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 - – talent flight as more people leaving formal jobs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, technology disruption, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, increasing transportation and logistics costs, 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 -
Superior customer experience
– The customer experience strategy of Singer Kaupthing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Analytics focus
– Singer Kaupthing 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 Murray J. Bryant, Ken Mark 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.
Strong track record of project management
– Singer Kaupthing is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Innovation driven organization
– Singer Kaupthing is one of the most innovative firm in sector. Manager in Kaupthing Bank hf Acquires Singer & Friedlander Group plc Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Learning organization
- Singer Kaupthing 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 Singer Kaupthing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Kaupthing Bank hf Acquires Singer & Friedlander Group plc Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
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.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc, it seems that the employees of Singer Kaupthing 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.
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 to strategic competitive environment developments
– As Kaupthing Bank hf Acquires Singer & Friedlander Group plc HBR case study mentions - Singer Kaupthing 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Kaupthing Bank hf Acquires Singer & Friedlander Group plc 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 Singer Kaupthing has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Kaupthing Bank hf Acquires Singer & Friedlander Group plc can leverage the sales team experience to cultivate customer relationships as Singer Kaupthing is planning to shift buying processes online.
Interest costs
– Compare to the competition, Singer Kaupthing 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.
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 Singer Kaupthing supply chain. Even after few cautionary changes mentioned in the HBR case study - Kaupthing Bank hf Acquires Singer & Friedlander Group plc, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Singer Kaupthing vulnerable to further global disruptions in South East Asia.
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.
No frontier risks strategy
– After analyzing the HBR case study Kaupthing Bank hf Acquires Singer & Friedlander Group plc, 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.
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.
Products dominated business model
– Even though Singer Kaupthing 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 - Kaupthing Bank hf Acquires Singer & Friedlander Group plc should strive to include more intangible value offerings along with its core products and services.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Singer Kaupthing 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.
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.
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.
Loyalty marketing
– Singer Kaupthing 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.
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.
Better consumer reach
– The expansion of the 5G network will help Singer Kaupthing to increase its market reach. Singer Kaupthing 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.
Manufacturing automation
– Singer Kaupthing 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.
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.
Creating value in data economy
– The success of analytics program of Singer Kaupthing has opened avenues for new revenue streams for the organization in the industry. This can help Singer Kaupthing to build a more holistic ecosystem as suggested in the Kaupthing Bank hf Acquires Singer & Friedlander Group plc case study. Singer Kaupthing can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.
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 -
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.
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.
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.
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.
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 Singer Kaupthing in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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.
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 .
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.
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.
Technology acceleration in Forth Industrial Revolution
– Singer Kaupthing has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Singer Kaupthing 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.
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. Singer Kaupthing 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 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.