GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008
By 2008, GlobeOp was a leader in technology-enabled middle- and back-office support services and fund administration for hedge funds, fund managers, family wealth managers, and institutional investors, serving more than 160 clients worldwide (55 percent in the United States and the remainder in Europe, aside from a few in Asia). Now with a total of over US$100 billion in assets under administration (AUA), the company had been profitable since its second year of operations (2001). GlobeOp employed over 1,700 people in all of its offices-London, New York, Dublin, Ireland, the Cayman Islands, Harrison, New York, Hartford, Connecticut, and Mumbai, India. In fact, two-thirds of the company's employees were based in India by 2008. In terms of services to its clients, GlobeOp handled a broad palette of services post-execution of a trade. By 2008, GlobeOp had defined functional leadership with processes, and developed the technology to support such people and processes. But the road to that point had not been easy. Typical of many growth companies, GlobeOp had faced several internal and external challenges that tested the skills and tenacity of its management team. In addition, on the product side, GlobeOp had begun to unbundle its products and target new clients, which required a new emphasis on marketing and sales. As Hufschmid reflected on the company's path, he wondered whether he and his team had made all the optimal decisions while growing the company, and more importantly, how to map out the future of GlobeOp, given his desire for continued improvement and growth.
Swot Analysis of "GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008" written by Glenn R. Carroll, Victoria Chang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Globeop 2008 facing as an external strategic factors. Some of the topics covered in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 case study are - Strategic Management Strategies, Growth strategy and Global Business.
Some of the macro environment factors that can be used to understand the GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, technology disruption, etc
Introduction to SWOT Analysis of GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Globeop 2008, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Globeop 2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 can be done for the following purposes –
1. Strategic planning using facts provided in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 case study
2. Improving business portfolio management of Globeop 2008
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 Globeop 2008
Strengths GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Globeop 2008 in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Globeop 2008 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Globeop 2008 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Globeop 2008 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.
Training and development
– Globeop 2008 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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.
Strong track record of project management
– Globeop 2008 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Globeop 2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Globeop 2008 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 Globeop 2008 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 firm has clearly differentiated products in the market place. This has enabled Globeop 2008 to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Globeop 2008 to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Globeop 2008 in the sector have low bargaining power. GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Globeop 2008 to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Global Business field
– Globeop 2008 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 Globeop 2008 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Globeop 2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Globeop 2008
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Globeop 2008 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Globeop 2008 is one of the most innovative firm in sector. Manager in GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 are -
Interest costs
– Compare to the competition, Globeop 2008 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 strategic competitive environment developments
– As GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 HBR case study mentions - Globeop 2008 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.
Low market penetration in new markets
– Outside its home market of Globeop 2008, firm in the HBR case study GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Globeop 2008 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 star products
– The top 2 products and services of the firm as mentioned in the GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 Globeop 2008 has relatively successful track record of launching new products.
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 Globeop 2008 supply chain. Even after few cautionary changes mentioned in the HBR case study - GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Globeop 2008 vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Globeop 2008 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008, in the dynamic environment Globeop 2008 has struggled to respond to the nimble upstart competition. Globeop 2008 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 Globeop 2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 Globeop 2008 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008, 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.
Opportunities GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 | 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 are -
Developing new processes and practices
– Globeop 2008 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Globeop 2008 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Globeop 2008 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Globeop 2008 is facing challenges because of the dominance of functional experts in the organization. GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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.
Creating value in data economy
– The success of analytics program of Globeop 2008 has opened avenues for new revenue streams for the organization in the industry. This can help Globeop 2008 to build a more holistic ecosystem as suggested in the GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 case study. Globeop 2008 can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Globeop 2008 can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Loyalty marketing
– Globeop 2008 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.
Learning at scale
– Online learning technologies has now opened space for Globeop 2008 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.
Leveraging digital technologies
– Globeop 2008 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.
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 Globeop 2008 in the consumer business. Now Globeop 2008 can target international markets with far fewer capital restrictions requirements than the existing system.
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. Globeop 2008 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Globeop 2008 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 Globeop 2008 to hire the very best people irrespective of their geographical location.
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. Globeop 2008 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. Globeop 2008 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.
Threats GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 are -
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 Globeop 2008.
Increasing wage structure of Globeop 2008
– 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 Globeop 2008.
Technology acceleration in Forth Industrial Revolution
– Globeop 2008 has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Globeop 2008 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.
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. Globeop 2008 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Globeop 2008 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. Globeop 2008 will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Globeop 2008 is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Globeop 2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Globeop 2008 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Globeop 2008 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. Globeop 2008 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 Globeop 2008 business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 Globeop 2008 in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 GlobeOp (B): Organizing For Hedge Fund Growth, 2003-2008 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 Globeop 2008 needs to make to build a sustainable competitive advantage.