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 - – supply chains are disrupted by pandemic , increasing energy prices, there is backlash against globalization, wage bills are increasing, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Learning organization
- Fhs Council 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 Fhs Council is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fu Hong Society: Governance with Strong Operational Oversight Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Fhs Council has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Fu Hong Society: Governance with Strong Operational Oversight - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
Strong track record of project management
– Fhs Council is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Fhs Council has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Fu Hong Society: Governance with Strong Operational Oversight 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.
Organizational Resilience of Fhs Council
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fhs Council does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 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.
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.
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.
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 -
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.
Increasing silos among functional specialists
– The organizational structure of Fhs Council is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Fhs Council needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fhs Council to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Fu Hong Society: Governance with Strong Operational Oversight, is just above the industry average. Fhs Council needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Sammy Fung, Herman Chan, W.H. Lo suggests that, Fhs Council is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Fu Hong Society: Governance with Strong Operational Oversight, it seems that the employees of Fhs Council 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.
Need for greater diversity
– Fhs Council 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.
Slow decision making process
– As mentioned earlier in the report, Fhs Council 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. Fhs Council 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.
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.
Products dominated business model
– Even though Fhs Council 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 - Fu Hong Society: Governance with Strong Operational Oversight should strive to include more intangible value offerings along with its core products and services.
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.
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 -
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.
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.
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 Fhs Council in the consumer business. Now Fhs Council can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Fhs Council has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fhs Council 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, Fu Hong Society: Governance with Strong Operational Oversight, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fhs Council 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fhs Council 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 Fhs Council to hire the very best people irrespective of their geographical location.
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.
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.
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. Fhs Council can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fhs Council 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.
Environmental challenges
– Fhs Council 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. Fhs Council can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 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. Fhs Council 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 Fhs Council business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Shortening product life cycle
– it is one of the major threat that Fhs Council is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Fhs Council with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.