Based on various researches at Oak Spring University , Flaherty & Crumrine Preferred Oppty is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Flaherty & Crumrine Preferred Oppty
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Flaherty & Crumrine Preferred Oppty can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Flaherty & Crumrine Preferred Oppty, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty can be done for the following purposes –
1. Strategic planning of Flaherty & Crumrine Preferred Oppty
2. Improving business portfolio management of Flaherty & Crumrine Preferred Oppty
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 Flaherty & Crumrine Preferred Oppty
Strengths of Flaherty & Crumrine Preferred Oppty | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Flaherty & Crumrine Preferred Oppty are -
Innovation driven organization
– Flaherty & Crumrine Preferred Oppty is one of the most innovative firm in Misc. Financial Services sector.
Superior customer experience
– The customer experience strategy of Flaherty & Crumrine Preferred Oppty in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Flaherty & Crumrine Preferred Oppty emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Flaherty & Crumrine Preferred Oppty has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Flaherty & Crumrine Preferred Oppty digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Flaherty & Crumrine Preferred Oppty 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.
Organizational Resilience of Flaherty & Crumrine Preferred Oppty
– The covid-19 pandemic has put organizational resilience at the centre of everthing Flaherty & Crumrine Preferred Oppty does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Flaherty & Crumrine Preferred Oppty 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.
High switching costs
– The high switching costs that Flaherty & Crumrine Preferred Oppty 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.
Ability to lead change in Misc. Financial Services
– Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Flaherty & Crumrine Preferred Oppty has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Flaherty & Crumrine Preferred Oppty to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Flaherty & Crumrine Preferred Oppty | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Flaherty & Crumrine Preferred Oppty are -
Aligning sales with marketing
– From the outside it seems that Flaherty & Crumrine Preferred Oppty needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Financial Services industry have deep experience in developing customer relationships. Marketing department at Flaherty & Crumrine Preferred Oppty can leverage the sales team experience to cultivate customer relationships as Flaherty & Crumrine Preferred Oppty is planning to shift buying processes online.
Lack of clear differentiation of Flaherty & Crumrine Preferred Oppty products
– To increase the profitability and margins on the products, Flaherty & Crumrine Preferred Oppty needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Flaherty & Crumrine Preferred Oppty has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Flaherty & Crumrine Preferred Oppty should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Flaherty & Crumrine Preferred Oppty 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.
Employees’ less understanding of Flaherty & Crumrine Preferred Oppty strategy
– From the outside it seems that the employees of Flaherty & Crumrine Preferred Oppty 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Flaherty & Crumrine Preferred Oppty is slow explore the new channels of communication. These new channels of communication can help Flaherty & Crumrine Preferred Oppty 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.
Workers concerns about automation
– As automation is fast increasing in the Misc. Financial Services industry, Flaherty & Crumrine Preferred Oppty 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, Flaherty & Crumrine Preferred Oppty has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Financial Services industry over the last five years. Flaherty & Crumrine Preferred Oppty 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.
High cash cycle compare to competitors
Flaherty & Crumrine Preferred Oppty 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.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United States, Flaherty & Crumrine Preferred Oppty 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 Misc. Financial Services industry.
Interest costs
– Compare to the competition, Flaherty & Crumrine Preferred Oppty 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.
Flaherty & Crumrine Preferred Oppty Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Flaherty & Crumrine Preferred Oppty are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Flaherty & Crumrine Preferred Oppty is facing challenges because of the dominance of functional experts in the organization. Flaherty & Crumrine Preferred Oppty 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
– Flaherty & Crumrine Preferred Oppty 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.
Better consumer reach
– The expansion of the 5G network will help Flaherty & Crumrine Preferred Oppty to increase its market reach. Flaherty & Crumrine Preferred Oppty 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.
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 Flaherty & Crumrine Preferred Oppty 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Flaherty & Crumrine Preferred Oppty can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
Leveraging digital technologies
– Flaherty & Crumrine Preferred Oppty 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.
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. Flaherty & Crumrine Preferred Oppty can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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.
Using analytics as competitive advantage
– Flaherty & Crumrine Preferred Oppty has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled Flaherty & Crumrine Preferred Oppty to build a competitive advantage using analytics. The analytics driven competitive advantage can help Flaherty & Crumrine Preferred Oppty to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Flaherty & Crumrine Preferred Oppty 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Flaherty & Crumrine Preferred Oppty can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Flaherty & Crumrine Preferred Oppty External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Flaherty & Crumrine Preferred Oppty are -
Increasing wage structure of Flaherty & Crumrine Preferred Oppty
– 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 Flaherty & Crumrine Preferred Oppty.
Shortening product life cycle
– it is one of the major threat that Flaherty & Crumrine Preferred Oppty is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Flaherty & Crumrine Preferred Oppty 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 Misc. Financial Services industry regulations.
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 Flaherty & Crumrine Preferred Oppty business can come under increasing regulations regarding data privacy, data security, etc.
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. Flaherty & Crumrine Preferred Oppty 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Flaherty & Crumrine Preferred Oppty 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.
Consumer confidence and its impact on Flaherty & Crumrine Preferred Oppty 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.
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 Flaherty & Crumrine Preferred Oppty.
Technology acceleration in Forth Industrial Revolution
– Flaherty & Crumrine Preferred Oppty has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Flaherty & Crumrine Preferred Oppty 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.
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 Flaherty & Crumrine Preferred Oppty in the Misc. Financial Services sector and impact the bottomline of the organization.
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. Flaherty & Crumrine Preferred Oppty needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Environmental challenges
– Flaherty & Crumrine Preferred Oppty 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. Flaherty & Crumrine Preferred Oppty can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Flaherty & Crumrine Preferred Oppty Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty 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 Flaherty & Crumrine Preferred Oppty needs to make to build a sustainable competitive advantage.