Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms
MCA Technology Solutions Private Limited was established in 2015 in Bangalore with an objective to integrate analytics and technology with business. MCA Technology Solutions helped its clients in areas such as customer intelligence, forecasting, optimization, risk assessment, web analytics, and text mining and cloud solutions. Risk assessment vertical at MCA technology solutions focused on problems such as fraud detection and credit scoring. Sachin Kumar, Director at MCA Technology Solutions, Bangalore was approached by one his clients, a commercial bank, to assist them in detecting earnings manipulators among the bank's customers. The bank provided business loans to small and medium enterprises and the value of loan ranged from INR 10 million to 500 million. The bank suspected that its customers may be involved in earnings manipulations to increase their chance of securing a loan. Saurabh Rishi, the chief data scientist at MCA Technologies was assigned the task of developing a use case for predicting earnings manipulations. He was aware of models such as Benford's law and Beneish model used for predicting earnings manipulations; however, he was not sure of its performance, especially in the Indian context. Saurabh decided to develop his own model for predicting earnings manipulations using data downloaded from the Prowess database maintained by the Centre of Monitoring Indian Economy (CMIE). Daniel received information related to earning manipulators from Securities Exchange Board of India (SEBI) and the Lexis Nexis database. Data on more than 1200 companies was collected to develop the model. MCA Technology believed that machine learning algorithms may give better accuracy compared to other traditional models such as Beneish model used for predicting earnings manipulation.
Swot Analysis of "Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms" written by Dinesh Kumar Unnikrishnan, Tousif Ahmed Inayath Syed, Suresh Ganeshan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mca Manipulations facing as an external strategic factors. Some of the topics covered in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms case study are - Strategic Management Strategies, Analytics, Ethics, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms casestudy better are - – digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mca Manipulations, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mca Manipulations 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms can be done for the following purposes –
1. Strategic planning using facts provided in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms case study
2. Improving business portfolio management of Mca Manipulations
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 Mca Manipulations
Strengths Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mca Manipulations in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms Harvard Business Review case study are -
High switching costs
– The high switching costs that Mca Manipulations 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.
Effective Research and Development (R&D)
– Mca Manipulations 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms - 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
– Mca Manipulations 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 Dinesh Kumar Unnikrishnan, Tousif Ahmed Inayath Syed, Suresh Ganeshan 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.
Ability to recruit top talent
– Mca Manipulations is one of the leading recruiters in the industry. Managers in the Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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
– Mca Manipulations has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mca Manipulations to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Mca Manipulations 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 Mca Manipulations is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Mca Manipulations 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Mca Manipulations in the sector have low bargaining power. Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mca Manipulations to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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.
Superior customer experience
– The customer experience strategy of Mca Manipulations in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Mca Manipulations is one of the most innovative firm in sector. Manager in Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Finance & Accounting field
– Mca Manipulations 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 Mca Manipulations in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms are -
Products dominated business model
– Even though Mca Manipulations has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms, in the dynamic environment Mca Manipulations has struggled to respond to the nimble upstart competition. Mca Manipulations has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Mca Manipulations, firm in the HBR case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms, it seems that the employees of Mca Manipulations 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.
Lack of clear differentiation of Mca Manipulations products
– To increase the profitability and margins on the products, Mca Manipulations needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Mca Manipulations 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Mca Manipulations 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 cash cycle compare to competitors
Mca Manipulations 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.
Need for greater diversity
– Mca Manipulations 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 Mca Manipulations supply chain. Even after few cautionary changes mentioned in the HBR case study - Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mca Manipulations vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Mca Manipulations 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. Mca Manipulations 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.
Opportunities Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms | 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms are -
Using analytics as competitive advantage
– Mca Manipulations 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mca Manipulations to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Mca Manipulations can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mca Manipulations 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mca Manipulations can use these opportunities to build new business models that can help the communities that Mca Manipulations operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Loyalty marketing
– Mca Manipulations 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.
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 Mca Manipulations in the consumer business. Now Mca Manipulations can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Mca Manipulations 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mca Manipulations 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, Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Mca Manipulations can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Mca Manipulations to increase its market reach. Mca Manipulations 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mca Manipulations 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 Mca Manipulations to hire the very best people irrespective of their geographical location.
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 Mca Manipulations 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.
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. Mca Manipulations 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. Mca Manipulations 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.
Threats Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms are -
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 Mca Manipulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms, Mca Manipulations 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mca Manipulations 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.
Environmental challenges
– Mca Manipulations 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. Mca Manipulations can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Mca Manipulations in the Finance & Accounting sector and impact the bottomline of the organization.
Increasing wage structure of Mca Manipulations
– 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 Mca Manipulations.
Consumer confidence and its impact on Mca Manipulations 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.
Stagnating economy with rate increase
– Mca Manipulations 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mca Manipulations 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms .
High dependence on third party suppliers
– Mca Manipulations 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.
Technology acceleration in Forth Industrial Revolution
– Mca Manipulations has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Mca Manipulations 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.
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. Mca Manipulations needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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. Mca Manipulations can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Predicting Earnings Manipulation by Indian Firms Using Machine Learning Algorithms 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 Mca Manipulations needs to make to build a sustainable competitive advantage.
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