The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B)
Supplement to case UV7343. The panic of 1857 stands out in financial history for its severity, for the coordination of banks through the New York Clearing House (NYCH), for the establishment of a legal doctrine about illiquidity during a panic, and for its aggravation of regional tensions. Profiled in this case are the events of the panic, the range of potential causes, and the civic reaction.
Swot Analysis of "The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B)" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Panic 1857 facing as an external strategic factors. Some of the topics covered in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) case study are - Strategic Management Strategies, Recession and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing transportation and logistics costs, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Panic 1857, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Panic 1857 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) can be done for the following purposes –
1. Strategic planning using facts provided in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) case study
2. Improving business portfolio management of Panic 1857
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 Panic 1857
Strengths The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Panic 1857 in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) Harvard Business Review case study are -
Sustainable margins compare to other players in Finance & Accounting industry
– The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) firm has clearly differentiated products in the market place. This has enabled Panic 1857 to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Panic 1857 to invest into research and development (R&D) and innovation.
Ability to lead change in Finance & Accounting field
– Panic 1857 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 Panic 1857 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Panic 1857
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Panic 1857 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Panic 1857 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Panic 1857 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Panic 1857 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Panic 1857 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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.
Learning organization
- Panic 1857 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 Panic 1857 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Panic 1857 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Panic 1857 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Panic 1857 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.
Diverse revenue streams
– Panic 1857 is present in almost all the verticals within the industry. This has provided firm in The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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.
Low bargaining power of suppliers
– Suppliers of Panic 1857 in the sector have low bargaining power. The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Panic 1857 to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) are -
Slow to strategic competitive environment developments
– As The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) HBR case study mentions - Panic 1857 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.
Increasing silos among functional specialists
– The organizational structure of Panic 1857 is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Panic 1857 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Panic 1857 to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B), in the dynamic environment Panic 1857 has struggled to respond to the nimble upstart competition. Panic 1857 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 Panic 1857 's lucrative customers.
High cash cycle compare to competitors
Panic 1857 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B), it seems that the employees of Panic 1857 don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on 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 Panic 1857 supply chain. Even after few cautionary changes mentioned in the HBR case study - The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Panic 1857 vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Panic 1857 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B), is just above the industry average. Panic 1857 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, Panic 1857 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.
Lack of clear differentiation of Panic 1857 products
– To increase the profitability and margins on the products, Panic 1857 needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) | 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Panic 1857 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.
Using analytics as competitive advantage
– Panic 1857 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Panic 1857 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 Panic 1857 in the consumer business. Now Panic 1857 can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Panic 1857 is facing challenges because of the dominance of functional experts in the organization. The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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.
Building a culture of innovation
– managers at Panic 1857 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.
Manufacturing automation
– Panic 1857 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Panic 1857 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 Panic 1857 to hire the very best people irrespective of their geographical location.
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. Panic 1857 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Panic 1857 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.
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 Panic 1857 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
– Panic 1857 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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.
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. Panic 1857 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Panic 1857 has opened avenues for new revenue streams for the organization in the industry. This can help Panic 1857 to build a more holistic ecosystem as suggested in the The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) case study. Panic 1857 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) are -
Shortening product life cycle
– it is one of the major threat that Panic 1857 is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Panic 1857 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.
Increasing wage structure of Panic 1857
– 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 Panic 1857.
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.
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. Panic 1857 needs to understand the core reasons impacting the Finance & Accounting 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 Panic 1857 business can come under increasing regulations regarding data privacy, data security, etc.
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 Panic 1857 in the Finance & Accounting sector and impact the bottomline of the organization.
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 Panic 1857.
Technology acceleration in Forth Industrial Revolution
– Panic 1857 has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Panic 1857 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Panic 1857 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) .
Regulatory challenges
– Panic 1857 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B), Panic 1857 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Weighted SWOT Analysis of The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 The Panic of 1857, the New York Clearing House, and the Concept of Insolvency (B) 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 Panic 1857 needs to make to build a sustainable competitive advantage.
