Recruitment at China Sunwah Bank: Guanxi versus Talent SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Recruitment at China Sunwah Bank: Guanxi versus Talent
The human resources department at China Sunwah Bank had to decide on 22 new appointments - only 12 of which were officially advertised - to Sunwah Bank's 28 branches. More than 4,000 applications had been received and the final list of candidates based on merit had been reduced to 48. The department members had spent many hours reading applications and conducting interviews; however, some members had been coping with specific endorsements for certain applicants from government officials, friends, former teachers and bank managers in a system known as "guanxi," which was based on a reciprocal exchange of favours that bound individuals together. The challenge was how to choose the most qualified and talented recruits for the new positions at Sunwah Bank, keeping in mind the guanxi-based requests for favours from important stakeholders and friends - including some who had granted significant favours to Sunwah Bank executives in the past. The choice would require sensitivity and cultural awareness. Who would the department hire and why?
Swot Analysis of "Recruitment at China Sunwah Bank: Guanxi versus Talent" written by Stephen Grainger includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sunwah Favours facing as an external strategic factors. Some of the topics covered in Recruitment at China Sunwah Bank: Guanxi versus Talent case study are - Strategic Management Strategies, Leadership, Organizational culture, Talent management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Recruitment at China Sunwah Bank: Guanxi versus Talent casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing commodity prices,
there is increasing trade war between United States & China, increasing energy prices, etc
Introduction to SWOT Analysis of Recruitment at China Sunwah Bank: Guanxi versus Talent
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Recruitment at China Sunwah Bank: Guanxi versus Talent case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sunwah Favours, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sunwah Favours 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 Recruitment at China Sunwah Bank: Guanxi versus Talent can be done for the following purposes –
1. Strategic planning using facts provided in Recruitment at China Sunwah Bank: Guanxi versus Talent case study
2. Improving business portfolio management of Sunwah Favours
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 Sunwah Favours
Strengths Recruitment at China Sunwah Bank: Guanxi versus Talent | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sunwah Favours in Recruitment at China Sunwah Bank: Guanxi versus Talent Harvard Business Review case study are -
Ability to recruit top talent
– Sunwah Favours is one of the leading recruiters in the industry. Managers in the Recruitment at China Sunwah Bank: Guanxi versus Talent are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Sunwah Favours in the sector have low bargaining power. Recruitment at China Sunwah Bank: Guanxi versus Talent has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sunwah Favours to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Sunwah Favours 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 Sunwah Favours is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Recruitment at China Sunwah Bank: Guanxi versus Talent Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Sunwah Favours digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sunwah Favours 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 Sunwah Favours
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sunwah Favours does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Sunwah Favours 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 Stephen Grainger 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.
Ability to lead change in Leadership & Managing People field
– Sunwah Favours 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 Sunwah Favours in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Sunwah Favours in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Sunwah Favours is present in almost all the verticals within the industry. This has provided firm in Recruitment at China Sunwah Bank: Guanxi versus Talent 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.
High switching costs
– The high switching costs that Sunwah Favours 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.
Strong track record of project management
– Sunwah Favours is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Recruitment at China Sunwah Bank: Guanxi versus Talent | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Recruitment at China Sunwah Bank: Guanxi versus Talent are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Recruitment at China Sunwah Bank: Guanxi versus Talent, in the dynamic environment Sunwah Favours has struggled to respond to the nimble upstart competition. Sunwah Favours 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 Sunwah Favours 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 - Recruitment at China Sunwah Bank: Guanxi versus Talent should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Sunwah Favours 's lucrative customers.
Lack of clear differentiation of Sunwah Favours products
– To increase the profitability and margins on the products, Sunwah Favours needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Sunwah Favours 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 decision making process
– As mentioned earlier in the report, Sunwah Favours 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. Sunwah Favours 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.
Need for greater diversity
– Sunwah Favours has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Sunwah Favours 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sunwah Favours is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Recruitment at China Sunwah Bank: Guanxi versus Talent 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 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 Sunwah Favours supply chain. Even after few cautionary changes mentioned in the HBR case study - Recruitment at China Sunwah Bank: Guanxi versus Talent, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sunwah Favours vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Sunwah Favours 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.
Opportunities Recruitment at China Sunwah Bank: Guanxi versus Talent | 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 Recruitment at China Sunwah Bank: Guanxi versus Talent are -
Manufacturing automation
– Sunwah Favours 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. Sunwah Favours can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Sunwah Favours can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Sunwah Favours 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.
Using analytics as competitive advantage
– Sunwah Favours 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 Recruitment at China Sunwah Bank: Guanxi versus Talent - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sunwah Favours to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Sunwah Favours in the consumer business. Now Sunwah Favours can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sunwah Favours is facing challenges because of the dominance of functional experts in the organization. Recruitment at China Sunwah Bank: Guanxi versus Talent 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.
Leveraging digital technologies
– Sunwah Favours 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
– Sunwah Favours can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Recruitment at China Sunwah Bank: Guanxi versus Talent 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sunwah Favours can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sunwah Favours can use these opportunities to build new business models that can help the communities that Sunwah Favours operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sunwah Favours can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Sunwah Favours 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. Sunwah Favours 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.
Threats Recruitment at China Sunwah Bank: Guanxi versus Talent External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Recruitment at China Sunwah Bank: Guanxi versus Talent are -
Consumer confidence and its impact on Sunwah Favours 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.
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 Sunwah Favours.
High dependence on third party suppliers
– Sunwah Favours 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.
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 Sunwah Favours business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Sunwah Favours 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 Recruitment at China Sunwah Bank: Guanxi versus Talent, Sunwah Favours 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sunwah Favours 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 Recruitment at China Sunwah Bank: Guanxi versus Talent .
Increasing wage structure of Sunwah Favours
– 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 Sunwah Favours.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sunwah Favours with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Sunwah Favours is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sunwah Favours 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.
Weighted SWOT Analysis of Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Recruitment at China Sunwah Bank: Guanxi versus Talent 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 Sunwah Favours needs to make to build a sustainable competitive advantage.