Case Study Description of CIBC Corporate and Investment Banking (B)--1992-97
From 1992 to 1997, CIBC CEO Al Flood and head of investment banking John Hunkin integrate the struggling investment bank, Wood Gundy, with CIBC's corporate bank. The impact and interaction of organization design, compensation schemes, and communication initiatives are explored.
Swot Analysis of "CIBC Corporate and Investment Banking (B)--1992-97" written by Joseph L. Bower, Michael E. Raynor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cibc 1992 facing as an external strategic factors. Some of the topics covered in CIBC Corporate and Investment Banking (B)--1992-97 case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the CIBC Corporate and Investment Banking (B)--1992-97 casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of CIBC Corporate and Investment Banking (B)--1992-97
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CIBC Corporate and Investment Banking (B)--1992-97 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cibc 1992, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cibc 1992 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 CIBC Corporate and Investment Banking (B)--1992-97 can be done for the following purposes –
1. Strategic planning using facts provided in CIBC Corporate and Investment Banking (B)--1992-97 case study
2. Improving business portfolio management of Cibc 1992
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cibc 1992
Strengths CIBC Corporate and Investment Banking (B)--1992-97 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cibc 1992 in CIBC Corporate and Investment Banking (B)--1992-97 Harvard Business Review case study are -
Training and development
– Cibc 1992 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CIBC Corporate and Investment Banking (B)--1992-97 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.
Successful track record of launching new products
– Cibc 1992 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cibc 1992 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.
Innovation driven organization
– Cibc 1992 is one of the most innovative firm in sector. Manager in CIBC Corporate and Investment Banking (B)--1992-97 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Cibc 1992 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 Joseph L. Bower, Michael E. Raynor 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.
Highly skilled collaborators
– Cibc 1992 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 CIBC Corporate and Investment Banking (B)--1992-97 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Cibc 1992 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 Cibc 1992 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CIBC Corporate and Investment Banking (B)--1992-97 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cibc 1992 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cibc 1992 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.
Effective Research and Development (R&D)
– Cibc 1992 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study CIBC Corporate and Investment Banking (B)--1992-97 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Cibc 1992 in the sector have low bargaining power. CIBC Corporate and Investment Banking (B)--1992-97 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cibc 1992 to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– CIBC Corporate and Investment Banking (B)--1992-97 firm has clearly differentiated products in the market place. This has enabled Cibc 1992 to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cibc 1992 to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the CIBC Corporate and Investment Banking (B)--1992-97 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.
High brand equity
– Cibc 1992 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cibc 1992 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses CIBC Corporate and Investment Banking (B)--1992-97 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CIBC Corporate and Investment Banking (B)--1992-97 are -
High operating costs
– Compare to the competitors, firm in the HBR case study CIBC Corporate and Investment Banking (B)--1992-97 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 Cibc 1992 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Cibc 1992 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. Cibc 1992 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.
Capital Spending Reduction
– Even during the low interest decade, Cibc 1992 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.
Need for greater diversity
– Cibc 1992 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.
Increasing silos among functional specialists
– The organizational structure of Cibc 1992 is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cibc 1992 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cibc 1992 to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Joseph L. Bower, Michael E. Raynor suggests that, Cibc 1992 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.
Products dominated business model
– Even though Cibc 1992 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 - CIBC Corporate and Investment Banking (B)--1992-97 should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the CIBC Corporate and Investment Banking (B)--1992-97 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 Cibc 1992 has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Cibc 1992 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 to strategic competitive environment developments
– As CIBC Corporate and Investment Banking (B)--1992-97 HBR case study mentions - Cibc 1992 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 CIBC Corporate and Investment Banking (B)--1992-97, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities CIBC Corporate and Investment Banking (B)--1992-97 | 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 CIBC Corporate and Investment Banking (B)--1992-97 are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Cibc 1992 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.
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 Cibc 1992 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
– Cibc 1992 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CIBC Corporate and Investment Banking (B)--1992-97 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, Cibc 1992 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, CIBC Corporate and Investment Banking (B)--1992-97, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Cibc 1992 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.
Creating value in data economy
– The success of analytics program of Cibc 1992 has opened avenues for new revenue streams for the organization in the industry. This can help Cibc 1992 to build a more holistic ecosystem as suggested in the CIBC Corporate and Investment Banking (B)--1992-97 case study. Cibc 1992 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Cibc 1992 can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Building a culture of innovation
– managers at Cibc 1992 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 Strategy & Execution segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cibc 1992 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Cibc 1992 to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Cibc 1992 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cibc 1992 can use these opportunities to build new business models that can help the communities that Cibc 1992 operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Cibc 1992 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.
Threats CIBC Corporate and Investment Banking (B)--1992-97 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CIBC Corporate and Investment Banking (B)--1992-97 are -
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 Cibc 1992 in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Cibc 1992 is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Cibc 1992 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. Cibc 1992 can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cibc 1992 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
– Cibc 1992 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
– Cibc 1992 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 Strategy & Execution industry regulations.
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. Cibc 1992 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.
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. Cibc 1992 needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Cibc 1992 business can come under increasing regulations regarding data privacy, data security, etc.
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 Cibc 1992.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cibc 1992 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 CIBC Corporate and Investment Banking (B)--1992-97 .
Technology acceleration in Forth Industrial Revolution
– Cibc 1992 has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Cibc 1992 needs to keep up with the evolution of technology in the Strategy & Execution 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cibc 1992 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of CIBC Corporate and Investment Banking (B)--1992-97 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 CIBC Corporate and Investment Banking (B)--1992-97 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 CIBC Corporate and Investment Banking (B)--1992-97 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 CIBC Corporate and Investment Banking (B)--1992-97 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 CIBC Corporate and Investment Banking (B)--1992-97 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 Cibc 1992 needs to make to build a sustainable competitive advantage.
