Case Study Description of Pinpoint Consulting - Credit Card Portfolio Valuation
Pinpoint Consulting, a multi-billion dollar strategy consulting firm, has been hired by Dart Financial Corporation to provide advice on the potential acquisition of a credit card portfolio. An analyst has the task of building a model and making recommendations. The price was set at $60 million and the analyst must assess whether the portfolio would be an attractive opportunity and suitable fit for Dart Financial.
Swot Analysis of "Pinpoint Consulting - Credit Card Portfolio Valuation" written by Srinivas Krishnamoorthy, Devin Chetan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dart Pinpoint facing as an external strategic factors. Some of the topics covered in Pinpoint Consulting - Credit Card Portfolio Valuation case study are - Strategic Management Strategies, Financial management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Pinpoint Consulting - Credit Card Portfolio Valuation casestudy better are - – increasing commodity prices, supply chains are disrupted by pandemic , there is backlash against globalization, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies,
technology disruption, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Pinpoint Consulting - Credit Card Portfolio Valuation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pinpoint Consulting - Credit Card Portfolio Valuation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dart Pinpoint, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dart Pinpoint 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 Pinpoint Consulting - Credit Card Portfolio Valuation can be done for the following purposes –
1. Strategic planning using facts provided in Pinpoint Consulting - Credit Card Portfolio Valuation case study
2. Improving business portfolio management of Dart Pinpoint
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 Dart Pinpoint
Strengths Pinpoint Consulting - Credit Card Portfolio Valuation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dart Pinpoint in Pinpoint Consulting - Credit Card Portfolio Valuation Harvard Business Review case study are -
High brand equity
– Dart Pinpoint has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dart Pinpoint to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Dart Pinpoint
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dart Pinpoint does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Dart Pinpoint is one of the leading recruiters in the industry. Managers in the Pinpoint Consulting - Credit Card Portfolio Valuation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Dart Pinpoint 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 Dart Pinpoint is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pinpoint Consulting - Credit Card Portfolio Valuation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Pinpoint Consulting - Credit Card Portfolio Valuation 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.
Superior customer experience
– The customer experience strategy of Dart Pinpoint in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Dart Pinpoint 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 Dart Pinpoint in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Dart Pinpoint in the sector have low bargaining power. Pinpoint Consulting - Credit Card Portfolio Valuation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dart Pinpoint to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Dart Pinpoint is present in almost all the verticals within the industry. This has provided firm in Pinpoint Consulting - Credit Card Portfolio Valuation 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dart Pinpoint digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dart Pinpoint 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)
– Dart Pinpoint 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 Pinpoint Consulting - Credit Card Portfolio Valuation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Pinpoint Consulting - Credit Card Portfolio Valuation firm has clearly differentiated products in the market place. This has enabled Dart Pinpoint to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dart Pinpoint to invest into research and development (R&D) and innovation.
Weaknesses Pinpoint Consulting - Credit Card Portfolio Valuation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pinpoint Consulting - Credit Card Portfolio Valuation are -
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 Dart Pinpoint supply chain. Even after few cautionary changes mentioned in the HBR case study - Pinpoint Consulting - Credit Card Portfolio Valuation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dart Pinpoint vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Dart Pinpoint 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.
Lack of clear differentiation of Dart Pinpoint products
– To increase the profitability and margins on the products, Dart Pinpoint needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Dart Pinpoint 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Pinpoint Consulting - Credit Card Portfolio Valuation, is just above the industry average. Dart Pinpoint needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
No frontier risks strategy
– After analyzing the HBR case study Pinpoint Consulting - Credit Card Portfolio Valuation, 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.
Low market penetration in new markets
– Outside its home market of Dart Pinpoint, firm in the HBR case study Pinpoint Consulting - Credit Card Portfolio Valuation 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 Pinpoint Consulting - Credit Card Portfolio Valuation 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 Dart Pinpoint 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pinpoint Consulting - Credit Card Portfolio Valuation, in the dynamic environment Dart Pinpoint has struggled to respond to the nimble upstart competition. Dart Pinpoint has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pinpoint Consulting - Credit Card Portfolio Valuation 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 Dart Pinpoint has relatively successful track record of launching new products.
Need for greater diversity
– Dart Pinpoint 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.
Opportunities Pinpoint Consulting - Credit Card Portfolio Valuation | 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 Pinpoint Consulting - Credit Card Portfolio Valuation are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dart Pinpoint can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dart Pinpoint to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Dart Pinpoint to hire the very best people irrespective of their geographical location.
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 Dart Pinpoint in the consumer business. Now Dart Pinpoint can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Dart Pinpoint can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Dart Pinpoint 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.
Developing new processes and practices
– Dart Pinpoint can develop new processes and procedures in Strategy & Execution 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.
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 Dart Pinpoint 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.
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. Dart Pinpoint can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dart Pinpoint 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, Pinpoint Consulting - Credit Card Portfolio Valuation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dart Pinpoint can use these opportunities to build new business models that can help the communities that Dart Pinpoint operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dart Pinpoint 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.
Loyalty marketing
– Dart Pinpoint 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dart Pinpoint 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.
Threats Pinpoint Consulting - Credit Card Portfolio Valuation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pinpoint Consulting - Credit Card Portfolio Valuation are -
Consumer confidence and its impact on Dart Pinpoint 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.
Regulatory challenges
– Dart Pinpoint 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.
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. Dart Pinpoint can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Dart Pinpoint has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Dart Pinpoint 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.
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. Dart Pinpoint needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Dart Pinpoint 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 Dart Pinpoint with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Dart Pinpoint 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. Dart Pinpoint can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing wage structure of Dart Pinpoint
– 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 Dart Pinpoint.
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.
High dependence on third party suppliers
– Dart Pinpoint 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 Dart Pinpoint is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Pinpoint Consulting - Credit Card Portfolio Valuation 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 Pinpoint Consulting - Credit Card Portfolio Valuation 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 Pinpoint Consulting - Credit Card Portfolio Valuation 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 Pinpoint Consulting - Credit Card Portfolio Valuation 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 Pinpoint Consulting - Credit Card Portfolio Valuation 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 Dart Pinpoint needs to make to build a sustainable competitive advantage.