Kaupthing Bank hf Acquires Singer & Friedlander Group plc SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Kaupthing Bank hf Acquires Singer & Friedlander Group plc
The managing director of investment banking for Kaupthing Bank hf (Kaupthing) was considering what he would need to do if he accepted a new appointment as chief executive officer of Kaupthing's latest acquisition, U.K.-based investment bank Singer & Friedlander Group plc (Singer). He would have to deal with the fact that the two merging companies had very different cultures, the possibility that some employees may leave as a result of the change and take their clients with them, the fact that he did not know whether there were good managers at Singer who could be ready to be promoted to top management in upcoming years, and many other issues that would have to be addressed.
Swot Analysis of "Kaupthing Bank hf Acquires Singer & Friedlander Group plc" written by Murray J. Bryant, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Singer Kaupthing facing as an external strategic factors. Some of the topics covered in Kaupthing Bank hf Acquires Singer & Friedlander Group plc case study are - Strategic Management Strategies, Knowledge management, Mergers & acquisitions, Organizational structure and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Kaupthing Bank hf Acquires Singer & Friedlander Group plc casestudy better are - – geopolitical disruptions, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, etc
Introduction to SWOT Analysis of Kaupthing Bank hf Acquires Singer & Friedlander Group plc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kaupthing Bank hf Acquires Singer & Friedlander Group plc case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Singer Kaupthing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Singer Kaupthing 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc can be done for the following purposes –
1. Strategic planning using facts provided in Kaupthing Bank hf Acquires Singer & Friedlander Group plc case study
2. Improving business portfolio management of Singer Kaupthing
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 Singer Kaupthing
Strengths Kaupthing Bank hf Acquires Singer & Friedlander Group plc | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Singer Kaupthing in Kaupthing Bank hf Acquires Singer & Friedlander Group plc Harvard Business Review case study are -
Successful track record of launching new products
– Singer Kaupthing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Singer Kaupthing 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.
Effective Research and Development (R&D)
– Singer Kaupthing 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Singer Kaupthing 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Finance & Accounting field
– Singer Kaupthing 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 Singer Kaupthing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Finance & Accounting industry
– Kaupthing Bank hf Acquires Singer & Friedlander Group plc firm has clearly differentiated products in the market place. This has enabled Singer Kaupthing to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Singer Kaupthing to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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
– Singer Kaupthing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Singer Kaupthing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Singer Kaupthing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Singer Kaupthing 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.
High switching costs
– The high switching costs that Singer Kaupthing 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.
Diverse revenue streams
– Singer Kaupthing is present in almost all the verticals within the industry. This has provided firm in Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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.
Low bargaining power of suppliers
– Suppliers of Singer Kaupthing in the sector have low bargaining power. Kaupthing Bank hf Acquires Singer & Friedlander Group plc has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Singer Kaupthing to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Kaupthing Bank hf Acquires Singer & Friedlander Group plc | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kaupthing Bank hf Acquires Singer & Friedlander Group plc are -
Low market penetration in new markets
– Outside its home market of Singer Kaupthing, firm in the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Murray J. Bryant, Ken Mark suggests that, Singer Kaupthing 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.
Skills based hiring
– The stress on hiring functional specialists at Singer Kaupthing 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Singer Kaupthing 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.
Capital Spending Reduction
– Even during the low interest decade, Singer Kaupthing 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc, is just above the industry average. Singer Kaupthing 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc, in the dynamic environment Singer Kaupthing has struggled to respond to the nimble upstart competition. Singer Kaupthing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Singer Kaupthing products
– To increase the profitability and margins on the products, Singer Kaupthing needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Singer Kaupthing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Singer Kaupthing 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. Singer Kaupthing 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 operating costs
– Compare to the competitors, firm in the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Singer Kaupthing 's lucrative customers.
Opportunities Kaupthing Bank hf Acquires Singer & Friedlander Group plc | 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Singer Kaupthing is facing challenges because of the dominance of functional experts in the organization. Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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.
Developing new processes and practices
– Singer Kaupthing 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.
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. Singer Kaupthing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Singer Kaupthing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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.
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 Singer Kaupthing in the consumer business. Now Singer Kaupthing 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 Singer Kaupthing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Singer Kaupthing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Singer Kaupthing 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.
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. Singer Kaupthing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Singer Kaupthing 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. Singer Kaupthing can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Singer Kaupthing 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 Singer Kaupthing 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, Singer Kaupthing 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Singer Kaupthing can use these opportunities to build new business models that can help the communities that Singer Kaupthing operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Kaupthing Bank hf Acquires Singer & Friedlander Group plc External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc are -
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. Singer Kaupthing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Singer Kaupthing 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. Singer Kaupthing can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Consumer confidence and its impact on Singer Kaupthing 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 Singer Kaupthing
– 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 Singer Kaupthing.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Singer Kaupthing 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc, Singer Kaupthing 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 .
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 Singer Kaupthing business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Singer Kaupthing 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.
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 Singer Kaupthing.
Regulatory challenges
– Singer Kaupthing 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Singer Kaupthing can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc .
High dependence on third party suppliers
– Singer Kaupthing 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.
Shortening product life cycle
– it is one of the major threat that Singer Kaupthing is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Singer Kaupthing needs to make to build a sustainable competitive advantage.
