Janet Yellen and the Bernanke Fed SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Janet Yellen and the Bernanke Fed
The unelected Federal Reserve Chairman exerts exceptional influence over the U.S., in fact global, economy. As Janet Yellen prepared to take over the position, she would look back on Chairman Bernanke's tenure during the Great Recession. During that time, Bernanke was attacked by critics from both the left and the right for guiding monetary policy into dangerous territory. Their criticisms echoed arguments Bernanke himself had made with regard to past downturns in Japan and Europe. Were the critics right, or was the Bernanke Fed charting a wise middle course? Instructors may also obtain a Teaching Note, written by this case's author, that provides suggestions for using this case effectively in the classroom.
Swot Analysis of "Janet Yellen and the Bernanke Fed" written by Matthew C. Weinzierl, Katrina Flanagan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bernanke Yellen facing as an external strategic factors. Some of the topics covered in Janet Yellen and the Bernanke Fed case study are - Strategic Management Strategies, International business, Policy, Recession and Global Business.
Some of the macro environment factors that can be used to understand the Janet Yellen and the Bernanke Fed casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization,
increasing transportation and logistics costs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Janet Yellen and the Bernanke Fed
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Janet Yellen and the Bernanke Fed case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bernanke Yellen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bernanke Yellen 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 Janet Yellen and the Bernanke Fed can be done for the following purposes –
1. Strategic planning using facts provided in Janet Yellen and the Bernanke Fed case study
2. Improving business portfolio management of Bernanke Yellen
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 Bernanke Yellen
Strengths Janet Yellen and the Bernanke Fed | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bernanke Yellen in Janet Yellen and the Bernanke Fed Harvard Business Review case study are -
Organizational Resilience of Bernanke Yellen
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bernanke Yellen does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Bernanke Yellen 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.
Training and development
– Bernanke Yellen has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Janet Yellen and the Bernanke Fed 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.
Innovation driven organization
– Bernanke Yellen is one of the most innovative firm in sector. Manager in Janet Yellen and the Bernanke Fed Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Bernanke Yellen in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Bernanke Yellen has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bernanke Yellen to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Bernanke Yellen digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bernanke Yellen 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.
Ability to recruit top talent
– Bernanke Yellen is one of the leading recruiters in the industry. Managers in the Janet Yellen and the Bernanke Fed are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Janet Yellen and the Bernanke Fed 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.
Successful track record of launching new products
– Bernanke Yellen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bernanke Yellen 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 switching costs
– The high switching costs that Bernanke Yellen 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.
Strong track record of project management
– Bernanke Yellen is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Janet Yellen and the Bernanke Fed | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Janet Yellen and the Bernanke Fed are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Janet Yellen and the Bernanke Fed, it seems that the employees of Bernanke Yellen 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 cash cycle compare to competitors
Bernanke Yellen has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Bernanke Yellen is dominated by functional specialists. It is not different from other players in the Global Business segment. Bernanke Yellen needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bernanke Yellen to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Matthew C. Weinzierl, Katrina Flanagan suggests that, Bernanke Yellen 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Janet Yellen and the Bernanke Fed, in the dynamic environment Bernanke Yellen has struggled to respond to the nimble upstart competition. Bernanke Yellen has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Bernanke Yellen 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Janet Yellen and the Bernanke Fed 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 Bernanke Yellen 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Janet Yellen and the Bernanke Fed 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 Bernanke Yellen has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bernanke Yellen is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Janet Yellen and the Bernanke Fed can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Bernanke Yellen 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. Bernanke Yellen 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.
Products dominated business model
– Even though Bernanke Yellen 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 - Janet Yellen and the Bernanke Fed should strive to include more intangible value offerings along with its core products and services.
Opportunities Janet Yellen and the Bernanke Fed | 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 Janet Yellen and the Bernanke Fed are -
Loyalty marketing
– Bernanke Yellen 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.
Better consumer reach
– The expansion of the 5G network will help Bernanke Yellen to increase its market reach. Bernanke Yellen 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.
Leveraging digital technologies
– Bernanke Yellen 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bernanke Yellen is facing challenges because of the dominance of functional experts in the organization. Janet Yellen and the Bernanke Fed 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bernanke Yellen 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 Bernanke Yellen to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Bernanke Yellen 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.
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 Bernanke Yellen in the consumer business. Now Bernanke Yellen can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Bernanke Yellen can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Janet Yellen and the Bernanke Fed 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.
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. Bernanke Yellen can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Bernanke Yellen has opened avenues for new revenue streams for the organization in the industry. This can help Bernanke Yellen to build a more holistic ecosystem as suggested in the Janet Yellen and the Bernanke Fed case study. Bernanke Yellen 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 Bernanke Yellen can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Bernanke Yellen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Bernanke Yellen 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.
Threats Janet Yellen and the Bernanke Fed External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Janet Yellen and the Bernanke Fed are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bernanke Yellen with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Bernanke Yellen can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Bernanke Yellen 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bernanke Yellen 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 Janet Yellen and the Bernanke Fed .
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. Bernanke Yellen needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Bernanke Yellen 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Janet Yellen and the Bernanke Fed, Bernanke Yellen 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 .
Technology acceleration in Forth Industrial Revolution
– Bernanke Yellen has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Bernanke Yellen 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.
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 Bernanke Yellen in the Global Business sector and impact the bottomline of the organization.
Consumer confidence and its impact on Bernanke Yellen 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.
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 Bernanke Yellen
– 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 Bernanke Yellen.
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 Bernanke Yellen business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Janet Yellen and the Bernanke Fed 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 Janet Yellen and the Bernanke Fed 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 Janet Yellen and the Bernanke Fed 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 Janet Yellen and the Bernanke Fed 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 Janet Yellen and the Bernanke Fed 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 Bernanke Yellen needs to make to build a sustainable competitive advantage.
