Internal Factors Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    1
  • Words:
    381

2SWOT AND TOWS Analysis

Internal Factors

Strengths

  • Strong brand reputation in its current client base

  • Strong revenue and profitability

  • Proprietary risk management analysis

  • Excellent risk management record

  • Founders’ comfort level with IT

  • Substantial founder influence on existing operations and culture

  • Strong wealthy customer base

  • Decentralized high degree of autonomy of revenue generation division heads

Weakness

  • Poor brand recognition outside current client base

  • Lack of presence in overseas markets

  • Private company-may lack sufficiently ‘deep pockets” for major capital investments

  • Weak enterprise IT standards

  • Perception by managers that IT is a “cost of doing business”

  • CIO not a part of executive management

  • IT investment decisions made locally without CIO discussion

  • Client perception that CIO is slow to adopt new technology

  • IT employee morale

  • Lack of developing and supporting global IT products

External factors

Opportunities

  • License risk management algorithms to other firms

  • Create and market an artificial intelligence tool for asset portfolio management

  • Provide customized analyzed online risk management analysis services for existing publications and news letters

  • Enhance global presence via a partnership with an existing firm for risk management products

  • Alliance with prestigious insurance companies

  • Targeted discounts to customers

  • Alliance with major financial services firms

  • Expand into EU and major pacific

SO Strategies

  • Create an alliance with Big rock services to enable global expansion

  • Invest in research and development

  • Leverage brand for growth and expansion in emerging market

  • Provide customers with real time trading

  • Invest in entrepreneurial skills of management

WO Strategies

  • Innovative products with higher margins to drive profitability

  • Institute CIO and management meetings

  • Establish a career development for IT professionals

  • Expand to new markets for increase in profitability

  • Acquisition of new technology for innovation

  • Other firms may copy FRM offerings

  • Turbulent financial markets

  • Concern about impact of terrorism on equity investments

  • Unfamiliarity with potential overseas market cultures and investment management needs

  • Competition from Tax exempt buyers

  • Increased concern on risk adjusted investment performance

  • Growing of advanced technologies

ST Strategies

  • Focus on innovation for higher margins

  • Offer analyzed risk free products

  • Facilitate communication through creation of web based current technology

  • Leverage brand to differentiate with others

  • Establishment of technology groups

WT Strategies

  • Diversification into new emerging markets

  • Invest in IT branding and customer loyalty products

  • Differentiation to avoid loyalty programs

  • Concentrate on data mining and analytic skills

References

Case study FRM Inc.