Case Study Description of Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note
Supplement to case W17762. This technical note covers statistical models such as scorecards, decision trees, random forest models, and neural networks for decision making. The Basel II framework and Rete algorithm are also expressed. This technical note is best used with product 9B17M177. Tuhin Sengupta is affiliated with Indian Institute of Management Indore.
Swot Analysis of "Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note" written by Shrestha Pratik, Tuhin Sengupta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 9b17m177 Rete facing as an external strategic factors. Some of the topics covered in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note casestudy better are - – increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, technology disruption,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 9b17m177 Rete, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 9b17m177 Rete 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note can be done for the following purposes –
1. Strategic planning using facts provided in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note case study
2. Improving business portfolio management of 9b17m177 Rete
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of 9b17m177 Rete
Strengths Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 9b17m177 Rete in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of 9b17m177 Rete in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of 9b17m177 Rete
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 9b17m177 Rete does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– 9b17m177 Rete 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- 9b17m177 Rete 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 9b17m177 Rete is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– 9b17m177 Rete is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– 9b17m177 Rete 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 Shrestha Pratik, Tuhin Sengupta 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.
High switching costs
– The high switching costs that 9b17m177 Rete has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– 9b17m177 Rete has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 9b17m177 Rete to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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.
Cross disciplinary teams
– Horizontal connected teams at the 9b17m177 Rete 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.
Successful track record of launching new products
– 9b17m177 Rete has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 9b17m177 Rete has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– 9b17m177 Rete is one of the most innovative firm in sector. Manager in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note are -
High operating costs
– Compare to the competitors, firm in the HBR case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 9b17m177 Rete 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, is just above the industry average. 9b17m177 Rete 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, it seems that the employees of 9b17m177 Rete 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.
Slow decision making process
– As mentioned earlier in the report, 9b17m177 Rete 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. 9b17m177 Rete 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, in the dynamic environment 9b17m177 Rete has struggled to respond to the nimble upstart competition. 9b17m177 Rete has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 9b17m177 Rete is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, it seems that company is thinking about the frontier risks that can impact Global Business 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.
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 9b17m177 Rete supply chain. Even after few cautionary changes mentioned in the HBR case study - Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 9b17m177 Rete vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Shrestha Pratik, Tuhin Sengupta suggests that, 9b17m177 Rete 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 9b17m177 Rete products
– To increase the profitability and margins on the products, 9b17m177 Rete needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of 9b17m177 Rete is dominated by functional specialists. It is not different from other players in the Global Business segment. 9b17m177 Rete needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 9b17m177 Rete to focus more on services rather than just following the product oriented approach.
Opportunities Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note | 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, 9b17m177 Rete is facing challenges because of the dominance of functional experts in the organization. Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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.
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. 9b17m177 Rete can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for 9b17m177 Rete in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 9b17m177 Rete can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– 9b17m177 Rete can develop new processes and procedures in Global Business 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 9b17m177 Rete 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 9b17m177 Rete to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at 9b17m177 Rete 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 Global Business segment.
Creating value in data economy
– The success of analytics program of 9b17m177 Rete has opened avenues for new revenue streams for the organization in the industry. This can help 9b17m177 Rete to build a more holistic ecosystem as suggested in the Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note case study. 9b17m177 Rete can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 9b17m177 Rete can use these opportunities to build new business models that can help the communities that 9b17m177 Rete operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for 9b17m177 Rete to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. 9b17m177 Rete can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 9b17m177 Rete in the consumer business. Now 9b17m177 Rete can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– 9b17m177 Rete can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Threats Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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. 9b17m177 Rete needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– 9b17m177 Rete has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, 9b17m177 Rete needs to keep up with the evolution of technology in the Global Business 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 9b17m177 Rete
– 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 9b17m177 Rete.
Regulatory challenges
– 9b17m177 Rete 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 Global Business industry regulations.
Consumer confidence and its impact on 9b17m177 Rete 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.
Environmental challenges
– 9b17m177 Rete 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. 9b17m177 Rete can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Shortening product life cycle
– it is one of the major threat that 9b17m177 Rete is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, 9b17m177 Rete may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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 9b17m177 Rete business can come under increasing regulations regarding data privacy, data security, 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.
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 9b17m177 Rete.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. 9b17m177 Rete can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 9b17m177 Rete in the Global Business industry. The Global Business 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.
Weighted SWOT Analysis of Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 9b17m177 Rete needs to make to build a sustainable competitive advantage.