Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh
This case provides an overview of the entrepreneurial leadership taken by the government of India's Andhra Pradesh state in promoting the IT sector and using it to improve the status of the state's economic position in the early years of the third millennium.
Authors :: F. Warren McFarlan, Espen Andersen, Ramiro Montealegre
Swot Analysis of "Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh" written by F. Warren McFarlan, Espen Andersen, Ramiro Montealegre includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Andhra Pradesh facing as an external strategic factors. Some of the topics covered in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh case study are - Strategic Management Strategies, Government, IT and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, wage bills are increasing, geopolitical disruptions, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Andhra Pradesh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh can be done for the following purposes –
1. Strategic planning using facts provided in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh case study
2. Improving business portfolio management of Andhra Pradesh
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 Andhra Pradesh
Strengths Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Andhra Pradesh in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh Harvard Business Review case study are -
Highly skilled collaborators
– Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Andhra Pradesh is one of the leading recruiters in the industry. Managers in the Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Andhra Pradesh has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh firm has clearly differentiated products in the market place. This has enabled Andhra Pradesh to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Andhra Pradesh to invest into research and development (R&D) and innovation.
Innovation driven organization
– Andhra Pradesh is one of the most innovative firm in sector. Manager in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Andhra Pradesh 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 F. Warren McFarlan, Espen Andersen, Ramiro Montealegre 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.
Ability to lead change in Leadership & Managing People field
– Andhra Pradesh 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 Andhra Pradesh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Andhra Pradesh in the sector have low bargaining power. Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Andhra Pradesh to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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.
Learning organization
- Andhra Pradesh 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 Andhra Pradesh is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Andhra Pradesh in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Andhra Pradesh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Andhra Pradesh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh are -
Interest costs
– Compare to the competition, Andhra Pradesh 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, Andhra Pradesh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 decision making process
– As mentioned earlier in the report, Andhra Pradesh 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. Andhra Pradesh 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.
Aligning sales with marketing
– It come across in the case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh can leverage the sales team experience to cultivate customer relationships as Andhra Pradesh is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh HBR case study mentions - Andhra Pradesh 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 bargaining power of channel partners
– Because of the regulatory requirements, F. Warren McFarlan, Espen Andersen, Ramiro Montealegre suggests that, Andhra Pradesh 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.
Need for greater diversity
– Andhra Pradesh has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Andhra Pradesh 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh, it seems that the employees of Andhra Pradesh 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.
No frontier risks strategy
– After analyzing the HBR case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh, 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
Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh | 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh are -
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 Andhra Pradesh in the consumer business. Now Andhra Pradesh can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Andhra Pradesh has opened avenues for new revenue streams for the organization in the industry. This can help Andhra Pradesh to build a more holistic ecosystem as suggested in the Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh case study. Andhra Pradesh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Andhra Pradesh 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Andhra Pradesh in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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. Andhra Pradesh 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. Andhra Pradesh 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.
Using analytics as competitive advantage
– Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Andhra Pradesh to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Andhra Pradesh 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, Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Andhra Pradesh 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 Andhra Pradesh 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Andhra Pradesh can use these opportunities to build new business models that can help the communities that Andhra Pradesh operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Andhra Pradesh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Andhra Pradesh can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Andhra Pradesh is facing challenges because of the dominance of functional experts in the organization. Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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.
Threats Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Andhra Pradesh with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh, Andhra Pradesh 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 .
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. Andhra Pradesh 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 Andhra Pradesh business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Andhra Pradesh 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.
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.
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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Andhra Pradesh can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Andhra Pradesh 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.
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. Andhra Pradesh 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 Andhra Pradesh 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.
Technology acceleration in Forth Industrial Revolution
– Andhra Pradesh has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Andhra Pradesh 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.
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 Andhra Pradesh.
Weighted SWOT Analysis of Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Entrepreneurial Leadership in Forming High Tech Enclaves: Lessons from the Government of Andhra Pradesh 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 Andhra Pradesh needs to make to build a sustainable competitive advantage.
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