SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre
Supplement case for UV5683.On July 15, 2010, the U.S. Senate obtained the 60 votes needed to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act. On the same day, the SEC reached a $550 million settlement with Goldman Sachs relating to its April 16 lawsuit by dropping its fraud charges. Supporters of both sides claimed the settlement was a victory. This short case is the epilogue to "The SEC vs. Goldman Sachs" (UVA-GEM-0101).
Swot Analysis of "SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre" written by Wei Li, Rick Green includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Settlement Sachs facing as an external strategic factors. Some of the topics covered in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre case study are - Strategic Management Strategies, Government and Global Business.
Some of the macro environment factors that can be used to understand the SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre casestudy better are - – increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, central banks are concerned over increasing inflation,
talent flight as more people leaving formal jobs, increasing commodity prices, etc
Introduction to SWOT Analysis of SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Settlement Sachs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Settlement Sachs 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre can be done for the following purposes –
1. Strategic planning using facts provided in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre case study
2. Improving business portfolio management of Settlement Sachs
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 Settlement Sachs
Strengths SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Settlement Sachs in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre Harvard Business Review case study are -
Training and development
– Settlement Sachs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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.
Successful track record of launching new products
– Settlement Sachs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Settlement Sachs 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.
Cross disciplinary teams
– Horizontal connected teams at the Settlement Sachs 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
– Settlement Sachs is one of the most innovative firm in sector. Manager in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Settlement Sachs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Settlement Sachs 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.
Diverse revenue streams
– Settlement Sachs is present in almost all the verticals within the industry. This has provided firm in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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.
Sustainable margins compare to other players in Global Business industry
– SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre firm has clearly differentiated products in the market place. This has enabled Settlement Sachs to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Settlement Sachs to invest into research and development (R&D) and innovation.
Learning organization
- Settlement Sachs 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 Settlement Sachs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Settlement Sachs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Settlement Sachs has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to lead change in Global Business field
– Settlement Sachs 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 Settlement Sachs 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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.
Weaknesses SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre are -
Low market penetration in new markets
– Outside its home market of Settlement Sachs, firm in the HBR case study SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Settlement Sachs 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Wei Li, Rick Green suggests that, Settlement Sachs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre, is just above the industry average. Settlement Sachs 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.
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 Settlement Sachs supply chain. Even after few cautionary changes mentioned in the HBR case study - SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Settlement Sachs vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Settlement Sachs is dominated by functional specialists. It is not different from other players in the Global Business segment. Settlement Sachs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Settlement Sachs to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Settlement Sachs 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.
Need for greater diversity
– Settlement Sachs 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 strategic competitive environment developments
– As SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre HBR case study mentions - Settlement Sachs 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 Settlement Sachs products
– To increase the profitability and margins on the products, Settlement Sachs needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Settlement Sachs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre | 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre are -
Building a culture of innovation
– managers at Settlement Sachs 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Settlement Sachs 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, SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Settlement Sachs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Settlement Sachs 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. Settlement Sachs 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.
Leveraging digital technologies
– Settlement Sachs 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.
Better consumer reach
– The expansion of the 5G network will help Settlement Sachs to increase its market reach. Settlement Sachs 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.
Manufacturing automation
– Settlement Sachs 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 Settlement Sachs 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.
Learning at scale
– Online learning technologies has now opened space for Settlement Sachs 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.
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 Settlement Sachs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Settlement Sachs 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.
Creating value in data economy
– The success of analytics program of Settlement Sachs has opened avenues for new revenue streams for the organization in the industry. This can help Settlement Sachs to build a more holistic ecosystem as suggested in the SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre case study. Settlement Sachs 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, Settlement Sachs can use these opportunities to build new business models that can help the communities that Settlement Sachs operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Settlement Sachs.
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 Settlement Sachs business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Settlement Sachs 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 Settlement Sachs 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.
Increasing wage structure of Settlement Sachs
– 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 Settlement Sachs.
Regulatory challenges
– Settlement Sachs 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Settlement Sachs has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Settlement Sachs 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.
Stagnating economy with rate increase
– Settlement Sachs 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Settlement Sachs in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Settlement Sachs 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. Settlement Sachs can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Settlement Sachs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Settlement Sachs 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. Settlement Sachs needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 SEC versus Goldman Sachs (B): The Settlement-Everybody Wins, Except Fabrice Tourre 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 Settlement Sachs needs to make to build a sustainable competitive advantage.
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