FII Ancar IC (ANCR11B) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for FII Ancar IC (Brazil)

Based on various researches at Oak Spring University , FII Ancar IC is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, there is backlash against globalization, talent flight as more people leaving formal jobs, etc

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Introduction to SWOT Analysis of FII Ancar IC

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII Ancar IC can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII Ancar IC, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII Ancar IC 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of FII Ancar IC can be done for the following purposes –
1. Strategic planning of FII Ancar IC
2. Improving business portfolio management of FII Ancar IC
3. Assessing feasibility of the new initiative in Brazil
4. Making a NA sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of FII Ancar IC

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Strengths of FII Ancar IC | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of FII Ancar IC are -

Analytics focus

– FII Ancar IC 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 NA industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Successful track record of launching new products

– FII Ancar IC has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII Ancar IC 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.

Operational resilience

– The operational resilience strategy of FII Ancar IC comprises – understanding the underlying the factors in the NA 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.

Cross disciplinary teams

– Horizontal connected teams at the FII Ancar IC 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.

Innovation driven organization

– FII Ancar IC is one of the most innovative firm in NA sector.

Highly skilled collaborators

– FII Ancar IC has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive NA industry. Secondly the value chain collaborators of FII Ancar IC have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management in the NA industry

– FII Ancar IC 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

– FII Ancar IC has one of the best training and development program in NA industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Effective Research and Development (R&D)

– FII Ancar IC has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII Ancar IC staying ahead in the NA industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Organizational Resilience of FII Ancar IC

– The covid-19 pandemic has put organizational resilience at the centre of everthing FII Ancar IC does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to lead change in NA

– FII Ancar IC is one of the leading players in the NA industry in Brazil. Over the years it has not only transformed the business landscape in the NA industry in Brazil but also across the existing markets. The ability to lead change has enabled FII Ancar IC in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in NA industry

– FII Ancar IC has clearly differentiated products in the market place. This has enabled FII Ancar IC to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII Ancar IC to invest into research and development (R&D) and innovation.

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Weaknesses of FII Ancar IC | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of FII Ancar IC are -

Slow decision making process

– As mentioned earlier in the report, FII Ancar IC has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the NA industry over the last five years. FII Ancar IC 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.

Aligning sales with marketing

– From the outside it seems that FII Ancar IC needs to have more collaboration between its sales team and marketing team. Sales professionals in the NA industry have deep experience in developing customer relationships. Marketing department at FII Ancar IC can leverage the sales team experience to cultivate customer relationships as FII Ancar IC is planning to shift buying processes online.

Products dominated business model

– Even though FII Ancar IC has some of the most successful models in the NA industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. FII Ancar IC should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative at FII Ancar IC, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FII Ancar IC has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High dependence on FII Ancar IC ‘s star products

– The top 2 products and services of FII Ancar IC still accounts for major business revenue. This dependence on star products in NA industry has resulted into insufficient focus on developing new products, even though FII Ancar IC has relatively successful track record of launching new products.

Employees’ less understanding of FII Ancar IC strategy

– From the outside it seems that the employees of FII Ancar IC 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, FII Ancar IC is slow explore the new channels of communication. These new channels of communication can help FII Ancar IC to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.

Interest costs

– Compare to the competition, FII Ancar IC 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.

Lack of clear differentiation of FII Ancar IC products

– To increase the profitability and margins on the products, FII Ancar IC needs to provide more differentiated products than what it is currently offering in the marketplace.

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 FII Ancar IC supply chain. Even after few cautionary changes, FII Ancar IC is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FII Ancar IC vulnerable to further global disruptions in South East Asia.

Skills based hiring in NA industry

– The stress on hiring functional specialists at FII Ancar IC 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.

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FII Ancar IC Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of FII Ancar IC are -

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. FII Ancar IC can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Redefining models of collaboration and team work

– As explained in the weaknesses section, FII Ancar IC is facing challenges because of the dominance of functional experts in the organization. FII Ancar IC can utilize new technology in the field of NA industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Better consumer reach

– The expansion of the 5G network will help FII Ancar IC to increase its market reach. FII Ancar IC 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.

Creating value in data economy

– The success of analytics program of FII Ancar IC has opened avenues for new revenue streams for the organization in NA industry. This can help FII Ancar IC to build a more holistic ecosystem for FII Ancar IC products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Leveraging digital technologies

– FII Ancar IC 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects FII Ancar IC can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Use of Bitcoin and other crypto currencies for transactions in NA industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FII Ancar IC in the NA industry. Now FII Ancar IC can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– FII Ancar IC has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in NA sector. This continuous investment in analytics has enabled FII Ancar IC to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII Ancar IC to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Low interest rates

– Even though inflation is raising its head in most developed economies, FII Ancar IC 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for FII Ancar IC in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the NA industry, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for FII Ancar IC to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FII Ancar IC 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 FII Ancar IC to hire the very best people irrespective of their geographical location.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, FII Ancar IC 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 FII Ancar IC to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats FII Ancar IC External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of FII Ancar IC are -

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 FII Ancar IC business can come under increasing regulations regarding data privacy, data security, etc.

Regulatory challenges

– FII Ancar IC 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 NA industry regulations.

Environmental challenges

– FII Ancar IC 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. FII Ancar IC can take advantage of this fund but it will also bring new competitors in the NA industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FII Ancar IC with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.

High dependence on third party suppliers

– FII Ancar IC 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. FII Ancar IC needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.

Stagnating economy with rate increase

– FII Ancar IC 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 NA industry.

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 FII Ancar IC in the NA sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, FII Ancar IC 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 FII Ancar IC prominent markets.

Shortening product life cycle

– it is one of the major threat that FII Ancar IC is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– FII Ancar IC has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FII Ancar IC needs to keep up with the evolution of technology in the NA 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.

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.

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.

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Weighted SWOT Analysis of FII Ancar IC Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII Ancar IC 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 FII Ancar IC 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 FII Ancar IC 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 FII Ancar IC 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 FII Ancar IC needs to make to build a sustainable competitive advantage.

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