Silicon Valley Bank: The On-Call Associates Program SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Silicon Valley Bank: The On-Call Associates Program
Melissa Stepanis, deal team leader for Silicon Valley Bank's (SVB) New York tech lending group, had been on maternity leave. When she met with her manager to discuss her anticipated return to work, she was not ready to come back. Not wanting to make commitments that she might not be able to keep, she quit. For Chris Edmonds-Waters, SVB's head of human resources, Stepanis's somewhat unexpected departure was concerning. She was the latest example in a growing trend of women who had left the company. Despite SVB's unique approach to work-life balance and the extent to which it supported employees, Edmonds-Waters had noted that SVB was losing women-although the proportion of men to women was fairly equal at junior level positions in the company, such was not the case at senior levels. SVB was losing talented and promising women-women, who if they stayed with SVB, would likely progress into senior and executive positions. As Edmonds-Waters talked to colleagues about his observations, he realized (1) SVB could be doing more to support and retain talented employees like Stepanis, and (2) he was in a position to make changes. This case details the development of SVB's On-Call Associates Program. The goal was to help retain talented and high potential employees who might otherwise leave the company. While in its early stages, the program offered promise and SVB was deciding just how much to grow it.
Swot Analysis of "Silicon Valley Bank: The On-Call Associates Program" written by Sarah A Soule, Davina Drabkin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Svb Edmonds facing as an external strategic factors. Some of the topics covered in Silicon Valley Bank: The On-Call Associates Program case study are - Strategic Management Strategies, Gender, Motivating people, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Silicon Valley Bank: The On-Call Associates Program casestudy better are - – cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Silicon Valley Bank: The On-Call Associates Program
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Silicon Valley Bank: The On-Call Associates Program case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Svb Edmonds, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Svb Edmonds 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 Silicon Valley Bank: The On-Call Associates Program can be done for the following purposes –
1. Strategic planning using facts provided in Silicon Valley Bank: The On-Call Associates Program case study
2. Improving business portfolio management of Svb Edmonds
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 Svb Edmonds
Strengths Silicon Valley Bank: The On-Call Associates Program | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Svb Edmonds in Silicon Valley Bank: The On-Call Associates Program Harvard Business Review case study are -
Analytics focus
– Svb Edmonds 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 Sarah A Soule, Davina Drabkin 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.
Highly skilled collaborators
– Svb Edmonds 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 Silicon Valley Bank: The On-Call Associates Program HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Svb Edmonds 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 Svb Edmonds is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Silicon Valley Bank: The On-Call Associates Program Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Svb Edmonds in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Silicon Valley Bank: The On-Call Associates Program 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Silicon Valley Bank: The On-Call Associates Program firm has clearly differentiated products in the market place. This has enabled Svb Edmonds to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Svb Edmonds to invest into research and development (R&D) and innovation.
Strong track record of project management
– Svb Edmonds is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Svb Edmonds is one of the leading recruiters in the industry. Managers in the Silicon Valley Bank: The On-Call Associates Program are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Svb Edmonds 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Svb Edmonds digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Svb Edmonds 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.
Innovation driven organization
– Svb Edmonds is one of the most innovative firm in sector. Manager in Silicon Valley Bank: The On-Call Associates Program Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Svb Edmonds 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 Svb Edmonds in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Silicon Valley Bank: The On-Call Associates Program | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Silicon Valley Bank: The On-Call Associates Program are -
High operating costs
– Compare to the competitors, firm in the HBR case study Silicon Valley Bank: The On-Call Associates Program 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 Svb Edmonds 's lucrative customers.
High cash cycle compare to competitors
Svb Edmonds 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sarah A Soule, Davina Drabkin suggests that, Svb Edmonds 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.
Low market penetration in new markets
– Outside its home market of Svb Edmonds, firm in the HBR case study Silicon Valley Bank: The On-Call Associates Program needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Silicon Valley Bank: The On-Call Associates Program HBR case study mentions - Svb Edmonds 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.
No frontier risks strategy
– After analyzing the HBR case study Silicon Valley Bank: The On-Call Associates Program, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Silicon Valley Bank: The On-Call Associates Program, it seems that the employees of Svb Edmonds 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.
Products dominated business model
– Even though Svb Edmonds 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 - Silicon Valley Bank: The On-Call Associates Program should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Svb Edmonds 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. Svb Edmonds 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.
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 Svb Edmonds supply chain. Even after few cautionary changes mentioned in the HBR case study - Silicon Valley Bank: The On-Call Associates Program, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Svb Edmonds vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Silicon Valley Bank: The On-Call Associates Program, in the dynamic environment Svb Edmonds has struggled to respond to the nimble upstart competition. Svb Edmonds has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Silicon Valley Bank: The On-Call Associates Program | 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 Silicon Valley Bank: The On-Call Associates Program are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Svb Edmonds is facing challenges because of the dominance of functional experts in the organization. Silicon Valley Bank: The On-Call Associates Program 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. Svb Edmonds can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Svb Edmonds 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. Svb Edmonds 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.
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 Svb Edmonds 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.
Building a culture of innovation
– managers at Svb Edmonds 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.
Using analytics as competitive advantage
– Svb Edmonds 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 Silicon Valley Bank: The On-Call Associates Program - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Svb Edmonds to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Svb Edmonds can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Svb Edmonds 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.
Developing new processes and practices
– Svb Edmonds 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Svb Edmonds 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.
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 Svb Edmonds in the consumer business. Now Svb Edmonds 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 Svb Edmonds has opened avenues for new revenue streams for the organization in the industry. This can help Svb Edmonds to build a more holistic ecosystem as suggested in the Silicon Valley Bank: The On-Call Associates Program case study. Svb Edmonds can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Svb Edmonds 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.
Threats Silicon Valley Bank: The On-Call Associates Program External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Silicon Valley Bank: The On-Call Associates Program are -
Regulatory challenges
– Svb Edmonds 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.
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. Svb Edmonds can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Svb Edmonds 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. Svb Edmonds needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Svb Edmonds.
Shortening product life cycle
– it is one of the major threat that Svb Edmonds is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
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 Svb Edmonds in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Svb Edmonds business can come under increasing regulations regarding data privacy, data security, etc.
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. Svb Edmonds 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 acceleration in Forth Industrial Revolution
– Svb Edmonds has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Svb Edmonds 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Svb Edmonds 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 Silicon Valley Bank: The On-Call Associates Program .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Silicon Valley Bank: The On-Call Associates Program, Svb Edmonds 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 Silicon Valley Bank: The On-Call Associates Program 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 Silicon Valley Bank: The On-Call Associates Program 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 Silicon Valley Bank: The On-Call Associates Program 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 Silicon Valley Bank: The On-Call Associates Program 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 Silicon Valley Bank: The On-Call Associates Program 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 Svb Edmonds needs to make to build a sustainable competitive advantage.