Enabling Business Strategy with IT at the World Bank SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Enabling Business Strategy with IT at the World Bank
To maximize their effectiveness, color cases should be printed in color.World Bank IT provides services (communications, applications, video conferencing, knowledge sharing, distance learning, information sharing, client commerce, crisis management, etc.) on a global basis to the poorest countries in the globe via satellites. This case covers the bank's global business strategy transformation and the role that IT plays in enabling that vision. Covers strategy and implementation topics and conveys a sense of using IT to narrow the digital divide on a global scale while recapping the evolution of the bank's IT strategy and implementation from 1995 to 2003.
Swot Analysis of "Enabling Business Strategy with IT at the World Bank" written by F. Warren McFarlan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Enabling Bank's facing as an external strategic factors. Some of the topics covered in Enabling Business Strategy with IT at the World Bank case study are - Strategic Management Strategies, Globalization, IT, Knowledge management, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Enabling Business Strategy with IT at the World Bank casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions, there is increasing trade war between United States & China, increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Enabling Business Strategy with IT at the World Bank
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Enabling Business Strategy with IT at the World Bank case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Enabling Bank's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Enabling Bank's 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 Enabling Business Strategy with IT at the World Bank can be done for the following purposes –
1. Strategic planning using facts provided in Enabling Business Strategy with IT at the World Bank case study
2. Improving business portfolio management of Enabling Bank's
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 Enabling Bank's
Strengths Enabling Business Strategy with IT at the World Bank | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Enabling Bank's in Enabling Business Strategy with IT at the World Bank Harvard Business Review case study are -
Diverse revenue streams
– Enabling Bank's is present in almost all the verticals within the industry. This has provided firm in Enabling Business Strategy with IT at the World Bank 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.
Superior customer experience
– The customer experience strategy of Enabling Bank's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Enabling Bank's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Enabling Bank's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Enabling Bank's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Enabling Business Strategy with IT at the World Bank 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Enabling Bank's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Enabling Bank's 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.
Analytics focus
– Enabling Bank's 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 F. Warren McFarlan 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Enabling Business Strategy with IT at the World Bank firm has clearly differentiated products in the market place. This has enabled Enabling Bank's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Enabling Bank's to invest into research and development (R&D) and innovation.
Innovation driven organization
– Enabling Bank's is one of the most innovative firm in sector. Manager in Enabling Business Strategy with IT at the World Bank Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Enabling Bank's 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.
Learning organization
- Enabling Bank's 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 Enabling Bank's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Enabling Business Strategy with IT at the World Bank Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Enabling Bank's 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 Enabling Business Strategy with IT at the World Bank HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Enabling Business Strategy with IT at the World Bank 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 Enabling Business Strategy with IT at the World Bank | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Enabling Business Strategy with IT at the World Bank are -
Increasing silos among functional specialists
– The organizational structure of Enabling Bank's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Enabling Bank's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Enabling Bank's to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Enabling Bank's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Enabling Business Strategy with IT at the World Bank can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Enabling Business Strategy with IT at the World Bank, 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.
Slow to strategic competitive environment developments
– As Enabling Business Strategy with IT at the World Bank HBR case study mentions - Enabling Bank's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Enabling Business Strategy with IT at the World Bank 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 Enabling Bank's has relatively successful track record of launching new products.
Products dominated business model
– Even though Enabling Bank's 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 - Enabling Business Strategy with IT at the World Bank should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Enabling Business Strategy with IT at the World Bank 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 Enabling Bank's 's lucrative customers.
High cash cycle compare to competitors
Enabling Bank's 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 Enabling Bank's products
– To increase the profitability and margins on the products, Enabling Bank's needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Enabling Bank's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Enabling Bank's 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.
Opportunities Enabling Business Strategy with IT at the World Bank | 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 Enabling Business Strategy with IT at the World Bank are -
Loyalty marketing
– Enabling Bank's 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.
Manufacturing automation
– Enabling Bank's 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.
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. Enabling Bank's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Enabling Bank's in the consumer business. Now Enabling Bank's 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, Enabling Bank's 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 Enabling Bank's has opened avenues for new revenue streams for the organization in the industry. This can help Enabling Bank's to build a more holistic ecosystem as suggested in the Enabling Business Strategy with IT at the World Bank case study. Enabling Bank's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Enabling Bank's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Enabling Business Strategy with IT at the World Bank 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.
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 Enabling Bank's 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.
Learning at scale
– Online learning technologies has now opened space for Enabling Bank's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Enabling Bank's can use these opportunities to build new business models that can help the communities that Enabling Bank's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Enabling Bank's 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. Enabling Bank's 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
– Enabling Bank's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Enabling Bank's is facing challenges because of the dominance of functional experts in the organization. Enabling Business Strategy with IT at the World Bank 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.
Threats Enabling Business Strategy with IT at the World Bank External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Enabling Business Strategy with IT at the World Bank are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Enabling Bank's 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 Enabling Bank's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Enabling Bank's 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 Enabling Business Strategy with IT at the World Bank .
Technology acceleration in Forth Industrial Revolution
– Enabling Bank's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Enabling Bank's 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.
Increasing wage structure of Enabling Bank's
– 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 Enabling Bank's.
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.
Regulatory challenges
– Enabling Bank's 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Enabling Bank's in the Strategy & Execution industry. The Strategy & Execution 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 Enabling Bank's 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.
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. Enabling Bank's 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.
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 Enabling Bank's in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Enabling Bank's 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.
Weighted SWOT Analysis of Enabling Business Strategy with IT at the World Bank 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 Enabling Business Strategy with IT at the World Bank 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 Enabling Business Strategy with IT at the World Bank 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 Enabling Business Strategy with IT at the World Bank 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 Enabling Business Strategy with IT at the World Bank 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 Enabling Bank's needs to make to build a sustainable competitive advantage.