Case Study Description of EUROCAP Bank: Bonuses Driving Performance or Driving Discontent
By March 2000's first quarter evaluation, it was evident that EUROCAP Equities Japan had performed beyond expectations. Its primary year-2000 objective was to become the top-choice broker for its client for Japanese equities. However, when bonuses were handed out in March for 1999's performance, two key research analysts threatened to resign and the team was overall dispirited, as bonuses were lower than expected and lower than industry payouts. Key issues facing EUROCAP Equities Japan management included: How would key employees' expectations be managed in 2000? How was EUROCAP Equities Japan going to retain its employees in a bull-run with competitive pressures on the small local resource pool? How would employees be motivated through compensation packages, and what other methods would be used to make employees excel in their performance and thrust EUROCAP Equities Japan's performance into the limelight?
Authors :: Gilbert Wong, Heather McGregor, Shamza Khan, Pauline Ng
Swot Analysis of "EUROCAP Bank: Bonuses Driving Performance or Driving Discontent" written by Gilbert Wong, Heather McGregor, Shamza Khan, Pauline Ng includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eurocap Equities facing as an external strategic factors. Some of the topics covered in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent case study are - Strategic Management Strategies, Motivating people and Organizational Development.
Some of the macro environment factors that can be used to understand the EUROCAP Bank: Bonuses Driving Performance or Driving Discontent casestudy better are - – increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, wage bills are increasing, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of EUROCAP Bank: Bonuses Driving Performance or Driving Discontent
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eurocap Equities, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eurocap Equities 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent can be done for the following purposes –
1. Strategic planning using facts provided in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent case study
2. Improving business portfolio management of Eurocap Equities
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Eurocap Equities
Strengths EUROCAP Bank: Bonuses Driving Performance or Driving Discontent | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eurocap Equities in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent Harvard Business Review case study are -
Analytics focus
– Eurocap Equities 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 Gilbert Wong, Heather McGregor, Shamza Khan, Pauline Ng 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.
Successful track record of launching new products
– Eurocap Equities has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eurocap Equities 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.
Ability to lead change in Organizational Development field
– Eurocap Equities 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 Eurocap Equities in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Eurocap Equities 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.
Ability to recruit top talent
– Eurocap Equities is one of the leading recruiters in the industry. Managers in the EUROCAP Bank: Bonuses Driving Performance or Driving Discontent are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Eurocap Equities digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Eurocap Equities 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.
Training and development
– Eurocap Equities has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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.
Highly skilled collaborators
– Eurocap Equities 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Eurocap Equities 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 Eurocap Equities is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Eurocap Equities is present in almost all the verticals within the industry. This has provided firm in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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.
Strong track record of project management
– Eurocap Equities is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Eurocap Equities is one of the most innovative firm in sector. Manager in EUROCAP Bank: Bonuses Driving Performance or Driving Discontent Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses EUROCAP Bank: Bonuses Driving Performance or Driving Discontent | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EUROCAP Bank: Bonuses Driving Performance or Driving Discontent are -
High bargaining power of channel partners
– Because of the regulatory requirements, Gilbert Wong, Heather McGregor, Shamza Khan, Pauline Ng suggests that, Eurocap Equities 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.
Low market penetration in new markets
– Outside its home market of Eurocap Equities, firm in the HBR case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 Eurocap Equities 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Eurocap Equities is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Eurocap Equities needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eurocap Equities to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Eurocap Equities is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent, it seems that the employees of Eurocap Equities 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.
No frontier risks strategy
– After analyzing the HBR case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Eurocap Equities 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.
Slow decision making process
– As mentioned earlier in the report, Eurocap Equities 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. Eurocap Equities 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent, in the dynamic environment Eurocap Equities has struggled to respond to the nimble upstart competition. Eurocap Equities has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent can leverage the sales team experience to cultivate customer relationships as Eurocap Equities is planning to shift buying processes online.
Opportunities EUROCAP Bank: Bonuses Driving Performance or Driving Discontent | 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent are -
Buying journey improvements
– Eurocap Equities can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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.
Developing new processes and practices
– Eurocap Equities can develop new processes and procedures in Organizational Development 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, Eurocap Equities 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, EUROCAP Bank: Bonuses Driving Performance or Driving Discontent, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Eurocap Equities 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.
Creating value in data economy
– The success of analytics program of Eurocap Equities has opened avenues for new revenue streams for the organization in the industry. This can help Eurocap Equities to build a more holistic ecosystem as suggested in the EUROCAP Bank: Bonuses Driving Performance or Driving Discontent case study. Eurocap Equities can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Eurocap Equities in the consumer business. Now Eurocap Equities can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Eurocap Equities 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Eurocap Equities can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Eurocap Equities 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.
Using analytics as competitive advantage
– Eurocap Equities 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eurocap Equities to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Eurocap Equities can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eurocap Equities is facing challenges because of the dominance of functional experts in the organization. EUROCAP Bank: Bonuses Driving Performance or Driving Discontent case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Eurocap Equities to increase its market reach. Eurocap Equities 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.
Threats EUROCAP Bank: Bonuses Driving Performance or Driving Discontent External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EUROCAP Bank: Bonuses Driving Performance or Driving Discontent are -
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. Eurocap Equities needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eurocap Equities in the Organizational Development industry. The Organizational Development 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.
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.
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 Eurocap Equities 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, Eurocap Equities 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent .
Environmental challenges
– Eurocap Equities 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. Eurocap Equities can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Consumer confidence and its impact on Eurocap Equities 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.
Increasing wage structure of Eurocap Equities
– 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 Eurocap Equities.
High dependence on third party suppliers
– Eurocap Equities 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.
Shortening product life cycle
– it is one of the major threat that Eurocap Equities is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Eurocap Equities 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.
Regulatory challenges
– Eurocap Equities 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 Organizational Development industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Eurocap Equities 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 EUROCAP Bank: Bonuses Driving Performance or Driving Discontent 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 Eurocap Equities needs to make to build a sustainable competitive advantage.