Case Study Description of Standards for Child Sponsorship Agencies (B)
In the spring of 1998, nonprofit agencies known as "child-sponsorship" organizations found themselves on the defensive. The agencies-dedicated to raising charitable funds in the United States to support children and their communities in poor, developing countries-had been the subject of a scathing critique, a two-part series in the Chicago Tribune accusing them, in effect, of misleading donors. The series asserted that the organizations had not lived up to the promise implicit in fundraising advertisements: that specific children would benefit directly from the contributions of individual sponsors. The agencies mounted a spirited and largely successful public defense of their approach-one in which aid was targeted not only at individual children but at the communities in which they lived. At the same time, however, they sought new ways to reassure the public about their effectiveness. This case details the ensuing effort by a group of six child sponsorship agencies to agree on "industry" standards that would make their goals and methods clear. The case describes the differing situations of the various organizations so as to lay the groundwork for discussion about likely difficulties in reaching agreement on standards, as well as extrapolation as to what sort of standards could both command consensus among the agencies and satisfy public demands for "transparency." The case serves the broader purpose of framing the issues and dynamics of industry self-regulation more generally, particularly in a nonprofit context. See also, Part B (1665.0). HKS Case Number 1665.0
Swot Analysis of "Standards for Child Sponsorship Agencies (B)" written by Esther Scott, David Brown includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Agencies 1665.0 facing as an external strategic factors. Some of the topics covered in Standards for Child Sponsorship Agencies (B) case study are - Strategic Management Strategies, Emerging markets, Human resource management, Marketing, Organizational culture, Project management, Social enterprise, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Standards for Child Sponsorship Agencies (B) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings, geopolitical disruptions, supply chains are disrupted by pandemic , increasing energy prices, increasing commodity prices,
there is backlash against globalization, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Standards for Child Sponsorship Agencies (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Standards for Child Sponsorship Agencies (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Agencies 1665.0, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Agencies 1665.0 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 Standards for Child Sponsorship Agencies (B) can be done for the following purposes –
1. Strategic planning using facts provided in Standards for Child Sponsorship Agencies (B) case study
2. Improving business portfolio management of Agencies 1665.0
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 Agencies 1665.0
Strengths Standards for Child Sponsorship Agencies (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Agencies 1665.0 in Standards for Child Sponsorship Agencies (B) Harvard Business Review case study are -
Training and development
– Agencies 1665.0 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Standards for Child Sponsorship Agencies (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.
Effective Research and Development (R&D)
– Agencies 1665.0 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 Standards for Child Sponsorship Agencies (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.
High switching costs
– The high switching costs that Agencies 1665.0 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.
High brand equity
– Agencies 1665.0 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Agencies 1665.0 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Agencies 1665.0
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Agencies 1665.0 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Agencies 1665.0 is one of the leading recruiters in the industry. Managers in the Standards for Child Sponsorship Agencies (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.
Superior customer experience
– The customer experience strategy of Agencies 1665.0 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– Standards for Child Sponsorship Agencies (B) firm has clearly differentiated products in the market place. This has enabled Agencies 1665.0 to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Agencies 1665.0 to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Agencies 1665.0 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Agencies 1665.0 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.
Analytics focus
– Agencies 1665.0 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 Esther Scott, David Brown 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Agencies 1665.0 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Agencies 1665.0 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.
Learning organization
- Agencies 1665.0 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 Agencies 1665.0 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Standards for Child Sponsorship Agencies (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Standards for Child Sponsorship Agencies (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Standards for Child Sponsorship Agencies (B) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Standards for Child Sponsorship Agencies (B), in the dynamic environment Agencies 1665.0 has struggled to respond to the nimble upstart competition. Agencies 1665.0 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Standards for Child Sponsorship Agencies (B), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Agencies 1665.0 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Agencies 1665.0 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Standards for Child Sponsorship Agencies (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Standards for Child Sponsorship Agencies (B) HBR case study mentions - Agencies 1665.0 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.
Capital Spending Reduction
– Even during the low interest decade, Agencies 1665.0 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 decision making process
– As mentioned earlier in the report, Agencies 1665.0 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. Agencies 1665.0 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Standards for Child Sponsorship Agencies (B), it seems that the employees of Agencies 1665.0 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.
Lack of clear differentiation of Agencies 1665.0 products
– To increase the profitability and margins on the products, Agencies 1665.0 needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Esther Scott, David Brown suggests that, Agencies 1665.0 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Standards for Child Sponsorship Agencies (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Agencies 1665.0 's lucrative customers.
Opportunities Standards for Child Sponsorship Agencies (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 Standards for Child Sponsorship Agencies (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Agencies 1665.0 is facing challenges because of the dominance of functional experts in the organization. Standards for Child Sponsorship Agencies (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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Agencies 1665.0 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.
Manufacturing automation
– Agencies 1665.0 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.
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 Agencies 1665.0 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Agencies 1665.0 can use these opportunities to build new business models that can help the communities that Agencies 1665.0 operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Agencies 1665.0 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 Agencies 1665.0 in the consumer business. Now Agencies 1665.0 can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Agencies 1665.0 to increase its market reach. Agencies 1665.0 will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Agencies 1665.0 has opened avenues for new revenue streams for the organization in the industry. This can help Agencies 1665.0 to build a more holistic ecosystem as suggested in the Standards for Child Sponsorship Agencies (B) case study. Agencies 1665.0 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Agencies 1665.0 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.
Using analytics as competitive advantage
– Agencies 1665.0 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 Standards for Child Sponsorship Agencies (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Agencies 1665.0 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Agencies 1665.0 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. Agencies 1665.0 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.
Building a culture of innovation
– managers at Agencies 1665.0 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.
Threats Standards for Child Sponsorship Agencies (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Standards for Child Sponsorship Agencies (B) are -
Increasing wage structure of Agencies 1665.0
– 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 Agencies 1665.0.
Regulatory challenges
– Agencies 1665.0 needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Agencies 1665.0 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 Standards for Child Sponsorship Agencies (B) .
Shortening product life cycle
– it is one of the major threat that Agencies 1665.0 is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Agencies 1665.0 has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Agencies 1665.0 needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Agencies 1665.0 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Agencies 1665.0 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 Agencies 1665.0 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.
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 Agencies 1665.0 business can come under increasing regulations regarding data privacy, data security, etc.
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.
High dependence on third party suppliers
– Agencies 1665.0 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Standards for Child Sponsorship Agencies (B), Agencies 1665.0 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 Standards for Child Sponsorship Agencies (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 Standards for Child Sponsorship Agencies (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 Standards for Child Sponsorship Agencies (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 Standards for Child Sponsorship Agencies (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 Standards for Child Sponsorship Agencies (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 Agencies 1665.0 needs to make to build a sustainable competitive advantage.
