Note on Lobbying and the Dodd-Frank Financial Reforms SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Note on Lobbying and the Dodd-Frank Financial Reforms
The note provides background on the Dodd-Frank Wall Street Reform and Consumer Protection Act, brief background on lobbying, and aspects of the lobbying effort by the financial industry and JP Morgan Chase with regard to Dodd-Frank. It is intended as a companion to "The Tip of the Iceberg: JP Morgan Chase and Bear Stearns (A)," HBS No. 309-001, to facilitate class discussion, and as such provides only an overview of specific aspects of the issues discussed.
Swot Analysis of "Note on Lobbying and the Dodd-Frank Financial Reforms" written by Clayton Rose, Aldo Sesia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dodd Lobbying facing as an external strategic factors. Some of the topics covered in Note on Lobbying and the Dodd-Frank Financial Reforms case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Note on Lobbying and the Dodd-Frank Financial Reforms casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing commodity prices, talent flight as more people leaving formal jobs, increasing energy prices, there is backlash against globalization, increasing household debt because of falling income levels,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Note on Lobbying and the Dodd-Frank Financial Reforms
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on Lobbying and the Dodd-Frank Financial Reforms case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dodd Lobbying, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms can be done for the following purposes –
1. Strategic planning using facts provided in Note on Lobbying and the Dodd-Frank Financial Reforms case study
2. Improving business portfolio management of Dodd Lobbying
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dodd Lobbying
Strengths Note on Lobbying and the Dodd-Frank Financial Reforms | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dodd Lobbying in Note on Lobbying and the Dodd-Frank Financial Reforms Harvard Business Review case study are -
Successful track record of launching new products
– Dodd Lobbying has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dodd Lobbying 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.
Learning organization
- Dodd Lobbying 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 Dodd Lobbying is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on Lobbying and the Dodd-Frank Financial Reforms Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Dodd Lobbying is present in almost all the verticals within the industry. This has provided firm in Note on Lobbying and the Dodd-Frank Financial Reforms 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.
High switching costs
– The high switching costs that Dodd Lobbying 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.
Strong track record of project management
– Dodd Lobbying is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Dodd Lobbying digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dodd Lobbying has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 lead change in Finance & Accounting field
– Dodd Lobbying 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 Dodd Lobbying in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Dodd Lobbying has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dodd Lobbying to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Note on Lobbying and the Dodd-Frank Financial Reforms | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on Lobbying and the Dodd-Frank Financial Reforms are -
High cash cycle compare to competitors
Dodd Lobbying 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Note on Lobbying and the Dodd-Frank Financial Reforms, it seems that the employees of Dodd Lobbying 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 Dodd Lobbying 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 - Note on Lobbying and the Dodd-Frank Financial Reforms should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Dodd Lobbying 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Note on Lobbying and the Dodd-Frank Financial Reforms 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 Dodd Lobbying 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Clayton Rose, Aldo Sesia suggests that, Dodd Lobbying 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.
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 Dodd Lobbying supply chain. Even after few cautionary changes mentioned in the HBR case study - Note on Lobbying and the Dodd-Frank Financial Reforms, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 Dodd Lobbying has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Note on Lobbying and the Dodd-Frank Financial Reforms, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Note on Lobbying and the Dodd-Frank Financial Reforms, is just above the industry average. Dodd Lobbying 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.
Lack of clear differentiation of Dodd Lobbying products
– To increase the profitability and margins on the products, Dodd Lobbying needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Note on Lobbying and the Dodd-Frank Financial Reforms | 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 Note on Lobbying and the Dodd-Frank Financial Reforms are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dodd Lobbying can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Dodd Lobbying can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Dodd Lobbying 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dodd Lobbying in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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 Dodd Lobbying in the consumer business. Now Dodd Lobbying can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Dodd Lobbying can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dodd Lobbying can use these opportunities to build new business models that can help the communities that Dodd Lobbying operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Developing new processes and practices
– Dodd Lobbying can develop new processes and procedures in Finance & Accounting 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.
Better consumer reach
– The expansion of the 5G network will help Dodd Lobbying to increase its market reach. Dodd Lobbying 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dodd Lobbying 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.
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 Dodd Lobbying 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dodd Lobbying is facing challenges because of the dominance of functional experts in the organization. Note on Lobbying and the Dodd-Frank Financial Reforms 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.
Loyalty marketing
– Dodd Lobbying 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.
Threats Note on Lobbying and the Dodd-Frank Financial Reforms External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on Lobbying and the Dodd-Frank Financial Reforms are -
Increasing wage structure of Dodd Lobbying
– 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 Dodd Lobbying.
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. Dodd Lobbying 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
– Dodd Lobbying 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. Dodd Lobbying can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Dodd Lobbying business can come under increasing regulations regarding data privacy, data security, etc.
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. Dodd Lobbying needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Dodd Lobbying 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dodd Lobbying with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Dodd Lobbying.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Note on Lobbying and the Dodd-Frank Financial Reforms, Dodd Lobbying may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Dodd Lobbying can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Dodd Lobbying has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Dodd Lobbying needs to keep up with the evolution of technology in the Finance & Accounting 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, Dodd Lobbying 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 Note on Lobbying and the Dodd-Frank Financial Reforms .
Weighted SWOT Analysis of Note on Lobbying and the Dodd-Frank Financial Reforms 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 Note on Lobbying and the Dodd-Frank Financial Reforms 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 Dodd Lobbying needs to make to build a sustainable competitive advantage.