Legality of Privatizing Public Assets: Link REIT SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Legality of Privatizing Public Assets: Link REIT
Real Estate Investment Trusts (REITs) have proven to be popular investment vehicles in numerous countries, including the United States, Australia, Singapore, and Japan. They work by using the pooled capital of investors to purchase or manage property. Issued shares are traded on exchanges (in the same manner as stocks and mutual funds) and increase or decrease in value according to variations in the value of the trust's property portfolio, rental income, or other factors. To ease a growing budget deficit, the Hong Kong government's Housing Authority made plans to launch the territory's first publicly listed REIT, in hopes of raising much needed capital from the market. The privatization plan involved selling retail and car parking spaces within public housing estates to the incorporated Link property trust. However, the listing was held back due to the lawsuit raised by the public housing tenants, who worried the future management of the assets would not meet the needs of the existing tenants adequately. Illustrates the legal challenges facing a government and the associated impact to the key stakeholder groups in a privatization program. Also demonstrates the importance of a well-structured institutional framework in privatization.
Swot Analysis of "Legality of Privatizing Public Assets: Link REIT" written by P.S. Tso, Samuel Tsang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Privatization Housing facing as an external strategic factors. Some of the topics covered in Legality of Privatizing Public Assets: Link REIT case study are - Strategic Management Strategies, Economy, Financial management, IPO, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Legality of Privatizing Public Assets: Link REIT casestudy better are - – there is backlash against globalization, technology disruption, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%,
increasing household debt because of falling income levels, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Legality of Privatizing Public Assets: Link REIT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Legality of Privatizing Public Assets: Link REIT case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Privatization Housing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Privatization Housing 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 Legality of Privatizing Public Assets: Link REIT can be done for the following purposes –
1. Strategic planning using facts provided in Legality of Privatizing Public Assets: Link REIT case study
2. Improving business portfolio management of Privatization Housing
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Privatization Housing
Strengths Legality of Privatizing Public Assets: Link REIT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Privatization Housing in Legality of Privatizing Public Assets: Link REIT Harvard Business Review case study are -
Learning organization
- Privatization Housing 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 Privatization Housing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Legality of Privatizing Public Assets: Link REIT Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Privatization Housing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Privatization Housing is one of the leading recruiters in the industry. Managers in the Legality of Privatizing Public Assets: Link REIT are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Privatization Housing 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.
Successful track record of launching new products
– Privatization Housing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Privatization Housing 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.
Innovation driven organization
– Privatization Housing is one of the most innovative firm in sector. Manager in Legality of Privatizing Public Assets: Link REIT Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Finance & Accounting industry
– Legality of Privatizing Public Assets: Link REIT firm has clearly differentiated products in the market place. This has enabled Privatization Housing to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Privatization Housing to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Privatization Housing in the sector have low bargaining power. Legality of Privatizing Public Assets: Link REIT has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Privatization Housing to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Privatization Housing 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 Legality of Privatizing Public Assets: Link REIT - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Privatization Housing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Privatization Housing 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.
Diverse revenue streams
– Privatization Housing is present in almost all the verticals within the industry. This has provided firm in Legality of Privatizing Public Assets: Link REIT 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.
High brand equity
– Privatization Housing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Privatization Housing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Legality of Privatizing Public Assets: Link REIT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Legality of Privatizing Public Assets: Link REIT are -
Slow decision making process
– As mentioned earlier in the report, Privatization Housing 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. Privatization Housing 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Legality of Privatizing Public Assets: Link REIT, in the dynamic environment Privatization Housing has struggled to respond to the nimble upstart competition. Privatization Housing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Privatization Housing 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.
Need for greater diversity
– Privatization Housing has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Lack of clear differentiation of Privatization Housing products
– To increase the profitability and margins on the products, Privatization Housing needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Privatization Housing 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.
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 Privatization Housing supply chain. Even after few cautionary changes mentioned in the HBR case study - Legality of Privatizing Public Assets: Link REIT, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Privatization Housing vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Privatization Housing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Legality of Privatizing Public Assets: Link REIT can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Legality of Privatizing Public Assets: Link REIT, it seems that the employees of Privatization Housing 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.
Interest costs
– Compare to the competition, Privatization Housing 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.
No frontier risks strategy
– After analyzing the HBR case study Legality of Privatizing Public Assets: Link REIT, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Opportunities Legality of Privatizing Public Assets: Link REIT | 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 Legality of Privatizing Public Assets: Link REIT are -
Manufacturing automation
– Privatization Housing can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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 Privatization Housing in the consumer business. Now Privatization Housing 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 Privatization Housing has opened avenues for new revenue streams for the organization in the industry. This can help Privatization Housing to build a more holistic ecosystem as suggested in the Legality of Privatizing Public Assets: Link REIT case study. Privatization Housing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Privatization Housing 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, Legality of Privatizing Public Assets: Link REIT, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Privatization Housing 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 Finance & Accounting segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Privatization Housing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Privatization Housing 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 Legality of Privatizing Public Assets: Link REIT - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Privatization Housing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Privatization Housing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Legality of Privatizing Public Assets: Link REIT 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.
Leveraging digital technologies
– Privatization Housing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Privatization Housing is facing challenges because of the dominance of functional experts in the organization. Legality of Privatizing Public Assets: Link REIT 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.
Learning at scale
– Online learning technologies has now opened space for Privatization Housing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Privatization Housing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Privatization Housing 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 Privatization Housing to hire the very best people irrespective of their geographical location.
Threats Legality of Privatizing Public Assets: Link REIT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Legality of Privatizing Public Assets: Link REIT are -
Environmental challenges
– Privatization Housing 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. Privatization Housing can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Privatization Housing in the Finance & Accounting 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Privatization Housing 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 Legality of Privatizing Public Assets: Link REIT .
Shortening product life cycle
– it is one of the major threat that Privatization Housing is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Privatization Housing 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.
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 Privatization Housing business can come under increasing regulations regarding data privacy, data security, etc.
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. Privatization Housing needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Privatization Housing has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Privatization Housing needs to keep up with the evolution of technology in the Finance & Accounting 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.
Increasing wage structure of Privatization Housing
– 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 Privatization Housing.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Privatization Housing 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
– Privatization Housing 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Privatization Housing in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Legality of Privatizing Public Assets: Link REIT 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 Legality of Privatizing Public Assets: Link REIT 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 Legality of Privatizing Public Assets: Link REIT 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 Legality of Privatizing Public Assets: Link REIT 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 Legality of Privatizing Public Assets: Link REIT 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 Privatization Housing needs to make to build a sustainable competitive advantage.
