The Cross-Atlantic Tussle over Financial Data and Privacy Rights SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Cross-Atlantic Tussle over Financial Data and Privacy Rights
Banking is an international business; both information and capital flow relatively unimpeded across international borders. Banking institutions' information stores have increased dramatically with the spread of computers, and these institutions protect data inside their firewalls from outside eyes, and from disaster, through establishing multiple secure data repositories. However, access to banks' databases is increasingly sought by governments and governance institutions, and restrictions are tightening on moving data across borders. Probably the most prominent example of both trends involves European Union-domiciled cross-border banking business. A key legal reason for resulting issues hinges on differing views of privacy rights: the European Union enshrines privacy as a human right, while the United States empowers rights of free speech over privacy. These differing approaches to privacy rights have caused a cross-Atlantic conflict for global banks. Caught between competing, conflicting regulations, banks' capacity to move information and to comply with governments' demands for it have become restricted. This restriction is happening as governments seek increased access to banks' information for purposes of financial information statecraft--the notion that countries can influence other governments' policies and actions through data.
Swot Analysis of "The Cross-Atlantic Tussle over Financial Data and Privacy Rights" written by Travis W. Selmier II, Michelle Frasher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Privacy Governments facing as an external strategic factors. Some of the topics covered in The Cross-Atlantic Tussle over Financial Data and Privacy Rights case study are - Strategic Management Strategies, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the The Cross-Atlantic Tussle over Financial Data and Privacy Rights casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
central banks are concerned over increasing inflation, there is backlash against globalization, etc
Introduction to SWOT Analysis of The Cross-Atlantic Tussle over Financial Data and Privacy Rights
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Cross-Atlantic Tussle over Financial Data and Privacy Rights case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Privacy Governments, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Privacy Governments 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights can be done for the following purposes –
1. Strategic planning using facts provided in The Cross-Atlantic Tussle over Financial Data and Privacy Rights case study
2. Improving business portfolio management of Privacy Governments
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 Privacy Governments
Strengths The Cross-Atlantic Tussle over Financial Data and Privacy Rights | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Privacy Governments in The Cross-Atlantic Tussle over Financial Data and Privacy Rights Harvard Business Review case study are -
Analytics focus
– Privacy Governments 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 Travis W. Selmier II, Michelle Frasher 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Privacy Governments digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Privacy Governments 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.
Low bargaining power of suppliers
– Suppliers of Privacy Governments in the sector have low bargaining power. The Cross-Atlantic Tussle over Financial Data and Privacy Rights has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Privacy Governments to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Privacy Governments has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Privacy Governments 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.
Sustainable margins compare to other players in Finance & Accounting industry
– The Cross-Atlantic Tussle over Financial Data and Privacy Rights firm has clearly differentiated products in the market place. This has enabled Privacy Governments to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Privacy Governments to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Privacy Governments 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.
Innovation driven organization
– Privacy Governments is one of the most innovative firm in sector. Manager in The Cross-Atlantic Tussle over Financial Data and Privacy Rights Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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.
Learning organization
- Privacy Governments 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 Privacy Governments is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Cross-Atlantic Tussle over Financial Data and Privacy Rights Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Privacy Governments 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.
Strong track record of project management
– Privacy Governments 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 Privacy Governments
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Privacy Governments does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses The Cross-Atlantic Tussle over Financial Data and Privacy Rights | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Cross-Atlantic Tussle over Financial Data and Privacy Rights are -
Increasing silos among functional specialists
– The organizational structure of Privacy Governments is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Privacy Governments needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Privacy Governments to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As The Cross-Atlantic Tussle over Financial Data and Privacy Rights HBR case study mentions - Privacy Governments 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 Privacy Governments 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Privacy Governments, firm in the HBR case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights, 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 Privacy Governments supply chain. Even after few cautionary changes mentioned in the HBR case study - The Cross-Atlantic Tussle over Financial Data and Privacy Rights, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Privacy Governments vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights, it seems that the employees of Privacy Governments 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.
Products dominated business model
– Even though Privacy Governments 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 - The Cross-Atlantic Tussle over Financial Data and Privacy Rights should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Privacy Governments 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.
Lack of clear differentiation of Privacy Governments products
– To increase the profitability and margins on the products, Privacy Governments needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Privacy Governments 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. Privacy Governments 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.
Opportunities The Cross-Atlantic Tussle over Financial Data and Privacy Rights | 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights are -
Better consumer reach
– The expansion of the 5G network will help Privacy Governments to increase its market reach. Privacy Governments 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Privacy Governments can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Privacy Governments 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.
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. Privacy Governments can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Privacy Governments 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. Privacy Governments 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Privacy Governments is facing challenges because of the dominance of functional experts in the organization. The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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.
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. Privacy Governments can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Privacy Governments 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, The Cross-Atlantic Tussle over Financial Data and Privacy Rights, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Privacy Governments 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Privacy Governments 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 Privacy Governments to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Privacy Governments 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.
Building a culture of innovation
– managers at Privacy Governments 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.
Creating value in data economy
– The success of analytics program of Privacy Governments has opened avenues for new revenue streams for the organization in the industry. This can help Privacy Governments to build a more holistic ecosystem as suggested in the The Cross-Atlantic Tussle over Financial Data and Privacy Rights case study. Privacy Governments can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats The Cross-Atlantic Tussle over Financial Data and Privacy Rights External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights are -
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. Privacy Governments 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.
Consumer confidence and its impact on Privacy Governments 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Privacy Governments with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Privacy Governments needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Privacy Governments 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.
Regulatory challenges
– Privacy Governments 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.
Stagnating economy with rate increase
– Privacy Governments 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.
Increasing wage structure of Privacy Governments
– 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 Privacy Governments.
Shortening product life cycle
– it is one of the major threat that Privacy Governments is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Privacy Governments has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Privacy Governments 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Cross-Atlantic Tussle over Financial Data and Privacy Rights, Privacy Governments 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 .
Weighted SWOT Analysis of The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 The Cross-Atlantic Tussle over Financial Data and Privacy Rights 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 Privacy Governments needs to make to build a sustainable competitive advantage.
