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 energy prices, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , technology disruption, increasing transportation and logistics costs, increasing commodity prices,
increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, 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 -
Training and development
– 9b17m177 Rete has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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.
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.
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.
Ability to recruit top talent
– 9b17m177 Rete is one of the leading recruiters in the industry. Managers in the Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Low bargaining power of suppliers
– Suppliers of 9b17m177 Rete in the sector have low bargaining power. Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 9b17m177 Rete to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
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 -
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 strategic competitive environment developments
– As Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note HBR case study mentions - 9b17m177 Rete 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 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note 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 9b17m177 Rete has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, 9b17m177 Rete 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.
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.
Need for greater diversity
– 9b17m177 Rete 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 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.
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.
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.
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 -
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, 9b17m177 Rete 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.
Better consumer reach
– The expansion of the 5G network will help 9b17m177 Rete to increase its market reach. 9b17m177 Rete will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. 9b17m177 Rete 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. 9b17m177 Rete 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.
Loyalty marketing
– 9b17m177 Rete 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.
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.
Leveraging digital technologies
– 9b17m177 Rete can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 9b17m177 Rete 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, Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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 9b17m177 Rete 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.
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.
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 -
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High 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.
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.
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 .
High dependence on third party suppliers
– 9b17m177 Rete 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.
Stagnating economy with rate increase
– 9b17m177 Rete 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 9b17m177 Rete with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. 9b17m177 Rete 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 9b17m177 Rete in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 9b17m177 Rete 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 Credit Guarantee Corporation: Accommodating an Expansion Strategy, Note .
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.
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.
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.
