Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version
Supplement to case IE0013. It is May 2007, and Jose Rodriguez has just won the election for mayor of Santa Barbara de Tapirin, a small town located at an oil area in Venezuela's mid-eastern region. Santa Barbara de Tapir'n is the capital of a scarcely populated municipality with abundant fiscal revenues coming largely from transfers made by the national government to communities in oil areas. The town is nevertheless a quiet, isolated place, with little economic activity, high unemployment, and unreliable public services with incomplete coverage. Despite this, in recent years, a large number of low-income immigrants have arrived in town, attracted by the oil economy, (illegally) seizing lands in Santa Barbara's outskirts. Jose Rodriguez wants to turn the town around, leading it out of its economic stagnation and guiding it to a path of greater prosperity and development. To this end, he has asked a team of advisors to help him gain a better understanding of the causes underlying Santa Barbara's stagnation and to formulate impactful solutions. This case describes a complex scenario so that students can explore a town's issues as viewed from the vantage point of a mayor, using standard techniques to analyze public policies. It also provides information that can be used in social investment project elaboration trials. IESA's case collection
Swot Analysis of "Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version" written by Josefina F. Bruni-Celli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Santa Town facing as an external strategic factors. Some of the topics covered in Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version case study are - Strategic Management Strategies, Economic development, Policy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version casestudy better are - – geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, there is increasing trade war between United States & China, increasing commodity prices, increasing government debt because of Covid-19 spendings, increasing energy prices,
technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Santa Town, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Santa Town 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version case study
2. Improving business portfolio management of Santa Town
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 Santa Town
Strengths Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Santa Town in Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Santa Town in the sector have low bargaining power. Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Santa Town to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Santa Town in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Santa Town 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Santa Town is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Santa Town 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.
Operational resilience
– The operational resilience strategy in the Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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.
Learning organization
- Santa Town 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 Santa Town is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Santa Town 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 Santa Town 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)
– Santa Town 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Santa Town digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Santa Town 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version firm has clearly differentiated products in the market place. This has enabled Santa Town to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Santa Town to invest into research and development (R&D) and innovation.
Organizational Resilience of Santa Town
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Santa Town does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version are -
Skills based hiring
– The stress on hiring functional specialists at Santa Town 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.
High cash cycle compare to competitors
Santa Town 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 Santa Town products
– To increase the profitability and margins on the products, Santa Town needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Santa Town has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Santa Town is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Santa Town has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version, it seems that the employees of Santa Town 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Santa Town 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version, in the dynamic environment Santa Town has struggled to respond to the nimble upstart competition. Santa Town has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Santa Town 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 - Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version can leverage the sales team experience to cultivate customer relationships as Santa Town is planning to shift buying processes online.
Opportunities Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version | 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version are -
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. Santa Town 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. Santa Town 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Santa Town can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Santa Town 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.
Building a culture of innovation
– managers at Santa Town 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Santa Town 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 Santa Town to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Santa Town is facing challenges because of the dominance of functional experts in the organization. Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Santa Town 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, Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Santa Town 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.
Manufacturing automation
– Santa Town 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.
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. Santa Town can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Santa Town has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Santa Town in the consumer business. Now Santa Town can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Santa Town can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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.
Threats Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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.
Environmental challenges
– Santa Town needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Santa Town can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Santa Town 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.
High dependence on third party suppliers
– Santa Town high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology 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 Santa Town 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.
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. Santa Town can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version, Santa Town 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 .
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 Santa Town business can come under increasing regulations regarding data privacy, data security, etc.
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. Santa Town needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Santa Town in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Santa Town 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version .
Shortening product life cycle
– it is one of the major threat that Santa Town is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version 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 Santa Town needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Local Development Policy for Santa Barbara de Tapirin, Two Memoranda (B), Spanish Version
