Sanford C. Bernstein Goes to Asia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sanford C. Bernstein Goes to Asia
Sanford C. Bernstein, a premier sell-side research firm, is expanding globally. Three years after launching Bernstein's Asian business, senior management has appointed Ghislain de Charentenay, a six-year sales veteran of the firm, as director of Asian research in Hong Kong. He is the first director of research Bernstein has put on the ground in Asia. As the firm faces the challenging realities of scaling its Asian business and meeting growing client demand for global products, de Charentenay must figure out how best to support the senior research analysts in leveraging their franchises. And with a recent wave of attrition among Bernstein's research associate ranks in Hong Kong, de Charentenay and the management team must also consider where to focus their recruiting efforts.
Authors :: Linda A. Hill, Dana M. Teppert, Allison J. Wigen
Swot Analysis of "Sanford C. Bernstein Goes to Asia" written by Linda A. Hill, Dana M. Teppert, Allison J. Wigen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Charentenay Bernstein facing as an external strategic factors. Some of the topics covered in Sanford C. Bernstein Goes to Asia case study are - Strategic Management Strategies, Emerging markets, Globalization, Leadership, Organizational culture, Organizational structure, Talent management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Sanford C. Bernstein Goes to Asia casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, technology disruption, supply chains are disrupted by pandemic ,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Sanford C. Bernstein Goes to Asia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sanford C. Bernstein Goes to Asia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Charentenay Bernstein, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Charentenay Bernstein 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 Sanford C. Bernstein Goes to Asia can be done for the following purposes –
1. Strategic planning using facts provided in Sanford C. Bernstein Goes to Asia case study
2. Improving business portfolio management of Charentenay Bernstein
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 Charentenay Bernstein
Strengths Sanford C. Bernstein Goes to Asia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Charentenay Bernstein in Sanford C. Bernstein Goes to Asia Harvard Business Review case study are -
High brand equity
– Charentenay Bernstein has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Charentenay Bernstein to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Charentenay Bernstein in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Charentenay Bernstein has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Charentenay Bernstein 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.
Innovation driven organization
– Charentenay Bernstein is one of the most innovative firm in sector. Manager in Sanford C. Bernstein Goes to Asia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Charentenay Bernstein is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Charentenay Bernstein
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Charentenay Bernstein does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Charentenay Bernstein 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.
Training and development
– Charentenay Bernstein has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sanford C. Bernstein Goes to Asia 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.
Diverse revenue streams
– Charentenay Bernstein is present in almost all the verticals within the industry. This has provided firm in Sanford C. Bernstein Goes to Asia 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.
Highly skilled collaborators
– Charentenay Bernstein 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 Sanford C. Bernstein Goes to Asia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Leadership & Managing People industry
– Sanford C. Bernstein Goes to Asia firm has clearly differentiated products in the market place. This has enabled Charentenay Bernstein to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Charentenay Bernstein to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Sanford C. Bernstein Goes to Asia 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.
Weaknesses Sanford C. Bernstein Goes to Asia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sanford C. Bernstein Goes to Asia are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Charentenay Bernstein is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sanford C. Bernstein Goes to Asia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sanford C. Bernstein Goes to Asia, in the dynamic environment Charentenay Bernstein has struggled to respond to the nimble upstart competition. Charentenay Bernstein has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sanford C. Bernstein Goes to Asia, it seems that the employees of Charentenay Bernstein 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.
Aligning sales with marketing
– It come across in the case study Sanford C. Bernstein Goes to Asia that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Sanford C. Bernstein Goes to Asia can leverage the sales team experience to cultivate customer relationships as Charentenay Bernstein is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Linda A. Hill, Dana M. Teppert, Allison J. Wigen suggests that, Charentenay Bernstein 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 cash cycle compare to competitors
Charentenay Bernstein 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.
Products dominated business model
– Even though Charentenay Bernstein 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 - Sanford C. Bernstein Goes to Asia should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Charentenay Bernstein 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.
Slow decision making process
– As mentioned earlier in the report, Charentenay Bernstein 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. Charentenay Bernstein 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.
Increasing silos among functional specialists
– The organizational structure of Charentenay Bernstein is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Charentenay Bernstein needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Charentenay Bernstein to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sanford C. Bernstein Goes to Asia, is just above the industry average. Charentenay Bernstein 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 Sanford C. Bernstein Goes to Asia | 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 Sanford C. Bernstein Goes to Asia are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Charentenay Bernstein 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Charentenay Bernstein 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, Sanford C. Bernstein Goes to Asia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Charentenay Bernstein 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.
Manufacturing automation
– Charentenay Bernstein 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Charentenay Bernstein is facing challenges because of the dominance of functional experts in the organization. Sanford C. Bernstein Goes to Asia 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Charentenay Bernstein can use these opportunities to build new business models that can help the communities that Charentenay Bernstein operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Charentenay Bernstein can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Charentenay Bernstein 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.
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 Charentenay Bernstein in the consumer business. Now Charentenay Bernstein can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Charentenay Bernstein can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Charentenay Bernstein can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sanford C. Bernstein Goes to Asia 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.
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. Charentenay Bernstein 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. Charentenay Bernstein 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.
Better consumer reach
– The expansion of the 5G network will help Charentenay Bernstein to increase its market reach. Charentenay Bernstein will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Sanford C. Bernstein Goes to Asia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sanford C. Bernstein Goes to Asia are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Charentenay Bernstein 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 Sanford C. Bernstein Goes to Asia .
Technology acceleration in Forth Industrial Revolution
– Charentenay Bernstein has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Charentenay Bernstein 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.
Environmental challenges
– Charentenay Bernstein 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. Charentenay Bernstein can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Charentenay Bernstein 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sanford C. Bernstein Goes to Asia, Charentenay Bernstein 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Charentenay Bernstein with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Charentenay Bernstein
– 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 Charentenay Bernstein.
Consumer confidence and its impact on Charentenay Bernstein 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.
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 Charentenay Bernstein in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Charentenay Bernstein 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. Charentenay Bernstein needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
High dependence on third party suppliers
– Charentenay Bernstein 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.
Weighted SWOT Analysis of Sanford C. Bernstein Goes to Asia 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 Sanford C. Bernstein Goes to Asia 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 Sanford C. Bernstein Goes to Asia 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 Sanford C. Bernstein Goes to Asia 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 Sanford C. Bernstein Goes to Asia 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 Charentenay Bernstein needs to make to build a sustainable competitive advantage.
