Ken Traub at American Bank Note Holographics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Ken Traub at American Bank Note Holographics

Ken Traub is hired as CFO for American Bank Note Holographics, the market-leading security holograph company in January 1999, but discovers on his first day that the company has misstated its financials and resigns. After consulting with the company for the next several weeks as it announces its misstatements to the public, he is asked to become president of the company. Should he take the job or is the company a sinking ship?

Authors :: Suraj Srinivasan, Michael Norris

Topics :: Finance & Accounting

Tags :: Business law, Career planning, Collaboration, Disruptive innovation, Ethics, Financial management, Informal leadership, Leading teams, Marketing, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Ken Traub at American Bank Note Holographics" written by Suraj Srinivasan, Michael Norris includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Holographics Traub facing as an external strategic factors. Some of the topics covered in Ken Traub at American Bank Note Holographics case study are - Strategic Management Strategies, Business law, Career planning, Collaboration, Disruptive innovation, Ethics, Financial management, Informal leadership, Leading teams, Marketing, Technology and Finance & Accounting.

Some of the macro environment factors that can be used to understand the Ken Traub at American Bank Note Holographics casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing energy prices, increasing commodity prices, technology disruption, increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of Ken Traub at American Bank Note Holographics

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ken Traub at American Bank Note Holographics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Holographics Traub, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Holographics Traub 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Ken Traub at American Bank Note Holographics can be done for the following purposes –
1. Strategic planning using facts provided in Ken Traub at American Bank Note Holographics case study
2. Improving business portfolio management of Holographics Traub
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 Holographics Traub

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Strengths Ken Traub at American Bank Note Holographics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Holographics Traub in Ken Traub at American Bank Note Holographics Harvard Business Review case study are -

Innovation driven organization

– Holographics Traub is one of the most innovative firm in sector. Manager in Ken Traub at American Bank Note Holographics 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)

– Holographics Traub 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 Ken Traub at American Bank Note Holographics - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Cross disciplinary teams

– Horizontal connected teams at the Holographics Traub 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.

Successful track record of launching new products

– Holographics Traub has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Holographics Traub has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Analytics focus

– Holographics Traub 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 Suraj Srinivasan, Michael Norris 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 lead change in Finance & Accounting field

– Holographics Traub 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 Holographics Traub in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Low bargaining power of suppliers

– Suppliers of Holographics Traub in the sector have low bargaining power. Ken Traub at American Bank Note Holographics has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Holographics Traub to manage not only supply disruptions but also source products at highly competitive prices.

Digital Transformation in Finance & Accounting segment

- digital transformation varies from industry to industry. For Holographics Traub digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Holographics Traub 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.

Strong track record of project management

– Holographics Traub is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Learning organization

- Holographics Traub 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 Holographics Traub is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ken Traub at American Bank Note Holographics Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Holographics Traub

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Holographics Traub does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Training and development

– Holographics Traub has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ken Traub at American Bank Note Holographics 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.

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Weaknesses Ken Traub at American Bank Note Holographics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Ken Traub at American Bank Note Holographics are -

Increasing silos among functional specialists

– The organizational structure of Holographics Traub is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Holographics Traub needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Holographics Traub to focus more on services rather than just following the product oriented approach.

High operating costs

– Compare to the competitors, firm in the HBR case study Ken Traub at American Bank Note Holographics 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 Holographics Traub 's lucrative customers.

High cash cycle compare to competitors

Holographics Traub 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.

Slow to strategic competitive environment developments

– As Ken Traub at American Bank Note Holographics HBR case study mentions - Holographics Traub 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.

Lack of clear differentiation of Holographics Traub products

– To increase the profitability and margins on the products, Holographics Traub needs to provide more differentiated products than what it is currently offering in the marketplace.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Ken Traub at American Bank Note Holographics, in the dynamic environment Holographics Traub has struggled to respond to the nimble upstart competition. Holographics Traub has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Capital Spending Reduction

– Even during the low interest decade, Holographics Traub 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Ken Traub at American Bank Note Holographics, is just above the industry average. Holographics Traub needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Aligning sales with marketing

– It come across in the case study Ken Traub at American Bank Note Holographics 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 Ken Traub at American Bank Note Holographics can leverage the sales team experience to cultivate customer relationships as Holographics Traub is planning to shift buying processes online.

Slow decision making process

– As mentioned earlier in the report, Holographics Traub 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. Holographics Traub 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Holographics Traub is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ken Traub at American Bank Note Holographics can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities Ken Traub at American Bank Note Holographics | 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 Ken Traub at American Bank Note Holographics are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Holographics Traub 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Holographics Traub 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. Holographics Traub 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. Holographics Traub 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Holographics Traub is facing challenges because of the dominance of functional experts in the organization. Ken Traub at American Bank Note Holographics 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.

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 Holographics Traub 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Holographics Traub can use these opportunities to build new business models that can help the communities that Holographics Traub 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, Holographics Traub 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, Ken Traub at American Bank Note Holographics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Holographics Traub 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 Holographics Traub to hire the very best people irrespective of their geographical location.

Creating value in data economy

– The success of analytics program of Holographics Traub has opened avenues for new revenue streams for the organization in the industry. This can help Holographics Traub to build a more holistic ecosystem as suggested in the Ken Traub at American Bank Note Holographics case study. Holographics Traub 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

– Holographics Traub 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

– Holographics Traub 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.

Learning at scale

– Online learning technologies has now opened space for Holographics Traub 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.

Using analytics as competitive advantage

– Holographics Traub 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 Ken Traub at American Bank Note Holographics - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Holographics Traub to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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Threats Ken Traub at American Bank Note Holographics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Ken Traub at American Bank Note Holographics are -

Shortening product life cycle

– it is one of the major threat that Holographics Traub is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Holographics Traub with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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.

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.

Consumer confidence and its impact on Holographics Traub 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ken Traub at American Bank Note Holographics, Holographics Traub 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 .

Regulatory challenges

– Holographics Traub 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.

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 Holographics Traub in the Finance & Accounting sector and impact the bottomline of the organization.

Technology acceleration in Forth Industrial Revolution

– Holographics Traub has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Holographics Traub 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Holographics Traub 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 dependence on third party suppliers

– Holographics Traub 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.

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. Holographics Traub needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Holographics Traub 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 Ken Traub at American Bank Note Holographics .

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Weighted SWOT Analysis of Ken Traub at American Bank Note Holographics 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 Ken Traub at American Bank Note Holographics 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 Ken Traub at American Bank Note Holographics 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 Ken Traub at American Bank Note Holographics 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 Ken Traub at American Bank Note Holographics 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 Holographics Traub needs to make to build a sustainable competitive advantage.

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