World Bank (A): Under Siege SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of World Bank (A): Under Siege
Describes the issues that James Wolfensohn faces when he takes over the World Bank as president in June 1995. Presents several lines of criticism of the bank's strategy, structure, and relevance.
Swot Analysis of "World Bank (A): Under Siege" written by George C. Lodge, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wolfensohn Siege facing as an external strategic factors. Some of the topics covered in World Bank (A): Under Siege case study are - Strategic Management Strategies, Economic development, Financial management, Government and Global Business.
Some of the macro environment factors that can be used to understand the World Bank (A): Under Siege casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing commodity prices, cloud computing is disrupting traditional business models, wage bills are increasing, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google,
increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of World Bank (A): Under Siege
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in World Bank (A): Under Siege case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wolfensohn Siege, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wolfensohn Siege 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 World Bank (A): Under Siege can be done for the following purposes –
1. Strategic planning using facts provided in World Bank (A): Under Siege case study
2. Improving business portfolio management of Wolfensohn Siege
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 Wolfensohn Siege
Strengths World Bank (A): Under Siege | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wolfensohn Siege in World Bank (A): Under Siege Harvard Business Review case study are -
Learning organization
- Wolfensohn Siege 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 Wolfensohn Siege is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in World Bank (A): Under Siege Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the World Bank (A): Under Siege 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.
Analytics focus
– Wolfensohn Siege 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 George C. Lodge, Carin-Isabel Knoop 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.
Highly skilled collaborators
– Wolfensohn Siege 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 World Bank (A): Under Siege HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Global Business industry
– World Bank (A): Under Siege firm has clearly differentiated products in the market place. This has enabled Wolfensohn Siege to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Wolfensohn Siege to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Wolfensohn Siege 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 World Bank (A): Under Siege - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Wolfensohn Siege has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in World Bank (A): Under Siege 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.
Ability to lead change in Global Business field
– Wolfensohn Siege 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 Wolfensohn Siege in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Wolfensohn Siege is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Wolfensohn Siege digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wolfensohn Siege 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.
Successful track record of launching new products
– Wolfensohn Siege has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wolfensohn Siege has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Wolfensohn Siege is one of the most innovative firm in sector. Manager in World Bank (A): Under Siege Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses World Bank (A): Under Siege | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of World Bank (A): Under Siege are -
Interest costs
– Compare to the competition, Wolfensohn Siege 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.
Low market penetration in new markets
– Outside its home market of Wolfensohn Siege, firm in the HBR case study World Bank (A): Under Siege needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Wolfensohn Siege has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - World Bank (A): Under Siege should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Wolfensohn Siege is dominated by functional specialists. It is not different from other players in the Global Business segment. Wolfensohn Siege needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wolfensohn Siege to focus more on services rather than just following the product oriented approach.
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 Wolfensohn Siege supply chain. Even after few cautionary changes mentioned in the HBR case study - World Bank (A): Under Siege, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wolfensohn Siege vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, George C. Lodge, Carin-Isabel Knoop suggests that, Wolfensohn Siege is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
No frontier risks strategy
– After analyzing the HBR case study World Bank (A): Under Siege, 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.
High cash cycle compare to competitors
Wolfensohn Siege 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wolfensohn Siege 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 operating costs
– Compare to the competitors, firm in the HBR case study World Bank (A): Under Siege 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 Wolfensohn Siege 's lucrative customers.
Aligning sales with marketing
– It come across in the case study World Bank (A): Under Siege 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 World Bank (A): Under Siege can leverage the sales team experience to cultivate customer relationships as Wolfensohn Siege is planning to shift buying processes online.
Opportunities World Bank (A): Under Siege | 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 World Bank (A): Under Siege are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wolfensohn Siege 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 Wolfensohn Siege 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 Wolfensohn Siege 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wolfensohn Siege can use these opportunities to build new business models that can help the communities that Wolfensohn Siege operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Wolfensohn Siege 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 Wolfensohn Siege to increase its market reach. Wolfensohn Siege 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.
Manufacturing automation
– Wolfensohn Siege 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.
Using analytics as competitive advantage
– Wolfensohn Siege 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 World Bank (A): Under Siege - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wolfensohn Siege to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Wolfensohn Siege can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wolfensohn Siege is facing challenges because of the dominance of functional experts in the organization. World Bank (A): Under Siege 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 Wolfensohn Siege has opened avenues for new revenue streams for the organization in the industry. This can help Wolfensohn Siege to build a more holistic ecosystem as suggested in the World Bank (A): Under Siege case study. Wolfensohn Siege can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Wolfensohn Siege in the consumer business. Now Wolfensohn Siege can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Wolfensohn Siege can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. World Bank (A): Under Siege 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wolfensohn Siege 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.
Threats World Bank (A): Under Siege External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study World Bank (A): Under Siege are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wolfensohn Siege 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.
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 Wolfensohn Siege in the Global Business sector and impact the bottomline of the organization.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wolfensohn Siege with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study World Bank (A): Under Siege, Wolfensohn Siege 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 wage structure of Wolfensohn Siege
– 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 Wolfensohn Siege.
Technology acceleration in Forth Industrial Revolution
– Wolfensohn Siege has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Wolfensohn Siege 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.
Regulatory challenges
– Wolfensohn Siege 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.
Stagnating economy with rate increase
– Wolfensohn Siege 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.
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 Wolfensohn Siege.
Environmental challenges
– Wolfensohn Siege 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. Wolfensohn Siege can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Wolfensohn Siege 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 World Bank (A): Under Siege 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 World Bank (A): Under Siege 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 World Bank (A): Under Siege 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 World Bank (A): Under Siege 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 World Bank (A): Under Siege 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 Wolfensohn Siege needs to make to build a sustainable competitive advantage.
