Centre Corporate Abbott, Building A SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Centre Corporate Abbott, Building A
The morning of October 9, 2012 found the portfolio manager for the Thackery Real Estate Fund (TREF) lost in thought. TREF was a large investment fund that specialized in commercial and industrial real estate. While TREF had a number of investors, there was one large institutional investor, and it had asked for an update on the fund by week's end. Weighing on the portfolio manager's mind was a particular industrial park in Montreal, Quebec known as the Centre Corporate Abbott. He was focused specifically on a proposed investment that required $20 million to purchase a completed, tenanted building known as Building A. In 2008, the portfolio manager had bought two other adjacent properties for $17 million from the same developer. In making his decision, he knew that the economic news across the globe was not rosy. In Canada and Quebec, the manufacturing sector had still not overcome the challenges of 2008's Great Recession. For Quebec in particular, it also looked like the voters might be leaning towards another separatist government and news of corruption in the construction sector had become daily fodder. The portfolio manager wondered whether he should follow through with the investment and, if he did, how he would explain his recommendation to his investors as early as Friday.
Swot Analysis of "Centre Corporate Abbott, Building A" written by Chuck Grace, Fraser Sager includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tref Quebec facing as an external strategic factors. Some of the topics covered in Centre Corporate Abbott, Building A case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Centre Corporate Abbott, Building A casestudy better are - – challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing commodity prices, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Centre Corporate Abbott, Building A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Centre Corporate Abbott, Building A case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tref Quebec, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tref Quebec 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 Centre Corporate Abbott, Building A can be done for the following purposes –
1. Strategic planning using facts provided in Centre Corporate Abbott, Building A case study
2. Improving business portfolio management of Tref Quebec
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tref Quebec
Strengths Centre Corporate Abbott, Building A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tref Quebec in Centre Corporate Abbott, Building A Harvard Business Review case study are -
Learning organization
- Tref Quebec 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 Tref Quebec is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Centre Corporate Abbott, Building A Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Centre Corporate Abbott, Building A Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Tref Quebec is one of the leading recruiters in the industry. Managers in the Centre Corporate Abbott, Building A are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Tref Quebec in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Tref Quebec 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 Chuck Grace, Fraser Sager 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.
Strong track record of project management
– Tref Quebec is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Tref Quebec has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tref Quebec to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Tref Quebec is present in almost all the verticals within the industry. This has provided firm in Centre Corporate Abbott, Building A 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.
Innovation driven organization
– Tref Quebec is one of the most innovative firm in sector. Manager in Centre Corporate Abbott, Building A Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Tref Quebec has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Centre Corporate Abbott, Building A Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Tref Quebec 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Tref Quebec digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tref Quebec 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.
Weaknesses Centre Corporate Abbott, Building A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Centre Corporate Abbott, Building A are -
High cash cycle compare to competitors
Tref Quebec 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.
Interest costs
– Compare to the competition, Tref Quebec 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tref Quebec is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Centre Corporate Abbott, Building A can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Tref Quebec 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.
Increasing silos among functional specialists
– The organizational structure of Tref Quebec is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Tref Quebec needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tref Quebec to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Centre Corporate Abbott, Building A, it seems that the employees of Tref Quebec 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.
Aligning sales with marketing
– It come across in the case study Centre Corporate Abbott, Building A 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 Centre Corporate Abbott, Building A can leverage the sales team experience to cultivate customer relationships as Tref Quebec is planning to shift buying processes online.
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 Tref Quebec supply chain. Even after few cautionary changes mentioned in the HBR case study - Centre Corporate Abbott, Building A, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tref Quebec vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Centre Corporate Abbott, Building A HBR case study mentions - Tref Quebec 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Centre Corporate Abbott, Building A HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Tref Quebec has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Centre Corporate Abbott, Building A 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 Tref Quebec 's lucrative customers.
Opportunities Centre Corporate Abbott, Building A | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Centre Corporate Abbott, Building A are -
Learning at scale
– Online learning technologies has now opened space for Tref Quebec 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tref Quebec 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 Tref Quebec to hire the very best people irrespective of their geographical location.
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 Tref Quebec 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Tref Quebec can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Tref Quebec can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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 Tref Quebec in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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 Tref Quebec in the consumer business. Now Tref Quebec can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tref Quebec can use these opportunities to build new business models that can help the communities that Tref Quebec operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Building a culture of innovation
– managers at Tref Quebec 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 Finance & Accounting segment.
Better consumer reach
– The expansion of the 5G network will help Tref Quebec to increase its market reach. Tref Quebec 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.
Creating value in data economy
– The success of analytics program of Tref Quebec has opened avenues for new revenue streams for the organization in the industry. This can help Tref Quebec to build a more holistic ecosystem as suggested in the Centre Corporate Abbott, Building A case study. Tref Quebec can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Tref Quebec 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tref Quebec can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Centre Corporate Abbott, Building A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Centre Corporate Abbott, Building A are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tref Quebec with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Tref Quebec.
Increasing wage structure of Tref Quebec
– 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 Tref Quebec.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tref Quebec in the Finance & Accounting industry. The Finance & Accounting 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.
Technology acceleration in Forth Industrial Revolution
– Tref Quebec has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Tref Quebec needs to keep up with the evolution of technology in the Finance & Accounting 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Centre Corporate Abbott, Building A, Tref Quebec may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Shortening product life cycle
– it is one of the major threat that Tref Quebec is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Tref Quebec 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.
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 Tref Quebec in the Finance & Accounting sector and impact the bottomline of the organization.
Consumer confidence and its impact on Tref Quebec 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.
Regulatory challenges
– Tref Quebec 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 Finance & Accounting industry regulations.
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.
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. Tref Quebec needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Centre Corporate Abbott, Building A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Centre Corporate Abbott, Building A needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Centre Corporate Abbott, Building A is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Centre Corporate Abbott, Building A is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Centre Corporate Abbott, Building A is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tref Quebec needs to make to build a sustainable competitive advantage.