Swot Analysis of "The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Merger Bank facing as an external strategic factors. Some of the topics covered in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience case study are - Strategic Management Strategies, Financial management, Mergers & acquisitions, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, technology disruption, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Merger Bank, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Merger Bank 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience can be done for the following purposes –
1. Strategic planning using facts provided in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience case study
2. Improving business portfolio management of Merger Bank
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 Merger Bank
Strengths The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Merger Bank in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience Harvard Business Review case study are -
Sustainable margins compare to other players in Finance & Accounting industry
– The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience firm has clearly differentiated products in the market place. This has enabled Merger Bank to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Merger Bank to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Merger Bank 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Merger Bank 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.
Learning organization
- Merger Bank 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 Merger Bank is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Merger Bank has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Merger Bank to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Merger Bank has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Merger Bank 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.
Low bargaining power of suppliers
– Suppliers of Merger Bank in the sector have low bargaining power. The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Merger Bank to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Merger Bank in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Merger Bank has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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.
Operational resilience
– The operational resilience strategy in the The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Finance & Accounting field
– Merger Bank 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 Merger Bank in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Merger Bank is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Robert F. Bruner can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience are -
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, Merger Bank 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Merger Bank is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience, it seems that the employees of Merger Bank 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 operating costs
– Compare to the competitors, firm in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger Bank 's lucrative customers.
Lack of clear differentiation of Merger Bank products
– To increase the profitability and margins on the products, Merger Bank needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Merger Bank has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 Merger Bank supply chain. Even after few cautionary changes mentioned in the HBR case study - The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Merger Bank vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Merger Bank 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.
Interest costs
– Compare to the competition, Merger Bank 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.
Aligning sales with marketing
– It come across in the case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience can leverage the sales team experience to cultivate customer relationships as Merger Bank is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Merger Bank is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Merger Bank needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Merger Bank to focus more on services rather than just following the product oriented approach.
Opportunities The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience | 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience are -
Learning at scale
– Online learning technologies has now opened space for Merger Bank 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.
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. Merger Bank can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Merger Bank 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.
Better consumer reach
– The expansion of the 5G network will help Merger Bank to increase its market reach. Merger Bank 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Merger Bank 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Merger Bank can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Merger Bank can use these opportunities to build new business models that can help the communities that Merger Bank operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Merger Bank 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Merger Bank to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Merger Bank to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Merger Bank is facing challenges because of the dominance of functional experts in the organization. The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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.
Building a culture of innovation
– managers at Merger Bank 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.
Manufacturing automation
– Merger Bank 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.
Using analytics as competitive advantage
– Merger Bank 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 The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Merger Bank to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience are -
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.
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 Merger Bank.
Stagnating economy with rate increase
– Merger Bank 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.
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 Merger Bank business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Merger Bank with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Merger Bank 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.
Environmental challenges
– Merger Bank 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. Merger Bank can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Merger Bank 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.
Increasing wage structure of Merger Bank
– 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 Merger Bank.
High dependence on third party suppliers
– Merger Bank 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.
Regulatory challenges
– Merger Bank 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.
Shortening product life cycle
– it is one of the major threat that Merger Bank is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience, Merger Bank 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 .
Weighted SWOT Analysis of The Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger of Union Bank of Switzerland and Swiss Bank Corporation (C): Post-Merger Experience 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 Merger Bank needs to make to build a sustainable competitive advantage.
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