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 - – digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, technology disruption,
increasing energy prices, wage bills are increasing, 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.
Ability to recruit top talent
– Laborin Nafinsa is one of the leading recruiters in the industry. Managers in the Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Laborin Nafinsa 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 Matthew Andrews, Eugenio Amador Quijano 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.
Successful track record of launching new products
– Laborin Nafinsa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Laborin Nafinsa has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Laborin Nafinsa 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 Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Learning organization
- Laborin Nafinsa 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 Laborin Nafinsa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Laborin Nafinsa 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 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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), is just above the industry average. Laborin Nafinsa 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.
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.
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.
Lack of clear differentiation of Laborin Nafinsa products
– To increase the profitability and margins on the products, Laborin Nafinsa needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Laborin Nafinsa is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Laborin Nafinsa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Laborin Nafinsa to focus more on services rather than just following the product oriented approach.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B), it seems that the employees of Laborin Nafinsa don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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 -
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Laborin Nafinsa in the consumer business. Now Laborin Nafinsa can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Laborin Nafinsa has opened avenues for new revenue streams for the organization in the industry. This can help Laborin Nafinsa to build a more holistic ecosystem as suggested in the Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) case study. Laborin Nafinsa can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Laborin Nafinsa can use these opportunities to build new business models that can help the communities that Laborin Nafinsa operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
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.
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 Laborin Nafinsa 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.
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.
Buying journey improvements
– Laborin Nafinsa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mario Laborin and the Turnaround of Mexico's Nacional Financiera (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Low interest rates
– Even though inflation is raising its head in most developed economies, 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.
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.
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.
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.
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 -
Shortening product life cycle
– it is one of the major threat that Laborin Nafinsa is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
Consumer confidence and its impact on Laborin Nafinsa 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.
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.
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.
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.
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 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. Laborin Nafinsa needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 .
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.
