abbott Hiv in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Abbott Hiv 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 Abbott and the AIDS Crisis (B) - 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
– Abbott Hiv 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 Pat Werhane, Jenny Mead 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.
Diverse revenue streams
– Abbott Hiv is present in almost all the verticals within the industry. This has provided firm in Abbott and the AIDS Crisis (B) 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.
Learning organization
- Abbott Hiv 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 Abbott Hiv is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Abbott and the AIDS Crisis (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Abbott Hiv
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Abbott Hiv does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Abbott Hiv is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Abbott and the AIDS Crisis (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Abbott and the AIDS Crisis (B) are -
Low market penetration in new markets
– Outside its home market of Abbott Hiv, firm in the HBR case study Abbott and the AIDS Crisis (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Abbott Hiv supply chain. Even after few cautionary changes mentioned in the HBR case study - Abbott and the AIDS Crisis (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Abbott Hiv vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Abbott Hiv is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Abbott and the AIDS Crisis (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Abbott Hiv 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 - Abbott and the AIDS Crisis (B) should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Abbott and the AIDS Crisis (B) 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 Abbott and the AIDS Crisis (B) can leverage the sales team experience to cultivate customer relationships as Abbott Hiv is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Abbott and the AIDS Crisis (B), is just above the industry average. Abbott Hiv needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Pat Werhane, Jenny Mead suggests that, Abbott Hiv 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 Abbott and the AIDS Crisis (B) HBR case study mentions - Abbott Hiv 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.
Slow decision making process
– As mentioned earlier in the report, Abbott Hiv 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. Abbott Hiv 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 cash cycle compare to competitors
Abbott Hiv has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Abbott Hiv products
– To increase the profitability and margins on the products, Abbott Hiv needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Abbott and the AIDS Crisis (B) | 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 Abbott and the AIDS Crisis (B) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Abbott Hiv 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Abbott Hiv can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Abbott Hiv has opened avenues for new revenue streams for the organization in the industry. This can help Abbott Hiv to build a more holistic ecosystem as suggested in the Abbott and the AIDS Crisis (B) case study. Abbott Hiv can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Abbott Hiv 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.
Loyalty marketing
– Abbott Hiv 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.
Developing new processes and practices
– Abbott Hiv 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.
Learning at scale
– Online learning technologies has now opened space for Abbott Hiv 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.
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. Abbott Hiv 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. Abbott Hiv 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.
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. Abbott Hiv 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, Abbott Hiv can use these opportunities to build new business models that can help the communities that Abbott Hiv 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, Abbott Hiv is facing challenges because of the dominance of functional experts in the organization. Abbott and the AIDS Crisis (B) 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.
Using analytics as competitive advantage
– Abbott Hiv 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 Abbott and the AIDS Crisis (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Abbott Hiv to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Abbott Hiv can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Abbott and the AIDS Crisis (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Abbott and the AIDS Crisis (B) 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 Abbott Hiv.
Increasing wage structure of Abbott Hiv
– 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 Abbott Hiv.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Abbott Hiv 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
– Abbott Hiv 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.
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 Abbott Hiv business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Abbott Hiv 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.
Consumer confidence and its impact on Abbott Hiv 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.
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. Abbott Hiv can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Abbott Hiv with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Abbott and the AIDS Crisis (B), Abbott Hiv 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 .
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 dependence on third party suppliers
– Abbott Hiv 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 Abbott and the AIDS Crisis (B) 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 Abbott and the AIDS Crisis (B) 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 Abbott and the AIDS Crisis (B) 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 Abbott and the AIDS Crisis (B) 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 Abbott and the AIDS Crisis (B) 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 Abbott Hiv needs to make to build a sustainable competitive advantage.