Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B)
Mexico went through a major political transition in 2000, when Vicente Fox was elected President. Change was in the air throughout the country, and especially in government entities. One such entity was NAFINSA, the national development bank that had a stellar history in the first half of the twentieth century building the Mexican stock exchange and financing public projects. Its more recent history was less impressive, with charges of political influence, inefficiency and major problems in leadership. Fox had special plans for NAFINSA, however, wanting it to be a preeminent player in stimulating small and medium-sized business. He hired Mario Laborin, previously responsible for successful management of a private sector bank in Mexico, to turn NAFINSA around and advance this new policy mandate. The case, in two parts, centers on the approach Laborin and his team took to address this challenge. It intends to provoke discussion about the role of strategic management in complex contexts, the way different technical interventions can be used to facilitate change, and the question about where money should come from to facilitate change processes. HKS Case Number 1919.0
Authors :: Matthew Andrews, Eugenio Amador Quijano
Swot Analysis of "Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B)" written by Matthew Andrews, Eugenio Amador Quijano includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Laborin Nafinsa facing as an external strategic factors. Some of the topics covered in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) case study are - Strategic Management Strategies, Financial management, Human resource management, Leadership, Policy, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) casestudy better are - – technology disruption, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, geopolitical disruptions, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies,
competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Laborin Nafinsa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Laborin Nafinsa 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) can be done for the following purposes –
1. Strategic planning using facts provided in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) case study
2. Improving business portfolio management of Laborin Nafinsa
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 Laborin Nafinsa
Strengths Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Laborin Nafinsa in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) Harvard Business Review case study are -
Training and development
– Laborin Nafinsa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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.
High brand equity
– Laborin Nafinsa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Laborin Nafinsa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Laborin Nafinsa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Laborin Nafinsa is present in almost all the verticals within the industry. This has provided firm in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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.
Strong track record of project management
– Laborin Nafinsa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Laborin Nafinsa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Laborin Nafinsa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Laborin Nafinsa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Laborin Nafinsa 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.
Low bargaining power of suppliers
– Suppliers of Laborin Nafinsa in the sector have low bargaining power. Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Laborin Nafinsa to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Leadership & Managing People field
– Laborin Nafinsa 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 Laborin Nafinsa 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 Laborin Nafinsa 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.
Operational resilience
– The operational resilience strategy in the Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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.
High switching costs
– The high switching costs that Laborin Nafinsa 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.
Weaknesses Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) are -
Slow decision making process
– As mentioned earlier in the report, Laborin Nafinsa 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. Laborin Nafinsa 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.
Aligning sales with marketing
– It come across in the case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) can leverage the sales team experience to cultivate customer relationships as Laborin Nafinsa is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Laborin Nafinsa has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Laborin Nafinsa, firm in the HBR case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) HBR case study mentions - Laborin Nafinsa 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Laborin Nafinsa 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Laborin Nafinsa has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), in the dynamic environment Laborin Nafinsa has struggled to respond to the nimble upstart competition. Laborin Nafinsa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Laborin Nafinsa supply chain. Even after few cautionary changes mentioned in the HBR case study - Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Laborin Nafinsa vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), 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.
Interest costs
– Compare to the competition, Laborin Nafinsa 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.
Opportunities Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) | 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Laborin Nafinsa 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 Laborin Nafinsa 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. Laborin Nafinsa 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, Laborin Nafinsa 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, Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Laborin Nafinsa 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. Laborin Nafinsa 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.
Leveraging digital technologies
– Laborin Nafinsa 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Laborin Nafinsa 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Laborin Nafinsa is facing challenges because of the dominance of functional experts in the organization. Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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.
Better consumer reach
– The expansion of the 5G network will help Laborin Nafinsa to increase its market reach. Laborin Nafinsa 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.
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. Laborin Nafinsa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Laborin Nafinsa 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Laborin Nafinsa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Laborin Nafinsa to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Laborin Nafinsa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Laborin Nafinsa 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.
Threats Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Laborin Nafinsa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Laborin Nafinsa 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) .
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 Laborin Nafinsa.
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 Laborin Nafinsa business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Laborin Nafinsa 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.
Stagnating economy with rate increase
– Laborin Nafinsa 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.
Technology acceleration in Forth Industrial Revolution
– Laborin Nafinsa has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Laborin Nafinsa 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.
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.
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. Laborin Nafinsa 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.
High dependence on third party suppliers
– Laborin Nafinsa 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.
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. Laborin Nafinsa 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), Laborin Nafinsa 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 .
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 Laborin Nafinsa in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) 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 Laborin Nafinsa needs to make to build a sustainable competitive advantage.