Fu Hong Society: Governance with Strong Operational Oversight SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fu Hong Society: Governance with Strong Operational Oversight
In comparison to those of other nongovernmental organizations ("NGOs") of similar size in Hong Kong, the organizational chart of Fu Hong Society ("FHS") shows a comparatively large number of corporate governance committees or subcommittees under its governing board, the council. The 21 committees and subcommittees mobilize over 100 FHS members and stakeholders to play roles of functional oversight for almost all operational aspects of FHS, including such diverse areas as services monitoring, complaint appeals, finance functions, human resources, building maintenance, marketing, public relations, IT functions, research, and exchange projects with other NGOs. As FHS is an NGO that receives over 84% of its expenditures from the Hong Kong government ("HKG") for rendering subvented services to serve people with intellectual disabilities, it is natural that its council performs its governance roles in a manner that is consistent with the HKG's advocated code of practices for corporate governance in NGOs. This code of practices calls for NGO boards and directors to focus on assurance of legal and regulatory compliance, sound financial management, performance monitoring, and operational transparency. The formation of a large number of governance committees and the recruitment and appointment of related member and stakeholder resources are largely the result of a conscious decision of the FHS council to exercise strong monitoring and operational oversight of FHS. Why did FHS's council adopt this approach? How does it monitor FHS's operations and service execution?
Swot Analysis of "Fu Hong Society: Governance with Strong Operational Oversight" written by Sammy Fung, Herman Chan, W.H. Lo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fhs Council facing as an external strategic factors. Some of the topics covered in Fu Hong Society: Governance with Strong Operational Oversight case study are - Strategic Management Strategies, International business, Leadership, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Fu Hong Society: Governance with Strong Operational Oversight casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, geopolitical disruptions, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Fu Hong Society: Governance with Strong Operational Oversight
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fu Hong Society: Governance with Strong Operational Oversight case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fhs Council, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fhs Council 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 Fu Hong Society: Governance with Strong Operational Oversight can be done for the following purposes –
1. Strategic planning using facts provided in Fu Hong Society: Governance with Strong Operational Oversight case study
2. Improving business portfolio management of Fhs Council
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 Fhs Council
Strengths Fu Hong Society: Governance with Strong Operational Oversight | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fhs Council in Fu Hong Society: Governance with Strong Operational Oversight Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Fhs Council in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Fhs Council 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.
Low bargaining power of suppliers
– Suppliers of Fhs Council in the sector have low bargaining power. Fu Hong Society: Governance with Strong Operational Oversight has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fhs Council to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Fhs Council has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fhs Council to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Fhs Council digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fhs Council 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.
Ability to lead change in Leadership & Managing People field
– Fhs Council 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 Fhs Council in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Fhs Council is one of the most innovative firm in sector. Manager in Fu Hong Society: Governance with Strong Operational Oversight Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Fhs Council is one of the leading recruiters in the industry. Managers in the Fu Hong Society: Governance with Strong Operational Oversight are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Fhs Council 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 Sammy Fung, Herman Chan, W.H. Lo 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.
Operational resilience
– The operational resilience strategy in the Fu Hong Society: Governance with Strong Operational Oversight 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.
Diverse revenue streams
– Fhs Council is present in almost all the verticals within the industry. This has provided firm in Fu Hong Society: Governance with Strong Operational Oversight 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.
Successful track record of launching new products
– Fhs Council has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fhs Council 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.
Weaknesses Fu Hong Society: Governance with Strong Operational Oversight | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fu Hong Society: Governance with Strong Operational Oversight are -
Workers concerns about automation
– As automation is fast increasing in the segment, Fhs Council needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Fhs Council supply chain. Even after few cautionary changes mentioned in the HBR case study - Fu Hong Society: Governance with Strong Operational Oversight, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fhs Council vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Fhs Council 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fhs Council is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fu Hong Society: Governance with Strong Operational Oversight can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Fhs Council 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.
Lack of clear differentiation of Fhs Council products
– To increase the profitability and margins on the products, Fhs Council needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Fu Hong Society: Governance with Strong Operational Oversight 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 Fhs Council has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Fu Hong Society: Governance with Strong Operational Oversight, 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.
Low market penetration in new markets
– Outside its home market of Fhs Council, firm in the HBR case study Fu Hong Society: Governance with Strong Operational Oversight needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Fhs Council 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Fu Hong Society: Governance with Strong Operational Oversight, in the dynamic environment Fhs Council has struggled to respond to the nimble upstart competition. Fhs Council has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Fu Hong Society: Governance with Strong Operational Oversight | 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 Fu Hong Society: Governance with Strong Operational Oversight are -
Developing new processes and practices
– Fhs Council can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fhs Council is facing challenges because of the dominance of functional experts in the organization. Fu Hong Society: Governance with Strong Operational Oversight 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.
Manufacturing automation
– Fhs Council 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 Fhs Council 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.
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. Fhs Council 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. Fhs Council 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.
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. Fhs Council can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Fhs Council has opened avenues for new revenue streams for the organization in the industry. This can help Fhs Council to build a more holistic ecosystem as suggested in the Fu Hong Society: Governance with Strong Operational Oversight case study. Fhs Council can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Fhs Council can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Fu Hong Society: Governance with Strong Operational Oversight 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fhs Council 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.
Using analytics as competitive advantage
– Fhs Council 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 Fu Hong Society: Governance with Strong Operational Oversight - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fhs Council to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Fhs Council 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fhs Council can use these opportunities to build new business models that can help the communities that Fhs Council operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fhs Council can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Fu Hong Society: Governance with Strong Operational Oversight External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fu Hong Society: Governance with Strong Operational Oversight are -
Technology acceleration in Forth Industrial Revolution
– Fhs Council has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Fhs Council 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fhs Council 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 Fu Hong Society: Governance with Strong Operational Oversight .
Stagnating economy with rate increase
– Fhs Council 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.
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.
Consumer confidence and its impact on Fhs Council 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.
High dependence on third party suppliers
– Fhs Council 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.
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. Fhs Council will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Fhs Council
– 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 Fhs Council.
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 Fhs Council in the Leadership & Managing People sector and impact the bottomline 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. Fhs Council can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fhs Council with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Fhs Council 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.
Weighted SWOT Analysis of Fu Hong Society: Governance with Strong Operational Oversight 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 Fu Hong Society: Governance with Strong Operational Oversight 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 Fu Hong Society: Governance with Strong Operational Oversight 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 Fu Hong Society: Governance with Strong Operational Oversight 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 Fu Hong Society: Governance with Strong Operational Oversight 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 Fhs Council needs to make to build a sustainable competitive advantage.