Fed Natl Ntg Pfd O (FNMFN) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fed Natl Ntg Pfd O (United States)
Based on various researches at Oak Spring University , Fed Natl Ntg Pfd O is operating in a macro-environment that has been destablized by – technology disruption, increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Fed Natl Ntg Pfd O
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fed Natl Ntg Pfd O can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fed Natl Ntg Pfd O, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O can be done for the following purposes –
1. Strategic planning of Fed Natl Ntg Pfd O
2. Improving business portfolio management of Fed Natl Ntg Pfd O
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 Fed Natl Ntg Pfd O
Strengths of Fed Natl Ntg Pfd O | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fed Natl Ntg Pfd O are -
Training and development
– Fed Natl Ntg Pfd O 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.
Highly skilled collaborators
– Fed Natl Ntg Pfd O has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Fed Natl Ntg Pfd O have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Fed Natl Ntg Pfd O has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fed Natl Ntg Pfd O 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.
Learning organization
- Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fed Natl Ntg Pfd O emphasize – knowledge, initiative, and innovation.
Ability to lead change in
– Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Fed Natl Ntg Pfd O
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fed Natl Ntg Pfd O does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the industry
– Fed Natl Ntg Pfd O is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Fed Natl Ntg Pfd O 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Fed Natl Ntg Pfd O digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fed Natl Ntg Pfd O 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.
Sustainable margins compare to other players in industry
– Fed Natl Ntg Pfd O has clearly differentiated products in the market place. This has enabled Fed Natl Ntg Pfd O to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Fed Natl Ntg Pfd O to invest into research and development (R&D) and innovation.
Innovation driven organization
– Fed Natl Ntg Pfd O is one of the most innovative firm in sector.
High switching costs
– The high switching costs that Fed Natl Ntg Pfd O has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses of Fed Natl Ntg Pfd O | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fed Natl Ntg Pfd O are -
Products dominated business model
– Even though Fed Natl Ntg Pfd O has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Fed Natl Ntg Pfd O should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O 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.
High dependence on Fed Natl Ntg Pfd O ‘s star products
– The top 2 products and services of Fed Natl Ntg Pfd O still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Fed Natl Ntg Pfd O has relatively successful track record of launching new products.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Fed Natl Ntg Pfd O 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.
Need for greater diversity
– Fed Natl Ntg Pfd O 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.
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 Fed Natl Ntg Pfd O supply chain. Even after few cautionary changes, Fed Natl Ntg Pfd O is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fed Natl Ntg Pfd O vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Fed Natl Ntg Pfd O 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.
Aligning sales with marketing
– From the outside it seems that Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O can leverage the sales team experience to cultivate customer relationships as Fed Natl Ntg Pfd O is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee of Fed Natl Ntg Pfd O 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.
Workers concerns about automation
– As automation is fast increasing in the industry, Fed Natl Ntg Pfd O 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.
Fed Natl Ntg Pfd O Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fed Natl Ntg Pfd O are -
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 Fed Natl Ntg Pfd O in the industry. Now Fed Natl Ntg Pfd O can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Fed Natl Ntg Pfd O 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fed Natl Ntg Pfd O 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.
Loyalty marketing
– Fed Natl Ntg Pfd O 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.
Creating value in data economy
– The success of analytics program of Fed Natl Ntg Pfd O has opened avenues for new revenue streams for the organization in industry. This can help Fed Natl Ntg Pfd O to build a more holistic ecosystem for Fed Natl Ntg Pfd O products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Fed Natl Ntg Pfd O can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fed Natl Ntg Pfd O can use these opportunities to build new business models that can help the communities that Fed Natl Ntg Pfd O operates in. Secondly it can use opportunities from government spending in sector.
Using analytics as competitive advantage
– Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fed Natl Ntg Pfd O to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Fed Natl Ntg Pfd O 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O to hire the very best people irrespective of their geographical location.
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. Fed Natl Ntg Pfd O 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. Fed Natl Ntg Pfd O 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fed Natl Ntg Pfd O is facing challenges because of the dominance of functional experts in the organization. Fed Natl Ntg Pfd O 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.
Leveraging digital technologies
– Fed Natl Ntg Pfd O 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.
Threats Fed Natl Ntg Pfd O External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fed Natl Ntg Pfd O are -
Technology acceleration in Forth Industrial Revolution
– Fed Natl Ntg Pfd O has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Fed Natl Ntg Pfd O needs to keep up with the evolution of technology in the 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fed Natl Ntg Pfd O 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.
High dependence on third party suppliers
– Fed Natl Ntg Pfd O 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. Fed Natl Ntg Pfd O needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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. Fed Natl Ntg Pfd O can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Fed Natl Ntg Pfd O business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Fed Natl Ntg Pfd O 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 industry regulations.
Increasing wage structure of Fed Natl Ntg Pfd O
– 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 Fed Natl Ntg Pfd O.
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 Fed Natl Ntg Pfd O in the sector and impact the bottomline of the organization.
Environmental challenges
– Fed Natl Ntg Pfd O 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. Fed Natl Ntg Pfd O can take advantage of this fund but it will also bring new competitors in the industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fed Natl Ntg Pfd O 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.
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. Fed Natl Ntg Pfd O 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.
Stagnating economy with rate increase
– Fed Natl Ntg Pfd O 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.
Weighted SWOT Analysis of Fed Natl Ntg Pfd O Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O needs to make to build a sustainable competitive advantage.