Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis

Abu Dhabi Commercial Bank had experienced huge success before the 2008 financial crisis caused a spectacular downturn. Grasping the gravity of the situation, a new CEO engages in a successful turnaround. The case highlights the role of leadership, creating a culture of collaboration, and implementing new systems in accomplishing this.

Authors :: Stephen J. Mezias, Saifed Mohamad Fakhreddin

Topics :: Finance & Accounting

Tags :: Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis" written by Stephen J. Mezias, Saifed Mohamad Fakhreddin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dhabi Abu facing as an external strategic factors. Some of the topics covered in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis case study are - Strategic Management Strategies, Strategy and Finance & Accounting.

Some of the macro environment factors that can be used to understand the Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis casestudy better are - – challanges to central banks by blockchain based private currencies, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc

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Introduction to SWOT Analysis of Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dhabi Abu, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dhabi Abu 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis can be done for the following purposes –
1. Strategic planning using facts provided in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis case study
2. Improving business portfolio management of Dhabi Abu
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 Dhabi Abu

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Strengths Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Dhabi Abu in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis Harvard Business Review case study are -

Organizational Resilience of Dhabi Abu

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dhabi Abu does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Analytics focus

– Dhabi Abu 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 Stephen J. Mezias, Saifed Mohamad Fakhreddin 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.

Low bargaining power of suppliers

– Suppliers of Dhabi Abu in the sector have low bargaining power. Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dhabi Abu to manage not only supply disruptions but also source products at highly competitive prices.

Ability to recruit top talent

– Dhabi Abu is one of the leading recruiters in the industry. Managers in the Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Strong track record of project management

– Dhabi Abu is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Learning organization

- Dhabi Abu 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 Dhabi Abu is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Dhabi Abu is present in almost all the verticals within the industry. This has provided firm in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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.

Effective Research and Development (R&D)

– Dhabi Abu 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High brand equity

– Dhabi Abu has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dhabi Abu to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Training and development

– Dhabi Abu has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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.

Cross disciplinary teams

– Horizontal connected teams at the Dhabi Abu 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.

Sustainable margins compare to other players in Finance & Accounting industry

– Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis firm has clearly differentiated products in the market place. This has enabled Dhabi Abu to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Dhabi Abu to invest into research and development (R&D) and innovation.

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Weaknesses Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis are -

Skills based hiring

– The stress on hiring functional specialists at Dhabi Abu 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.

Slow decision making process

– As mentioned earlier in the report, Dhabi Abu 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. Dhabi Abu 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 dependence on star products

– The top 2 products and services of the firm as mentioned in the Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Dhabi Abu has relatively successful track record of launching new products.

Products dominated business model

– Even though Dhabi Abu 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 - Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis, is just above the industry average. Dhabi Abu 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.

Need for greater diversity

– Dhabi Abu has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High cash cycle compare to competitors

Dhabi Abu 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.

Slow to strategic competitive environment developments

– As Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis HBR case study mentions - Dhabi Abu takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

No frontier risks strategy

– After analyzing the HBR case study Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis, 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 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 Dhabi Abu supply chain. Even after few cautionary changes mentioned in the HBR case study - Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dhabi Abu vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dhabi Abu is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis | 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Dhabi Abu 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, Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Dhabi Abu in the consumer business. Now Dhabi Abu can target international markets with far fewer capital restrictions requirements than the existing system.

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 Dhabi Abu 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.

Developing new processes and practices

– Dhabi Abu 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Dhabi Abu 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.

Loyalty marketing

– Dhabi Abu 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.

Manufacturing automation

– Dhabi Abu 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.

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. Dhabi Abu can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dhabi Abu can use these opportunities to build new business models that can help the communities that Dhabi Abu operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.

Creating value in data economy

– The success of analytics program of Dhabi Abu has opened avenues for new revenue streams for the organization in the industry. This can help Dhabi Abu to build a more holistic ecosystem as suggested in the Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis case study. Dhabi Abu can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Building a culture of innovation

– managers at Dhabi Abu 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.

Leveraging digital technologies

– Dhabi Abu 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dhabi Abu 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 Dhabi Abu to hire the very best people irrespective of their geographical location.

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Threats Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Dhabi Abu.

Regulatory challenges

– Dhabi Abu 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 Finance & Accounting industry regulations.

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. Dhabi Abu can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Stagnating economy with rate increase

– Dhabi Abu 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.

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 Dhabi Abu with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Shortening product life cycle

– it is one of the major threat that Dhabi Abu is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Dhabi Abu 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.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis, Dhabi Abu may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .

Increasing wage structure of Dhabi Abu

– 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 Dhabi Abu.

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. Dhabi Abu 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.

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. Dhabi Abu needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Middle East Turnaround: Strategy at Abu Dhabi Commercial Bank after the Financial Crisis 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 Dhabi Abu needs to make to build a sustainable competitive advantage.

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