Change in Chignahuapan: Reforming a Municipal Government in Mexico SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Change in Chignahuapan: Reforming a Municipal Government in Mexico
For more than 70 years, beginning in 1929, one party-the Party of Institutional Revolution, known by its Spanish initials PRI-dominated political life in Mexico, at all levels of government. But when Vicente Fox, a candidate of the rival National Action Party (PAN) won the presidency in 2000, change rippled through the country's overall political structure. This case tells the story of the emergence of competitive elections at the municipal level-in particular, one municipality emblematic of larger change. In describing the change in political life in Chignahuapan, a jurisdiction of some 50,000 in the Sierra Norte mountains northeast of Mexico City, the case frames the question of whether electoral change can lead to sustainable reform of local government. It is a question which arises when, surprisingly, a reform-minded PAN administration gains power in the locality in February 2002-and proceeds to change both administrative processes (opening meetings of the local Council for the first time) and moving generally toward transparency and improved local services. The reform administration, was, however, limited by law to just one term-thus, posing the central question of the case: in what ways can a reform administration seek to ensure that the changes it initiates will not be transitory? HKS Case Number 1841.0
Swot Analysis of "Change in Chignahuapan: Reforming a Municipal Government in Mexico" written by Jonathan Schlefer, Merilee Grindle includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reform Chignahuapan facing as an external strategic factors. Some of the topics covered in Change in Chignahuapan: Reforming a Municipal Government in Mexico case study are - Strategic Management Strategies, Government, Innovation, Leadership, Operations management, Social responsibility, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Change in Chignahuapan: Reforming a Municipal Government in Mexico casestudy better are - – technology disruption, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices,
increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Change in Chignahuapan: Reforming a Municipal Government in Mexico
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Change in Chignahuapan: Reforming a Municipal Government in Mexico case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reform Chignahuapan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reform Chignahuapan 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico can be done for the following purposes –
1. Strategic planning using facts provided in Change in Chignahuapan: Reforming a Municipal Government in Mexico case study
2. Improving business portfolio management of Reform Chignahuapan
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 Reform Chignahuapan
Strengths Change in Chignahuapan: Reforming a Municipal Government in Mexico | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reform Chignahuapan in Change in Chignahuapan: Reforming a Municipal Government in Mexico Harvard Business Review case study are -
High brand equity
– Reform Chignahuapan has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reform Chignahuapan to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Reform Chignahuapan is present in almost all the verticals within the industry. This has provided firm in Change in Chignahuapan: Reforming a Municipal Government in Mexico 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.
Operational resilience
– The operational resilience strategy in the Change in Chignahuapan: Reforming a Municipal Government in Mexico 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.
Innovation driven organization
– Reform Chignahuapan is one of the most innovative firm in sector. Manager in Change in Chignahuapan: Reforming a Municipal Government in Mexico Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Reform Chignahuapan 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.
Training and development
– Reform Chignahuapan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Change in Chignahuapan: Reforming a Municipal Government in Mexico 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.
Low bargaining power of suppliers
– Suppliers of Reform Chignahuapan in the sector have low bargaining power. Change in Chignahuapan: Reforming a Municipal Government in Mexico has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reform Chignahuapan to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Reform Chignahuapan 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 Jonathan Schlefer, Merilee Grindle 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.
Learning organization
- Reform Chignahuapan 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 Reform Chignahuapan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Change in Chignahuapan: Reforming a Municipal Government in Mexico Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Reform Chignahuapan 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Reform Chignahuapan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Reform Chignahuapan is one of the leading recruiters in the industry. Managers in the Change in Chignahuapan: Reforming a Municipal Government in Mexico are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Change in Chignahuapan: Reforming a Municipal Government in Mexico | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Change in Chignahuapan: Reforming a Municipal Government in Mexico are -
No frontier risks strategy
– After analyzing the HBR case study Change in Chignahuapan: Reforming a Municipal Government in Mexico, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reform Chignahuapan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Change in Chignahuapan: Reforming a Municipal Government in Mexico can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Reform Chignahuapan products
– To increase the profitability and margins on the products, Reform Chignahuapan needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Change in Chignahuapan: Reforming a Municipal Government in Mexico, is just above the industry average. Reform Chignahuapan 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Change in Chignahuapan: Reforming a Municipal Government in Mexico, in the dynamic environment Reform Chignahuapan has struggled to respond to the nimble upstart competition. Reform Chignahuapan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Jonathan Schlefer, Merilee Grindle suggests that, Reform Chignahuapan 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Change in Chignahuapan: Reforming a Municipal Government in Mexico, it seems that the employees of Reform Chignahuapan 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.
Low market penetration in new markets
– Outside its home market of Reform Chignahuapan, firm in the HBR case study Change in Chignahuapan: Reforming a Municipal Government in Mexico needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Reform Chignahuapan 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.
Slow decision making process
– As mentioned earlier in the report, Reform Chignahuapan 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. Reform Chignahuapan 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 Reform Chignahuapan 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 - Change in Chignahuapan: Reforming a Municipal Government in Mexico should strive to include more intangible value offerings along with its core products and services.
Opportunities Change in Chignahuapan: Reforming a Municipal Government in Mexico | 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico are -
Buying journey improvements
– Reform Chignahuapan can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Change in Chignahuapan: Reforming a Municipal Government in Mexico 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.
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. Reform Chignahuapan 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. Reform Chignahuapan 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.
Developing new processes and practices
– Reform Chignahuapan 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Reform Chignahuapan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Reform Chignahuapan 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 Reform Chignahuapan in the consumer business. Now Reform Chignahuapan can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Reform Chignahuapan 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Reform Chignahuapan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reform Chignahuapan in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Reform Chignahuapan has opened avenues for new revenue streams for the organization in the industry. This can help Reform Chignahuapan to build a more holistic ecosystem as suggested in the Change in Chignahuapan: Reforming a Municipal Government in Mexico case study. Reform Chignahuapan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Reform Chignahuapan 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.
Loyalty marketing
– Reform Chignahuapan 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.
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. Reform Chignahuapan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Reform Chignahuapan can use these opportunities to build new business models that can help the communities that Reform Chignahuapan operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Change in Chignahuapan: Reforming a Municipal Government in Mexico External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Change in Chignahuapan: Reforming a Municipal Government in Mexico are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reform Chignahuapan 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico .
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 Reform Chignahuapan.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reform Chignahuapan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Reform Chignahuapan can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Reform Chignahuapan 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. Reform Chignahuapan needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing wage structure of Reform Chignahuapan
– 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 Reform Chignahuapan.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Reform Chignahuapan 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.
Environmental challenges
– Reform Chignahuapan 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. Reform Chignahuapan can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Reform Chignahuapan in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 Reform Chignahuapan in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Change in Chignahuapan: Reforming a Municipal Government in Mexico, Reform Chignahuapan 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico 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 Change in Chignahuapan: Reforming a Municipal Government in Mexico 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 Reform Chignahuapan needs to make to build a sustainable competitive advantage.