Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A)
The managing partners of a public accounting firm must resolve a number of staff requests for assistance in deciding how audit clients should report their revenues. Each example explores whether revenues should be reported on a gross or net basis.
Swot Analysis of "Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A)" written by David F. Hawkins includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gross Blaine facing as an external strategic factors. Some of the topics covered in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) case study are - Strategic Management Strategies, Financial management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) casestudy better are - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing commodity prices,
supply chains are disrupted by pandemic , geopolitical disruptions, etc
Introduction to SWOT Analysis of Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gross Blaine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gross Blaine 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 Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) can be done for the following purposes –
1. Strategic planning using facts provided in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) case study
2. Improving business portfolio management of Gross Blaine
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gross Blaine
Strengths Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gross Blaine in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Gross Blaine 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 Finance & Accounting segment
- digital transformation varies from industry to industry. For Gross Blaine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gross Blaine 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
– Gross Blaine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Gross Blaine is one of the leading recruiters in the industry. Managers in the Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Gross Blaine is present in almost all the verticals within the industry. This has provided firm in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Gross Blaine 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 Gross Blaine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Gross Blaine
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gross Blaine does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Gross Blaine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gross Blaine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Gross Blaine 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 Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Gross Blaine is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Finance & Accounting industry
– Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) firm has clearly differentiated products in the market place. This has enabled Gross Blaine to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Gross Blaine to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) 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.
Weaknesses Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) are -
Slow to strategic competitive environment developments
– As Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) HBR case study mentions - Gross Blaine takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A), it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A), it seems that the employees of Gross Blaine 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 cash cycle compare to competitors
Gross Blaine has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners
– Because of the regulatory requirements, David F. Hawkins suggests that, Gross Blaine 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gross Blaine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Gross Blaine 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.
Increasing silos among functional specialists
– The organizational structure of Gross Blaine is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Gross Blaine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gross Blaine to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Gross Blaine 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.
Need for greater diversity
– Gross Blaine 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.
Skills based hiring
– The stress on hiring functional specialists at Gross Blaine 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.
Opportunities Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) are -
Building a culture of innovation
– managers at Gross Blaine 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 Finance & Accounting segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gross Blaine 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. Gross Blaine 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
– Gross Blaine can develop new processes and procedures in Finance & Accounting 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gross Blaine in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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. Gross Blaine can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Gross Blaine can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Using analytics as competitive advantage
– Gross Blaine 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 Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gross Blaine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Gross Blaine in the consumer business. Now Gross Blaine can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gross Blaine 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Gross Blaine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Gross Blaine 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.
Buying journey improvements
– Gross Blaine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gross Blaine 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, Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) are -
Increasing wage structure of Gross Blaine
– 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 Gross Blaine.
Shortening product life cycle
– it is one of the major threat that Gross Blaine is facing in Finance & Accounting 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 Gross Blaine in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Gross Blaine 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 Finance & Accounting industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gross Blaine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Gross Blaine has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Gross Blaine needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Gross Blaine needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Gross Blaine 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. Gross Blaine can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gross Blaine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Gross Blaine 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.
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 Gross Blaine.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gross Blaine 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 Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) .
Weighted SWOT Analysis of Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Blaine & Mason, LLP: Gross vs. Net Revenue Reporting (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Gross Blaine needs to make to build a sustainable competitive advantage.
