FII Banrisul Novas Fronteiras (BNFS11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FII Banrisul Novas Fronteiras (Brazil)
Based on various researches at Oak Spring University , FII Banrisul Novas Fronteiras is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, increasing energy prices, increasing commodity prices, supply chains are disrupted by pandemic , there is backlash against globalization, technology disruption, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of FII Banrisul Novas Fronteiras
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII Banrisul Novas Fronteiras can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII Banrisul Novas Fronteiras, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII Banrisul Novas Fronteiras 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 FII Banrisul Novas Fronteiras can be done for the following purposes –
1. Strategic planning of FII Banrisul Novas Fronteiras
2. Improving business portfolio management of FII Banrisul Novas Fronteiras
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 Banrisul Novas Fronteiras
Strengths of FII Banrisul Novas Fronteiras | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII Banrisul Novas Fronteiras are -
Analytics focus
– FII Banrisul Novas Fronteiras 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.
Learning organization
- FII Banrisul Novas Fronteiras 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 FII Banrisul Novas Fronteiras is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at FII Banrisul Novas Fronteiras emphasize – knowledge, initiative, and innovation.
Training and development
– FII Banrisul Novas Fronteiras 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.
Cross disciplinary teams
– Horizontal connected teams at the FII Banrisul Novas Fronteiras 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.
Low bargaining power of suppliers
– Suppliers of FII Banrisul Novas Fronteiras in the NA sector have low bargaining power. FII Banrisul Novas Fronteiras has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FII Banrisul Novas Fronteiras to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– FII Banrisul Novas Fronteiras has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII Banrisul Novas Fronteiras to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– FII Banrisul Novas Fronteiras is present in almost all the verticals within the NA industry. This has provided FII Banrisul Novas Fronteiras 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.
Sustainable margins compare to other players in NA industry
– FII Banrisul Novas Fronteiras has clearly differentiated products in the market place. This has enabled FII Banrisul Novas Fronteiras to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII Banrisul Novas Fronteiras to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy of FII Banrisul Novas Fronteiras 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.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For FII Banrisul Novas Fronteiras digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FII Banrisul Novas Fronteiras 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 recruit top talent
– FII Banrisul Novas Fronteiras is one of the leading players in the NA industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management in the NA industry
– FII Banrisul Novas Fronteiras is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of FII Banrisul Novas Fronteiras | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII Banrisul Novas Fronteiras are -
Lack of clear differentiation of FII Banrisul Novas Fronteiras products
– To increase the profitability and margins on the products, FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras supply chain. Even after few cautionary changes, FII Banrisul Novas Fronteiras is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FII Banrisul Novas Fronteiras vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras can leverage the sales team experience to cultivate customer relationships as FII Banrisul Novas Fronteiras is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative at FII Banrisul Novas Fronteiras, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FII Banrisul Novas Fronteiras 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 of FII Banrisul Novas Fronteiras is just above the NA industry average. It 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.
Slow decision making process
– As mentioned earlier in the report, FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras 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.
Employees’ less understanding of FII Banrisul Novas Fronteiras strategy
– From the outside it seems that the employees of FII Banrisul Novas Fronteiras 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 strategic competitive environment developments
– As FII Banrisul Novas Fronteiras is one of the leading players in the NA industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the NA industry in last five years.
Interest costs
– Compare to the competition, FII Banrisul Novas Fronteiras 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.
Capital Spending Reduction
– Even during the low interest decade, FII Banrisul Novas Fronteiras 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 NA industry using digital technology.
High operating costs
– Compare to the competitors, FII Banrisul Novas Fronteiras has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FII Banrisul Novas Fronteiras lucrative customers.
FII Banrisul Novas Fronteiras Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII Banrisul Novas Fronteiras are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects FII Banrisul Novas Fronteiras can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in NA industry, but it has also influenced the consumer preferences. FII Banrisul Novas Fronteiras can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help FII Banrisul Novas Fronteiras to increase its market reach. FII Banrisul Novas Fronteiras 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.
Developing new processes and practices
– FII Banrisul Novas Fronteiras can develop new processes and procedures in NA 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.
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 Banrisul Novas Fronteiras can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– FII Banrisul Novas Fronteiras 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.
Buying journey improvements
– FII Banrisul Novas Fronteiras can improve the customer journey of consumers in the NA industry by using analytics and artificial intelligence. It 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for FII Banrisul Novas Fronteiras 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FII Banrisul Novas Fronteiras 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, FII Banrisul Novas Fronteiras is facing challenges because of the dominance of functional experts in the organization. FII Banrisul Novas Fronteiras 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the NA industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. FII Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras 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.
Threats FII Banrisul Novas Fronteiras External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII Banrisul Novas Fronteiras are -
Increasing wage structure of FII Banrisul Novas Fronteiras
– 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 FII Banrisul Novas Fronteiras.
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. FII Banrisul Novas Fronteiras 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.
Shortening product life cycle
– it is one of the major threat that FII Banrisul Novas Fronteiras is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras can take advantage of this fund but it will also bring new competitors in the NA industry.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, FII Banrisul Novas Fronteiras may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of NA sector.
Regulatory challenges
– FII Banrisul Novas Fronteiras 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FII Banrisul Novas Fronteiras in NA industry. The NA 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.
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 Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras prominent markets.
High dependence on third party suppliers
– FII Banrisul Novas Fronteiras 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.
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 FII Banrisul Novas Fronteiras.
Weighted SWOT Analysis of FII Banrisul Novas Fronteiras Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras 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 Banrisul Novas Fronteiras needs to make to build a sustainable competitive advantage.