Multigestao Renda Comercial (DRIT11B) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Multigestao Renda Comercial (Brazil)

Based on various researches at Oak Spring University , Multigestao Renda Comercial is operating in a macro-environment that has been destablized by – wage bills are increasing, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc

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Introduction to SWOT Analysis of Multigestao Renda Comercial

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Multigestao Renda Comercial can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Multigestao Renda Comercial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Multigestao Renda Comercial 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Multigestao Renda Comercial can be done for the following purposes –
1. Strategic planning of Multigestao Renda Comercial
2. Improving business portfolio management of Multigestao Renda Comercial
3. Assessing feasibility of the new initiative in Brazil
4. Making a NA sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Multigestao Renda Comercial

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Strengths of Multigestao Renda Comercial | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Multigestao Renda Comercial are -

Low bargaining power of suppliers

– Suppliers of Multigestao Renda Comercial in the NA sector have low bargaining power. Multigestao Renda Comercial has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Multigestao Renda Comercial to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy of Multigestao Renda Comercial comprises – understanding the underlying the factors in the NA 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.

Ability to recruit top talent

– Multigestao Renda Comercial is one of the leading players in the NA industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.

High brand equity

– Multigestao Renda Comercial has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Multigestao Renda Comercial to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– Multigestao Renda Comercial has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Multigestao Renda Comercial 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.

Training and development

– Multigestao Renda Comercial has one of the best training and development program in NA industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Learning organization

- Multigestao Renda Comercial 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 Multigestao Renda Comercial is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Multigestao Renda Comercial emphasize – knowledge, initiative, and innovation.

Highly skilled collaborators

– Multigestao Renda Comercial has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive NA industry. Secondly the value chain collaborators of Multigestao Renda Comercial have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management in the NA industry

– Multigestao Renda Comercial is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High switching costs

– The high switching costs that Multigestao Renda Comercial 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.

Digital Transformation in NA industry

- digital transformation varies from industry to industry. For Multigestao Renda Comercial digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Multigestao Renda Comercial 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.

Analytics focus

– Multigestao Renda Comercial 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 NA industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

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Weaknesses of Multigestao Renda Comercial | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Multigestao Renda Comercial are -

High cash cycle compare to competitors

Multigestao Renda Comercial has a high cash cycle compare to other players in the NA industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Low market penetration in new markets

– Outside its home market of Brazil, Multigestao Renda Comercial needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Increasing silos among functional specialists

– The organizational structure of Multigestao Renda Comercial is dominated by functional specialists. It is not different from other players in the NA industry, but Multigestao Renda Comercial needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Multigestao Renda Comercial to focus more on services in the NA industry rather than just following the product oriented approach.

Employees’ less understanding of Multigestao Renda Comercial strategy

– From the outside it seems that the employees of Multigestao Renda Comercial 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.

Compensation and incentives

– The revenue per employee of Multigestao Renda Comercial is just above the NA industry average. It 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.

Capital Spending Reduction

– Even during the low interest decade, Multigestao Renda Comercial 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 NA industry using digital technology.

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 Multigestao Renda Comercial supply chain. Even after few cautionary changes, Multigestao Renda Comercial is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Multigestao Renda Comercial vulnerable to further global disruptions in South East Asia.

Workers concerns about automation

– As automation is fast increasing in the NA industry, Multigestao Renda Comercial 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.

Aligning sales with marketing

– From the outside it seems that Multigestao Renda Comercial needs to have more collaboration between its sales team and marketing team. Sales professionals in the NA industry have deep experience in developing customer relationships. Marketing department at Multigestao Renda Comercial can leverage the sales team experience to cultivate customer relationships as Multigestao Renda Comercial is planning to shift buying processes online.

Ability to respond to the competition

– As the decision making is very deliberative at Multigestao Renda Comercial, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. Multigestao Renda Comercial has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High operating costs

– Compare to the competitors, Multigestao Renda Comercial has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Multigestao Renda Comercial lucrative customers.

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Multigestao Renda Comercial Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Multigestao Renda Comercial are -

Learning at scale

– Online learning technologies has now opened space for Multigestao Renda Comercial 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, Multigestao Renda Comercial can use these opportunities to build new business models that can help the communities that Multigestao Renda Comercial operates in. Secondly it can use opportunities from government spending in NA sector.

Building a culture of innovation

– managers at Multigestao Renda Comercial 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 NA industry.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Multigestao Renda Comercial is facing challenges because of the dominance of functional experts in the organization. Multigestao Renda Comercial can utilize new technology in the field of NA industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Better consumer reach

– The expansion of the 5G network will help Multigestao Renda Comercial to increase its market reach. Multigestao Renda Comercial will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Creating value in data economy

– The success of analytics program of Multigestao Renda Comercial has opened avenues for new revenue streams for the organization in NA industry. This can help Multigestao Renda Comercial to build a more holistic ecosystem for Multigestao Renda Comercial products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in NA industry, but it has also influenced the consumer preferences. Multigestao Renda Comercial can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Developing new processes and practices

– Multigestao Renda Comercial can develop new processes and procedures in NA 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Multigestao Renda Comercial 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 Multigestao Renda Comercial to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Leveraging digital technologies

– Multigestao Renda Comercial can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Multigestao Renda Comercial can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Multigestao Renda Comercial in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the NA industry, 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 Multigestao Renda Comercial 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 Multigestao Renda Comercial to hire the very best people irrespective of their geographical location.

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Threats Multigestao Renda Comercial External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Multigestao Renda Comercial are -

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. Multigestao Renda Comercial 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.

Easy access to finance

– Easy access to finance in NA industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Multigestao Renda Comercial can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

High dependence on third party suppliers

– Multigestao Renda Comercial 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents Multigestao Renda Comercial with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.

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.

Consumer confidence and its impact on Multigestao Renda Comercial 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 NA industry and other sectors.

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 Multigestao Renda Comercial business can come under increasing regulations regarding data privacy, data security, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Multigestao Renda Comercial 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 Multigestao Renda Comercial prominent markets.

Environmental challenges

– Multigestao Renda Comercial 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. Multigestao Renda Comercial can take advantage of this fund but it will also bring new competitors in the NA 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Multigestao Renda Comercial in NA industry. The NA 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.

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 Multigestao Renda Comercial in the NA sector and impact the bottomline of the organization.

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. Multigestao Renda Comercial needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Multigestao Renda Comercial Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Multigestao Renda Comercial 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 Multigestao Renda Comercial 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 Multigestao Renda Comercial 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 Multigestao Renda Comercial 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 Multigestao Renda Comercial needs to make to build a sustainable competitive advantage.

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