SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A)
The Shorefast Foundation is a charitable organization that aims to spark a rural renaissance and promote economic and cultural resilience in the isolated communities of Fogo Island and Change Islands, Newfoundland, Canada, using a social entrepreneurship model. The cases also highlight the importance of rural places as repositories of local knowledge, culture and traditions. The two Shorefast cases illustrate the initial formation of the Foundation and the implementation issues surrounding the building of a multimillion dollar five star Inn. They are best used together as a series, but can be used independently as well. Case A provides information about the socioeconomic background of Fogo Island as well as an in depth profile of the founder of the Shorefast Foundation, Zita Cobb. The case illustrates how the founder of an organization can shape an organization's goals, vision, and beliefs. It also describes the model of social entrepreneurship that was being proposed and the organizational structure of the Shorefast Foundation and its affiliates as it stood before the construction of the revenue-generating Inn. Learning objectives: The case can be used to 1) introduce the concept of business models in general and explore the differences between 'traditional' and 'social entrepreneurship' business models; 2) help students understand the link between a founder's values, beliefs and objectives (managerial preferences) and strategy formulation and implementation; 3) introduce students to the organizational challenges involved in social entrepreneurship and the tensions to be negotiated between environmental, economic and social goals.
Authors :: Natalie Slawinski, Daina Mazutis, Brad Hookey
Swot Analysis of "SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A)" written by Natalie Slawinski, Daina Mazutis, Brad Hookey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shorefast Fogo facing as an external strategic factors. Some of the topics covered in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) case study are - Strategic Management Strategies, Leadership, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) casestudy better are - – wage bills are increasing, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shorefast Fogo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shorefast Fogo 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) can be done for the following purposes –
1. Strategic planning using facts provided in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) case study
2. Improving business portfolio management of Shorefast Fogo
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 Shorefast Fogo
Strengths SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shorefast Fogo in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) Harvard Business Review case study are -
High brand equity
– Shorefast Fogo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shorefast Fogo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Shorefast Fogo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shorefast Fogo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Shorefast Fogo 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 Natalie Slawinski, Daina Mazutis, Brad Hookey 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.
Strong track record of project management
– Shorefast Fogo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Shorefast Fogo is one of the most innovative firm in sector. Manager in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Shorefast Fogo 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Shorefast Fogo in the sector have low bargaining power. SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shorefast Fogo to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Shorefast Fogo 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.
High switching costs
– The high switching costs that Shorefast Fogo 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.
Ability to recruit top talent
– Shorefast Fogo is one of the leading recruiters in the industry. Managers in the SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Shorefast Fogo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Shorefast Fogo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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.
Weaknesses SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Natalie Slawinski, Daina Mazutis, Brad Hookey suggests that, Shorefast Fogo 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.
Aligning sales with marketing
– It come across in the case study SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) can leverage the sales team experience to cultivate customer relationships as Shorefast Fogo is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Shorefast Fogo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 Shorefast Fogo supply chain. Even after few cautionary changes mentioned in the HBR case study - SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shorefast Fogo vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Shorefast Fogo 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.
Slow decision making process
– As mentioned earlier in the report, Shorefast Fogo 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. Shorefast Fogo 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.
Products dominated business model
– Even though Shorefast Fogo 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 - SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Shorefast Fogo 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 to strategic competitive environment developments
– As SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) HBR case study mentions - Shorefast Fogo 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.
High cash cycle compare to competitors
Shorefast Fogo 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.
High operating costs
– Compare to the competitors, firm in the HBR case study SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 Shorefast Fogo 's lucrative customers.
Opportunities SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) | 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shorefast Fogo is facing challenges because of the dominance of functional experts in the organization. SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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.
Buying journey improvements
– Shorefast Fogo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 Shorefast Fogo 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shorefast Fogo 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.
Loyalty marketing
– Shorefast Fogo 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 Shorefast Fogo to increase its market reach. Shorefast Fogo 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shorefast Fogo 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, SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A), 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, Shorefast Fogo can use these opportunities to build new business models that can help the communities that Shorefast Fogo operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Building a culture of innovation
– managers at Shorefast Fogo 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.
Creating value in data economy
– The success of analytics program of Shorefast Fogo has opened avenues for new revenue streams for the organization in the industry. This can help Shorefast Fogo to build a more holistic ecosystem as suggested in the SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) case study. Shorefast Fogo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Shorefast Fogo 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shorefast Fogo 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 Shorefast Fogo to hire the very best people irrespective of their geographical location.
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. Shorefast Fogo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) are -
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. Shorefast Fogo needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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. Shorefast Fogo 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A), Shorefast Fogo 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 .
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 Shorefast Fogo business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Shorefast Fogo 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shorefast Fogo 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) .
Consumer confidence and its impact on Shorefast Fogo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shorefast Fogo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Shorefast Fogo is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Shorefast Fogo 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. Shorefast Fogo can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
High dependence on third party suppliers
– Shorefast Fogo 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.
Technology acceleration in Forth Industrial Revolution
– Shorefast Fogo has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Shorefast Fogo 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
– Shorefast Fogo 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.
Weighted SWOT Analysis of SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 SOCIAL ENTREPRENEURSHIP ON FOGO ISLAND: SEARCHING FOR NEW WAYS IN AN OLD CONTINUITY (A) 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 Shorefast Fogo needs to make to build a sustainable competitive advantage.
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