FII BM Jardim Sul (JRDM11) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for FII BM Jardim Sul (Brazil)

Based on various researches at Oak Spring University , FII BM Jardim Sul is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, technology disruption, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, wage bills are increasing, etc

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Introduction to SWOT Analysis of FII BM Jardim Sul

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII BM Jardim Sul can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII BM Jardim Sul, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII BM Jardim Sul 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 FII BM Jardim Sul can be done for the following purposes –
1. Strategic planning of FII BM Jardim Sul
2. Improving business portfolio management of FII BM Jardim Sul
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 FII BM Jardim Sul

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Strengths of FII BM Jardim Sul | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of FII BM Jardim Sul are -

Superior customer experience

– The customer experience strategy of FII BM Jardim Sul in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Effective Research and Development (R&D)

– FII BM Jardim Sul has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII BM Jardim Sul staying ahead in the NA industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to lead change in NA

– FII BM Jardim Sul is one of the leading players in the NA industry in Brazil. Over the years it has not only transformed the business landscape in the NA industry in Brazil but also across the existing markets. The ability to lead change has enabled FII BM Jardim Sul in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy of FII BM Jardim Sul 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.

Cross disciplinary teams

– Horizontal connected teams at the FII BM Jardim Sul 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.

High brand equity

– FII BM Jardim Sul has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII BM Jardim Sul to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– FII BM Jardim Sul has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII BM Jardim Sul 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.

Digital Transformation in NA industry

- digital transformation varies from industry to industry. For FII BM Jardim Sul digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FII BM Jardim Sul 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.

High switching costs

– The high switching costs that FII BM Jardim Sul 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.

Innovation driven organization

– FII BM Jardim Sul is one of the most innovative firm in NA sector.

Strong track record of project management in the NA industry

– FII BM Jardim Sul is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Analytics focus

– FII BM Jardim Sul 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 FII BM Jardim Sul | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of FII BM Jardim Sul are -

Lack of clear differentiation of FII BM Jardim Sul products

– To increase the profitability and margins on the products, FII BM Jardim Sul needs to provide more differentiated products than what it is currently offering in the marketplace.

Interest costs

– Compare to the competition, FII BM Jardim Sul 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.

Employees’ less understanding of FII BM Jardim Sul strategy

– From the outside it seems that the employees of FII BM Jardim Sul 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.

Ability to respond to the competition

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

Capital Spending Reduction

– Even during the low interest decade, FII BM Jardim Sul 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 operating costs

– Compare to the competitors, FII BM Jardim Sul 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 FII BM Jardim Sul lucrative customers.

Low market penetration in new markets

– Outside its home market of Brazil, FII BM Jardim Sul needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Workers concerns about automation

– As automation is fast increasing in the NA industry, FII BM Jardim Sul 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.

Skills based hiring in NA industry

– The stress on hiring functional specialists at FII BM Jardim Sul 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.

Increasing silos among functional specialists

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

Need for greater diversity

– FII BM Jardim Sul 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.

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FII BM Jardim Sul Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of FII BM Jardim Sul are -

Buying journey improvements

– FII BM Jardim Sul can improve the customer journey of consumers in the NA industry by using analytics and artificial intelligence. It 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.

Manufacturing automation

– FII BM Jardim Sul can use the latest technology developments to improve its manufacturing and designing process in NA sector. 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.

Creating value in data economy

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

Building a culture of innovation

– managers at FII BM Jardim Sul 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.

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. FII BM Jardim Sul can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Harnessing reconfiguration of the global supply chains

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

Developing new processes and practices

– FII BM Jardim Sul 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.

Leveraging digital technologies

– FII BM Jardim Sul 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.

Use of Bitcoin and other crypto currencies for transactions in NA industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FII BM Jardim Sul in the NA industry. Now FII BM Jardim Sul can target international markets with far fewer capital restrictions requirements than the existing system.

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. FII BM Jardim Sul can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FII BM Jardim Sul 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 FII BM Jardim Sul to hire the very best people irrespective of their geographical location.

Redefining models of collaboration and team work

– As explained in the weaknesses section, FII BM Jardim Sul is facing challenges because of the dominance of functional experts in the organization. FII BM Jardim Sul 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.

Loyalty marketing

– FII BM Jardim Sul 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.

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Threats FII BM Jardim Sul External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of FII BM Jardim Sul are -

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 FII BM Jardim Sul.

Barriers of entry lowering

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

Shortening product life cycle

– it is one of the major threat that FII BM Jardim Sul is facing in NA 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.

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. FII BM Jardim Sul can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. FII BM Jardim Sul 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.

Technology acceleration in Forth Industrial Revolution

– FII BM Jardim Sul has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FII BM Jardim Sul needs to keep up with the evolution of technology in the NA 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.

Stagnating economy with rate increase

– FII BM Jardim Sul 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 NA industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, FII BM Jardim Sul may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of NA sector.

Environmental challenges

– FII BM Jardim Sul 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. FII BM Jardim Sul can take advantage of this fund but it will also bring new competitors in the NA industry.

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 FII BM Jardim Sul in the NA sector and impact the bottomline of the organization.

Increasing wage structure of FII BM Jardim Sul

– 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 FII BM Jardim Sul.

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 FII BM Jardim Sul business can come under increasing regulations regarding data privacy, data security, etc.

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Weighted SWOT Analysis of FII BM Jardim Sul Template, Example

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

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