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, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, geopolitical disruptions,
increasing household debt because of falling income levels, supply chains are disrupted by pandemic , 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 -
Sustainable margins compare to other players in Leadership & Managing People industry
– GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 firm has clearly differentiated products in the market place. This has enabled Globeop Aua to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Globeop Aua to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Globeop Aua in the sector have low bargaining power. GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Globeop Aua to manage not only supply disruptions but also source products at highly competitive prices.
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.
Strong track record of project management
– Globeop Aua is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
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 -
High operating costs
– Compare to the competitors, firm in the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 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 Globeop Aua '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 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.
Need for greater diversity
– Globeop Aua has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Globeop Aua has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High bargaining power of channel partners
– Because of the regulatory requirements, Glenn Carroll, David W. Hoyt suggests that, Globeop Aua 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.
Products dominated business model
– Even though Globeop Aua has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Globeop Aua, firm in the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010, is just above the industry average. Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 HBR case study mentions - Globeop Aua 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.
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 -
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.
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.
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.
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.
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 Globeop Aua in the consumer business. Now Globeop Aua 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 Globeop Aua 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.
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.
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.
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.
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.
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.
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.
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.
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 -
High dependence on third party suppliers
– Globeop Aua 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.
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. Globeop Aua needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Globeop Aua 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.
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.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Globeop Aua 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 GlobeOp (C): The Financial Crisis and its Aftermath, 2008-2010 .
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.
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.
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.
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.
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. Globeop Aua 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
– 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.
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 .
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.