Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?
In September 2014, a real estate and procurement expert was preparing his notes for an upcoming strategic meeting with the management team of the Regional Council of Lombardy (RCL), the governing body of one of the 20 regions in Italy. The RCL wanted to analyze the procurement process for two of its most important projects: the construction of Ospedale Papa Giovanni XXIII, a new cutting-edge, high-technology public hospital; and the construction of the hospital's surrounding parking area. During the construction of the hospital, a number of scope changes had been introduced and a major issue emerged. Construction had concluded at the end of 2012-a??156 million over budget. The surrounding parking area was also subject to some issues, but with relatively minor economic and reputational impacts. Two years after the end of construction, the RCL was performing post-project reviews with the intent of improving future project procurement performance. Jury Gualandris is affiliated with University College Dublin.
Swot Analysis of "Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?" written by Jury Gualandris, Marco Carsana includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rcl Construction facing as an external strategic factors. Some of the topics covered in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? case study are - Strategic Management Strategies, Negotiations, Project management, Risk management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rcl Construction, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rcl Construction 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? can be done for the following purposes –
1. Strategic planning using facts provided in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? case study
2. Improving business portfolio management of Rcl Construction
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 Rcl Construction
Strengths Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rcl Construction in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? firm has clearly differentiated products in the market place. This has enabled Rcl Construction to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Rcl Construction to invest into research and development (R&D) and innovation.
Analytics focus
– Rcl Construction 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 Jury Gualandris, Marco Carsana 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.
Cross disciplinary teams
– Horizontal connected teams at the Rcl Construction 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.
Diverse revenue streams
– Rcl Construction is present in almost all the verticals within the industry. This has provided firm in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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.
Low bargaining power of suppliers
– Suppliers of Rcl Construction in the sector have low bargaining power. Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rcl Construction to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Rcl Construction has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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.
High switching costs
– The high switching costs that Rcl Construction 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
– Rcl Construction has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rcl Construction 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.
Effective Research and Development (R&D)
– Rcl Construction 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? - 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 Rcl Construction digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rcl Construction 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.
Organizational Resilience of Rcl Construction
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rcl Construction does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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.
Weaknesses Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? are -
Skills based hiring
– The stress on hiring functional specialists at Rcl Construction 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, it seems that the employees of Rcl Construction 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 bargaining power of channel partners
– Because of the regulatory requirements, Jury Gualandris, Marco Carsana suggests that, Rcl Construction 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 decision making process
– As mentioned earlier in the report, Rcl Construction 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. Rcl Construction 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rcl Construction is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Rcl Construction 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 - Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Rcl Construction, firm in the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Rcl Construction 's lucrative customers.
Slow to strategic competitive environment developments
– As Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? HBR case study mentions - Rcl Construction 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, is just above the industry average. Rcl Construction 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.
Increasing silos among functional specialists
– The organizational structure of Rcl Construction is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Rcl Construction needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rcl Construction to focus more on services rather than just following the product oriented approach.
Opportunities Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? | 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? are -
Better consumer reach
– The expansion of the 5G network will help Rcl Construction to increase its market reach. Rcl Construction 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.
Developing new processes and practices
– Rcl Construction 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.
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. Rcl Construction 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. Rcl Construction 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.
Building a culture of innovation
– managers at Rcl Construction 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. Rcl Construction can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Rcl Construction can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 Rcl Construction 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.
Loyalty marketing
– Rcl Construction 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rcl Construction 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, Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Rcl Construction has opened avenues for new revenue streams for the organization in the industry. This can help Rcl Construction to build a more holistic ecosystem as suggested in the Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? case study. Rcl Construction can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rcl Construction can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Rcl Construction can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Rcl Construction in the consumer business. Now Rcl Construction can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? are -
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 Rcl Construction business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rcl Construction 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.
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.
Technology acceleration in Forth Industrial Revolution
– Rcl Construction has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Rcl Construction 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.
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 Rcl Construction in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Rcl Construction
– 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 Rcl Construction.
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. Rcl Construction 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.
Consumer confidence and its impact on Rcl Construction 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. Rcl Construction 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, Rcl Construction may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High dependence on third party suppliers
– Rcl Construction 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.
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. Rcl Construction needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Rcl Construction needs to make to build a sustainable competitive advantage.