The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Panic of 1791: Hamilton's Reports and the Rise of Faction (B)
Supplement to case UV7332. On December 5, 1791, Secretary of the Treasury Alexander Hamilton presented to Congress his "Report on the Subject of Manufactures," which proposed significant government support for nascent American industry through tariffs, subsidies, and other incentives. It seemed that Hamilton's politico-economic vision for America had substantial political momentum, yet James Madison and his circle viewed Hamilton's proposals with alarm, and a financial panic in August-September, 1791, raised new anxieties about the rapid political and economic changes occurring in the United States. In the face of these concerns, would Congress sustain its support for Hamilton's vision? This B case explores the reactions to and events following Hamilton's Report on Manufactures.
Swot Analysis of "The Panic of 1791: Hamilton's Reports and the Rise of Faction (B)" written by Robert F. Bruner, Scott Miller includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hamilton's 1791 facing as an external strategic factors. Some of the topics covered in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) case study are - Strategic Management Strategies, Financial management, Policy, Recession and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) casestudy better are - – increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing energy prices, supply chains are disrupted by pandemic , increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of The Panic of 1791: Hamilton's Reports and the Rise of Faction (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hamilton's 1791, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B) can be done for the following purposes –
1. Strategic planning using facts provided in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) case study
2. Improving business portfolio management of Hamilton's 1791
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 Hamilton's 1791
Strengths The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hamilton's 1791 in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) Harvard Business Review case study are -
Learning organization
- Hamilton's 1791 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 Hamilton's 1791 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B) 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.
Strong track record of project management
– Hamilton's 1791 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Finance & Accounting field
– Hamilton's 1791 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 Hamilton's 1791 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Hamilton's 1791
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hamilton's 1791 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Finance & Accounting industry
– The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) firm has clearly differentiated products in the market place. This has enabled Hamilton's 1791 to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Hamilton's 1791 to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Hamilton's 1791 is present in almost all the verticals within the industry. This has provided firm in The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to recruit top talent
– Hamilton's 1791 is one of the leading recruiters in the industry. Managers in the The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Hamilton's 1791 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hamilton's 1791 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.
Successful track record of launching new products
– Hamilton's 1791 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hamilton's 1791 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.
Highly skilled collaborators
– Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) are -
No frontier risks strategy
– After analyzing the HBR case study The Panic of 1791: Hamilton's Reports and the Rise of Faction (B), 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 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) can leverage the sales team experience to cultivate customer relationships as Hamilton's 1791 is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Panic of 1791: Hamilton's Reports and the Rise of Faction (B), it seems that the employees of Hamilton's 1791 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.
Capital Spending Reduction
– Even during the low interest decade, Hamilton's 1791 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) 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 Hamilton's 1791 has relatively successful track record of launching new products.
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 Hamilton's 1791 supply chain. Even after few cautionary changes mentioned in the HBR case study - The Panic of 1791: Hamilton's Reports and the Rise of Faction (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hamilton's 1791 vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Hamilton's 1791 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. Hamilton's 1791 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.
Skills based hiring
– The stress on hiring functional specialists at Hamilton's 1791 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) 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 Hamilton's 1791 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Hamilton's 1791 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Panic of 1791: Hamilton's Reports and the Rise of Faction (B), in the dynamic environment Hamilton's 1791 has struggled to respond to the nimble upstart competition. Hamilton's 1791 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) | 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 1791: Hamilton's Reports and the Rise of Faction (B) are -
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 Hamilton's 1791 in the consumer business. Now Hamilton's 1791 can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hamilton's 1791 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Hamilton's 1791 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.
Developing new processes and practices
– Hamilton's 1791 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hamilton's 1791 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Hamilton's 1791 to increase its market reach. Hamilton's 1791 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.
Leveraging digital technologies
– Hamilton's 1791 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.
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. Hamilton's 1791 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. Hamilton's 1791 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B), 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 Hamilton's 1791 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.
Learning at scale
– Online learning technologies has now opened space for Hamilton's 1791 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.
Manufacturing automation
– Hamilton's 1791 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hamilton's 1791 can use these opportunities to build new business models that can help the communities that Hamilton's 1791 operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) are -
Regulatory challenges
– Hamilton's 1791 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.
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 Hamilton's 1791 in the Finance & Accounting sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Hamilton's 1791 is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Hamilton's 1791 needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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. Hamilton's 1791 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Hamilton's 1791 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.
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 Hamilton's 1791 business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Hamilton's 1791 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. Hamilton's 1791 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, Hamilton's 1791 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 1791: Hamilton's Reports and the Rise of Faction (B) .
Increasing wage structure of Hamilton's 1791
– 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 Hamilton's 1791.
Stagnating economy with rate increase
– Hamilton's 1791 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.
Consumer confidence and its impact on Hamilton's 1791 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.
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. Hamilton's 1791 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.
Weighted SWOT Analysis of The Panic of 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) 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 1791: Hamilton's Reports and the Rise of Faction (B) 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 Hamilton's 1791 needs to make to build a sustainable competitive advantage.
