RBC Financial Group--The Equator Principles in Qatargas II LNG Project SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of RBC Financial Group--The Equator Principles in Qatargas II LNG Project
The environmental manager at the Royal Bank of Canada (RBC) has finally received the detailed environmental and social risk assessment of the Qatargas II LNG Project. RBC was a potential participant in a syndicated loan for a project financing venture in Qatar. The project would extract and process liquid natural gas there and transport it to the United Kingdom market. RBC was among the first banks to use an environmental and social risk assessment process based on the Equator Principles that supported the principles underlying sustainable development. However, environmental non-government organizations (NGOs) further complicated any financing decision; they were only too quick to point out publicly any shortcomings. Moreover, it was not clear if problems might occur in monitoring and enforcing any loan covenants. Two basic questions remained: first, does the Qatargas II Project make sense to RBC as it attempts to balance economic, environmental, and social performance (i.e., the triple-bottom line); and second, do the Equator Principles provide a competitive advantage?
Swot Analysis of "RBC Financial Group--The Equator Principles in Qatargas II LNG Project" written by Robert Klassen, Matias Gancberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rbc Qatargas facing as an external strategic factors. Some of the topics covered in RBC Financial Group--The Equator Principles in Qatargas II LNG Project case study are - Strategic Management Strategies, International business, Strategy, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the RBC Financial Group--The Equator Principles in Qatargas II LNG Project casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, geopolitical disruptions, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of RBC Financial Group--The Equator Principles in Qatargas II LNG Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in RBC Financial Group--The Equator Principles in Qatargas II LNG Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rbc Qatargas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rbc Qatargas 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project can be done for the following purposes –
1. Strategic planning using facts provided in RBC Financial Group--The Equator Principles in Qatargas II LNG Project case study
2. Improving business portfolio management of Rbc Qatargas
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 Rbc Qatargas
Strengths RBC Financial Group--The Equator Principles in Qatargas II LNG Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rbc Qatargas in RBC Financial Group--The Equator Principles in Qatargas II LNG Project Harvard Business Review case study are -
High switching costs
– The high switching costs that Rbc Qatargas 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.
Learning organization
- Rbc Qatargas 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 Rbc Qatargas is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in RBC Financial Group--The Equator Principles in Qatargas II LNG Project Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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.
Training and development
– Rbc Qatargas has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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.
Diverse revenue streams
– Rbc Qatargas is present in almost all the verticals within the industry. This has provided firm in RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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
– RBC Financial Group--The Equator Principles in Qatargas II LNG Project firm has clearly differentiated products in the market place. This has enabled Rbc Qatargas to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Rbc Qatargas to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Rbc Qatargas has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in RBC Financial Group--The Equator Principles in Qatargas II LNG Project HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Rbc Qatargas has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rbc Qatargas 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
– Rbc Qatargas has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rbc Qatargas to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Rbc Qatargas in the sector have low bargaining power. RBC Financial Group--The Equator Principles in Qatargas II LNG Project has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rbc Qatargas to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Rbc Qatargas 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Rbc Qatargas 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 Robert Klassen, Matias Gancberg 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.
Weaknesses RBC Financial Group--The Equator Principles in Qatargas II LNG Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of RBC Financial Group--The Equator Principles in Qatargas II LNG Project are -
Need for greater diversity
– Rbc Qatargas 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project, is just above the industry average. Rbc Qatargas 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Rbc Qatargas 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.
No frontier risks strategy
– After analyzing the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though Rbc Qatargas 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 - RBC Financial Group--The Equator Principles in Qatargas II LNG Project should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project, it seems that the employees of Rbc Qatargas 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.
High operating costs
– Compare to the competitors, firm in the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 Rbc Qatargas 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Rbc Qatargas 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.
Low market penetration in new markets
– Outside its home market of Rbc Qatargas, firm in the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project can leverage the sales team experience to cultivate customer relationships as Rbc Qatargas is planning to shift buying processes online.
Lack of clear differentiation of Rbc Qatargas products
– To increase the profitability and margins on the products, Rbc Qatargas needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities RBC Financial Group--The Equator Principles in Qatargas II LNG Project | 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Rbc Qatargas 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rbc Qatargas 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 Rbc Qatargas to increase its market reach. Rbc Qatargas 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.
Buying journey improvements
– Rbc Qatargas can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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.
Using analytics as competitive advantage
– Rbc Qatargas 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rbc Qatargas to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Rbc Qatargas has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Rbc Qatargas in the consumer business. Now Rbc Qatargas can target international markets with far fewer capital restrictions requirements than the existing system.
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. Rbc Qatargas can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Rbc Qatargas has opened avenues for new revenue streams for the organization in the industry. This can help Rbc Qatargas to build a more holistic ecosystem as suggested in the RBC Financial Group--The Equator Principles in Qatargas II LNG Project case study. Rbc Qatargas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Rbc Qatargas 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rbc Qatargas 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 Rbc Qatargas to hire the very best people irrespective of their geographical location.
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. Rbc Qatargas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rbc Qatargas is facing challenges because of the dominance of functional experts in the organization. RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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.
Threats RBC Financial Group--The Equator Principles in Qatargas II LNG Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project are -
Increasing wage structure of Rbc Qatargas
– 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 Rbc Qatargas.
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 Rbc Qatargas business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rbc Qatargas with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Rbc Qatargas in the Global Business sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Rbc Qatargas 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.
Regulatory challenges
– Rbc Qatargas 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.
Consumer confidence and its impact on Rbc Qatargas 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rbc Qatargas 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project .
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. Rbc Qatargas needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study RBC Financial Group--The Equator Principles in Qatargas II LNG Project, Rbc Qatargas 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 .
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. Rbc Qatargas will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Rbc Qatargas is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 RBC Financial Group--The Equator Principles in Qatargas II LNG Project 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 Rbc Qatargas needs to make to build a sustainable competitive advantage.
