Akbank Part A: A Crisis Is a Terrible Thing to Waste SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Akbank Part A: A Crisis Is a Terrible Thing to Waste
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses. HKS Case Number 1911.0
Swot Analysis of "Akbank Part A: A Crisis Is a Terrible Thing to Waste" written by Jay K. Rosengard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Akbank Akbank's facing as an external strategic factors. Some of the topics covered in Akbank Part A: A Crisis Is a Terrible Thing to Waste case study are - Strategic Management Strategies, Crisis management, Currency, Financial management, International business, Policy, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Akbank Part A: A Crisis Is a Terrible Thing to Waste casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, technology disruption,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Akbank Part A: A Crisis Is a Terrible Thing to Waste
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Akbank Part A: A Crisis Is a Terrible Thing to Waste case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Akbank Akbank's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Akbank Akbank's 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste can be done for the following purposes –
1. Strategic planning using facts provided in Akbank Part A: A Crisis Is a Terrible Thing to Waste case study
2. Improving business portfolio management of Akbank Akbank's
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 Akbank Akbank's
Strengths Akbank Part A: A Crisis Is a Terrible Thing to Waste | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Akbank Akbank's in Akbank Part A: A Crisis Is a Terrible Thing to Waste Harvard Business Review case study are -
Successful track record of launching new products
– Akbank Akbank's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Akbank Akbank's 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.
Diverse revenue streams
– Akbank Akbank's is present in almost all the verticals within the industry. This has provided firm in Akbank Part A: A Crisis Is a Terrible Thing to Waste 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Akbank Akbank's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Akbank Akbank's 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.
Ability to lead change in Finance & Accounting field
– Akbank Akbank's 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 Akbank Akbank's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Akbank Akbank's 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Akbank Akbank's is one of the leading recruiters in the industry. Managers in the Akbank Part A: A Crisis Is a Terrible Thing to Waste are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Akbank Akbank's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Akbank Akbank's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Akbank Akbank's is one of the most innovative firm in sector. Manager in Akbank Part A: A Crisis Is a Terrible Thing to Waste Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Akbank Akbank's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Akbank Part A: A Crisis Is a Terrible Thing to Waste 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Akbank Part A: A Crisis Is a Terrible Thing to Waste firm has clearly differentiated products in the market place. This has enabled Akbank Akbank's to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Akbank Akbank's to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Akbank Akbank's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Akbank Akbank's 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.
Weaknesses Akbank Part A: A Crisis Is a Terrible Thing to Waste | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Akbank Part A: A Crisis Is a Terrible Thing to Waste are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Akbank Part A: A Crisis Is a Terrible Thing to Waste, in the dynamic environment Akbank Akbank's has struggled to respond to the nimble upstart competition. Akbank Akbank's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Akbank Akbank's products
– To increase the profitability and margins on the products, Akbank Akbank's needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste can leverage the sales team experience to cultivate customer relationships as Akbank Akbank's is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Akbank Part A: A Crisis Is a Terrible Thing to Waste HBR case study mentions - Akbank Akbank's 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, Akbank Akbank's 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.
Increasing silos among functional specialists
– The organizational structure of Akbank Akbank's is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Akbank Akbank's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Akbank Akbank's to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Akbank's 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 Akbank Akbank's supply chain. Even after few cautionary changes mentioned in the HBR case study - Akbank Part A: A Crisis Is a Terrible Thing to Waste, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Akbank Akbank's vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Akbank Akbank's 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 operating costs
– Compare to the competitors, firm in the HBR case study Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Akbank's 's lucrative customers.
High cash cycle compare to competitors
Akbank Akbank's 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.
Opportunities Akbank Part A: A Crisis Is a Terrible Thing to Waste | 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste are -
Creating value in data economy
– The success of analytics program of Akbank Akbank's has opened avenues for new revenue streams for the organization in the industry. This can help Akbank Akbank's to build a more holistic ecosystem as suggested in the Akbank Part A: A Crisis Is a Terrible Thing to Waste case study. Akbank Akbank's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Akbank Akbank's is facing challenges because of the dominance of functional experts in the organization. Akbank Part A: A Crisis Is a Terrible Thing to Waste 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Akbank Akbank's 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.
Leveraging digital technologies
– Akbank Akbank's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Akbank Akbank's can use these opportunities to build new business models that can help the communities that Akbank Akbank's operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Developing new processes and practices
– Akbank Akbank's 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.
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 Akbank Akbank's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Akbank Akbank's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Akbank Akbank's in the consumer business. Now Akbank Akbank's can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Akbank Akbank's 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.
Loyalty marketing
– Akbank Akbank's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Akbank Akbank's 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, Akbank Part A: A Crisis Is a Terrible Thing to Waste, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Akbank Akbank's 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Akbank Part A: A Crisis Is a Terrible Thing to Waste are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Akbank Akbank's 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.
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. Akbank Akbank's 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.
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 Akbank Akbank's.
Consumer confidence and its impact on Akbank Akbank's 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.
Regulatory challenges
– Akbank Akbank's 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.
Stagnating economy with rate increase
– Akbank Akbank's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Akbank Akbank's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Akbank Akbank's 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 Akbank Akbank's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Akbank Akbank's 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste .
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. Akbank Akbank's needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
Increasing wage structure of Akbank Akbank's
– 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 Akbank Akbank's.
Weighted SWOT Analysis of Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Part A: A Crisis Is a Terrible Thing to Waste 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 Akbank Akbank's needs to make to build a sustainable competitive advantage.
