Macquarie First Tr Global Infr Util (MFD) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Macquarie First Tr Global Infr Util (United States)
Based on various researches at Oak Spring University , Macquarie First Tr Global Infr Util is operating in a macro-environment that has been destablized by – wage bills are increasing, there is backlash against globalization, central banks are concerned over increasing inflation, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Macquarie First Tr Global Infr Util
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Macquarie First Tr Global Infr Util can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Macquarie First Tr Global Infr Util, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util can be done for the following purposes –
1. Strategic planning of Macquarie First Tr Global Infr Util
2. Improving business portfolio management of Macquarie First Tr Global Infr Util
3. Assessing feasibility of the new initiative in United States
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Macquarie First Tr Global Infr Util
Strengths of Macquarie First Tr Global Infr Util | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Macquarie First Tr Global Infr Util are -
Low bargaining power of suppliers
– Suppliers of Macquarie First Tr Global Infr Util in the Financial sector have low bargaining power. Macquarie First Tr Global Infr Util has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Macquarie First Tr Global Infr Util to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Macquarie First Tr Global Infr Util emphasize – knowledge, initiative, and innovation.
Analytics focus
– Macquarie First Tr Global Infr Util 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 Misc. Financial Services 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.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Macquarie First Tr Global Infr Util digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Macquarie First Tr Global Infr Util 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.
Superior customer experience
– The customer experience strategy of Macquarie First Tr Global Infr Util in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Macquarie First Tr Global Infr Util is one of the leading players in the Misc. Financial Services 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.
Operational resilience
– The operational resilience strategy of Macquarie First Tr Global Infr Util comprises – understanding the underlying the factors in the Misc. Financial Services 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.
Highly skilled collaborators
– Macquarie First Tr Global Infr Util has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Macquarie First Tr Global Infr Util have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Macquarie First Tr Global Infr Util has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Macquarie First Tr Global Infr Util staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Misc. Financial Services industry
– Macquarie First Tr Global Infr Util has clearly differentiated products in the market place. This has enabled Macquarie First Tr Global Infr Util to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Macquarie First Tr Global Infr Util to invest into research and development (R&D) and innovation.
Ability to lead change in Misc. Financial Services
– Macquarie First Tr Global Infr Util is one of the leading players in the Misc. Financial Services industry in United States. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United States but also across the existing markets. The ability to lead change has enabled Macquarie First Tr Global Infr Util in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Macquarie First Tr Global Infr Util has one of the best training and development program in Financial 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.
Weaknesses of Macquarie First Tr Global Infr Util | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Macquarie First Tr Global Infr Util are -
High operating costs
– Compare to the competitors, Macquarie First Tr Global Infr Util has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Macquarie First Tr Global Infr Util lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Macquarie First Tr Global Infr Util 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 Misc. Financial Services industry using digital technology.
High cash cycle compare to competitors
Macquarie First Tr Global Infr Util has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– From the 10K / annual statement of Macquarie First Tr Global Infr Util, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Macquarie First Tr Global Infr Util products
– To increase the profitability and margins on the products, Macquarie First Tr Global Infr Util needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee of Macquarie First Tr Global Infr Util is just above the Misc. Financial Services 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.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util ‘s star products
– The top 2 products and services of Macquarie First Tr Global Infr Util still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though Macquarie First Tr Global Infr Util has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Macquarie First Tr Global Infr Util is slow explore the new channels of communication. These new channels of communication can help Macquarie First Tr Global Infr Util to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.
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 Macquarie First Tr Global Infr Util supply chain. Even after few cautionary changes, Macquarie First Tr Global Infr Util is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Macquarie First Tr Global Infr Util vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative at Macquarie First Tr Global Infr Util, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Macquarie First Tr Global Infr Util has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Macquarie First Tr Global Infr Util Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Macquarie First Tr Global Infr Util are -
Building a culture of innovation
– managers at Macquarie First Tr Global Infr Util 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 Misc. Financial Services industry.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util 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.
Buying journey improvements
– Macquarie First Tr Global Infr Util can improve the customer journey of consumers in the Misc. Financial Services 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Macquarie First Tr Global Infr Util can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Macquarie First Tr Global Infr Util 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.
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Macquarie First Tr Global Infr Util in the Misc. Financial Services industry. Now Macquarie First Tr Global Infr Util can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Macquarie First Tr Global Infr Util has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Macquarie First Tr Global Infr Util to build a more holistic ecosystem for Macquarie First Tr Global Infr Util products in the Misc. Financial Services 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 Misc. Financial Services industry, but it has also influenced the consumer preferences. Macquarie First Tr Global Infr Util can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Macquarie First Tr Global Infr Util can develop new processes and procedures in Misc. Financial Services 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Macquarie First Tr Global Infr Util in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Macquarie First Tr Global Infr Util is facing challenges because of the dominance of functional experts in the organization. Macquarie First Tr Global Infr Util can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Macquarie First Tr Global Infr Util 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.
Threats Macquarie First Tr Global Infr Util External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Macquarie First Tr Global Infr Util are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Macquarie First Tr Global Infr Util in Misc. Financial Services industry. The Misc. Financial Services 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.
Consumer confidence and its impact on Macquarie First Tr Global Infr Util 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 Misc. Financial Services industry and other sectors.
Environmental challenges
– Macquarie First Tr Global Infr Util 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. Macquarie First Tr Global Infr Util can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Increasing wage structure of Macquarie First Tr Global Infr Util
– 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 Macquarie First Tr Global Infr Util.
High dependence on third party suppliers
– Macquarie First Tr Global Infr Util 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Macquarie First Tr Global Infr Util with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Stagnating economy with rate increase
– Macquarie First Tr Global Infr Util 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 Misc. Financial Services industry.
Technology acceleration in Forth Industrial Revolution
– Macquarie First Tr Global Infr Util has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Macquarie First Tr Global Infr Util needs to keep up with the evolution of technology in the Misc. Financial Services 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util prominent markets.
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, Macquarie First Tr Global Infr Util may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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 Macquarie First Tr Global Infr Util business can come under increasing regulations regarding data privacy, data security, etc.
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 Macquarie First Tr Global Infr Util.
Weighted SWOT Analysis of Macquarie First Tr Global Infr Util Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util 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 Macquarie First Tr Global Infr Util needs to make to build a sustainable competitive advantage.