Armacord Incorporated: Combatting Money-laundering Using Data Analytics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Armacord Incorporated: Combatting Money-laundering Using Data Analytics
This caselet can be utilized to enhance students' understanding and appreciation of data analytics for fraud detection in financial institutions. It requires a predictive analytic solution, in the form of a time series model, for combating money laundering at a regional bank. The nature of the assignment necessitates effective teamwork on data cleaning and preparation and on modeling/analysis of time series, as well as in presenting key findings. The caselet should be moderated as a small-scale consulting engagement, with the instructor assuming the role of the "client," meeting with the engagement team for regular status updates, and attending to questions the team may have. Ideally, the caselet should run anywhere from one week to a month, depending on how meticulously the instructor will plan to implement the assignment. The caselet comes with an accompanying dataset.
Swot Analysis of "Armacord Incorporated: Combatting Money-laundering Using Data Analytics" written by Davit Khachatryan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Caselet Laundering facing as an external strategic factors. Some of the topics covered in Armacord Incorporated: Combatting Money-laundering Using Data Analytics case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Armacord Incorporated: Combatting Money-laundering Using Data Analytics casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing energy prices, supply chains are disrupted by pandemic , there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Armacord Incorporated: Combatting Money-laundering Using Data Analytics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Armacord Incorporated: Combatting Money-laundering Using Data Analytics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Caselet Laundering, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Caselet Laundering 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics can be done for the following purposes –
1. Strategic planning using facts provided in Armacord Incorporated: Combatting Money-laundering Using Data Analytics case study
2. Improving business portfolio management of Caselet Laundering
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 Caselet Laundering
Strengths Armacord Incorporated: Combatting Money-laundering Using Data Analytics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Caselet Laundering in Armacord Incorporated: Combatting Money-laundering Using Data Analytics Harvard Business Review case study are -
Innovation driven organization
– Caselet Laundering is one of the most innovative firm in sector. Manager in Armacord Incorporated: Combatting Money-laundering Using Data Analytics Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Caselet Laundering has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Caselet Laundering has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Caselet Laundering 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.
Analytics focus
– Caselet Laundering 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 Davit Khachatryan 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Armacord Incorporated: Combatting Money-laundering Using Data Analytics firm has clearly differentiated products in the market place. This has enabled Caselet Laundering to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Caselet Laundering to invest into research and development (R&D) and innovation.
Training and development
– Caselet Laundering has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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.
Operational resilience
– The operational resilience strategy in the Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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.
Organizational Resilience of Caselet Laundering
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Caselet Laundering does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Caselet Laundering in the sector have low bargaining power. Armacord Incorporated: Combatting Money-laundering Using Data Analytics has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Caselet Laundering to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Caselet Laundering is present in almost all the verticals within the industry. This has provided firm in Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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
– Caselet Laundering 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 Caselet Laundering in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Caselet Laundering 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.
Weaknesses Armacord Incorporated: Combatting Money-laundering Using Data Analytics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Armacord Incorporated: Combatting Money-laundering Using Data Analytics are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics, it seems that the employees of Caselet Laundering 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Caselet Laundering has relatively successful track record of launching new products.
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 Caselet Laundering supply chain. Even after few cautionary changes mentioned in the HBR case study - Armacord Incorporated: Combatting Money-laundering Using Data Analytics, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Caselet Laundering vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Caselet Laundering 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics, in the dynamic environment Caselet Laundering has struggled to respond to the nimble upstart competition. Caselet Laundering 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, Caselet Laundering 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Caselet Laundering 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 decision making process
– As mentioned earlier in the report, Caselet Laundering 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. Caselet Laundering 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.
Aligning sales with marketing
– It come across in the case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics can leverage the sales team experience to cultivate customer relationships as Caselet Laundering is planning to shift buying processes online.
High cash cycle compare to competitors
Caselet Laundering 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.
Lack of clear differentiation of Caselet Laundering products
– To increase the profitability and margins on the products, Caselet Laundering needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Armacord Incorporated: Combatting Money-laundering Using Data Analytics | 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics are -
Leveraging digital technologies
– Caselet Laundering 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Caselet Laundering 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, Armacord Incorporated: Combatting Money-laundering Using Data Analytics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Caselet Laundering can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Caselet Laundering can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Caselet Laundering can use these opportunities to build new business models that can help the communities that Caselet Laundering operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Manufacturing automation
– Caselet Laundering 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.
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. Caselet Laundering 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. Caselet Laundering 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Caselet Laundering 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.
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. Caselet Laundering can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Caselet Laundering 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Caselet Laundering to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Caselet Laundering has opened avenues for new revenue streams for the organization in the industry. This can help Caselet Laundering to build a more holistic ecosystem as suggested in the Armacord Incorporated: Combatting Money-laundering Using Data Analytics case study. Caselet Laundering can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Caselet Laundering to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Caselet Laundering to increase its market reach. Caselet Laundering 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.
Threats Armacord Incorporated: Combatting Money-laundering Using Data Analytics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics are -
Shortening product life cycle
– it is one of the major threat that Caselet Laundering is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Caselet Laundering 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics .
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 Caselet Laundering.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Caselet Laundering 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.
Stagnating economy with rate increase
– Caselet Laundering 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.
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. Caselet Laundering can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Caselet Laundering business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Caselet Laundering 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
– Caselet Laundering 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. Caselet Laundering can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics, Caselet Laundering 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 .
Increasing wage structure of Caselet Laundering
– 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 Caselet Laundering.
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 Caselet Laundering in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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 Caselet Laundering needs to make to build a sustainable competitive advantage.