Atam: Innovating in the Social Sector (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Atam: Innovating in the Social Sector (A)
Atam is an association of Grupo TelefA?nica, which was founded in 1973 with the aim of providing assistance for the disabled and elderly dependents. It was the result of an agreement between the company and its labor unions. It is a nonprofit, national organization, declared to be serving the public interest, and has 60,000 members belonging to 28 companies of the group. Atam has three major areas of action: individual financial support, direct-care facilities, and labor integration and employment.The case study describes the turning point that Atam experienced at the conclusion of its second strategic plan, covering the period from 2004 - 2008, upon completing a process of fundamental change, leading to an alteration in the direction that the association was taking, from a business and organizational standpoint. The group's director general, Ignacio AizpA?n, along with the president, Javier Clemente, and the management team completely revamped the company's strategy, structure and culture, creating clear goals and steps to be taken based on periodic strategic plans. Now, Atam is a more professional, qualified organization.At the end of the case study, the next step that needs to be taken in order to preserve this change and cope with the severe crisis in the industry, and in the Spanish economy in general, is introduced. Case B (DPO-245, "Atam: The Day After") closes the discussion by explaining the facts.
Authors :: Marta Elvira, Julia Prats Moreno, Luis Plaza Lopez
Swot Analysis of "Atam: Innovating in the Social Sector (A)" written by Marta Elvira, Julia Prats Moreno, Luis Plaza Lopez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Atam Clemente facing as an external strategic factors. Some of the topics covered in Atam: Innovating in the Social Sector (A) case study are - Strategic Management Strategies, Product development and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Atam: Innovating in the Social Sector (A) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic ,
increasing household debt because of falling income levels, geopolitical disruptions, etc
Introduction to SWOT Analysis of Atam: Innovating in the Social Sector (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Atam: Innovating in the Social Sector (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Atam Clemente, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Atam Clemente 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 Atam: Innovating in the Social Sector (A) can be done for the following purposes –
1. Strategic planning using facts provided in Atam: Innovating in the Social Sector (A) case study
2. Improving business portfolio management of Atam Clemente
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 Atam Clemente
Strengths Atam: Innovating in the Social Sector (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Atam Clemente in Atam: Innovating in the Social Sector (A) Harvard Business Review case study are -
Learning organization
- Atam Clemente 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 Atam Clemente is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Atam: Innovating in the Social Sector (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Atam Clemente has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Atam: Innovating in the Social Sector (A) 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
– Atam: Innovating in the Social Sector (A) firm has clearly differentiated products in the market place. This has enabled Atam Clemente to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Atam Clemente to invest into research and development (R&D) and innovation.
Analytics focus
– Atam Clemente 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 Marta Elvira, Julia Prats Moreno, Luis Plaza Lopez 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.
Highly skilled collaborators
– Atam Clemente 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 Atam: Innovating in the Social Sector (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Atam Clemente is present in almost all the verticals within the industry. This has provided firm in Atam: Innovating in the Social Sector (A) 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
– Atam Clemente has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Atam Clemente 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.
High brand equity
– Atam Clemente has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Atam Clemente to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Atam Clemente 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 Atam Clemente in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Atam Clemente is one of the leading recruiters in the industry. Managers in the Atam: Innovating in the Social Sector (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Atam Clemente has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Atam Clemente 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.
Weaknesses Atam: Innovating in the Social Sector (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Atam: Innovating in the Social Sector (A) are -
Aligning sales with marketing
– It come across in the case study Atam: Innovating in the Social Sector (A) 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 Atam: Innovating in the Social Sector (A) can leverage the sales team experience to cultivate customer relationships as Atam Clemente is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Atam: Innovating in the Social Sector (A) 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 Atam Clemente 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Atam Clemente 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.
Low market penetration in new markets
– Outside its home market of Atam Clemente, firm in the HBR case study Atam: Innovating in the Social Sector (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Atam Clemente products
– To increase the profitability and margins on the products, Atam Clemente needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Atam: Innovating in the Social Sector (A), in the dynamic environment Atam Clemente has struggled to respond to the nimble upstart competition. Atam Clemente has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Atam Clemente 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. Atam Clemente 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.
Interest costs
– Compare to the competition, Atam Clemente 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Atam: Innovating in the Social Sector (A), is just above the industry average. Atam Clemente 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.
Products dominated business model
– Even though Atam Clemente 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 - Atam: Innovating in the Social Sector (A) 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 Atam Clemente supply chain. Even after few cautionary changes mentioned in the HBR case study - Atam: Innovating in the Social Sector (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Atam Clemente vulnerable to further global disruptions in South East Asia.
Opportunities Atam: Innovating in the Social Sector (A) | 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 Atam: Innovating in the Social Sector (A) are -
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. Atam Clemente can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Atam Clemente can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Atam Clemente 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. Atam Clemente 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.
Manufacturing automation
– Atam Clemente 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Atam Clemente 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 Atam Clemente to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Atam Clemente can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Atam: Innovating in the Social Sector (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Atam Clemente 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.
Using analytics as competitive advantage
– Atam Clemente 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 Atam: Innovating in the Social Sector (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Atam Clemente to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Atam Clemente in the consumer business. Now Atam Clemente can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Atam Clemente 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.
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. Atam Clemente can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Atam Clemente has opened avenues for new revenue streams for the organization in the industry. This can help Atam Clemente to build a more holistic ecosystem as suggested in the Atam: Innovating in the Social Sector (A) case study. Atam Clemente can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Atam Clemente 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.
Threats Atam: Innovating in the Social Sector (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Atam: Innovating in the Social Sector (A) are -
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.
Technology acceleration in Forth Industrial Revolution
– Atam Clemente has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Atam Clemente 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.
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. Atam Clemente needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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. Atam Clemente can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Atam Clemente business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Atam Clemente 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.
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 Atam Clemente.
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 Atam Clemente in the Leadership & Managing People sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Atam Clemente is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Atam Clemente 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.
Regulatory challenges
– Atam Clemente 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.
Environmental challenges
– Atam Clemente 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. Atam Clemente can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Atam: Innovating in the Social Sector (A) 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 Atam: Innovating in the Social Sector (A) 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 Atam: Innovating in the Social Sector (A) 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 Atam: Innovating in the Social Sector (A) 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 Atam: Innovating in the Social Sector (A) 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 Atam Clemente needs to make to build a sustainable competitive advantage.
