The Indonesia Strategy Case: Confidential Instructions for Joanna SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Indonesia Strategy Case: Confidential Instructions for Joanna
This is a multi-issue one-on-one internal negotiation between a recently promoted boss, Joanna, and an older-than-her employee, Rupert, who is disgruntled at having been passed over for promotion. Joanna needs his advice to design the new strategy for the Indonesia operations, which she must present to the board soon.
Swot Analysis of "The Indonesia Strategy Case: Confidential Instructions for Joanna" written by Horacio Falcao, Kriti Jain, Heather Grover includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Joanna Indonesia facing as an external strategic factors. Some of the topics covered in The Indonesia Strategy Case: Confidential Instructions for Joanna case study are - Strategic Management Strategies, Conflict, Influence, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The Indonesia Strategy Case: Confidential Instructions for Joanna casestudy better are - – talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings,
technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of The Indonesia Strategy Case: Confidential Instructions for Joanna
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Indonesia Strategy Case: Confidential Instructions for Joanna case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Joanna Indonesia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Joanna Indonesia 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 The Indonesia Strategy Case: Confidential Instructions for Joanna can be done for the following purposes –
1. Strategic planning using facts provided in The Indonesia Strategy Case: Confidential Instructions for Joanna case study
2. Improving business portfolio management of Joanna Indonesia
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 Joanna Indonesia
Strengths The Indonesia Strategy Case: Confidential Instructions for Joanna | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Joanna Indonesia in The Indonesia Strategy Case: Confidential Instructions for Joanna Harvard Business Review case study are -
Diverse revenue streams
– Joanna Indonesia is present in almost all the verticals within the industry. This has provided firm in The Indonesia Strategy Case: Confidential Instructions for Joanna 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.
Ability to recruit top talent
– Joanna Indonesia is one of the leading recruiters in the industry. Managers in the The Indonesia Strategy Case: Confidential Instructions for Joanna are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Joanna Indonesia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Joanna Indonesia 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.
Low bargaining power of suppliers
– Suppliers of Joanna Indonesia in the sector have low bargaining power. The Indonesia Strategy Case: Confidential Instructions for Joanna has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Joanna Indonesia to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the The Indonesia Strategy Case: Confidential Instructions for Joanna 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.
Highly skilled collaborators
– Joanna Indonesia has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Indonesia Strategy Case: Confidential Instructions for Joanna HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Leadership & Managing People industry
– The Indonesia Strategy Case: Confidential Instructions for Joanna firm has clearly differentiated products in the market place. This has enabled Joanna Indonesia to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Joanna Indonesia to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Joanna Indonesia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Joanna Indonesia 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.
High brand equity
– Joanna Indonesia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Joanna Indonesia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Joanna Indonesia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Joanna Indonesia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Joanna Indonesia 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 Joanna Indonesia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Indonesia Strategy Case: Confidential Instructions for Joanna Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Joanna Indonesia is one of the most innovative firm in sector. Manager in The Indonesia Strategy Case: Confidential Instructions for Joanna Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses The Indonesia Strategy Case: Confidential Instructions for Joanna | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Indonesia Strategy Case: Confidential Instructions for Joanna are -
High operating costs
– Compare to the competitors, firm in the HBR case study The Indonesia Strategy Case: Confidential Instructions for Joanna 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 Joanna Indonesia 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Indonesia Strategy Case: Confidential Instructions for Joanna 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 Joanna Indonesia has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study The Indonesia Strategy Case: Confidential Instructions for Joanna, 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.
High cash cycle compare to competitors
Joanna Indonesia 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.
Products dominated business model
– Even though Joanna Indonesia 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 - The Indonesia Strategy Case: Confidential Instructions for Joanna should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Joanna Indonesia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Indonesia Strategy Case: Confidential Instructions for Joanna can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Indonesia Strategy Case: Confidential Instructions for Joanna, it seems that the employees of Joanna Indonesia 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.
Aligning sales with marketing
– It come across in the case study The Indonesia Strategy Case: Confidential Instructions for Joanna 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 The Indonesia Strategy Case: Confidential Instructions for Joanna can leverage the sales team experience to cultivate customer relationships as Joanna Indonesia is planning to shift buying processes online.
Lack of clear differentiation of Joanna Indonesia products
– To increase the profitability and margins on the products, Joanna Indonesia needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Joanna Indonesia, firm in the HBR case study The Indonesia Strategy Case: Confidential Instructions for Joanna needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Joanna Indonesia 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.
Opportunities The Indonesia Strategy Case: Confidential Instructions for Joanna | 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 The Indonesia Strategy Case: Confidential Instructions for Joanna are -
Manufacturing automation
– Joanna Indonesia 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.
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 Joanna Indonesia in the consumer business. Now Joanna Indonesia can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Joanna Indonesia 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 Joanna Indonesia to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Joanna Indonesia is facing challenges because of the dominance of functional experts in the organization. The Indonesia Strategy Case: Confidential Instructions for Joanna 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.
Leveraging digital technologies
– Joanna Indonesia 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.
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. Joanna Indonesia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Joanna Indonesia can use these opportunities to build new business models that can help the communities that Joanna Indonesia operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Joanna Indonesia 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, The Indonesia Strategy Case: Confidential Instructions for Joanna, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Joanna Indonesia 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. Joanna Indonesia 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.
Buying journey improvements
– Joanna Indonesia can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Indonesia Strategy Case: Confidential Instructions for Joanna 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.
Building a culture of innovation
– managers at Joanna Indonesia 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.
Learning at scale
– Online learning technologies has now opened space for Joanna Indonesia 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.
Better consumer reach
– The expansion of the 5G network will help Joanna Indonesia to increase its market reach. Joanna Indonesia 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.
Threats The Indonesia Strategy Case: Confidential Instructions for Joanna External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Indonesia Strategy Case: Confidential Instructions for Joanna are -
Regulatory challenges
– Joanna Indonesia 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.
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.
Stagnating economy with rate increase
– Joanna Indonesia 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.
Technology acceleration in Forth Industrial Revolution
– Joanna Indonesia has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Joanna Indonesia 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.
Consumer confidence and its impact on Joanna Indonesia 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.
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 Joanna Indonesia.
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.
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 Joanna Indonesia in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Joanna Indonesia 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Joanna Indonesia 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Joanna Indonesia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Joanna Indonesia 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 The Indonesia Strategy Case: Confidential Instructions for Joanna .
High dependence on third party suppliers
– Joanna Indonesia 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.
Weighted SWOT Analysis of The Indonesia Strategy Case: Confidential Instructions for Joanna 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 The Indonesia Strategy Case: Confidential Instructions for Joanna 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 The Indonesia Strategy Case: Confidential Instructions for Joanna 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 The Indonesia Strategy Case: Confidential Instructions for Joanna 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 The Indonesia Strategy Case: Confidential Instructions for Joanna 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 Joanna Indonesia needs to make to build a sustainable competitive advantage.