GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010
The financial crisis that began in 2008 had enormous impact on the financial markets, as well as on GlobeOp, by then a leader in middle- and back-office support services and fund administration for hedge funds and other investors. The crisis created a great deal of short-term work for GlobeOp, but also a decrease in revenue as funds shrunk and assets under administration (AuA) decreased (the company's revenue was heavily dependent on AuA). It also created opportunities, as investors insisted on increased transparency and independent fund administration. This case describes GlobeOp's response to the turmoil of 2008-2009. The company focused on efficiency and client satisfaction, and by 2010, AuA and revenue were at record levels. GlobeOp now faced new challenges. It was beginning to diversify beyond hedge funds, which created marketing and selling challenges. The organization was also maturing, having moved beyond its founding group, but still heavily controlled from the top.
Swot Analysis of "GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010" written by Glenn Carroll, David W. Hoyt includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Globeop Aua facing as an external strategic factors. Some of the topics covered in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 case study are - Strategic Management Strategies, Competitive strategy, Customers, Leadership, Organizational culture, Organizational structure and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Globeop Aua, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 can be done for the following purposes –
1. Strategic planning using facts provided in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 case study
2. Improving business portfolio management of Globeop Aua
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 Globeop Aua
Strengths GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Globeop Aua in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Globeop Aua 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 recruit top talent
– Globeop Aua is one of the leading recruiters in the industry. Managers in the GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Globeop Aua 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 Glenn Carroll, David W. Hoyt 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.
Organizational Resilience of Globeop Aua
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Globeop Aua does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Globeop Aua 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
– Globeop Aua is present in almost all the verticals within the industry. This has provided firm in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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.
Ability to lead change in Leadership & Managing People field
– Globeop Aua 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 Globeop Aua in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Globeop Aua has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Globeop Aua digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Globeop Aua 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)
– Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Globeop Aua in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 are -
Skills based hiring
– The stress on hiring functional specialists at Globeop Aua 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, in the dynamic environment Globeop Aua has struggled to respond to the nimble upstart competition. Globeop Aua has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 Globeop Aua has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Globeop Aua 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Globeop Aua is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, it seems that the employees of Globeop Aua 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.
Aligning sales with marketing
– It come across in the case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 can leverage the sales team experience to cultivate customer relationships as Globeop Aua is planning to shift buying processes online.
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 Globeop Aua supply chain. Even after few cautionary changes mentioned in the HBR case study - GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Globeop Aua vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Globeop Aua has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Globeop Aua even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Globeop Aua is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Globeop Aua needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Globeop Aua to focus more on services rather than just following the product oriented approach.
Opportunities GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 | 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 are -
Manufacturing automation
– Globeop Aua 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.
Using analytics as competitive advantage
– Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Globeop Aua to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Globeop Aua 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. Globeop Aua 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.
Building a culture of innovation
– managers at Globeop Aua 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 Leadership & Managing People segment.
Better consumer reach
– The expansion of the 5G network will help Globeop Aua to increase its market reach. Globeop Aua 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.
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 Globeop Aua 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.
Buying journey improvements
– Globeop Aua can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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.
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. Globeop Aua can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Globeop Aua 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Globeop Aua can use these opportunities to build new business models that can help the communities that Globeop Aua operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Globeop Aua is facing challenges because of the dominance of functional experts in the organization. GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Globeop Aua 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 Globeop Aua to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Globeop Aua has opened avenues for new revenue streams for the organization in the industry. This can help Globeop Aua to build a more holistic ecosystem as suggested in the GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 case study. Globeop Aua can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 are -
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 Globeop Aua business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing wage structure of Globeop Aua
– 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 Globeop Aua.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Globeop Aua 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.
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 Globeop Aua.
Consumer confidence and its impact on Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, Globeop Aua 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 .
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.
Regulatory challenges
– Globeop Aua 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.
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. Globeop Aua 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 Globeop Aua in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Globeop Aua has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Globeop Aua needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Globeop Aua with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 Globeop Aua needs to make to build a sustainable competitive advantage.