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 transportation and logistics costs, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing energy prices,
technology disruption, there is increasing trade war between United States & China, 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 -
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.
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.
Operational resilience
– The operational resilience strategy in the The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 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.
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.
Highly skilled collaborators
– Greenbacks Chase has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Panic of 1861 and the Advent of Greenbacks and National Banking (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Sustainable margins compare to other players in Finance & Accounting industry
– The Panic of 1861 and the Advent of Greenbacks and National Banking (A) firm has clearly differentiated products in the market place. This has enabled Greenbacks Chase to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Greenbacks Chase to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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 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.
Products dominated business model
– Even though Greenbacks Chase has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - The Panic of 1861 and the Advent of Greenbacks and National Banking (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Greenbacks Chase 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, Greenbacks Chase 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.
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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Greenbacks Chase is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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 The Panic of 1861 and the Advent of Greenbacks and National Banking (A), it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Aligning sales with marketing
– It come across in the case study The Panic of 1861 and the Advent of Greenbacks and National Banking (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Panic of 1861 and the Advent of Greenbacks and National Banking (A) can leverage the sales team experience to cultivate customer relationships as Greenbacks Chase is planning to shift buying processes online.
Need for greater diversity
– Greenbacks Chase 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.
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 -
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.
Buying journey improvements
– Greenbacks Chase can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Panic of 1861 and the Advent of Greenbacks and National Banking (A) 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.
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. Greenbacks Chase 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. Greenbacks Chase 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 Greenbacks Chase 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Greenbacks Chase can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Greenbacks Chase can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Greenbacks Chase can use these opportunities to build new business models that can help the communities that Greenbacks Chase operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Greenbacks Chase 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.
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.
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.
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 -
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.
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. Greenbacks Chase 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.
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 .
Increasing wage structure of Greenbacks Chase
– 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 Greenbacks Chase.
Technology acceleration in Forth Industrial Revolution
– Greenbacks Chase has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Greenbacks Chase 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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Greenbacks Chase with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Greenbacks Chase 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. Greenbacks Chase can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Greenbacks Chase 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 1861 and the Advent of Greenbacks and National Banking (A) .
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.
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.
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.