Second Bank of the United States: Banks and Banking Before the Second Bank of the United States SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Second Bank of the United States: Banks and Banking Before the Second Bank of the United States
Describes the problems of early banking, early attempts at central banking, achieving a sound uniform currency, and economic growth. Illustrates the problems of developing a sound money economy in a developing country and shows the difficulties of branch management in an era of primitive communication.
Swot Analysis of "Second Bank of the United States: Banks and Banking Before the Second Bank of the United States" written by Thomas K. McCraw includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Banking Sound facing as an external strategic factors. Some of the topics covered in Second Bank of the United States: Banks and Banking Before the Second Bank of the United States case study are - Strategic Management Strategies, Communication, Currency, Policy, Risk management and Global Business.
Some of the macro environment factors that can be used to understand the Second Bank of the United States: Banks and Banking Before the Second Bank of the United States casestudy better are - – challanges to central banks by blockchain based private currencies, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Second Bank of the United States: Banks and Banking Before the Second Bank of the United States
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Second Bank of the United States: Banks and Banking Before the Second Bank of the United States case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Banking Sound, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Banking Sound 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States can be done for the following purposes –
1. Strategic planning using facts provided in Second Bank of the United States: Banks and Banking Before the Second Bank of the United States case study
2. Improving business portfolio management of Banking Sound
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 Banking Sound
Strengths Second Bank of the United States: Banks and Banking Before the Second Bank of the United States | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Banking Sound in Second Bank of the United States: Banks and Banking Before the Second Bank of the United States Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Banking Sound in the sector have low bargaining power. Second Bank of the United States: Banks and Banking Before the Second Bank of the United States has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Banking Sound to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Banking Sound digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Banking Sound 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.
High brand equity
– Banking Sound has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Banking Sound to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Banking Sound in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Banking Sound is one of the leading recruiters in the industry. Managers in the Second Bank of the United States: Banks and Banking Before the Second Bank of the United States are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Banking Sound 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 lead change in Global Business field
– Banking Sound 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 Banking Sound in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Banking Sound 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.
Cross disciplinary teams
– Horizontal connected teams at the Banking Sound 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.
Highly skilled collaborators
– Banking Sound 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Banking Sound is present in almost all the verticals within the industry. This has provided firm in Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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.
Weaknesses Second Bank of the United States: Banks and Banking Before the Second Bank of the United States | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Second Bank of the United States: Banks and Banking Before the Second Bank of the United States are -
Lack of clear differentiation of Banking Sound products
– To increase the profitability and margins on the products, Banking Sound needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Banking Sound 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.
Capital Spending Reduction
– Even during the low interest decade, Banking Sound 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States, it seems that the employees of Banking Sound 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Banking Sound 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.
Aligning sales with marketing
– It come across in the case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States can leverage the sales team experience to cultivate customer relationships as Banking Sound is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Banking Sound 's lucrative customers.
Slow to strategic competitive environment developments
– As Second Bank of the United States: Banks and Banking Before the Second Bank of the United States HBR case study mentions - Banking Sound 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.
No frontier risks strategy
– After analyzing the HBR case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Banking Sound is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Banking Sound supply chain. Even after few cautionary changes mentioned in the HBR case study - Second Bank of the United States: Banks and Banking Before the Second Bank of the United States, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Banking Sound vulnerable to further global disruptions in South East Asia.
Opportunities Second Bank of the United States: Banks and Banking Before the Second Bank of the United States | 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Banking Sound 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Banking Sound can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Banking Sound can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Buying journey improvements
– Banking Sound can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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.
Loyalty marketing
– Banking Sound 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.
Creating value in data economy
– The success of analytics program of Banking Sound has opened avenues for new revenue streams for the organization in the industry. This can help Banking Sound to build a more holistic ecosystem as suggested in the Second Bank of the United States: Banks and Banking Before the Second Bank of the United States case study. Banking Sound can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Banking Sound can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Banking Sound 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.
Better consumer reach
– The expansion of the 5G network will help Banking Sound to increase its market reach. Banking Sound 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.
Using analytics as competitive advantage
– Banking Sound 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Banking Sound to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Banking Sound can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Banking Sound can use these opportunities to build new business models that can help the communities that Banking Sound operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for Banking Sound 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.
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 Banking Sound in the consumer business. Now Banking Sound can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Second Bank of the United States: Banks and Banking Before the Second Bank of the United States External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Second Bank of the United States: Banks and Banking Before the Second Bank of the United States are -
High dependence on third party suppliers
– Banking Sound 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.
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. Banking Sound can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Banking Sound 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.
Technology acceleration in Forth Industrial Revolution
– Banking Sound has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Banking Sound 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.
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. Banking Sound needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Banking Sound can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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. Banking Sound 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States, Banking Sound 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 .
Shortening product life cycle
– it is one of the major threat that Banking Sound is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Banking Sound 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. Banking Sound can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Banking Sound business can come under increasing regulations regarding data privacy, data security, etc.
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 Banking Sound in the Global Business sector and impact the bottomline of the organization.
Consumer confidence and its impact on Banking Sound 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.
Weighted SWOT Analysis of Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Second Bank of the United States: Banks and Banking Before the Second Bank of the United States 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 Banking Sound needs to make to build a sustainable competitive advantage.
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