The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged)
In 1837, President Martin Van Buren confronted a dilemma over the appropriate federal response to the recent panic of 1837 that seemed to undercut the policies and power of Andrew Jackson's "Democracy." Now, Van Buren must decide how best to harness the civic reaction in stabilizing the financial system and returning the American economy to growth. Van Buren's dilemma occurs in the midst of a dramatic regime shift in American politics. The rise of Whig politicians in reaction to the populist policies of Andrew Jackson marked 1837 as an historic pivot-point. It is useful to consider how the panic of 1837 contributed to that pivot and how the subsequent civic reaction to the panic developed. The A case recounts the policies of President Andrew Jackson and his "war" on the Second Bank of the United States, a quasi-central bank. It also describes the "market revolution" occurring in the U.S. economy and the political factions that had emerged. Finally, it summarizes the causes and story of the panic of 1837. The B case presents draft legislation for an Independent Treasury and President Van Buren's message with which he aimed to open a special session of the U.S. Congress and enact the Independent Treasury proposal. The C case describes the failures to enact the proposal in 1837, 1838, and 1839-ultimately the proposal was enacted in 1840. The case also describes other civic reactions: a new Bankruptcy Act and state-level "free banking" laws. Finally, the case describes the economic aftermath: another panic in 1839 and a long depression that ensued.
Swot Analysis of "The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged)" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 1837 Panic facing as an external strategic factors. Some of the topics covered in The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) case study are - Strategic Management Strategies, Financial management, Recession and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) casestudy better are - – challanges to central banks by blockchain based private currencies, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion,
technology disruption, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 1837 Panic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 1837 Panic 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 1837 and the Market Revolution in America (A) and (B) (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) case study
2. Improving business portfolio management of 1837 Panic
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 1837 Panic
Strengths The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 1837 Panic in The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) Harvard Business Review case study are -
Training and development
– 1837 Panic 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 1837 and the Market Revolution in America (A) and (B) (Abridged) 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.
Effective Research and Development (R&D)
– 1837 Panic 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 1837 and the Market Revolution in America (A) and (B) (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– 1837 Panic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– 1837 Panic is present in almost all the verticals within the industry. This has provided firm in The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) 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.
Successful track record of launching new products
– 1837 Panic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 1837 Panic 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.
Low bargaining power of suppliers
– Suppliers of 1837 Panic in the sector have low bargaining power. The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 1837 Panic to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– 1837 Panic is one of the leading recruiters in the industry. Managers in the The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Finance & Accounting industry
– The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) firm has clearly differentiated products in the market place. This has enabled 1837 Panic to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped 1837 Panic to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the 1837 Panic 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For 1837 Panic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 1837 Panic 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.
Organizational Resilience of 1837 Panic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 1837 Panic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Finance & Accounting field
– 1837 Panic 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 1837 Panic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) are -
Interest costs
– Compare to the competition, 1837 Panic has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Workers concerns about automation
– As automation is fast increasing in the segment, 1837 Panic 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.
Need for greater diversity
– 1837 Panic 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.
Slow to strategic competitive environment developments
– As The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) HBR case study mentions - 1837 Panic 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.
Low market penetration in new markets
– Outside its home market of 1837 Panic, firm in the HBR case study The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at 1837 Panic 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.
Lack of clear differentiation of 1837 Panic products
– To increase the profitability and margins on the products, 1837 Panic needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged), it seems that the employees of 1837 Panic 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.
Capital Spending Reduction
– Even during the low interest decade, 1837 Panic 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.
Slow decision making process
– As mentioned earlier in the report, 1837 Panic 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. 1837 Panic 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, 1837 Panic 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.
Opportunities The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) | 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 1837 and the Market Revolution in America (A) and (B) (Abridged) are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 1837 Panic can use these opportunities to build new business models that can help the communities that 1837 Panic operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 1837 Panic 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, The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– 1837 Panic 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 1837 and the Market Revolution in America (A) and (B) (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 1837 Panic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. 1837 Panic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. 1837 Panic 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. 1837 Panic 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.
Learning at scale
– Online learning technologies has now opened space for 1837 Panic 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, 1837 Panic 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.
Buying journey improvements
– 1837 Panic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) 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.
Developing new processes and practices
– 1837 Panic 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.
Loyalty marketing
– 1837 Panic 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.
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 1837 Panic 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 1837 Panic 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 1837 Panic to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of 1837 Panic has opened avenues for new revenue streams for the organization in the industry. This can help 1837 Panic to build a more holistic ecosystem as suggested in the The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) case study. 1837 Panic can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 and the Market Revolution in America (A) and (B) (Abridged) are -
Consumer confidence and its impact on 1837 Panic 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 1837 Panic 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 1837 Panic 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 1837 and the Market Revolution in America (A) and (B) (Abridged) .
Stagnating economy with rate increase
– 1837 Panic 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.
High dependence on third party suppliers
– 1837 Panic 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.
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.
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 1837 Panic 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 1837 Panic.
Environmental challenges
– 1837 Panic 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. 1837 Panic can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Technology acceleration in Forth Industrial Revolution
– 1837 Panic has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, 1837 Panic 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.
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.
Regulatory challenges
– 1837 Panic 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.
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 1837 Panic business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of The Panic of 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 and the Market Revolution in America (A) and (B) (Abridged) 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 1837 Panic needs to make to build a sustainable competitive advantage.
