Swot Analysis of "B.F. Goodrich-Rabobank Interest Rate Swap" written by Jay O. Light includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Swap B.f facing as an external strategic factors. Some of the topics covered in B.F. Goodrich-Rabobank Interest Rate Swap case study are - Strategic Management Strategies, Financial markets, Manufacturing, Product development and Finance & Accounting.
Some of the macro environment factors that can be used to understand the B.F. Goodrich-Rabobank Interest Rate Swap casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings,
banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc
Introduction to SWOT Analysis of B.F. Goodrich-Rabobank Interest Rate Swap
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in B.F. Goodrich-Rabobank Interest Rate Swap case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Swap B.f, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Swap B.f 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 B.F. Goodrich-Rabobank Interest Rate Swap can be done for the following purposes –
1. Strategic planning using facts provided in B.F. Goodrich-Rabobank Interest Rate Swap case study
2. Improving business portfolio management of Swap B.f
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 Swap B.f
Strengths B.F. Goodrich-Rabobank Interest Rate Swap | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Swap B.f in B.F. Goodrich-Rabobank Interest Rate Swap Harvard Business Review case study are -
Analytics focus
– Swap B.f 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 Jay O. Light 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.
Low bargaining power of suppliers
– Suppliers of Swap B.f in the sector have low bargaining power. B.F. Goodrich-Rabobank Interest Rate Swap has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Swap B.f to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Swap B.f has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in B.F. Goodrich-Rabobank Interest Rate Swap 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.
Successful track record of launching new products
– Swap B.f has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Swap B.f has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Finance & Accounting industry
– B.F. Goodrich-Rabobank Interest Rate Swap firm has clearly differentiated products in the market place. This has enabled Swap B.f to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Swap B.f to invest into research and development (R&D) and innovation.
Organizational Resilience of Swap B.f
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Swap B.f does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Swap B.f 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 brand equity
– Swap B.f has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Swap B.f to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Swap B.f is one of the leading recruiters in the industry. Managers in the B.F. Goodrich-Rabobank Interest Rate Swap 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 B.F. Goodrich-Rabobank Interest Rate Swap 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Swap B.f digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Swap B.f 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.
Strong track record of project management
– Swap B.f is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses B.F. Goodrich-Rabobank Interest Rate Swap | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of B.F. Goodrich-Rabobank Interest Rate Swap are -
High operating costs
– Compare to the competitors, firm in the HBR case study B.F. Goodrich-Rabobank Interest Rate Swap 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 Swap B.f 's lucrative customers.
Interest costs
– Compare to the competition, Swap B.f 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study B.F. Goodrich-Rabobank Interest Rate Swap, is just above the industry average. Swap B.f 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.
Slow to strategic competitive environment developments
– As B.F. Goodrich-Rabobank Interest Rate Swap HBR case study mentions - Swap B.f 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 bargaining power of channel partners
– Because of the regulatory requirements, Jay O. Light suggests that, Swap B.f 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Swap B.f 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.
Lack of clear differentiation of Swap B.f products
– To increase the profitability and margins on the products, Swap B.f needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study B.F. Goodrich-Rabobank Interest Rate Swap, in the dynamic environment Swap B.f has struggled to respond to the nimble upstart competition. Swap B.f has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Swap B.f 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Swap B.f is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study B.F. Goodrich-Rabobank Interest Rate Swap can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Swap B.f, firm in the HBR case study B.F. Goodrich-Rabobank Interest Rate Swap needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities B.F. Goodrich-Rabobank Interest Rate Swap | 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 B.F. Goodrich-Rabobank Interest Rate Swap are -
Leveraging digital technologies
– Swap B.f 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Swap B.f 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Swap B.f can use these opportunities to build new business models that can help the communities that Swap B.f operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Swap B.f is facing challenges because of the dominance of functional experts in the organization. B.F. Goodrich-Rabobank Interest Rate Swap 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.
Creating value in data economy
– The success of analytics program of Swap B.f has opened avenues for new revenue streams for the organization in the industry. This can help Swap B.f to build a more holistic ecosystem as suggested in the B.F. Goodrich-Rabobank Interest Rate Swap case study. Swap B.f can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Swap B.f 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 B.F. Goodrich-Rabobank Interest Rate Swap - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Swap B.f to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Swap B.f 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Swap B.f 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 Swap B.f to hire the very best people irrespective of their geographical location.
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. Swap B.f 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. Swap B.f 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 Swap B.f 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Swap B.f 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, B.F. Goodrich-Rabobank Interest Rate Swap, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Swap B.f can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Swap B.f 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.
Threats B.F. Goodrich-Rabobank Interest Rate Swap External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study B.F. Goodrich-Rabobank Interest Rate Swap are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Swap B.f 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 B.F. Goodrich-Rabobank Interest Rate Swap .
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. Swap B.f can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Swap B.f is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Swap B.f with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Swap B.f 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.
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 Swap B.f in the Finance & Accounting sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Swap B.f 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.
Stagnating economy with rate increase
– Swap B.f 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.
Consumer confidence and its impact on Swap B.f 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study B.F. Goodrich-Rabobank Interest Rate Swap, Swap B.f 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 .
Environmental challenges
– Swap B.f 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. Swap B.f can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Swap B.f.
Increasing wage structure of Swap B.f
– 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 Swap B.f.
Weighted SWOT Analysis of B.F. Goodrich-Rabobank Interest Rate Swap 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 B.F. Goodrich-Rabobank Interest Rate Swap 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 B.F. Goodrich-Rabobank Interest Rate Swap 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 B.F. Goodrich-Rabobank Interest Rate Swap 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 B.F. Goodrich-Rabobank Interest Rate Swap 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 Swap B.f needs to make to build a sustainable competitive advantage.