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 - – central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
High switching costs
– The high switching costs that Nedbank Nedbank's 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.
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.
Effective Research and Development (R&D)
– Nedbank Nedbank's 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 Nedbank: Coaching Capabilities for Growth Strategy Execution - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Nedbank Nedbank's is present in almost all the verticals within the industry. This has provided firm in Nedbank: Coaching Capabilities for Growth Strategy Execution 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.
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.
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.
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.
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.
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.
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.
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.
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 -
Capital Spending Reduction
– Even during the low interest decade, Nedbank Nedbank's 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.
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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Nedbank Nedbank's 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.
High cash cycle compare to competitors
Nedbank Nedbank's 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.
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.
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.
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.
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 -
Low interest rates
– Even though inflation is raising its head in most developed economies, Nedbank Nedbank's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Nedbank Nedbank's in the consumer business. Now Nedbank Nedbank's can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nedbank Nedbank's can use these opportunities to build new business models that can help the communities that Nedbank Nedbank's operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
Stagnating economy with rate increase
– Nedbank Nedbank's 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. 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nedbank Nedbank's 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Nedbank Nedbank's in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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.
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. Nedbank Nedbank's 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.
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.
Technology acceleration in Forth Industrial Revolution
– Nedbank Nedbank's has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Nedbank Nedbank's needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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. Nedbank Nedbank's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.