Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance
This appendix supplements the multimedia case, "Hugh McColl and NationsBank: Building a National Footprint through M&A". The instructor can use this appendix as a supplement for the convenience of the reader. This document is not intended to substitute for the digital case. Note that Darden Business Publishing also makes available an Appendix that contains 68 pages of printed material drawn from the case: UVA-F-1420. In contrast, this document is an abbreviated supplement that contains only tabular material of financial information. **************************************** This appendix supports student preparation of the associated multimedia case study. See the abstract and teaching note for that case to obtain a summary of the teaching purpose, subject, issues, and classroom applications. Information contained in this appendix is a subset of the information available in the multimedia case and is prepared mainly for the convenience of the student. In particular, this appendix would be useful in executive education settings and where the student needs hard-copy reference to the material in the case. Generally, students who are heavy computer users will find this appendix redundant. Thus, the instructor's use of this appendix is entirely optional and should be linked to the needs of the student.
Swot Analysis of "Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance" written by Robert F. Bruner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Appendix Multimedia facing as an external strategic factors. Some of the topics covered in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance case study are - Strategic Management Strategies, Financial management, Mergers & acquisitions and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance casestudy better are - – increasing household debt because of falling income levels, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Appendix Multimedia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Appendix Multimedia 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance can be done for the following purposes –
1. Strategic planning using facts provided in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance case study
2. Improving business portfolio management of Appendix Multimedia
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 Appendix Multimedia
Strengths Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Appendix Multimedia in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance Harvard Business Review case study are -
Organizational Resilience of Appendix Multimedia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Appendix Multimedia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Appendix Multimedia 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.
Ability to lead change in Finance & Accounting field
– Appendix Multimedia 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 Appendix Multimedia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Appendix Multimedia 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 Robert F. Bruner 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance firm has clearly differentiated products in the market place. This has enabled Appendix Multimedia to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Appendix Multimedia to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Appendix Multimedia in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Appendix Multimedia is one of the most innovative firm in sector. Manager in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Appendix Multimedia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Appendix Multimedia 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.
Operational resilience
– The operational resilience strategy in the Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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.
High brand equity
– Appendix Multimedia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Appendix Multimedia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Appendix Multimedia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Appendix Multimedia 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.
Learning organization
- Appendix Multimedia 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 Appendix Multimedia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance are -
Products dominated business model
– Even though Appendix Multimedia 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 - Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance, is just above the industry average. Appendix Multimedia needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
No frontier risks strategy
– After analyzing the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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 operating costs
– Compare to the competitors, firm in the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix Multimedia 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert F. Bruner suggests that, Appendix Multimedia 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance, in the dynamic environment Appendix Multimedia has struggled to respond to the nimble upstart competition. Appendix Multimedia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Appendix Multimedia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance, it seems that the employees of Appendix Multimedia 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, Appendix Multimedia 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 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 Appendix Multimedia supply chain. Even after few cautionary changes mentioned in the HBR case study - Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Appendix Multimedia vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Appendix Multimedia, firm in the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance | 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Appendix Multimedia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Appendix Multimedia to increase its market reach. Appendix Multimedia 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Appendix Multimedia is facing challenges because of the dominance of functional experts in the organization. Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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.
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. Appendix Multimedia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Appendix Multimedia 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Appendix Multimedia 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Appendix Multimedia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Appendix Multimedia 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Appendix Multimedia can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Appendix Multimedia can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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.
Building a culture of innovation
– managers at Appendix Multimedia can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
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. Appendix Multimedia 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. Appendix Multimedia 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Appendix Multimedia 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 Appendix Multimedia to hire the very best people irrespective of their geographical location.
Threats Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance are -
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. Appendix Multimedia needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Appendix Multimedia business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Appendix Multimedia has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Appendix Multimedia 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.
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.
Environmental challenges
– Appendix Multimedia 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. Appendix Multimedia can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Appendix Multimedia 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.
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 Appendix Multimedia.
Consumer confidence and its impact on Appendix Multimedia 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.
Stagnating economy with rate increase
– Appendix Multimedia 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.
Shortening product life cycle
– it is one of the major threat that Appendix Multimedia is facing in Finance & Accounting 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, Appendix Multimedia 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance .
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. Appendix Multimedia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Appendix Multimedia 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.
Weighted SWOT Analysis of Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix of Excerpted Material From "Hugh Mccoll And Nationsbank": Term Sheets And Financial Performance 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 Appendix Multimedia needs to make to build a sustainable competitive advantage.
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