The Campaign for Bank Insurance in Antebellum New York SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Campaign for Bank Insurance in Antebellum New York
The New York State Legislature had come to a standstill in 1829 as lawmakers refused to charter any new banks or recharter any existing banks. Four of New York's forty banks had failed since 1825, and many legislatures believed that a significant change in the banking regime was needed to shore up the state's financial systems. Others, however, feared that a major change in the law was too risky, especially since over three-quarters of the state's banks held charters that were slated to expire over the next four years. On the table was a completely untested proposal to create a mandatory public insurance fund that would back the banknotes and deposits of every state bank. As bank charters throughout New York State rapidly approached expiration, lawmakers faced a tough decision: should they pass the bill and gamble with the untried insurance fund, or should they go seek a more traditional solution to the state's banking woes?
Swot Analysis of "The Campaign for Bank Insurance in Antebellum New York" written by Cole Bolton, David A. Moss includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that State's Charters facing as an external strategic factors. Some of the topics covered in The Campaign for Bank Insurance in Antebellum New York case study are - Strategic Management Strategies, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Campaign for Bank Insurance in Antebellum New York casestudy better are - – talent flight as more people leaving formal jobs, there is backlash against globalization, supply chains are disrupted by pandemic , wage bills are increasing, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels,
cloud computing is disrupting traditional business models, technology disruption, etc
Introduction to SWOT Analysis of The Campaign for Bank Insurance in Antebellum New York
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Campaign for Bank Insurance in Antebellum New York case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the State's Charters, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which State's Charters 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 Campaign for Bank Insurance in Antebellum New York can be done for the following purposes –
1. Strategic planning using facts provided in The Campaign for Bank Insurance in Antebellum New York case study
2. Improving business portfolio management of State's Charters
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 State's Charters
Strengths The Campaign for Bank Insurance in Antebellum New York | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of State's Charters in The Campaign for Bank Insurance in Antebellum New York Harvard Business Review case study are -
Training and development
– State's Charters has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Campaign for Bank Insurance in Antebellum New York 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.
Low bargaining power of suppliers
– Suppliers of State's Charters in the sector have low bargaining power. The Campaign for Bank Insurance in Antebellum New York has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps State's Charters to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– State's Charters has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Campaign for Bank Insurance in Antebellum New York - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of State's Charters
– The covid-19 pandemic has put organizational resilience at the centre of everthing that State's Charters does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– State's Charters is one of the most innovative firm in sector. Manager in The Campaign for Bank Insurance in Antebellum New York Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the The Campaign for Bank Insurance in Antebellum New York 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.
High brand equity
– State's Charters has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled State's Charters to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that State's Charters has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– State's Charters is one of the leading recruiters in the industry. Managers in the The Campaign for Bank Insurance in Antebellum New York 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
– The Campaign for Bank Insurance in Antebellum New York firm has clearly differentiated products in the market place. This has enabled State's Charters to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped State's Charters to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of State's Charters in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For State's Charters digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. State's Charters 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.
Weaknesses The Campaign for Bank Insurance in Antebellum New York | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Campaign for Bank Insurance in Antebellum New York are -
High bargaining power of channel partners
– Because of the regulatory requirements, Cole Bolton, David A. Moss suggests that, State's Charters 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Campaign for Bank Insurance in Antebellum New York, in the dynamic environment State's Charters has struggled to respond to the nimble upstart competition. State's Charters has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study The Campaign for Bank Insurance in Antebellum New York 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 State's Charters 's lucrative customers.
Slow to strategic competitive environment developments
– As The Campaign for Bank Insurance in Antebellum New York HBR case study mentions - State's Charters 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, State's Charters 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, State's Charters is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Campaign for Bank Insurance in Antebellum New York can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
State's Charters 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.
Low market penetration in new markets
– Outside its home market of State's Charters, firm in the HBR case study The Campaign for Bank Insurance in Antebellum New York needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of State's Charters products
– To increase the profitability and margins on the products, State's Charters 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, State's Charters 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.
Need for greater diversity
– State's Charters 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.
Opportunities The Campaign for Bank Insurance in Antebellum New York | 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 Campaign for Bank Insurance in Antebellum New York are -
Creating value in data economy
– The success of analytics program of State's Charters has opened avenues for new revenue streams for the organization in the industry. This can help State's Charters to build a more holistic ecosystem as suggested in the The Campaign for Bank Insurance in Antebellum New York case study. State's Charters can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– State's Charters 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, State's Charters 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. State's Charters can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. State's Charters can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Buying journey improvements
– State's Charters can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Campaign for Bank Insurance in Antebellum New York 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, State's Charters is facing challenges because of the dominance of functional experts in the organization. The Campaign for Bank Insurance in Antebellum New York 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects State's Charters can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for State's Charters 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.
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 State's Charters in the consumer business. Now State's Charters 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. State's Charters can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, State's Charters can use these opportunities to build new business models that can help the communities that State's Charters operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Manufacturing automation
– State's Charters 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, State's Charters can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Campaign for Bank Insurance in Antebellum New York, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats The Campaign for Bank Insurance in Antebellum New York External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Campaign for Bank Insurance in Antebellum New York are -
Consumer confidence and its impact on State's Charters 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.
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 State's Charters.
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 State's Charters in the Finance & Accounting sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, State's Charters can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Campaign for Bank Insurance in Antebellum New York .
Shortening product life cycle
– it is one of the major threat that State's Charters is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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. State's Charters can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents State's Charters with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Campaign for Bank Insurance in Antebellum New York, State's Charters 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 .
Technology acceleration in Forth Industrial Revolution
– State's Charters has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, State's Charters 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.
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 State's Charters business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for State's Charters 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.
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. State's Charters needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of The Campaign for Bank Insurance in Antebellum New York 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 Campaign for Bank Insurance in Antebellum New York 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 Campaign for Bank Insurance in Antebellum New York 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 Campaign for Bank Insurance in Antebellum New York 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 Campaign for Bank Insurance in Antebellum New York 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 State's Charters needs to make to build a sustainable competitive advantage.