Case Study Description of Toronto-Dominion Bank -- Money Monitor
A new bank branch manager at a flagship branch is considering options to increase the sales of a computer-based financial program for commercial banking clients. Sales of the product had been below target and were sporadic, but bank executives considered the product to be of long-term strategic importance.
Authors :: Donald Barclay, Alicia Cestra, Royal Matthews
Swot Analysis of "Toronto-Dominion Bank -- Money Monitor" written by Donald Barclay, Alicia Cestra, Royal Matthews includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Branch Bank facing as an external strategic factors. Some of the topics covered in Toronto-Dominion Bank -- Money Monitor case study are - Strategic Management Strategies, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Toronto-Dominion Bank -- Money Monitor casestudy better are - – central banks are concerned over increasing inflation, there is backlash against globalization, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
supply chains are disrupted by pandemic , geopolitical disruptions, etc
Introduction to SWOT Analysis of Toronto-Dominion Bank -- Money Monitor
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Toronto-Dominion Bank -- Money Monitor case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Branch Bank, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Branch Bank 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 Toronto-Dominion Bank -- Money Monitor can be done for the following purposes –
1. Strategic planning using facts provided in Toronto-Dominion Bank -- Money Monitor case study
2. Improving business portfolio management of Branch Bank
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Branch Bank
Strengths Toronto-Dominion Bank -- Money Monitor | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Branch Bank in Toronto-Dominion Bank -- Money Monitor Harvard Business Review case study are -
Successful track record of launching new products
– Branch Bank has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Branch Bank 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.
Operational resilience
– The operational resilience strategy in the Toronto-Dominion Bank -- Money Monitor Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Branch Bank 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 Branch Bank is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Toronto-Dominion Bank -- Money Monitor Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Branch Bank in the sector have low bargaining power. Toronto-Dominion Bank -- Money Monitor has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Branch Bank to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Branch Bank is one of the most innovative firm in sector. Manager in Toronto-Dominion Bank -- Money Monitor Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Branch Bank digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Branch Bank has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Branch Bank is one of the leading recruiters in the industry. Managers in the Toronto-Dominion Bank -- Money Monitor are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Sales & Marketing industry
– Toronto-Dominion Bank -- Money Monitor firm has clearly differentiated products in the market place. This has enabled Branch Bank to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Branch Bank to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Branch Bank 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.
Organizational Resilience of Branch Bank
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Branch Bank does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Branch Bank has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Toronto-Dominion Bank -- Money Monitor 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.
Diverse revenue streams
– Branch Bank is present in almost all the verticals within the industry. This has provided firm in Toronto-Dominion Bank -- Money Monitor case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Toronto-Dominion Bank -- Money Monitor | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Toronto-Dominion Bank -- Money Monitor are -
High operating costs
– Compare to the competitors, firm in the HBR case study Toronto-Dominion Bank -- Money Monitor 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 Branch Bank 's lucrative customers.
Need for greater diversity
– Branch Bank 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.
Products dominated business model
– Even though Branch Bank 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 - Toronto-Dominion Bank -- Money Monitor should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Toronto-Dominion Bank -- Money Monitor 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 Toronto-Dominion Bank -- Money Monitor can leverage the sales team experience to cultivate customer relationships as Branch Bank is planning to shift buying processes online.
Lack of clear differentiation of Branch Bank products
– To increase the profitability and margins on the products, Branch Bank needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Toronto-Dominion Bank -- Money Monitor, it seems that the employees of Branch Bank 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Toronto-Dominion Bank -- Money Monitor HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Branch Bank has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Branch Bank 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.
Low market penetration in new markets
– Outside its home market of Branch Bank, firm in the HBR case study Toronto-Dominion Bank -- Money Monitor needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Branch Bank 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.
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 Branch Bank supply chain. Even after few cautionary changes mentioned in the HBR case study - Toronto-Dominion Bank -- Money Monitor, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Branch Bank vulnerable to further global disruptions in South East Asia.
Opportunities Toronto-Dominion Bank -- Money Monitor | 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 Toronto-Dominion Bank -- Money Monitor are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Branch Bank is facing challenges because of the dominance of functional experts in the organization. Toronto-Dominion Bank -- Money Monitor 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.
Buying journey improvements
– Branch Bank can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Toronto-Dominion Bank -- Money Monitor suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Low interest rates
– Even though inflation is raising its head in most developed economies, Branch Bank 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 Branch Bank has opened avenues for new revenue streams for the organization in the industry. This can help Branch Bank to build a more holistic ecosystem as suggested in the Toronto-Dominion Bank -- Money Monitor case study. Branch Bank can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Branch Bank 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. Branch Bank 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.
Developing new processes and practices
– Branch Bank can develop new processes and procedures in Sales & Marketing 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
– Branch Bank 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Branch Bank can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Branch Bank can use these opportunities to build new business models that can help the communities that Branch Bank operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Using analytics as competitive advantage
– Branch Bank 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 Toronto-Dominion Bank -- Money Monitor - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Branch Bank to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Branch Bank to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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 Branch Bank in the consumer business. Now Branch Bank can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Branch Bank 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.
Threats Toronto-Dominion Bank -- Money Monitor External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Toronto-Dominion Bank -- Money Monitor 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. Branch Bank 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Branch Bank with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Branch Bank 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Branch Bank 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 Toronto-Dominion Bank -- Money Monitor .
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 Branch Bank in the Sales & Marketing sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Branch Bank can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Branch Bank
– 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 Branch Bank.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Toronto-Dominion Bank -- Money Monitor, Branch Bank may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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 Branch Bank business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Branch Bank is facing in Sales & Marketing 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 Branch Bank in the Sales & Marketing industry. The Sales & Marketing 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.
Consumer confidence and its impact on Branch Bank 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.
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.
Weighted SWOT Analysis of Toronto-Dominion Bank -- Money Monitor 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 Toronto-Dominion Bank -- Money Monitor 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 Toronto-Dominion Bank -- Money Monitor 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 Toronto-Dominion Bank -- Money Monitor 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 Toronto-Dominion Bank -- Money Monitor 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 Branch Bank needs to make to build a sustainable competitive advantage.