Financing Biodiversity Conservation by the Global Conservation Fund SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Financing Biodiversity Conservation by the Global Conservation Fund
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.The Global Conservation Fund is an international nonprofit organization with a $100 million endowment and an exclusive focus on land preservation. The fund and its director must decide which projects to fund over the next year and what financing mechanism to use. Describes the fund's efforts to develop a rating system for projects and various financing options used by conservation organizations, including debt-for-nature swaps, carbon credits, and conservation trust funds. Teaching purpose: To evaluate alternative projects in a nonprofit setting and to consider alternative financial instruments to advance biodiversity conservation.
Swot Analysis of "Financing Biodiversity Conservation by the Global Conservation Fund" written by Mihir A. Desai, Julia D. Stevens includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Conservation Biodiversity facing as an external strategic factors. Some of the topics covered in Financing Biodiversity Conservation by the Global Conservation Fund case study are - Strategic Management Strategies, Emerging markets, Financial management, Government, Project management, Social enterprise, Social responsibility, Sustainability and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Financing Biodiversity Conservation by the Global Conservation Fund casestudy better are - – digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing energy prices, increasing household debt because of falling income levels, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, etc
Introduction to SWOT Analysis of Financing Biodiversity Conservation by the Global Conservation Fund
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Financing Biodiversity Conservation by the Global Conservation Fund case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Conservation Biodiversity, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Conservation Biodiversity 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 Financing Biodiversity Conservation by the Global Conservation Fund can be done for the following purposes –
1. Strategic planning using facts provided in Financing Biodiversity Conservation by the Global Conservation Fund case study
2. Improving business portfolio management of Conservation Biodiversity
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 Conservation Biodiversity
Strengths Financing Biodiversity Conservation by the Global Conservation Fund | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Conservation Biodiversity in Financing Biodiversity Conservation by the Global Conservation Fund Harvard Business Review case study are -
Innovation driven organization
– Conservation Biodiversity is one of the most innovative firm in sector. Manager in Financing Biodiversity Conservation by the Global Conservation Fund Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Conservation Biodiversity is present in almost all the verticals within the industry. This has provided firm in Financing Biodiversity Conservation by the Global Conservation Fund 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.
Cross disciplinary teams
– Horizontal connected teams at the Conservation Biodiversity 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.
Strong track record of project management
– Conservation Biodiversity 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
- Conservation Biodiversity 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 Conservation Biodiversity is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Financing Biodiversity Conservation by the Global Conservation Fund Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Conservation Biodiversity has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Financing Biodiversity Conservation by the Global Conservation Fund 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.
Operational resilience
– The operational resilience strategy in the Financing Biodiversity Conservation by the Global Conservation Fund 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Financing Biodiversity Conservation by the Global Conservation Fund firm has clearly differentiated products in the market place. This has enabled Conservation Biodiversity to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Conservation Biodiversity to invest into research and development (R&D) and innovation.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Conservation Biodiversity digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Conservation Biodiversity 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.
Successful track record of launching new products
– Conservation Biodiversity has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Conservation Biodiversity 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.
Ability to recruit top talent
– Conservation Biodiversity is one of the leading recruiters in the industry. Managers in the Financing Biodiversity Conservation by the Global Conservation Fund 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 brand equity
– Conservation Biodiversity has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Conservation Biodiversity to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Financing Biodiversity Conservation by the Global Conservation Fund | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Financing Biodiversity Conservation by the Global Conservation Fund are -
Interest costs
– Compare to the competition, Conservation Biodiversity 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.
Skills based hiring
– The stress on hiring functional specialists at Conservation Biodiversity 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 strategic competitive environment developments
– As Financing Biodiversity Conservation by the Global Conservation Fund HBR case study mentions - Conservation Biodiversity 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.
Aligning sales with marketing
– It come across in the case study Financing Biodiversity Conservation by the Global Conservation Fund that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Financing Biodiversity Conservation by the Global Conservation Fund can leverage the sales team experience to cultivate customer relationships as Conservation Biodiversity is planning to shift buying processes online.
Products dominated business model
– Even though Conservation Biodiversity 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 - Financing Biodiversity Conservation by the Global Conservation Fund should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Mihir A. Desai, Julia D. Stevens suggests that, Conservation Biodiversity 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.
Increasing silos among functional specialists
– The organizational structure of Conservation Biodiversity is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Conservation Biodiversity needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Conservation Biodiversity to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Conservation Biodiversity products
– To increase the profitability and margins on the products, Conservation Biodiversity needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Financing Biodiversity Conservation by the Global Conservation Fund 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 Conservation Biodiversity 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Financing Biodiversity Conservation by the Global Conservation Fund, in the dynamic environment Conservation Biodiversity has struggled to respond to the nimble upstart competition. Conservation Biodiversity has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Conservation Biodiversity 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. Conservation Biodiversity 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.
Opportunities Financing Biodiversity Conservation by the Global Conservation Fund | 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 Financing Biodiversity Conservation by the Global Conservation Fund are -
Leveraging digital technologies
– Conservation Biodiversity 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Conservation Biodiversity can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Conservation Biodiversity in the consumer business. Now Conservation Biodiversity can target international markets with far fewer capital restrictions requirements than the existing system.
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. Conservation Biodiversity 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, Conservation Biodiversity 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.
Buying journey improvements
– Conservation Biodiversity can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Financing Biodiversity Conservation by the Global Conservation Fund 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Conservation Biodiversity 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 Conservation Biodiversity to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Conservation Biodiversity 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.
Creating value in data economy
– The success of analytics program of Conservation Biodiversity has opened avenues for new revenue streams for the organization in the industry. This can help Conservation Biodiversity to build a more holistic ecosystem as suggested in the Financing Biodiversity Conservation by the Global Conservation Fund case study. Conservation Biodiversity can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Conservation Biodiversity can use these opportunities to build new business models that can help the communities that Conservation Biodiversity operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Using analytics as competitive advantage
– Conservation Biodiversity 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 Financing Biodiversity Conservation by the Global Conservation Fund - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Conservation Biodiversity 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 Conservation Biodiversity 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.
Developing new processes and practices
– Conservation Biodiversity can develop new processes and procedures in Finance & Accounting 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.
Threats Financing Biodiversity Conservation by the Global Conservation Fund External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Financing Biodiversity Conservation by the Global Conservation Fund are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Conservation Biodiversity 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.
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 Conservation Biodiversity 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
– Conservation Biodiversity 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.
Environmental challenges
– Conservation Biodiversity 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. Conservation Biodiversity can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing wage structure of Conservation Biodiversity
– 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 Conservation Biodiversity.
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. Conservation Biodiversity needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Regulatory challenges
– Conservation Biodiversity 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 Finance & Accounting industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Financing Biodiversity Conservation by the Global Conservation Fund, Conservation Biodiversity may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
High dependence on third party suppliers
– Conservation Biodiversity 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.
Technology acceleration in Forth Industrial Revolution
– Conservation Biodiversity has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Conservation Biodiversity 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Conservation Biodiversity 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 Financing Biodiversity Conservation by the Global Conservation Fund .
Consumer confidence and its impact on Conservation Biodiversity 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 Financing Biodiversity Conservation by the Global Conservation Fund 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 Financing Biodiversity Conservation by the Global Conservation Fund 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 Financing Biodiversity Conservation by the Global Conservation Fund 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 Financing Biodiversity Conservation by the Global Conservation Fund 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 Financing Biodiversity Conservation by the Global Conservation Fund 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 Conservation Biodiversity needs to make to build a sustainable competitive advantage.
