Case Study Description of Change in Chignahuapan: Sequel
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 1841.1
Swot Analysis of "Change in Chignahuapan: Sequel" 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: Sequel 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: Sequel casestudy better are - – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, geopolitical disruptions,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Change in Chignahuapan: Sequel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Change in Chignahuapan: Sequel 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: Sequel can be done for the following purposes –
1. Strategic planning using facts provided in Change in Chignahuapan: Sequel 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: Sequel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reform Chignahuapan in Change in Chignahuapan: Sequel Harvard Business Review case study are -
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: Sequel 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 lead change in Leadership & Managing People field
– Reform Chignahuapan 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 Reform Chignahuapan in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Change in Chignahuapan: Sequel 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.
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: Sequel - 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 Leadership & Managing People segment
- digital transformation varies from industry to industry. For Reform Chignahuapan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reform Chignahuapan 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.
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.
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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Change in Chignahuapan: Sequel firm has clearly differentiated products in the market place. This has enabled Reform Chignahuapan to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Reform Chignahuapan to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Reform Chignahuapan in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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: Sequel Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Change in Chignahuapan: Sequel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Change in Chignahuapan: Sequel are -
Workers concerns about automation
– As automation is fast increasing in the segment, Reform Chignahuapan 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.
Slow to strategic competitive environment developments
– As Change in Chignahuapan: Sequel HBR case study mentions - Reform Chignahuapan takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High 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 Reform Chignahuapan supply chain. Even after few cautionary changes mentioned in the HBR case study - Change in Chignahuapan: Sequel, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reform Chignahuapan vulnerable to further global disruptions in South East Asia.
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: Sequel should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Change in Chignahuapan: Sequel 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 Reform Chignahuapan has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Reform Chignahuapan is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Reform Chignahuapan needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reform Chignahuapan to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Reform Chignahuapan 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.
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: Sequel can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Change in Chignahuapan: Sequel, 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.
Low market penetration in new markets
– Outside its home market of Reform Chignahuapan, firm in the HBR case study Change in Chignahuapan: Sequel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Reform Chignahuapan 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.
Opportunities Change in Chignahuapan: Sequel | 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: Sequel are -
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: Sequel - 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.
Manufacturing automation
– Reform Chignahuapan 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Reform Chignahuapan 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Reform Chignahuapan is facing challenges because of the dominance of functional experts in the organization. Change in Chignahuapan: Sequel 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.
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.
Buying journey improvements
– Reform Chignahuapan can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Change in Chignahuapan: Sequel 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reform Chignahuapan 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, Change in Chignahuapan: Sequel, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Reform Chignahuapan 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 Reform Chignahuapan to hire the very best people irrespective of their geographical location.
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: Sequel case study. Reform Chignahuapan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Reform Chignahuapan 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.
Learning at scale
– Online learning technologies has now opened space for Reform Chignahuapan 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.
Threats Change in Chignahuapan: Sequel 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: Sequel are -
Stagnating economy with rate increase
– Reform Chignahuapan 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.
Shortening product life cycle
– it is one of the major threat that Reform Chignahuapan is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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: Sequel, 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 .
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.
High dependence on third party suppliers
– Reform Chignahuapan 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.
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.
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. Reform Chignahuapan 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.
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: Sequel .
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.
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.
Weighted SWOT Analysis of Change in Chignahuapan: Sequel 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: Sequel 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: Sequel 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: Sequel 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: Sequel 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.