Zhang Xin and the Emergence of Chinese Philanthropy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Zhang Xin and the Emergence of Chinese Philanthropy
This case examines the recent emergence of Chinese business philanthropy through the case of the SOHO China Foundation established by real estate wife and husband moguls Zhang Zin and Pan Shiyi. After exploring how they became billionaires through investing in the booming China real estate market in the 1990s, the case discusses their decision to found the Foundation in the context of the belated emergence of philanthropy in China, and the continuing challenges it faces because of reputational issues and government supervision. A decision by the Foundation to endow $100 million to provide financial aid for Chinese students studying overseas, which included large gifts to Harvard and Yale, attracted widespread criticism in China. The case provides a vehicle for discussing the dynamics of business philanthropy in the China, and the future directions it may take.
Swot Analysis of "Zhang Xin and the Emergence of Chinese Philanthropy" written by Geoffrey G. Jones, Amanda Yang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Philanthropy China facing as an external strategic factors. Some of the topics covered in Zhang Xin and the Emergence of Chinese Philanthropy case study are - Strategic Management Strategies, Government, Social enterprise and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Zhang Xin and the Emergence of Chinese Philanthropy casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Zhang Xin and the Emergence of Chinese Philanthropy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Zhang Xin and the Emergence of Chinese Philanthropy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Philanthropy China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Philanthropy China 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 Zhang Xin and the Emergence of Chinese Philanthropy can be done for the following purposes –
1. Strategic planning using facts provided in Zhang Xin and the Emergence of Chinese Philanthropy case study
2. Improving business portfolio management of Philanthropy China
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 Philanthropy China
Strengths Zhang Xin and the Emergence of Chinese Philanthropy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Philanthropy China in Zhang Xin and the Emergence of Chinese Philanthropy Harvard Business Review case study are -
Diverse revenue streams
– Philanthropy China is present in almost all the verticals within the industry. This has provided firm in Zhang Xin and the Emergence of Chinese Philanthropy 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.
Effective Research and Development (R&D)
– Philanthropy China 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 Zhang Xin and the Emergence of Chinese Philanthropy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Philanthropy China is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Philanthropy China in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Philanthropy China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Philanthropy China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Philanthropy China has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Zhang Xin and the Emergence of Chinese Philanthropy 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 Philanthropy China 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.
Innovation driven organization
– Philanthropy China is one of the most innovative firm in sector. Manager in Zhang Xin and the Emergence of Chinese Philanthropy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Philanthropy China in the sector have low bargaining power. Zhang Xin and the Emergence of Chinese Philanthropy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Philanthropy China to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Philanthropy China
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Philanthropy China does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– Zhang Xin and the Emergence of Chinese Philanthropy firm has clearly differentiated products in the market place. This has enabled Philanthropy China to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Philanthropy China to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Zhang Xin and the Emergence of Chinese Philanthropy are -
Low market penetration in new markets
– Outside its home market of Philanthropy China, firm in the HBR case study Zhang Xin and the Emergence of Chinese Philanthropy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Philanthropy China products
– To increase the profitability and margins on the products, Philanthropy China needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Zhang Xin and the Emergence of Chinese Philanthropy, is just above the industry average. Philanthropy China 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.
Products dominated business model
– Even though Philanthropy China 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 - Zhang Xin and the Emergence of Chinese Philanthropy should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Philanthropy China is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Zhang Xin and the Emergence of Chinese Philanthropy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Philanthropy China 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.
Capital Spending Reduction
– Even during the low interest decade, Philanthropy China 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, Philanthropy China 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. Philanthropy China 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.
High cash cycle compare to competitors
Philanthropy China 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.
Aligning sales with marketing
– It come across in the case study Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy can leverage the sales team experience to cultivate customer relationships as Philanthropy China is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Zhang Xin and the Emergence of Chinese Philanthropy 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 Philanthropy China has relatively successful track record of launching new products.
Opportunities Zhang Xin and the Emergence of Chinese Philanthropy | 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 Zhang Xin and the Emergence of Chinese Philanthropy are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Philanthropy China to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Philanthropy China to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Philanthropy China 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.
Developing new processes and practices
– Philanthropy China 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.
Building a culture of innovation
– managers at Philanthropy China 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Philanthropy China can use these opportunities to build new business models that can help the communities that Philanthropy China 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 Philanthropy China can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Philanthropy China 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 Philanthropy China has opened avenues for new revenue streams for the organization in the industry. This can help Philanthropy China to build a more holistic ecosystem as suggested in the Zhang Xin and the Emergence of Chinese Philanthropy case study. Philanthropy China can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Philanthropy China is facing challenges because of the dominance of functional experts in the organization. Zhang Xin and the Emergence of Chinese Philanthropy 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.
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. Philanthropy China 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, Philanthropy China 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, Zhang Xin and the Emergence of Chinese Philanthropy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Philanthropy China 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.
Loyalty marketing
– Philanthropy China 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.
Threats Zhang Xin and the Emergence of Chinese Philanthropy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Zhang Xin and the Emergence of Chinese Philanthropy are -
Technology acceleration in Forth Industrial Revolution
– Philanthropy China has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Philanthropy China 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.
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. Philanthropy China 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.
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 Philanthropy China in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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 Philanthropy China.
Regulatory challenges
– Philanthropy China 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Philanthropy China with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Philanthropy China can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Philanthropy China
– 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 Philanthropy China.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Philanthropy China 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 Zhang Xin and the Emergence of Chinese Philanthropy .
Environmental challenges
– Philanthropy China 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. Philanthropy China can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Shortening product life cycle
– it is one of the major threat that Philanthropy China is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Philanthropy China business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy 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 Zhang Xin and the Emergence of Chinese Philanthropy 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 Philanthropy China needs to make to build a sustainable competitive advantage.