Freddie Mac 6.02 Pfd (FMCKL) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Freddie Mac 6.02 Pfd (United States)
Based on various researches at Oak Spring University , Freddie Mac 6.02 Pfd is operating in a macro-environment that has been destablized by – increasing commodity prices, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, increasing energy prices, etc
Introduction to SWOT Analysis of Freddie Mac 6.02 Pfd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Freddie Mac 6.02 Pfd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Freddie Mac 6.02 Pfd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd can be done for the following purposes –
1. Strategic planning of Freddie Mac 6.02 Pfd
2. Improving business portfolio management of Freddie Mac 6.02 Pfd
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Freddie Mac 6.02 Pfd
Strengths of Freddie Mac 6.02 Pfd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Freddie Mac 6.02 Pfd are -
Successful track record of launching new products
– Freddie Mac 6.02 Pfd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Freddie Mac 6.02 Pfd 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.
Superior customer experience
– The customer experience strategy of Freddie Mac 6.02 Pfd in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Freddie Mac 6.02 Pfd is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure of United States 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.
Cross disciplinary teams
– Horizontal connected teams at the Freddie Mac 6.02 Pfd 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.
High brand equity
– Freddie Mac 6.02 Pfd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Freddie Mac 6.02 Pfd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Freddie Mac 6.02 Pfd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Freddie Mac 6.02 Pfd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Freddie Mac 6.02 Pfd has one of the best training and development program in 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.
Innovation driven organization
– Freddie Mac 6.02 Pfd is one of the most innovative firm in sector.
Ability to recruit top talent
– Freddie Mac 6.02 Pfd is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management in the industry
– Freddie Mac 6.02 Pfd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Freddie Mac 6.02 Pfd emphasize – knowledge, initiative, and innovation.
Ability to lead change in
– Freddie Mac 6.02 Pfd is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Freddie Mac 6.02 Pfd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Freddie Mac 6.02 Pfd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Freddie Mac 6.02 Pfd are -
Capital Spending Reduction
– Even during the low interest decade, Freddie Mac 6.02 Pfd 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.
Interest costs
– Compare to the competition, Freddie Mac 6.02 Pfd has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring in industry
– The stress on hiring functional specialists at Freddie Mac 6.02 Pfd 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.
Aligning sales with marketing
– From the outside it seems that Freddie Mac 6.02 Pfd 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 at Freddie Mac 6.02 Pfd can leverage the sales team experience to cultivate customer relationships as Freddie Mac 6.02 Pfd is planning to shift buying processes online.
High operating costs
– Compare to the competitors, Freddie Mac 6.02 Pfd has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Freddie Mac 6.02 Pfd lucrative customers.
Compensation and incentives
– The revenue per employee of Freddie Mac 6.02 Pfd is just above the 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.
Employees’ less understanding of Freddie Mac 6.02 Pfd strategy
– From the outside it seems that the employees of Freddie Mac 6.02 Pfd 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 industry, Freddie Mac 6.02 Pfd 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.
Increasing silos among functional specialists
– The organizational structure of Freddie Mac 6.02 Pfd is dominated by functional specialists. It is not different from other players in the industry, but Freddie Mac 6.02 Pfd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Freddie Mac 6.02 Pfd to focus more on services in the industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Freddie Mac 6.02 Pfd, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Freddie Mac 6.02 Pfd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Freddie Mac 6.02 Pfd is slow explore the new channels of communication. These new channels of communication can help Freddie Mac 6.02 Pfd to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Freddie Mac 6.02 Pfd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Freddie Mac 6.02 Pfd are -
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Freddie Mac 6.02 Pfd 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. Freddie Mac 6.02 Pfd 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.
Building a culture of innovation
– managers at Freddie Mac 6.02 Pfd 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 industry.
Using analytics as competitive advantage
– Freddie Mac 6.02 Pfd has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Freddie Mac 6.02 Pfd to build a competitive advantage using analytics. The analytics driven competitive advantage can help Freddie Mac 6.02 Pfd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Freddie Mac 6.02 Pfd 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.
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 Freddie Mac 6.02 Pfd 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Freddie Mac 6.02 Pfd in the industry. Now Freddie Mac 6.02 Pfd can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Freddie Mac 6.02 Pfd can develop new processes and procedures in 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.
Buying journey improvements
– Freddie Mac 6.02 Pfd can improve the customer journey of consumers in the 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.
Loyalty marketing
– Freddie Mac 6.02 Pfd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Freddie Mac 6.02 Pfd is facing challenges because of the dominance of functional experts in the organization. Freddie Mac 6.02 Pfd can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Freddie Mac 6.02 Pfd can use the latest technology developments to improve its manufacturing and designing process in sector. 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd to hire the very best people irrespective of their geographical location.
Threats Freddie Mac 6.02 Pfd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Freddie Mac 6.02 Pfd are -
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Freddie Mac 6.02 Pfd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Freddie Mac 6.02 Pfd needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Freddie Mac 6.02 Pfd 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.
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 Freddie Mac 6.02 Pfd business can come under increasing regulations regarding data privacy, data security, etc.
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.
Stagnating economy with rate increase
– Freddie Mac 6.02 Pfd 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 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 Freddie Mac 6.02 Pfd in the sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Freddie Mac 6.02 Pfd in industry. The 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Freddie Mac 6.02 Pfd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Freddie Mac 6.02 Pfd.
Increasing wage structure of Freddie Mac 6.02 Pfd
– 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 Freddie Mac 6.02 Pfd.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Freddie Mac 6.02 Pfd may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Environmental challenges
– Freddie Mac 6.02 Pfd 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. Freddie Mac 6.02 Pfd can take advantage of this fund but it will also bring new competitors in the industry.
Weighted SWOT Analysis of Freddie Mac 6.02 Pfd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd 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 Freddie Mac 6.02 Pfd needs to make to build a sustainable competitive advantage.