SIC Insurance Company Limited: Corporate Governance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SIC Insurance Company Limited: Corporate Governance
In March 2013, SIC Insurance Company Limited (SIC), a Ghanaian insurance company, appointed its first female chief executive officer, Doris Awo Nkani. Under her tenure, SIC issued a credit guarantee bond to ITAL Construct International in favour of Ivory Finance for a six-month period. However, ITAL Construct International defaulted on the loan, and Ivory Finance called on SIC to redeem its credit guarantee bond. Due to the failure of SIC and ITAL Construct International to honour their obligations, Ivory Finance proceeded to court in November 2013. Over a year later, in November 2014, the parties agreed on an amount to be paid to Ivory Finance through a consent judgment. This event culminated in the board considering in February 2015 whether to retain or fire its chief executive officer. How had this situation occurred? Should the board of directors have taken action earlier? How could the company ensure that a similar situation would not recur in the future? Joshua Yindenaba Abor, Elikplimi Komla Agbloyor and Agyapomaa Gyeke-Dako are affiliated with University of Ghana.
Swot Analysis of "SIC Insurance Company Limited: Corporate Governance" written by Joshua Yindenaba Abor, Elikplimi Komla Agbloyor, Agyapomaa Gyeke-Dako, Lydia Adzobu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sic Ivory facing as an external strategic factors. Some of the topics covered in SIC Insurance Company Limited: Corporate Governance case study are - Strategic Management Strategies, Corporate governance, Financial management, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the SIC Insurance Company Limited: Corporate Governance casestudy better are - – there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of SIC Insurance Company Limited: Corporate Governance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SIC Insurance Company Limited: Corporate Governance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sic Ivory, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sic Ivory 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 SIC Insurance Company Limited: Corporate Governance can be done for the following purposes –
1. Strategic planning using facts provided in SIC Insurance Company Limited: Corporate Governance case study
2. Improving business portfolio management of Sic Ivory
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 Sic Ivory
Strengths SIC Insurance Company Limited: Corporate Governance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sic Ivory in SIC Insurance Company Limited: Corporate Governance Harvard Business Review case study are -
Effective Research and Development (R&D)
– Sic Ivory 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 SIC Insurance Company Limited: Corporate Governance - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Sic Ivory is one of the most innovative firm in sector. Manager in SIC Insurance Company Limited: Corporate Governance Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Finance & Accounting field
– Sic Ivory 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 Sic Ivory 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 Sic Ivory 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.
High brand equity
– Sic Ivory has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sic Ivory to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Sic Ivory in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Sic Ivory is one of the leading recruiters in the industry. Managers in the SIC Insurance Company Limited: Corporate Governance are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Finance & Accounting industry
– SIC Insurance Company Limited: Corporate Governance firm has clearly differentiated products in the market place. This has enabled Sic Ivory to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Sic Ivory to invest into research and development (R&D) and innovation.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Sic Ivory digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sic Ivory 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.
Strong track record of project management
– Sic Ivory is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Sic Ivory 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 Sic Ivory is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SIC Insurance Company Limited: Corporate Governance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Sic Ivory has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sic Ivory 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.
Weaknesses SIC Insurance Company Limited: Corporate Governance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SIC Insurance Company Limited: Corporate Governance are -
High operating costs
– Compare to the competitors, firm in the HBR case study SIC Insurance Company Limited: Corporate Governance 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 Sic Ivory 's lucrative customers.
Aligning sales with marketing
– It come across in the case study SIC Insurance Company Limited: Corporate Governance 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 SIC Insurance Company Limited: Corporate Governance can leverage the sales team experience to cultivate customer relationships as Sic Ivory is planning to shift buying processes online.
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 Sic Ivory supply chain. Even after few cautionary changes mentioned in the HBR case study - SIC Insurance Company Limited: Corporate Governance, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sic Ivory vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Sic Ivory 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the SIC Insurance Company Limited: Corporate Governance 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 Sic Ivory has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Sic Ivory 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. Sic Ivory 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study SIC Insurance Company Limited: Corporate Governance, it seems that the employees of Sic Ivory 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 strategic competitive environment developments
– As SIC Insurance Company Limited: Corporate Governance HBR case study mentions - Sic Ivory 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.
Interest costs
– Compare to the competition, Sic Ivory 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.
Lack of clear differentiation of Sic Ivory products
– To increase the profitability and margins on the products, Sic Ivory needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Sic Ivory 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.
Opportunities SIC Insurance Company Limited: Corporate Governance | 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 SIC Insurance Company Limited: Corporate Governance are -
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. Sic Ivory can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sic Ivory can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Sic Ivory 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 SIC Insurance Company Limited: Corporate Governance - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sic Ivory to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Sic Ivory to increase its market reach. Sic Ivory 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sic Ivory can use these opportunities to build new business models that can help the communities that Sic Ivory operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Learning at scale
– Online learning technologies has now opened space for Sic Ivory 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sic Ivory 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.
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 Sic Ivory 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.
Creating value in data economy
– The success of analytics program of Sic Ivory has opened avenues for new revenue streams for the organization in the industry. This can help Sic Ivory to build a more holistic ecosystem as suggested in the SIC Insurance Company Limited: Corporate Governance case study. Sic Ivory can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Sic Ivory can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sic Ivory 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.
Buying journey improvements
– Sic Ivory can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SIC Insurance Company Limited: Corporate Governance 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.
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 Sic Ivory in the consumer business. Now Sic Ivory can target international markets with far fewer capital restrictions requirements than the existing system.
Threats SIC Insurance Company Limited: Corporate Governance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SIC Insurance Company Limited: Corporate Governance are -
High dependence on third party suppliers
– Sic Ivory 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.
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.
Environmental challenges
– Sic Ivory 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. Sic Ivory can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
Increasing wage structure of Sic Ivory
– 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 Sic Ivory.
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. Sic Ivory 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sic Ivory 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.
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 Sic Ivory 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. Sic Ivory can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Sic Ivory business can come under increasing regulations regarding data privacy, data security, 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. Sic Ivory needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sic Ivory 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 SIC Insurance Company Limited: Corporate Governance .
Technology acceleration in Forth Industrial Revolution
– Sic Ivory has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Sic Ivory 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.
Weighted SWOT Analysis of SIC Insurance Company Limited: Corporate Governance 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 SIC Insurance Company Limited: Corporate Governance 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 SIC Insurance Company Limited: Corporate Governance 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 SIC Insurance Company Limited: Corporate Governance 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 SIC Insurance Company Limited: Corporate Governance 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 Sic Ivory needs to make to build a sustainable competitive advantage.
