Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
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Case Study SWOT Analysis Solution
Case Study Description of Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A)
In late 1999, the Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a HK$28 (U.S.$3.6) billion theme park and resort complex planned to open in late 2005. As part of the total financing package, the sponsors decided to raise HK$3.3 billion of non-recourse bank loans for construction and working capital, and selected Chase Manhattan Bank to underwrite and syndicate these facilities. This case concerns the process by which Chase successfully competed to lead this transaction. The key questions facing Chase were whether to bid at all, how to bid, and how to structure the syndication to meet the borrower's needs, its own profit objectives, and the market's expectation for an attractively priced credit. Includes a generic section about the process, participants, and economics of syndicated lending for students who are unfamiliar with syndicated lending. This is part of a module on Financing Projects in the Elective Curriculum (EC) course Large-Scale Investment (LSI). Although written for a course on project finance, it can easily be modified for courses on capital markets or financial institutions.
Swot Analysis of "Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A)" written by Benjamin C. Esty, Michael Kane includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chase Syndicated facing as an external strategic factors. Some of the topics covered in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) case study are - Strategic Management Strategies, Financial management, Project management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chase Syndicated, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chase Syndicated 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) can be done for the following purposes –
1. Strategic planning using facts provided in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) case study
2. Improving business portfolio management of Chase Syndicated
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 Chase Syndicated
Strengths Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chase Syndicated in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) Harvard Business Review case study are -
Diverse revenue streams
– Chase Syndicated is present in almost all the verticals within the industry. This has provided firm in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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.
Operational resilience
– The operational resilience strategy in the Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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.
Highly skilled collaborators
– Chase Syndicated 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Chase Syndicated is one of the leading recruiters in the industry. Managers in the Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Chase Syndicated digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Chase Syndicated 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) firm has clearly differentiated products in the market place. This has enabled Chase Syndicated to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Chase Syndicated to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Chase Syndicated 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.
Training and development
– Chase Syndicated has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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.
Organizational Resilience of Chase Syndicated
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chase Syndicated does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Chase Syndicated in the sector have low bargaining power. Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chase Syndicated to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Chase Syndicated has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chase Syndicated to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Chase Syndicated is one of the most innovative firm in sector. Manager in Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) are -
Increasing silos among functional specialists
– The organizational structure of Chase Syndicated is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Chase Syndicated needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chase Syndicated to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) HBR case study mentions - Chase Syndicated 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.
Capital Spending Reduction
– Even during the low interest decade, Chase Syndicated 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.
No frontier risks strategy
– After analyzing the HBR case study Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A), it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though Chase Syndicated 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 - Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Chase Syndicated 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) can leverage the sales team experience to cultivate customer relationships as Chase Syndicated is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A), it seems that the employees of Chase Syndicated 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chase Syndicated is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 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 Chase Syndicated supply chain. Even after few cautionary changes mentioned in the HBR case study - Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chase Syndicated vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase Syndicated 's lucrative customers.
Opportunities Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) | 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) are -
Manufacturing automation
– Chase Syndicated 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.
Loyalty marketing
– Chase Syndicated 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.
Developing new processes and practices
– Chase Syndicated 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.
Using analytics as competitive advantage
– Chase Syndicated 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chase Syndicated to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Chase Syndicated to increase its market reach. Chase Syndicated 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.
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. Chase Syndicated can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Chase Syndicated 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.
Creating value in data economy
– The success of analytics program of Chase Syndicated has opened avenues for new revenue streams for the organization in the industry. This can help Chase Syndicated to build a more holistic ecosystem as suggested in the Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) case study. Chase Syndicated can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chase Syndicated can use these opportunities to build new business models that can help the communities that Chase Syndicated operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chase Syndicated 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, Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Chase Syndicated 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chase Syndicated 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.
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. Chase Syndicated can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) are -
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. Chase Syndicated 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.
Shortening product life cycle
– it is one of the major threat that Chase Syndicated 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. Chase Syndicated can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Chase Syndicated needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Environmental challenges
– Chase Syndicated 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. Chase Syndicated can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chase Syndicated with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Chase Syndicated business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Chase Syndicated 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.
Consumer confidence and its impact on Chase Syndicated 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
– Chase Syndicated 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.
Regulatory challenges
– Chase Syndicated 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.
Weighted SWOT Analysis of Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase's Strategy for Syndicating the Hong Kong Disneyland Loan (A) 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 Chase Syndicated needs to make to build a sustainable competitive advantage.