Collateralized Loan Obligations and the Bistro Trust SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Collateralized Loan Obligations and the Bistro Trust
This case examines a large bank trying to protect itself from the risks and capital requirement created by its loan portfolio. Considers a variety of ways available to the firm to offload the risks.
Swot Analysis of "Collateralized Loan Obligations and the Bistro Trust" written by Kenneth A. Froot, Ivan Farman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Offload Loan facing as an external strategic factors. Some of the topics covered in Collateralized Loan Obligations and the Bistro Trust case study are - Strategic Management Strategies, Financial analysis, Financial management, Risk management, Strategy execution and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Collateralized Loan Obligations and the Bistro Trust casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, geopolitical disruptions, increasing energy prices,
increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Collateralized Loan Obligations and the Bistro Trust
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Collateralized Loan Obligations and the Bistro Trust case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Offload Loan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Offload Loan 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 Collateralized Loan Obligations and the Bistro Trust can be done for the following purposes –
1. Strategic planning using facts provided in Collateralized Loan Obligations and the Bistro Trust case study
2. Improving business portfolio management of Offload Loan
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 Offload Loan
Strengths Collateralized Loan Obligations and the Bistro Trust | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Offload Loan in Collateralized Loan Obligations and the Bistro Trust Harvard Business Review case study are -
Successful track record of launching new products
– Offload Loan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Offload Loan 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
– Offload Loan is one of the most innovative firm in sector. Manager in Collateralized Loan Obligations and the Bistro Trust Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Offload Loan is one of the leading recruiters in the industry. Managers in the Collateralized Loan Obligations and the Bistro Trust are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Finance & Accounting field
– Offload Loan 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 Offload Loan in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Offload Loan in the sector have low bargaining power. Collateralized Loan Obligations and the Bistro Trust has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Offload Loan to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Offload Loan in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Offload Loan has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Offload Loan to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Offload Loan 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 Collateralized Loan Obligations and the Bistro Trust HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Finance & Accounting industry
– Collateralized Loan Obligations and the Bistro Trust firm has clearly differentiated products in the market place. This has enabled Offload Loan to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Offload Loan to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Offload Loan 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.
Strong track record of project management
– Offload Loan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Offload Loan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Offload Loan has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Collateralized Loan Obligations and the Bistro Trust | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Collateralized Loan Obligations and the Bistro Trust are -
High bargaining power of channel partners
– Because of the regulatory requirements, Kenneth A. Froot, Ivan Farman suggests that, Offload Loan 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Collateralized Loan Obligations and the Bistro Trust, in the dynamic environment Offload Loan has struggled to respond to the nimble upstart competition. Offload Loan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Collateralized Loan Obligations and the Bistro Trust 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 Offload Loan 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Offload Loan 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.
Low market penetration in new markets
– Outside its home market of Offload Loan, firm in the HBR case study Collateralized Loan Obligations and the Bistro Trust needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Collateralized Loan Obligations and the Bistro Trust, it seems that the employees of Offload Loan 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 cash cycle compare to competitors
Offload Loan 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.
Capital Spending Reduction
– Even during the low interest decade, Offload Loan has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As Collateralized Loan Obligations and the Bistro Trust HBR case study mentions - Offload Loan 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.
Lack of clear differentiation of Offload Loan products
– To increase the profitability and margins on the products, Offload Loan needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Offload Loan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Collateralized Loan Obligations and the Bistro Trust can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Collateralized Loan Obligations and the Bistro Trust | 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 Collateralized Loan Obligations and the Bistro Trust are -
Using analytics as competitive advantage
– Offload Loan has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Collateralized Loan Obligations and the Bistro Trust - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Offload Loan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Offload Loan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Offload Loan can use these opportunities to build new business models that can help the communities that Offload Loan operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Offload Loan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Offload Loan 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.
Creating value in data economy
– The success of analytics program of Offload Loan has opened avenues for new revenue streams for the organization in the industry. This can help Offload Loan to build a more holistic ecosystem as suggested in the Collateralized Loan Obligations and the Bistro Trust case study. Offload Loan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Offload Loan 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.
Better consumer reach
– The expansion of the 5G network will help Offload Loan to increase its market reach. Offload Loan 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, Offload Loan is facing challenges because of the dominance of functional experts in the organization. Collateralized Loan Obligations and the Bistro Trust 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.
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 Offload Loan in the consumer business. Now Offload Loan can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Offload Loan 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Offload Loan 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Offload Loan 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, Collateralized Loan Obligations and the Bistro Trust, 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 Collateralized Loan Obligations and the Bistro Trust External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Collateralized Loan Obligations and the Bistro Trust are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Offload Loan 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 Collateralized Loan Obligations and the Bistro Trust .
Environmental challenges
– Offload Loan 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. Offload Loan can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Offload Loan business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Offload Loan 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.
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. Offload Loan needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Offload Loan is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Offload Loan.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Offload Loan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Offload Loan 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Collateralized Loan Obligations and the Bistro Trust, Offload Loan 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 .
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 Offload Loan in the Finance & Accounting sector and impact the bottomline of the organization.
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. Offload Loan can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Collateralized Loan Obligations and the Bistro Trust 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 Collateralized Loan Obligations and the Bistro Trust 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 Collateralized Loan Obligations and the Bistro Trust 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 Collateralized Loan Obligations and the Bistro Trust 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 Collateralized Loan Obligations and the Bistro Trust 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 Offload Loan needs to make to build a sustainable competitive advantage.
