Swot Analysis of "Francisco de Narvaez at Tia: Selling the Family Business, Video" written by Linda A. Hill, Kristin C. Doughty includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Narvaez Francisco facing as an external strategic factors. Some of the topics covered in Francisco de Narvaez at Tia: Selling the Family Business, Video case study are - Strategic Management Strategies, Globalization, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Francisco de Narvaez at Tia: Selling the Family Business, Video casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, technology disruption, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Francisco de Narvaez at Tia: Selling the Family Business, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Francisco de Narvaez at Tia: Selling the Family Business, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Narvaez Francisco, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Narvaez Francisco 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 Francisco de Narvaez at Tia: Selling the Family Business, Video can be done for the following purposes –
1. Strategic planning using facts provided in Francisco de Narvaez at Tia: Selling the Family Business, Video case study
2. Improving business portfolio management of Narvaez Francisco
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 Narvaez Francisco
Strengths Francisco de Narvaez at Tia: Selling the Family Business, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Narvaez Francisco in Francisco de Narvaez at Tia: Selling the Family Business, Video Harvard Business Review case study are -
Strong track record of project management
– Narvaez Francisco is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Narvaez Francisco is one of the leading recruiters in the industry. Managers in the Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Narvaez Francisco in the sector have low bargaining power. Francisco de Narvaez at Tia: Selling the Family Business, Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Narvaez Francisco to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Narvaez Francisco has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Francisco de Narvaez at Tia: Selling the Family Business, Video 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Francisco de Narvaez at Tia: Selling the Family Business, Video firm has clearly differentiated products in the market place. This has enabled Narvaez Francisco to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Narvaez Francisco to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Francisco de Narvaez at Tia: Selling the Family Business, Video 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.
Effective Research and Development (R&D)
– Narvaez Francisco 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 Francisco de Narvaez at Tia: Selling the Family Business, Video - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Narvaez Francisco is present in almost all the verticals within the industry. This has provided firm in Francisco de Narvaez at Tia: Selling the Family Business, Video case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Narvaez Francisco 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 Narvaez Francisco is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Francisco de Narvaez at Tia: Selling the Family Business, Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Narvaez Francisco has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Narvaez Francisco to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Narvaez Francisco 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 Narvaez Francisco in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Narvaez Francisco 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.
Weaknesses Francisco de Narvaez at Tia: Selling the Family Business, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Francisco de Narvaez at Tia: Selling the Family Business, Video are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Narvaez Francisco is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Francisco de Narvaez at Tia: Selling the Family Business, Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Narvaez Francisco, firm in the HBR case study Francisco de Narvaez at Tia: Selling the Family Business, Video needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Francisco de Narvaez at Tia: Selling the Family Business, Video, in the dynamic environment Narvaez Francisco has struggled to respond to the nimble upstart competition. Narvaez Francisco has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Francisco de Narvaez at Tia: Selling the Family Business, Video, is just above the industry average. Narvaez Francisco 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.
No frontier risks strategy
– After analyzing the HBR case study Francisco de Narvaez at Tia: Selling the Family Business, Video, 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.
Capital Spending Reduction
– Even during the low interest decade, Narvaez Francisco 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.
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 Narvaez Francisco supply chain. Even after few cautionary changes mentioned in the HBR case study - Francisco de Narvaez at Tia: Selling the Family Business, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Narvaez Francisco vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Narvaez Francisco 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, Narvaez Francisco 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.
Aligning sales with marketing
– It come across in the case study Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Francisco de Narvaez at Tia: Selling the Family Business, Video can leverage the sales team experience to cultivate customer relationships as Narvaez Francisco is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Linda A. Hill, Kristin C. Doughty suggests that, Narvaez Francisco 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.
Opportunities Francisco de Narvaez at Tia: Selling the Family Business, Video | 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 Francisco de Narvaez at Tia: Selling the Family Business, Video 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. Narvaez Francisco 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. Narvaez Francisco 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.
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 Narvaez Francisco 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
– Narvaez Francisco 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.
Better consumer reach
– The expansion of the 5G network will help Narvaez Francisco to increase its market reach. Narvaez Francisco 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
– Narvaez Francisco 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Narvaez Francisco 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. Narvaez Francisco can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Narvaez Francisco 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, Francisco de Narvaez at Tia: Selling the Family Business, Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Narvaez Francisco 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.
Leveraging digital technologies
– Narvaez Francisco 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Narvaez Francisco can use these opportunities to build new business models that can help the communities that Narvaez Francisco operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– Narvaez Francisco 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 Francisco de Narvaez at Tia: Selling the Family Business, Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Narvaez Francisco to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Narvaez Francisco is facing challenges because of the dominance of functional experts in the organization. Francisco de Narvaez at Tia: Selling the Family Business, Video 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.
Threats Francisco de Narvaez at Tia: Selling the Family Business, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Francisco de Narvaez at Tia: Selling the Family Business, Video are -
Shortening product life cycle
– it is one of the major threat that Narvaez Francisco is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Narvaez Francisco 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Narvaez Francisco with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Narvaez Francisco in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Narvaez Francisco has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Narvaez Francisco 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Francisco de Narvaez at Tia: Selling the Family Business, Video, Narvaez Francisco 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 .
Stagnating economy with rate increase
– Narvaez Francisco 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.
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 Narvaez Francisco.
Regulatory challenges
– Narvaez Francisco 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.
Consumer confidence and its impact on Narvaez Francisco 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.
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. Narvaez Francisco needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Narvaez Francisco 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 Francisco de Narvaez at Tia: Selling the Family Business, Video .
Weighted SWOT Analysis of Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Francisco de Narvaez at Tia: Selling the Family Business, Video 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 Narvaez Francisco needs to make to build a sustainable competitive advantage.