Case Study Description of Nedbank: Coaching Capabilities for Growth Strategy Execution
The chief executive officer of South Africa's Nedbank Ltd. contemplated the dilemma of growing the bank in a mature, competitive market within his own country, and succeeding at expanding outside South Africa's border. Nedbank's extensive investment in Ecobank, with its pan-African presence, was a risk, and required improvement of the capabilities of the leaders to execute Nedbank's strategy. To achieve this, Nedbank focused on building an internal capacity through coaching and mentoring programs for its leaders, in addition to other initiatives to enable employees to execute the bank's strategy. The chief executive officer was proud of his own innovative idea for a new product, and hoped he was setting an example for other leaders. He was equally proud that Nedbank was a values-oriented business that believed in using its influence to positively impact its community and environment. In 2014, despite positive advancements, the economic situation was grim and the chronic lack of skilled workers was a detriment to the country, and to Nedbank in particular. Could Nedbank rapidly increase its capabilities in time to meet the immediate challenges it faced as it expanded into locales where the stakes, and the risks, were higher?
Swot Analysis of "Nedbank: Coaching Capabilities for Growth Strategy Execution" written by Caren Scheepers, Emme Kane includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nedbank Nedbank's facing as an external strategic factors. Some of the topics covered in Nedbank: Coaching Capabilities for Growth Strategy Execution case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Nedbank: Coaching Capabilities for Growth Strategy Execution casestudy better are - – wage bills are increasing, supply chains are disrupted by pandemic , geopolitical disruptions, increasing government debt because of Covid-19 spendings, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Nedbank: Coaching Capabilities for Growth Strategy Execution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nedbank: Coaching Capabilities for Growth Strategy Execution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nedbank Nedbank's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution can be done for the following purposes –
1. Strategic planning using facts provided in Nedbank: Coaching Capabilities for Growth Strategy Execution case study
2. Improving business portfolio management of Nedbank Nedbank's
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 Nedbank Nedbank's
Strengths Nedbank: Coaching Capabilities for Growth Strategy Execution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nedbank Nedbank's in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study are -
Learning organization
- Nedbank Nedbank's 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 Nedbank Nedbank's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Nedbank Nedbank's 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 Nedbank Nedbank's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Nedbank Nedbank's 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 Caren Scheepers, Emme Kane 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.
Successful track record of launching new products
– Nedbank Nedbank's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nedbank Nedbank's 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.
Low bargaining power of suppliers
– Suppliers of Nedbank Nedbank's in the sector have low bargaining power. Nedbank: Coaching Capabilities for Growth Strategy Execution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nedbank Nedbank's to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Nedbank Nedbank's is one of the most innovative firm in sector. Manager in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Nedbank Nedbank's is one of the leading recruiters in the industry. Managers in the Nedbank: Coaching Capabilities for Growth Strategy Execution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Nedbank Nedbank's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Nedbank Nedbank's is present in almost all the verticals within the industry. This has provided firm in Nedbank: Coaching Capabilities for Growth Strategy Execution 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Nedbank Nedbank's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nedbank Nedbank's 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.
Effective Research and Development (R&D)
– Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Nedbank: Coaching Capabilities for Growth Strategy Execution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nedbank: Coaching Capabilities for Growth Strategy Execution are -
Interest costs
– Compare to the competition, Nedbank Nedbank's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Nedbank: Coaching Capabilities for Growth Strategy Execution, in the dynamic environment Nedbank Nedbank's has struggled to respond to the nimble upstart competition. Nedbank Nedbank's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Nedbank Nedbank's 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.
Aligning sales with marketing
– It come across in the case study Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution can leverage the sales team experience to cultivate customer relationships as Nedbank Nedbank's is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank Nedbank's has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Caren Scheepers, Emme Kane suggests that, Nedbank Nedbank's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution, is just above the industry average. Nedbank Nedbank's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nedbank Nedbank's 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.
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 Nedbank Nedbank's supply chain. Even after few cautionary changes mentioned in the HBR case study - Nedbank: Coaching Capabilities for Growth Strategy Execution, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nedbank Nedbank's vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Nedbank Nedbank's is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Nedbank Nedbank's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nedbank Nedbank's to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Nedbank Nedbank's, firm in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Nedbank: Coaching Capabilities for Growth Strategy Execution | 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 Nedbank: Coaching Capabilities for Growth Strategy Execution are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nedbank Nedbank's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Nedbank Nedbank's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nedbank Nedbank's is facing challenges because of the dominance of functional experts in the organization. Nedbank: Coaching Capabilities for Growth Strategy Execution 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Nedbank Nedbank's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nedbank Nedbank's 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 Nedbank Nedbank's 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, Nedbank Nedbank's 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.
Using analytics as competitive advantage
– Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nedbank Nedbank's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Nedbank Nedbank's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nedbank Nedbank's can use these opportunities to build new business models that can help the communities that Nedbank Nedbank's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Nedbank Nedbank's in the consumer business. Now Nedbank Nedbank's can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nedbank Nedbank's 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.
Better consumer reach
– The expansion of the 5G network will help Nedbank Nedbank's to increase its market reach. Nedbank Nedbank's 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.
Buying journey improvements
– Nedbank Nedbank's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Nedbank: Coaching Capabilities for Growth Strategy Execution 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.
Threats Nedbank: Coaching Capabilities for Growth Strategy Execution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution are -
High dependence on third party suppliers
– Nedbank Nedbank's 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 disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nedbank Nedbank's 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. Nedbank Nedbank's 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution .
Environmental challenges
– Nedbank Nedbank's 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. Nedbank Nedbank's can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Nedbank Nedbank's 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nedbank Nedbank's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Nedbank Nedbank's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nedbank: Coaching Capabilities for Growth Strategy Execution, Nedbank Nedbank's 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 .
Shortening product life cycle
– it is one of the major threat that Nedbank Nedbank's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Nedbank Nedbank's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Nedbank Nedbank's in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank Nedbank's needs to make to build a sustainable competitive advantage.
