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 - – increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing energy prices, geopolitical disruptions,
wage bills are increasing, increasing transportation and logistics costs, 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 -
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.
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.
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.
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.
Ability to recruit top talent
– Rcl Construction is one of the leading recruiters in the industry. Managers in the Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
Innovation driven organization
– Rcl Construction is one of the most innovative firm in sector. Manager in Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Strong track record of project management
– Rcl Construction is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Rcl Construction has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rcl Construction to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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 -
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Rcl Construction has relatively successful track record of launching new products.
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.
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.
Interest costs
– Compare to the competition, Rcl Construction 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.
Aligning sales with marketing
– It come across in the case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? can leverage the sales team experience to cultivate customer relationships as Rcl Construction is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, in the dynamic environment Rcl Construction has struggled to respond to the nimble upstart competition. Rcl Construction has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Rcl Construction 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.
Lack of clear differentiation of Rcl Construction products
– To increase the profitability and margins on the products, Rcl Construction needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
No frontier risks strategy
– After analyzing the HBR case study Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership?, 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.
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 -
Using analytics as competitive advantage
– Rcl Construction 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rcl Construction to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Buying journey improvements
– Rcl Construction can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rcl Construction in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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.
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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rcl Construction is facing challenges because of the dominance of functional experts in the organization. Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? 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, 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rcl Construction can use these opportunities to build new business models that can help the communities that Rcl Construction operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rcl Construction 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 Ospedale Papa Giovanni XXIII: Fixed-Price or Public-Private Partnership? .
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 Rcl Construction.
Shortening product life cycle
– it is one of the major threat that Rcl Construction is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Stagnating economy with rate increase
– Rcl Construction can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rcl Construction with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Environmental challenges
– Rcl Construction 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. Rcl Construction can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Regulatory challenges
– Rcl Construction 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.
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.