Beneficial State Bank (A): Organization and Measurement of Social Impact SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Beneficial State Bank (A): Organization and Measurement of Social Impact
In November 2004, as presidential hopeful John Kerry conceded the presidential race to George W. Bush, husband and wife team and Democratic supporters Tom Steyer (MBA '83) and Kat Taylor (JD/MBA '86) found themselves at an impasse in their political endeavors. The lost presidential bid was not only disappointing but left the couple seeking out new avenues to benefit from their time, passion, and energy. For Taylor, the idea of a beneficial bank was not new; in fact, the notion of starting a bank to help underserved communities had been suggested to her almost 20 years earlier when Taylor sought career advice from then-economic advisor to Governor Jerry Brown of California, Michael Kieschnick. At the time, the idea seemed implausible but now, with their newly unleashed resources, the idea of community banking as a leverage point in both communities and the overall financial system seemed almost compulsory. Specifically, they wanted to create a triple bottom-line bank that produced social justice and environmental well-being while also being economically sustainable not just in the community but across the financial system. Still, determining how best to structure the organization in order to ensure the fulfillment of its intended benefits presented a significant challenge to the couple. This case describes the founding vision and organizational structure for a triple bottom-line bank. It covers governance issues, regulatory considerations including Dodd-Frank, a discussion of the bank's business model including competitive strategy and the importance of human capital, and measures of impact.
Swot Analysis of "Beneficial State Bank (A): Organization and Measurement of Social Impact" written by Maureen McNichols, Jaclyn C. Foroughi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Presidential Taylor facing as an external strategic factors. Some of the topics covered in Beneficial State Bank (A): Organization and Measurement of Social Impact case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Beneficial State Bank (A): Organization and Measurement of Social Impact casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
geopolitical disruptions, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Beneficial State Bank (A): Organization and Measurement of Social Impact
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Beneficial State Bank (A): Organization and Measurement of Social Impact case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Presidential Taylor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Presidential Taylor 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 Beneficial State Bank (A): Organization and Measurement of Social Impact can be done for the following purposes –
1. Strategic planning using facts provided in Beneficial State Bank (A): Organization and Measurement of Social Impact case study
2. Improving business portfolio management of Presidential Taylor
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 Presidential Taylor
Strengths Beneficial State Bank (A): Organization and Measurement of Social Impact | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Presidential Taylor in Beneficial State Bank (A): Organization and Measurement of Social Impact Harvard Business Review case study are -
Organizational Resilience of Presidential Taylor
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Presidential Taylor does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Presidential Taylor 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 Maureen McNichols, Jaclyn C. Foroughi 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Presidential Taylor digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Presidential Taylor 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.
Training and development
– Presidential Taylor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Beneficial State Bank (A): Organization and Measurement of Social Impact 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.
Effective Research and Development (R&D)
– Presidential Taylor 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 Beneficial State Bank (A): Organization and Measurement of Social Impact - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Presidential Taylor 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 Presidential Taylor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Beneficial State Bank (A): Organization and Measurement of Social Impact Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Presidential Taylor 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
– Presidential Taylor is present in almost all the verticals within the industry. This has provided firm in Beneficial State Bank (A): Organization and Measurement of Social Impact 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.
Cross disciplinary teams
– Horizontal connected teams at the Presidential Taylor 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.
Ability to lead change in Leadership & Managing People field
– Presidential Taylor 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 Presidential Taylor in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Presidential Taylor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Presidential Taylor in the sector have low bargaining power. Beneficial State Bank (A): Organization and Measurement of Social Impact has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Presidential Taylor to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Beneficial State Bank (A): Organization and Measurement of Social Impact | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Beneficial State Bank (A): Organization and Measurement of Social Impact are -
Lack of clear differentiation of Presidential Taylor products
– To increase the profitability and margins on the products, Presidential Taylor needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Beneficial State Bank (A): Organization and Measurement of Social Impact, is just above the industry average. Presidential Taylor 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.
Aligning sales with marketing
– It come across in the case study Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Beneficial State Bank (A): Organization and Measurement of Social Impact can leverage the sales team experience to cultivate customer relationships as Presidential Taylor is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Beneficial State Bank (A): Organization and Measurement of Social Impact HBR case study mentions - Presidential Taylor 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Beneficial State Bank (A): Organization and Measurement of Social Impact, in the dynamic environment Presidential Taylor has struggled to respond to the nimble upstart competition. Presidential Taylor has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Presidential Taylor, firm in the HBR case study Beneficial State Bank (A): Organization and Measurement of Social Impact needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Presidential Taylor 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.
Increasing silos among functional specialists
– The organizational structure of Presidential Taylor is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Presidential Taylor needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Presidential Taylor to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Presidential Taylor 's lucrative customers.
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 Presidential Taylor supply chain. Even after few cautionary changes mentioned in the HBR case study - Beneficial State Bank (A): Organization and Measurement of Social Impact, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Presidential Taylor vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Beneficial State Bank (A): Organization and Measurement of Social Impact, it seems that the employees of Presidential Taylor 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.
Opportunities Beneficial State Bank (A): Organization and Measurement of Social Impact | 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 Beneficial State Bank (A): Organization and Measurement of Social Impact are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Presidential Taylor 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, Beneficial State Bank (A): Organization and Measurement of Social Impact, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Presidential Taylor 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.
Loyalty marketing
– Presidential Taylor 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 Presidential Taylor 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 Presidential Taylor to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Presidential Taylor to increase its market reach. Presidential Taylor 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.
Developing new processes and practices
– Presidential Taylor can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Presidential Taylor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Presidential Taylor can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Presidential Taylor 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.
Buying journey improvements
– Presidential Taylor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Beneficial State Bank (A): Organization and Measurement of Social Impact 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.
Manufacturing automation
– Presidential Taylor 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.
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 Presidential Taylor in the consumer business. Now Presidential Taylor 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 Presidential Taylor has opened avenues for new revenue streams for the organization in the industry. This can help Presidential Taylor to build a more holistic ecosystem as suggested in the Beneficial State Bank (A): Organization and Measurement of Social Impact case study. Presidential Taylor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Beneficial State Bank (A): Organization and Measurement of Social Impact External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Beneficial State Bank (A): Organization and Measurement of Social Impact are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Beneficial State Bank (A): Organization and Measurement of Social Impact, Presidential Taylor 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Presidential Taylor 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. Presidential Taylor 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.
Environmental challenges
– Presidential Taylor 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. Presidential Taylor 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 Presidential Taylor 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.
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 Presidential Taylor business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Presidential Taylor in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Presidential Taylor is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Presidential Taylor
– 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 Presidential Taylor.
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. Presidential Taylor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Presidential Taylor needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
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.
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. Presidential Taylor needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Beneficial State Bank (A): Organization and Measurement of Social Impact 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 Presidential Taylor needs to make to build a sustainable competitive advantage.