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, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
geopolitical disruptions, cloud computing is disrupting traditional business models, 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 -
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.
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.
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.
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.
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.
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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Caselet Laundering digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Caselet Laundering 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.
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.
Ability to recruit top talent
– Caselet Laundering is one of the leading recruiters in the industry. Managers in the Armacord Incorporated: Combatting Money-laundering Using Data Analytics are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Caselet Laundering is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Caselet Laundering in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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 -
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.
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.
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 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 bargaining power of channel partners
– Because of the regulatory requirements, Davit Khachatryan suggests that, Caselet Laundering 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.
Need for greater diversity
– Caselet Laundering 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.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics, is just above the industry average. Caselet Laundering 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.
Low market penetration in new markets
– Outside its home market of Caselet Laundering, firm in the HBR case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Caselet Laundering is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Armacord Incorporated: Combatting Money-laundering Using Data Analytics can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
Building a culture of innovation
– managers at Caselet Laundering 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.
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.
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.
Loyalty marketing
– Caselet Laundering has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Caselet Laundering is facing challenges because of the dominance of functional experts in the organization. Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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.
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.
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.
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 Caselet Laundering in the consumer business. Now Caselet Laundering 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 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.
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.
Developing new processes and practices
– Caselet Laundering 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.
Buying journey improvements
– Caselet Laundering can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Armacord Incorporated: Combatting Money-laundering Using Data Analytics 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.
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.
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 -
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.
High dependence on third party suppliers
– Caselet Laundering 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.
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.
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.
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.
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.
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 .
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.
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.
Consumer confidence and its impact on Caselet Laundering 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.
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. Caselet Laundering needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.