Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide
In 1995, the European Union passed Directive 95/46/EC, which set the legal framework for European Union citizens to own the rights to their personal data. However, American law bestows ownership to the holder of the data, not the individual, and officials feared the European Union initiative might disrupt data sharing among United States and European Union affiliates. Thus, they negotiated the 2000 Safe Harbor Agreement to allow companies to voluntarily submit to yearly certifications that fulfilled European Union demands, but kept U.S. businesses in control of their data; nevertheless, the Agreement does not include financial and banking services. Instead, the United States argued that the privacy protections within the Gramm-Leach-Bliley Act adequately fulfilled European Union guidelines. The European Union disagreed and financial data sharing has operated under a moratorium for the past decade. However, the 2008 financial crisis has governments and clients clamouring for more data transparency to determine risk in the financial system. These global efforts, the European Union's recent push to strengthen the Directive, and the Dodd-Frank Act have pushed data sharing to the policy forefront. This article asserts that transatlantic data sharing will ultimately have to accommodate the privacy cultures in both the United States and the European Union, but firms must be prepared to cope with demands on their data by establishing government relations offices, standardizing information systems, enhancing education for compliance officers, and improving business school curricula.
Swot Analysis of "Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide" written by Michelle Frasher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that European Union facing as an external strategic factors. Some of the topics covered in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide case study are - Strategic Management Strategies, Regulation, Security & privacy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, there is backlash against globalization, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the European Union, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which European Union 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide can be done for the following purposes –
1. Strategic planning using facts provided in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide case study
2. Improving business portfolio management of European Union
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 European Union
Strengths Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of European Union in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide Harvard Business Review case study are -
Ability to recruit top talent
– European Union is one of the leading recruiters in the industry. Managers in the Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the European Union 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For European Union digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. European Union 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.
Analytics focus
– European Union 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 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.
Effective Research and Development (R&D)
– European Union 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– European Union is one of the most innovative firm in sector. Manager in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- European Union 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 European Union is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of European Union in the sector have low bargaining power. Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps European Union to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– European Union has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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.
Organizational Resilience of European Union
– The covid-19 pandemic has put organizational resilience at the centre of everthing that European Union does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– European Union has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled European Union to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– European Union has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. European Union 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.
Weaknesses Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide are -
Skills based hiring
– The stress on hiring functional specialists at European Union 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.
High cash cycle compare to competitors
European Union 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.
Increasing silos among functional specialists
– The organizational structure of European Union is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. European Union needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help European Union to focus more on services rather than just following the product oriented approach.
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 European Union supply chain. Even after few cautionary changes mentioned in the HBR case study - Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left European Union vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, European Union 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.
Products dominated business model
– Even though European Union 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 - Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, European Union 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. European Union 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide, it seems that the employees of European Union 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.
Workers concerns about automation
– As automation is fast increasing in the segment, European Union needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
No frontier risks strategy
– After analyzing the HBR case study Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide, in the dynamic environment European Union has struggled to respond to the nimble upstart competition. European Union has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide | 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects European Union can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 European Union in the consumer business. Now European Union can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– European Union can develop new processes and procedures in Leadership & Managing People 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.
Creating value in data economy
– The success of analytics program of European Union has opened avenues for new revenue streams for the organization in the industry. This can help European Union to build a more holistic ecosystem as suggested in the Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide case study. European Union 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 European Union 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 Leadership & Managing People segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for European Union 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, European Union is facing challenges because of the dominance of functional experts in the organization. Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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.
Using analytics as competitive advantage
– European Union 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide - to build a competitive advantage using analytics. The analytics driven competitive advantage can help European Union to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– European Union 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.
Buying journey improvements
– European Union can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, European Union 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.
Manufacturing automation
– European Union 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.
Better consumer reach
– The expansion of the 5G network will help European Union to increase its market reach. European Union 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.
Threats Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide are -
Consumer confidence and its impact on European Union 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.
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 European Union.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide, European Union 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 .
High dependence on third party suppliers
– European Union 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.
Technology acceleration in Forth Industrial Revolution
– European Union has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, European Union needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for European Union 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.
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.
Shortening product life cycle
– it is one of the major threat that European Union is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 European Union business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– European Union 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. European Union can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. European Union needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– European Union 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 Leadership & Managing People industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents European Union with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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 Adequacy Versus Equivalency: Financial Data Protection and the U.S.-EU Divide 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 European Union needs to make to build a sustainable competitive advantage.