Case Study Description of Nedbank: Coaching Capabilities for Growth Strategy Execution
The chief executive officer of South Africa's Nedbank Ltd. contemplated the dilemma of growing the bank in a mature, competitive market within his own country, and succeeding at expanding outside South Africa's border. Nedbank's extensive investment in Ecobank, with its pan-African presence, was a risk, and required improvement of the capabilities of the leaders to execute Nedbank's strategy. To achieve this, Nedbank focused on building an internal capacity through coaching and mentoring programs for its leaders, in addition to other initiatives to enable employees to execute the bank's strategy. The chief executive officer was proud of his own innovative idea for a new product, and hoped he was setting an example for other leaders. He was equally proud that Nedbank was a values-oriented business that believed in using its influence to positively impact its community and environment. In 2014, despite positive advancements, the economic situation was grim and the chronic lack of skilled workers was a detriment to the country, and to Nedbank in particular. Could Nedbank rapidly increase its capabilities in time to meet the immediate challenges it faced as it expanded into locales where the stakes, and the risks, were higher?
Swot Analysis of "Nedbank: Coaching Capabilities for Growth Strategy Execution" written by Caren Scheepers, Emme Kane includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nedbank Nedbank's facing as an external strategic factors. Some of the topics covered in Nedbank: Coaching Capabilities for Growth Strategy Execution case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Nedbank: Coaching Capabilities for Growth Strategy Execution casestudy better are - – geopolitical disruptions, increasing commodity prices, technology disruption, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, there is backlash against globalization,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Nedbank: Coaching Capabilities for Growth Strategy Execution
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Nedbank: Coaching Capabilities for Growth Strategy Execution case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nedbank Nedbank's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution can be done for the following purposes –
1. Strategic planning using facts provided in Nedbank: Coaching Capabilities for Growth Strategy Execution case study
2. Improving business portfolio management of Nedbank Nedbank's
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 Nedbank Nedbank's
Strengths Nedbank: Coaching Capabilities for Growth Strategy Execution | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nedbank Nedbank's in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study are -
Analytics focus
– Nedbank Nedbank's 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 Caren Scheepers, Emme Kane 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.
Cross disciplinary teams
– Horizontal connected teams at the Nedbank Nedbank's 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.
Ability to recruit top talent
– Nedbank Nedbank's is one of the leading recruiters in the industry. Managers in the Nedbank: Coaching Capabilities for Growth Strategy Execution are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Nedbank Nedbank's 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 Nedbank Nedbank's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Nedbank Nedbank's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Nedbank Nedbank's 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 Nedbank Nedbank's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Nedbank Nedbank's is one of the most innovative firm in sector. Manager in Nedbank: Coaching Capabilities for Growth Strategy Execution Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Nedbank Nedbank's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Nedbank: Coaching Capabilities for Growth Strategy Execution 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.
Strong track record of project management
– Nedbank Nedbank's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Nedbank Nedbank's in the sector have low bargaining power. Nedbank: Coaching Capabilities for Growth Strategy Execution has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nedbank Nedbank's to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Nedbank Nedbank's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nedbank Nedbank's 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Nedbank Nedbank's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nedbank Nedbank's 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.
Weaknesses Nedbank: Coaching Capabilities for Growth Strategy Execution | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nedbank: Coaching Capabilities for Growth Strategy Execution are -
Increasing silos among functional specialists
– The organizational structure of Nedbank Nedbank's is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Nedbank Nedbank's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nedbank Nedbank's to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Caren Scheepers, Emme Kane suggests that, Nedbank Nedbank's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution, it seems that the employees of Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank Nedbank's has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Nedbank Nedbank's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Nedbank Nedbank's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow decision making process
– As mentioned earlier in the report, Nedbank Nedbank's 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. Nedbank Nedbank's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Nedbank: Coaching Capabilities for Growth Strategy Execution, in the dynamic environment Nedbank Nedbank's has struggled to respond to the nimble upstart competition. Nedbank Nedbank's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution, is just above the industry average. Nedbank Nedbank's 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.
Products dominated business model
– Even though Nedbank Nedbank's 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 - Nedbank: Coaching Capabilities for Growth Strategy Execution should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution, 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.
Opportunities Nedbank: Coaching Capabilities for Growth Strategy Execution | 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 Nedbank: Coaching Capabilities for Growth Strategy Execution are -
Better consumer reach
– The expansion of the 5G network will help Nedbank Nedbank's to increase its market reach. Nedbank Nedbank's 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.
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. Nedbank Nedbank's 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 Nedbank Nedbank's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Nedbank Nedbank's 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. Nedbank Nedbank's 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
– Nedbank Nedbank's 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.
Building a culture of innovation
– managers at Nedbank Nedbank's 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
– Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nedbank Nedbank's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Nedbank Nedbank's 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.
Developing new processes and practices
– Nedbank Nedbank's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nedbank Nedbank's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Nedbank Nedbank's to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Nedbank Nedbank's 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.
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 Nedbank Nedbank's 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.
Creating value in data economy
– The success of analytics program of Nedbank Nedbank's has opened avenues for new revenue streams for the organization in the industry. This can help Nedbank Nedbank's to build a more holistic ecosystem as suggested in the Nedbank: Coaching Capabilities for Growth Strategy Execution case study. Nedbank Nedbank's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Nedbank: Coaching Capabilities for Growth Strategy Execution External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Nedbank: Coaching Capabilities for Growth Strategy Execution are -
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 Nedbank Nedbank's.
Shortening product life cycle
– it is one of the major threat that Nedbank Nedbank's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nedbank Nedbank's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution .
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.
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. Nedbank Nedbank's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Consumer confidence and its impact on Nedbank Nedbank's 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.
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 Nedbank Nedbank's business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Nedbank Nedbank's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Nedbank: Coaching Capabilities for Growth Strategy Execution, Nedbank Nedbank's 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 .
Environmental challenges
– Nedbank Nedbank's 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. Nedbank Nedbank's can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Regulatory challenges
– Nedbank Nedbank's 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.
Weighted SWOT Analysis of Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank: Coaching Capabilities for Growth Strategy Execution 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 Nedbank Nedbank's needs to make to build a sustainable competitive advantage.
