Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version
In 1999, a powerful struggle amidst complex corporate and interpersonal networks led to the failed merger between Banca Commerciale Italiana and Unicredito Italiano--two of Italy's largest banking groups. This case analyzes the actions of Abelli and Saviotti, co-CEOs of Banca Commerciale Italiana at that time, as well as those of central players in Banca d'Italia, Mediobanca, and several prominent national and international banking and industrial groups. The events shed light on the management of multilayered resource dependencies and tactics of political influence as a critical precondition for implementing sound business strategy.
Authors :: Tiziana Casciaro, Kathleen L. McGinn, Massimiliano Belingheri
Swot Analysis of "Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version" written by Tiziana Casciaro, Kathleen L. McGinn, Massimiliano Belingheri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Banca Commerciale facing as an external strategic factors. Some of the topics covered in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version case study are - Strategic Management Strategies, Influence, Mergers & acquisitions, Networking and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version casestudy better are - – increasing transportation and logistics costs, supply chains are disrupted by pandemic , technology disruption, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Banca Commerciale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Banca Commerciale 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version case study
2. Improving business portfolio management of Banca Commerciale
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Banca Commerciale
Strengths Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Banca Commerciale in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version Harvard Business Review case study are -
Strong track record of project management
– Banca Commerciale is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Banca Commerciale is present in almost all the verticals within the industry. This has provided firm in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 lead change in Leadership & Managing People field
– Banca Commerciale 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 Banca Commerciale in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Banca Commerciale has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Banca Commerciale is one of the leading recruiters in the industry. Managers in the Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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
– Banca Commerciale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Banca Commerciale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Banca Commerciale has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Banca Commerciale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Banca Commerciale has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Banca Commerciale is one of the most innovative firm in sector. Manager in Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Banca Commerciale in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Banca Commerciale 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.
Weaknesses Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version, it seems that the employees of Banca Commerciale 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.
Increasing silos among functional specialists
– The organizational structure of Banca Commerciale is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Banca Commerciale needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Banca Commerciale to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Banca Commerciale has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Banca Commerciale 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. Banca Commerciale 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.
Lack of clear differentiation of Banca Commerciale products
– To increase the profitability and margins on the products, Banca Commerciale needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Banca Commerciale 's lucrative customers.
Products dominated business model
– Even though Banca Commerciale 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 - Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version HBR case study mentions - Banca Commerciale 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Banca Commerciale is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Banca Commerciale has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High bargaining power of channel partners
– Because of the regulatory requirements, Tiziana Casciaro, Kathleen L. McGinn, Massimiliano Belingheri suggests that, Banca Commerciale 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.
Opportunities Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version | 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version are -
Using analytics as competitive advantage
– Banca Commerciale has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Banca Commerciale to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Banca Commerciale can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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.
Manufacturing automation
– Banca Commerciale can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Banca Commerciale 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Banca Commerciale 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, Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Banca Commerciale is facing challenges because of the dominance of functional experts in the organization. Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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.
Leveraging digital technologies
– Banca Commerciale 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.
Better consumer reach
– The expansion of the 5G network will help Banca Commerciale to increase its market reach. Banca Commerciale 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Banca Commerciale in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Banca Commerciale 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Banca Commerciale 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. Banca Commerciale 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.
Learning at scale
– Online learning technologies has now opened space for Banca Commerciale 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Banca Commerciale can use these opportunities to build new business models that can help the communities that Banca Commerciale operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version are -
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 Banca Commerciale in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Banca Commerciale in the Leadership & Managing People industry. The Leadership & Managing People 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Banca Commerciale with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Banca Commerciale business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Banca Commerciale 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.
Increasing wage structure of Banca Commerciale
– 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 Banca Commerciale.
Stagnating economy with rate increase
– Banca Commerciale 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Banca Commerciale can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Banca Commerciale needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Banca Commerciale 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version, Banca Commerciale may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Banca Commerciale 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.
Weighted SWOT Analysis of Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Abelli and Saviotti at Banca Commerciale Italiana (A), Spanish Version 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 Banca Commerciale needs to make to build a sustainable competitive advantage.
