Evaluating Microsavings Programs: Green Bank of the Philippines (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Evaluating Microsavings Programs: Green Bank of the Philippines (A)
To maximize their effectiveness, color cases should be printed in color.Green Bank of the Philippines was known for its product innovation and its ability to bring new products to market. In 2002, Green Bank designed an untested commitment savings product that both gave individuals access to formal savings and helped them commit to reaching their savings goals. Omar Andaya, the Green Bank president, must decide how to evaluate the success of this product. The management team at Green Bank discusses various evaluation methods, including a formal quantitative impact evaluation using a randomized control trial (RCT), and the value an impact assessment brings to the Bank. In particular, they grapple with the question of how success is measured for a product both for the bank and for its clients. The case highlights the issues an organization must consider before deciding to do an impact assessment as well as common design challenges.
Authors :: Nava Ashraf, Dean Karlan, Wesley Yin, Marc Shotland
Swot Analysis of "Evaluating Microsavings Programs: Green Bank of the Philippines (A)" written by Nava Ashraf, Dean Karlan, Wesley Yin, Marc Shotland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bank Green facing as an external strategic factors. Some of the topics covered in Evaluating Microsavings Programs: Green Bank of the Philippines (A) case study are - Strategic Management Strategies, Performance measurement, Product development, Project management and Global Business.
Some of the macro environment factors that can be used to understand the Evaluating Microsavings Programs: Green Bank of the Philippines (A) casestudy better are - – wage bills are increasing, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing commodity prices, supply chains are disrupted by pandemic , there is backlash against globalization, cloud computing is disrupting traditional business models,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Evaluating Microsavings Programs: Green Bank of the Philippines (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Evaluating Microsavings Programs: Green Bank of the Philippines (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bank Green, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bank Green 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 Evaluating Microsavings Programs: Green Bank of the Philippines (A) can be done for the following purposes –
1. Strategic planning using facts provided in Evaluating Microsavings Programs: Green Bank of the Philippines (A) case study
2. Improving business portfolio management of Bank Green
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 Bank Green
Strengths Evaluating Microsavings Programs: Green Bank of the Philippines (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bank Green in Evaluating Microsavings Programs: Green Bank of the Philippines (A) Harvard Business Review case study are -
Successful track record of launching new products
– Bank Green has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bank Green 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.
Ability to lead change in Global Business field
– Bank Green 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 Bank Green in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Evaluating Microsavings Programs: Green Bank of the Philippines (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.
Ability to recruit top talent
– Bank Green is one of the leading recruiters in the industry. Managers in the Evaluating Microsavings Programs: Green Bank of the Philippines (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.
Cross disciplinary teams
– Horizontal connected teams at the Bank Green 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.
Innovation driven organization
– Bank Green is one of the most innovative firm in sector. Manager in Evaluating Microsavings Programs: Green Bank of the Philippines (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Bank Green
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bank Green 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 Bank Green in the sector have low bargaining power. Evaluating Microsavings Programs: Green Bank of the Philippines (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bank Green to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Bank Green 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 Nava Ashraf, Dean Karlan, Wesley Yin, Marc Shotland 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.
High brand equity
– Bank Green has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bank Green to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Bank Green is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Bank Green has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Evaluating Microsavings Programs: Green Bank of the Philippines (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.
Weaknesses Evaluating Microsavings Programs: Green Bank of the Philippines (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Evaluating Microsavings Programs: Green Bank of the Philippines (A) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Nava Ashraf, Dean Karlan, Wesley Yin, Marc Shotland suggests that, Bank Green is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Evaluating Microsavings Programs: Green Bank of the Philippines (A), it seems that the employees of Bank Green 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.
Products dominated business model
– Even though Bank Green 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 - Evaluating Microsavings Programs: Green Bank of the Philippines (A) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Evaluating Microsavings Programs: Green Bank of the Philippines (A), is just above the industry average. Bank Green 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bank Green is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Evaluating Microsavings Programs: Green Bank of the Philippines (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.
Capital Spending Reduction
– Even during the low interest decade, Bank Green 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.
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 Bank Green supply chain. Even after few cautionary changes mentioned in the HBR case study - Evaluating Microsavings Programs: Green Bank of the Philippines (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bank Green vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Bank Green, firm in the HBR case study Evaluating Microsavings Programs: Green Bank of the Philippines (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Bank Green 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. Bank Green 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Evaluating Microsavings Programs: Green Bank of the Philippines (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bank Green has relatively successful track record of launching new products.
Need for greater diversity
– Bank Green has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities Evaluating Microsavings Programs: Green Bank of the Philippines (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 Evaluating Microsavings Programs: Green Bank of the Philippines (A) are -
Building a culture of innovation
– managers at Bank Green can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bank Green 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.
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 Bank Green 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 Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bank Green 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. Bank Green 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.
Manufacturing automation
– Bank Green 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bank Green in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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. Bank Green can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bank Green 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, Evaluating Microsavings Programs: Green Bank of the Philippines (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
– Bank Green 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.
Developing new processes and practices
– Bank Green can develop new processes and procedures in Global Business 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bank Green is facing challenges because of the dominance of functional experts in the organization. Evaluating Microsavings Programs: Green Bank of the Philippines (A) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Bank Green can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bank Green can use these opportunities to build new business models that can help the communities that Bank Green operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Evaluating Microsavings Programs: Green Bank of the Philippines (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Evaluating Microsavings Programs: Green Bank of the Philippines (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. Bank Green 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bank Green with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Bank Green 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 Evaluating Microsavings Programs: Green Bank of the Philippines (A), Bank Green 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 .
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 Bank Green.
Stagnating economy with rate increase
– Bank Green 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.
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.
Increasing wage structure of Bank Green
– 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 Bank Green.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bank Green 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 Evaluating Microsavings Programs: Green Bank of the Philippines (A) .
Shortening product life cycle
– it is one of the major threat that Bank Green is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Bank Green business can come under increasing regulations regarding data privacy, data security, etc.
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. Bank Green can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Bank Green has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Bank Green 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 Evaluating Microsavings Programs: Green Bank of the Philippines (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 Evaluating Microsavings Programs: Green Bank of the Philippines (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 Evaluating Microsavings Programs: Green Bank of the Philippines (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 Evaluating Microsavings Programs: Green Bank of the Philippines (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 Evaluating Microsavings Programs: Green Bank of the Philippines (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 Bank Green needs to make to build a sustainable competitive advantage.