Goldman Sachs (B): Determining the Potential of Social Impact Bonds SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Goldman Sachs (B): Determining the Potential of Social Impact Bonds
Partnering with Bloomberg Philanthropies, MDRC, the Vera Institute of Justice, and the New York State Department of Corrections, Goldman decided to go ahead with the social impact bond (SIB) project to reduce youth recidivism. If there were lower rates of recidivism under the program, the city would not have to repay Goldman's loans; Goldman would accept the risk. The city would in turn save money, allowing it to repay the bond. Before the bank knew whether the initiative would be successful, it was already moving on to new social investments. The firm was looking into an SIB to fund an expansion for a high-quality early childhood preschool program in the Granite School District of Central Salt Lake, Utah. The expansion would empower more children with early preparation, decreasing the need for special education and remedial services and saving the district money. Students are tasked with evaluating new social investment instruments, ways to mitigate risk, and the role of banks in social impact.
Authors :: Andrew Hoffman
Topics :: Finance & Accounting
Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Goldman Sachs (B): Determining the Potential of Social Impact Bonds" written by Andrew Hoffman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Goldman Recidivism facing as an external strategic factors. Some of the topics covered in Goldman Sachs (B): Determining the Potential of Social Impact Bonds case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Goldman Sachs (B): Determining the Potential of Social Impact Bonds casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , increasing commodity prices,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Goldman Sachs (B): Determining the Potential of Social Impact Bonds
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Goldman Sachs (B): Determining the Potential of Social Impact Bonds case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goldman Recidivism, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goldman Recidivism 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds can be done for the following purposes –
1. Strategic planning using facts provided in Goldman Sachs (B): Determining the Potential of Social Impact Bonds case study
2. Improving business portfolio management of Goldman Recidivism
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 Goldman Recidivism
Strengths Goldman Sachs (B): Determining the Potential of Social Impact Bonds | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goldman Recidivism in Goldman Sachs (B): Determining the Potential of Social Impact Bonds Harvard Business Review case study are -
Sustainable margins compare to other players in Finance & Accounting industry
– Goldman Sachs (B): Determining the Potential of Social Impact Bonds firm has clearly differentiated products in the market place. This has enabled Goldman Recidivism to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Goldman Recidivism to invest into research and development (R&D) and innovation.
Learning organization
- Goldman Recidivism 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 Goldman Recidivism is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Goldman Sachs (B): Determining the Potential of Social Impact Bonds Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Goldman Recidivism
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Goldman Recidivism does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Goldman Recidivism is one of the most innovative firm in sector. Manager in Goldman Sachs (B): Determining the Potential of Social Impact Bonds Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Goldman Recidivism 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Goldman Recidivism 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 Andrew Hoffman 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.
Diverse revenue streams
– Goldman Recidivism is present in almost all the verticals within the industry. This has provided firm in Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Recidivism digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Goldman Recidivism 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.
Low bargaining power of suppliers
– Suppliers of Goldman Recidivism in the sector have low bargaining power. Goldman Sachs (B): Determining the Potential of Social Impact Bonds has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Goldman Recidivism to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Finance & Accounting field
– Goldman Recidivism 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 Goldman Recidivism 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 Goldman Recidivism 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.
Superior customer experience
– The customer experience strategy of Goldman Recidivism in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Goldman Sachs (B): Determining the Potential of Social Impact Bonds | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goldman Sachs (B): Determining the Potential of Social Impact Bonds are -
Skills based hiring
– The stress on hiring functional specialists at Goldman Recidivism 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.
Capital Spending Reduction
– Even during the low interest decade, Goldman Recidivism has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goldman Recidivism is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Goldman Sachs (B): Determining the Potential of Social Impact Bonds can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Goldman Recidivism 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 Goldman Recidivism products
– To increase the profitability and margins on the products, Goldman Recidivism needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Goldman Recidivism 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Recidivism has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Goldman Recidivism 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. Goldman Recidivism 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.
Increasing silos among functional specialists
– The organizational structure of Goldman Recidivism is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Goldman Recidivism needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Goldman Recidivism to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Goldman Recidivism, firm in the HBR case study Goldman Sachs (B): Determining the Potential of Social Impact Bonds needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Recidivism 's lucrative customers.
Opportunities Goldman Sachs (B): Determining the Potential of Social Impact Bonds | 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds are -
Leveraging digital technologies
– Goldman Recidivism 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Goldman Recidivism 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 Goldman Recidivism to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Goldman Recidivism has opened avenues for new revenue streams for the organization in the industry. This can help Goldman Recidivism to build a more holistic ecosystem as suggested in the Goldman Sachs (B): Determining the Potential of Social Impact Bonds case study. Goldman Recidivism can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Goldman Recidivism 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goldman Recidivism 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.
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 Goldman Recidivism in the consumer business. Now Goldman Recidivism 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. Goldman Recidivism can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Goldman Recidivism 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.
Manufacturing automation
– Goldman Recidivism 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Goldman Recidivism can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Goldman Recidivism can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Goldman Recidivism to increase its market reach. Goldman Recidivism 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, Goldman Recidivism can use these opportunities to build new business models that can help the communities that Goldman Recidivism operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Goldman Sachs (B): Determining the Potential of Social Impact Bonds External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Goldman Sachs (B): Determining the Potential of Social Impact Bonds are -
Consumer confidence and its impact on Goldman Recidivism 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. Goldman Recidivism 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.
Technology acceleration in Forth Industrial Revolution
– Goldman Recidivism has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Goldman Recidivism 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.
Increasing wage structure of Goldman Recidivism
– 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 Goldman Recidivism.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Goldman Recidivism 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds .
High dependence on third party suppliers
– Goldman Recidivism high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Goldman Sachs (B): Determining the Potential of Social Impact Bonds, Goldman Recidivism 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 .
Environmental challenges
– Goldman Recidivism 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. Goldman Recidivism can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Goldman Recidivism needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
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 Goldman Recidivism.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Goldman Recidivism with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Sachs (B): Determining the Potential of Social Impact Bonds 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 Goldman Recidivism needs to make to build a sustainable competitive advantage.
