Fed Natl Ntg Pfd O (FNMFN) SWOT Analysis / TOWS Matrix / 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 – wage bills are increasing, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, etc

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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.

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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

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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 -

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.

Superior customer experience

– The customer experience strategy of Fed Natl Ntg Pfd O in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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.

Low bargaining power of suppliers

– Suppliers of Fed Natl Ntg Pfd O in the sector have low bargaining power. Fed Natl Ntg Pfd O has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fed Natl Ntg Pfd O to manage not only supply disruptions but also source products at highly competitive prices.

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.

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.

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.

Operational resilience

– The operational resilience strategy of Fed Natl Ntg Pfd O 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.

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.

Innovation driven organization

– Fed Natl Ntg Pfd O is one of the most innovative firm in sector.

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.

Analytics focus

– Fed Natl Ntg Pfd O 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.

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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 -

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.

Lack of clear differentiation of Fed Natl Ntg Pfd O products

– To increase the profitability and margins on the products, Fed Natl Ntg Pfd O needs to provide more differentiated products than what it is currently offering in the marketplace.

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.

Slow to harness new channels of communication

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

Employees’ less understanding of Fed Natl Ntg Pfd O strategy

– From the outside it seems that the employees of Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

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.

Slow decision making process

– As mentioned earlier in the report, Fed Natl Ntg Pfd O 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. Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O is dominated by functional specialists. It is not different from other players in the industry, but Fed Natl Ntg Pfd O needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fed Natl Ntg Pfd O 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 Fed Natl Ntg Pfd O, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Fed Natl Ntg Pfd O has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Low market penetration in new markets

– Outside its home market of United States, Fed Natl Ntg Pfd O needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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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 -

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. Fed Natl Ntg Pfd O can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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.

Manufacturing automation

– Fed Natl Ntg Pfd O 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.

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.

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.

Learning at scale

– Online learning technologies has now opened space for Fed Natl Ntg Pfd O 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 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.

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.

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.

Better consumer reach

– The expansion of the 5G network will help Fed Natl Ntg Pfd O to increase its market reach. Fed Natl Ntg Pfd O 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Fed Natl Ntg Pfd O in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.

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.

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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 -

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.

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.

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.

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.

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.

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 Fed Natl Ntg Pfd O.

Barriers of entry lowering

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

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.

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.

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.

Consumer confidence and its impact on Fed Natl Ntg Pfd O 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 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 Fed Natl Ntg Pfd O in the sector and impact the bottomline of the organization.

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.

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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.

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