Crescent Standard Investment Bank Limited - Governance Failure SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Crescent Standard Investment Bank Limited - Governance Failure
The Crescent Standard Investment Bank Limited (CSIBL) was the largest investment bank quoted on all the stock exchanges in Pakistan, so when it declared a huge loss of Rs2.1 billion (US$35.5 million) for the year December 31, 2005 the market was taken by surprise. There had been some rumors that all was not well and that the investment banking regulator, Securities and Exchange Commission of Pakistan (SECP), had sent a team to investigate the affairs of the bank. Since the main shareholders were individuals or companies of the well-known business group known as the Crescent Group, there was enormous interest in the CSIBL affairs by financial and political circles as well. The case describes the various types of entities that were merged to form the CSIBL, principally to protect the stakeholders by creating an entity with a large capitalization. The bank had reported in its annual reports that all the internal control mechanisms for good governance stipulated by the SECP were in place and the auditors (internal and external) had reported that these were satisfactory. Yet, when subjected to an investigation, it was revealed that the internal management was involved in a variety of acts of misrepresentation and concealment. The case focuses on the weaknesses in the structure of the corporate governance regime in Pakistan. The fact remains that no amount of internal or external checks can stop the internal management from colluding to perpetuate a fraud.
Swot Analysis of "Crescent Standard Investment Bank Limited - Governance Failure" written by Muntazar B. Ahmed includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Csibl Crescent facing as an external strategic factors. Some of the topics covered in Crescent Standard Investment Bank Limited - Governance Failure case study are - Strategic Management Strategies, Ethics, Financial management and Global Business.
Some of the macro environment factors that can be used to understand the Crescent Standard Investment Bank Limited - Governance Failure casestudy better are - – increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, wage bills are increasing, supply chains are disrupted by pandemic , there is backlash against globalization, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, increasing energy prices, etc
Introduction to SWOT Analysis of Crescent Standard Investment Bank Limited - Governance Failure
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Crescent Standard Investment Bank Limited - Governance Failure case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Csibl Crescent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Csibl Crescent 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 Crescent Standard Investment Bank Limited - Governance Failure can be done for the following purposes –
1. Strategic planning using facts provided in Crescent Standard Investment Bank Limited - Governance Failure case study
2. Improving business portfolio management of Csibl Crescent
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Csibl Crescent
Strengths Crescent Standard Investment Bank Limited - Governance Failure | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Csibl Crescent in Crescent Standard Investment Bank Limited - Governance Failure Harvard Business Review case study are -
Analytics focus
– Csibl Crescent 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 Muntazar B. Ahmed 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.
Cross disciplinary teams
– Horizontal connected teams at the Csibl Crescent 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
– Csibl Crescent has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Csibl Crescent 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.
High brand equity
– Csibl Crescent has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Csibl Crescent to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Csibl Crescent is one of the most innovative firm in sector. Manager in Crescent Standard Investment Bank Limited - Governance Failure Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Csibl Crescent is one of the leading recruiters in the industry. Managers in the Crescent Standard Investment Bank Limited - Governance Failure are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Csibl Crescent is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Csibl Crescent in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Csibl Crescent 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 Crescent Standard Investment Bank Limited - Governance Failure - 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 Csibl Crescent
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Csibl Crescent does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Crescent Standard Investment Bank Limited - Governance Failure 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.
Diverse revenue streams
– Csibl Crescent is present in almost all the verticals within the industry. This has provided firm in Crescent Standard Investment Bank Limited - Governance Failure 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.
Weaknesses Crescent Standard Investment Bank Limited - Governance Failure | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Crescent Standard Investment Bank Limited - Governance Failure are -
Products dominated business model
– Even though Csibl Crescent 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 - Crescent Standard Investment Bank Limited - Governance Failure should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Csibl Crescent 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.
Skills based hiring
– The stress on hiring functional specialists at Csibl Crescent has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Increasing silos among functional specialists
– The organizational structure of Csibl Crescent is dominated by functional specialists. It is not different from other players in the Global Business segment. Csibl Crescent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Csibl Crescent to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Crescent Standard Investment Bank Limited - Governance Failure HBR case study mentions - Csibl Crescent 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.
Aligning sales with marketing
– It come across in the case study Crescent Standard Investment Bank Limited - Governance Failure 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 Crescent Standard Investment Bank Limited - Governance Failure can leverage the sales team experience to cultivate customer relationships as Csibl Crescent is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Crescent Standard Investment Bank Limited - Governance Failure 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 Csibl Crescent 's lucrative customers.
Interest costs
– Compare to the competition, Csibl Crescent 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Csibl Crescent 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
– Csibl Crescent 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Csibl Crescent is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Crescent Standard Investment Bank Limited - Governance Failure can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Crescent Standard Investment Bank Limited - Governance Failure | 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 Crescent Standard Investment Bank Limited - Governance Failure are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Csibl Crescent 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, Crescent Standard Investment Bank Limited - Governance Failure, 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
– Csibl Crescent 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Csibl Crescent can use these opportunities to build new business models that can help the communities that Csibl Crescent operates in. Secondly it can use opportunities from government spending in Global Business sector.
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. Csibl Crescent can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Csibl Crescent 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. Csibl Crescent 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.
Using analytics as competitive advantage
– Csibl Crescent 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 Crescent Standard Investment Bank Limited - Governance Failure - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Csibl Crescent to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Csibl Crescent 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 Csibl Crescent has opened avenues for new revenue streams for the organization in the industry. This can help Csibl Crescent to build a more holistic ecosystem as suggested in the Crescent Standard Investment Bank Limited - Governance Failure case study. Csibl Crescent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Csibl Crescent can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Csibl Crescent to increase its market reach. Csibl Crescent 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.
Learning at scale
– Online learning technologies has now opened space for Csibl Crescent 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.
Buying journey improvements
– Csibl Crescent can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Crescent Standard Investment Bank Limited - Governance Failure 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.
Manufacturing automation
– Csibl Crescent can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Threats Crescent Standard Investment Bank Limited - Governance Failure External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Crescent Standard Investment Bank Limited - Governance Failure are -
Stagnating economy with rate increase
– Csibl Crescent 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Crescent Standard Investment Bank Limited - Governance Failure, Csibl Crescent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Csibl Crescent 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.
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 Csibl Crescent business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Csibl Crescent 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 Crescent Standard Investment Bank Limited - Governance Failure .
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 Csibl Crescent.
Shortening product life cycle
– it is one of the major threat that Csibl Crescent is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Csibl Crescent needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Csibl Crescent 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. Csibl Crescent can take advantage of this fund but it will also bring new competitors in the Global Business 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 Csibl Crescent in the Global Business sector and impact the bottomline of the organization.
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. Csibl Crescent will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Csibl Crescent has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Csibl Crescent needs to keep up with the evolution of technology in the Global Business 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.
Weighted SWOT Analysis of Crescent Standard Investment Bank Limited - Governance Failure 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 Crescent Standard Investment Bank Limited - Governance Failure 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 Crescent Standard Investment Bank Limited - Governance Failure 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 Crescent Standard Investment Bank Limited - Governance Failure 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 Crescent Standard Investment Bank Limited - Governance Failure 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 Csibl Crescent needs to make to build a sustainable competitive advantage.
