The Panic of 1861 and the Advent of Greenbacks and National Banking (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Panic of 1861 and the Advent of Greenbacks and National Banking (A)
Set in 1870, the case describes the situation of Supreme Court Chief Justice Salmon P. Chase, who must render an opinion in Hepburn v. Griswold, which challenges the constitutionality of the creation of a national fiat currency, so-called greenbacks. In 1862, Chase was Secretary of the Treasury in Abraham Lincoln's administration and reluctantly endorsed creating the greenbacks. Now, eight years later, he still harbors misgivings. The task for the student in this case is to recommend a decision. The larger consideration is to assess the massive pivot in US government financial policy that occurred in the 1860s.
Swot Analysis of "The Panic of 1861 and the Advent of Greenbacks and National Banking (A)" written by Robert F. Bruner, Michael T. Caires includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Greenbacks Chase facing as an external strategic factors. Some of the topics covered in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) case study are - Strategic Management Strategies, Financial analysis, Financial management, Innovation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Panic of 1861 and the Advent of Greenbacks and National Banking (A) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of The Panic of 1861 and the Advent of Greenbacks and National Banking (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Greenbacks Chase, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A) can be done for the following purposes –
1. Strategic planning using facts provided in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) case study
2. Improving business portfolio management of Greenbacks Chase
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 Greenbacks Chase
Strengths The Panic of 1861 and the Advent of Greenbacks and National Banking (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Greenbacks Chase in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) Harvard Business Review case study are -
Analytics focus
– Greenbacks Chase 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 Robert F. Bruner, Michael T. Caires 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.
Effective Research and Development (R&D)
– Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Greenbacks Chase
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Greenbacks Chase does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A) 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.
Ability to lead change in Finance & Accounting field
– Greenbacks Chase 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 Greenbacks Chase in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Greenbacks Chase are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Learning organization
- Greenbacks Chase 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 Greenbacks Chase is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Greenbacks Chase in the sector have low bargaining power. The Panic of 1861 and the Advent of Greenbacks and National Banking (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Greenbacks Chase to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Greenbacks Chase has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Greenbacks Chase 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.
High switching costs
– The high switching costs that Greenbacks Chase 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.
Superior customer experience
– The customer experience strategy of Greenbacks Chase in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Greenbacks Chase is one of the most innovative firm in sector. Manager in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses The Panic of 1861 and the Advent of Greenbacks and National Banking (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Panic of 1861 and the Advent of Greenbacks and National Banking (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 Greenbacks Chase has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner, Michael T. Caires suggests that, Greenbacks Chase 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.
Slow decision making process
– As mentioned earlier in the report, Greenbacks Chase 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. Greenbacks Chase 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 operating costs
– Compare to the competitors, firm in the HBR case study The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 Greenbacks Chase 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Greenbacks Chase 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Panic of 1861 and the Advent of Greenbacks and National Banking (A), in the dynamic environment Greenbacks Chase has struggled to respond to the nimble upstart competition. Greenbacks Chase has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Greenbacks Chase has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Greenbacks Chase products
– To increase the profitability and margins on the products, Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A), it seems that the employees of Greenbacks Chase 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 Greenbacks Chase supply chain. Even after few cautionary changes mentioned in the HBR case study - The Panic of 1861 and the Advent of Greenbacks and National Banking (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Greenbacks Chase vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Greenbacks Chase 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.
Opportunities The Panic of 1861 and the Advent of Greenbacks and National Banking (A) | 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 1861 and the Advent of Greenbacks and National Banking (A) are -
Creating value in data economy
– The success of analytics program of Greenbacks Chase has opened avenues for new revenue streams for the organization in the industry. This can help Greenbacks Chase to build a more holistic ecosystem as suggested in the The Panic of 1861 and the Advent of Greenbacks and National Banking (A) case study. Greenbacks Chase can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Greenbacks Chase 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.
Loyalty marketing
– Greenbacks Chase 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.
Developing new processes and practices
– Greenbacks Chase 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.
Leveraging digital technologies
– Greenbacks Chase 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.
Better consumer reach
– The expansion of the 5G network will help Greenbacks Chase to increase its market reach. Greenbacks Chase 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Greenbacks Chase is facing challenges because of the dominance of functional experts in the organization. The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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.
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 Greenbacks Chase 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.
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. Greenbacks Chase can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Greenbacks Chase 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.
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. Greenbacks Chase can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Greenbacks Chase in the consumer business. Now Greenbacks Chase can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 1861 and the Advent of Greenbacks and National Banking (A) 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. Greenbacks Chase needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
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 Greenbacks Chase in the Finance & Accounting sector and impact the bottomline of the organization.
Regulatory challenges
– Greenbacks Chase 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 Greenbacks Chase 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 The Panic of 1861 and the Advent of Greenbacks and National Banking (A), Greenbacks Chase 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 .
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 Greenbacks Chase 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.
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 Greenbacks Chase.
High dependence on third party suppliers
– Greenbacks Chase 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Greenbacks Chase can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Greenbacks Chase is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Greenbacks Chase 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.
Weighted SWOT Analysis of The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 1861 and the Advent of Greenbacks and National Banking (A) 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 1861 and the Advent of Greenbacks and National Banking (A) 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 1861 and the Advent of Greenbacks and National Banking (A) 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 1861 and the Advent of Greenbacks and National Banking (A) 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 Greenbacks Chase needs to make to build a sustainable competitive advantage.
