ISS A/S (D): Goldman's 2011 Business Standards Report SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ISS A/S (D): Goldman's 2011 Business Standards Report
The (D) case describes aspects of the Jan 2011 report by the Goldman Sach's Business Standards Committee on how the firm might strengthen its practices with respect to clients and other stakeholders.
Swot Analysis of "ISS A/S (D): Goldman's 2011 Business Standards Report" written by Clayton Rose includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sach's Standards facing as an external strategic factors. Some of the topics covered in ISS A/S (D): Goldman's 2011 Business Standards Report case study are - Strategic Management Strategies, Corporate governance, Ethics, International business, Recession and Finance & Accounting.
Some of the macro environment factors that can be used to understand the ISS A/S (D): Goldman's 2011 Business Standards Report casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing commodity prices, there is backlash against globalization, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
wage bills are increasing, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of ISS A/S (D): Goldman's 2011 Business Standards Report
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ISS A/S (D): Goldman's 2011 Business Standards Report case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sach's Standards, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sach's Standards 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 ISS A/S (D): Goldman's 2011 Business Standards Report can be done for the following purposes –
1. Strategic planning using facts provided in ISS A/S (D): Goldman's 2011 Business Standards Report case study
2. Improving business portfolio management of Sach's Standards
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 Sach's Standards
Strengths ISS A/S (D): Goldman's 2011 Business Standards Report | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sach's Standards in ISS A/S (D): Goldman's 2011 Business Standards Report Harvard Business Review case study are -
Learning organization
- Sach's Standards 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 Sach's Standards is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ISS A/S (D): Goldman's 2011 Business Standards Report Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Sach's Standards is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Sach's Standards
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sach's Standards does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Sach's Standards 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.
Analytics focus
– Sach's Standards 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 Clayton Rose 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.
Diverse revenue streams
– Sach's Standards is present in almost all the verticals within the industry. This has provided firm in ISS A/S (D): Goldman's 2011 Business Standards Report 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.
Ability to recruit top talent
– Sach's Standards is one of the leading recruiters in the industry. Managers in the ISS A/S (D): Goldman's 2011 Business Standards Report are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Sach's Standards digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sach's Standards 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
– Sach's Standards has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sach's Standards to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Sach's Standards has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sach's Standards 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.
Ability to lead change in Finance & Accounting field
– Sach's Standards 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 Sach's Standards in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Finance & Accounting industry
– ISS A/S (D): Goldman's 2011 Business Standards Report firm has clearly differentiated products in the market place. This has enabled Sach's Standards to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Sach's Standards to invest into research and development (R&D) and innovation.
Weaknesses ISS A/S (D): Goldman's 2011 Business Standards Report | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ISS A/S (D): Goldman's 2011 Business Standards Report are -
Slow decision making process
– As mentioned earlier in the report, Sach's Standards has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Sach's Standards even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Clayton Rose suggests that, Sach's Standards 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.
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 Sach's Standards supply chain. Even after few cautionary changes mentioned in the HBR case study - ISS A/S (D): Goldman's 2011 Business Standards Report, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sach's Standards vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Sach's Standards is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Sach's Standards needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sach's Standards to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Sach's Standards 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ISS A/S (D): Goldman's 2011 Business Standards Report, it seems that the employees of Sach's Standards 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.
Interest costs
– Compare to the competition, Sach's Standards 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ISS A/S (D): Goldman's 2011 Business Standards Report 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 Sach's Standards has relatively successful track record of launching new products.
Lack of clear differentiation of Sach's Standards products
– To increase the profitability and margins on the products, Sach's Standards needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As ISS A/S (D): Goldman's 2011 Business Standards Report HBR case study mentions - Sach's Standards 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.
Products dominated business model
– Even though Sach's Standards 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 - ISS A/S (D): Goldman's 2011 Business Standards Report should strive to include more intangible value offerings along with its core products and services.
Opportunities ISS A/S (D): Goldman's 2011 Business Standards Report | 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 ISS A/S (D): Goldman's 2011 Business Standards Report are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sach's Standards 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, Sach's Standards can use these opportunities to build new business models that can help the communities that Sach's Standards operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sach's Standards can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, ISS A/S (D): Goldman's 2011 Business Standards Report, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Sach's Standards 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 Sach's Standards in the consumer business. Now Sach's Standards can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Sach's Standards can develop new processes and procedures in Finance & Accounting 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.
Manufacturing automation
– Sach's Standards 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 Sach's Standards 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.
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. Sach's Standards 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, Sach's Standards is facing challenges because of the dominance of functional experts in the organization. ISS A/S (D): Goldman's 2011 Business Standards Report 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 Sach's Standards has opened avenues for new revenue streams for the organization in the industry. This can help Sach's Standards to build a more holistic ecosystem as suggested in the ISS A/S (D): Goldman's 2011 Business Standards Report case study. Sach's Standards can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Sach's Standards 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. Sach's Standards 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.
Leveraging digital technologies
– Sach's Standards 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.
Threats ISS A/S (D): Goldman's 2011 Business Standards Report External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ISS A/S (D): Goldman's 2011 Business Standards Report are -
Technology acceleration in Forth Industrial Revolution
– Sach's Standards has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Sach's Standards 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.
Consumer confidence and its impact on Sach's Standards 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.
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 Sach's Standards business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sach's Standards 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 Sach's Standards 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.
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. Sach's Standards needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Sach's Standards is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Sach's Standards 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. Sach's Standards can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Sach's Standards in the Finance & Accounting sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sach's Standards with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Sach's Standards
– 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 Sach's Standards.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sach's Standards 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 ISS A/S (D): Goldman's 2011 Business Standards Report .
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.
Weighted SWOT Analysis of ISS A/S (D): Goldman's 2011 Business Standards Report 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 ISS A/S (D): Goldman's 2011 Business Standards Report 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 ISS A/S (D): Goldman's 2011 Business Standards Report 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 ISS A/S (D): Goldman's 2011 Business Standards Report 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 ISS A/S (D): Goldman's 2011 Business Standards Report 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 Sach's Standards needs to make to build a sustainable competitive advantage.
