Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886
The case describes the international problem of money laundering and summarizes U.S. bank regulations aimed at reducing money laundering activities. The introduction of H.R. 3886 in 2000 was one in a series of attempts to formalize U.S. banks' monitoring of their customers. The bill was prompted by a government report that named and criticized U.S. banks for laundering billions of dollars linked to drug trafficking, fraud, and organized crime. Interest groups in favor of H.R. 3886 were predominantly law enforcement agencies that viewed current anti-money laundering laws as ineffective. Groups opposed to the bill included the American Civil Liberties Union, which believed that the collection of more information about bank customers' activities was an invasion of privacy, and the American Bankers Association, which claimed that the legislation would impose unnecessary costs on banks. The case can be used to introduce the distributive politics framework for analyzing non-market issues and formulating nonmarket strategies in the context of government institutions. The epilogue reveals that H.R. 3886 died before it ever reached the House floor, but that an expanded version of the legislation ultimately passed-with the support of stakeholders who originally fought it-as part of the USA PATRIOT Act after the terrorist attacks of September 11, 2001. This stance reversal provides an opportunity to explore how events, public opinion, and the media can create windows of policy opportunity.
Swot Analysis of "Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886" written by Timothy Feddersen, Kimia Rahimi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Laundering 3886 facing as an external strategic factors. Some of the topics covered in Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 casestudy better are - – increasing transportation and logistics costs, geopolitical disruptions, increasing household debt because of falling income levels, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
talent flight as more people leaving formal jobs, wage bills are increasing, etc
Introduction to SWOT Analysis of Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Laundering 3886, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 can be done for the following purposes –
1. Strategic planning using facts provided in Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 case study
2. Improving business portfolio management of Laundering 3886
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 Laundering 3886
Strengths Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Laundering 3886 in Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 Harvard Business Review case study are -
Sustainable margins compare to other players in Global Business industry
– Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 firm has clearly differentiated products in the market place. This has enabled Laundering 3886 to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Laundering 3886 to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Laundering 3886 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 Laundering 3886 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Laundering 3886 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 recruit top talent
– Laundering 3886 is one of the leading recruiters in the industry. Managers in the Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Laundering 3886 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Laundering 3886 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 Laundering 3886 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Laundering 3886 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.
Cross disciplinary teams
– Horizontal connected teams at the Laundering 3886 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.
Operational resilience
– The operational resilience strategy in the Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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.
Innovation driven organization
– Laundering 3886 is one of the most innovative firm in sector. Manager in Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 are -
Skills based hiring
– The stress on hiring functional specialists at Laundering 3886 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.
Capital Spending Reduction
– Even during the low interest decade, Laundering 3886 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, is just above the industry average. Laundering 3886 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, in the dynamic environment Laundering 3886 has struggled to respond to the nimble upstart competition. Laundering 3886 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Laundering 3886 supply chain. Even after few cautionary changes mentioned in the HBR case study - Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Laundering 3886 vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Laundering 3886 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Laundering 3886 has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 can leverage the sales team experience to cultivate customer relationships as Laundering 3886 is planning to shift buying processes online.
High cash cycle compare to competitors
Laundering 3886 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.
Lack of clear differentiation of Laundering 3886 products
– To increase the profitability and margins on the products, Laundering 3886 needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, it seems that the employees of Laundering 3886 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.
Opportunities Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 | 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 are -
Building a culture of innovation
– managers at Laundering 3886 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 Laundering 3886 in the consumer business. Now Laundering 3886 can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Laundering 3886 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Laundering 3886 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Laundering 3886 can use these opportunities to build new business models that can help the communities that Laundering 3886 operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Laundering 3886 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Laundering 3886 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 Laundering 3886 to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Laundering 3886 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.
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. Laundering 3886 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Laundering 3886 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 Laundering 3886 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Laundering 3886 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, Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Laundering 3886 has opened avenues for new revenue streams for the organization in the industry. This can help Laundering 3886 to build a more holistic ecosystem as suggested in the Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 case study. Laundering 3886 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 are -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Laundering 3886 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.
High dependence on third party suppliers
– Laundering 3886 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.
Technology acceleration in Forth Industrial Revolution
– Laundering 3886 has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Laundering 3886 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.
Increasing wage structure of Laundering 3886
– 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 Laundering 3886.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Laundering 3886 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Laundering 3886 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. Laundering 3886 can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Regulatory challenges
– Laundering 3886 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.
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. Laundering 3886 needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886, Laundering 3886 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Laundering 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 .
Consumer confidence and its impact on Laundering 3886 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.
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. Laundering 3886 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.
Weighted SWOT Analysis of Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886 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 Laundering 3886 needs to make to build a sustainable competitive advantage.
