Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Royal Bancshares of Pennsylvania, Inc. SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a strategic planning tool that can be used by Royal Bancshares of Pennsylvania, Inc. managers to do a situational analysis of the company . It is a handy technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Royal Bancshares of Pennsylvania, Inc. is facing in its current business environment.
The Royal Bancshares of Pennsylvania, Inc. is one of the leading firms in its industry. Royal Bancshares of Pennsylvania, Inc. maintains its dominant position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - Royal Bancshares of Pennsylvania, Inc. SWOT Analysis
Check out- Royal Bancshares of Pennsylvania, Inc. PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework enables an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the Royal Bancshares of Pennsylvania, Inc. to develop four types of strategies:
- SO (strengths-opportunities) Strategies
- WO (weaknesses-opportunities) Strategies
- ST (strengths-threats) Strategies
- WT (weaknesses-threats) Strategies
SWOT Matrix Strategies Objective
The central purpose of SWOT matrix is to identify the strategies that a company can utilize to exploit external opportunities, counter threats, and build on & protect Royal Bancshares of Pennsylvania, Inc. strengths, and eradicate its weaknesses.
Step by Step Guide to Royal Bancshares of Pennsylvania, Inc. SWOT Analysis
Strengths of Royal Bancshares of Pennsylvania, Inc. – Internal Strategic Factors
As one of the leading organizations in its industry, Royal Bancshares of Pennsylvania, Inc. has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Royal Bancshares of Pennsylvania, Inc. are –
Read - Royal Bancshares of Pennsylvania, Inc. Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.
- Highly skilled workforce through successful training and learning programs. Royal Bancshares of Pennsylvania, Inc. is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
- High level of customer satisfaction – the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
- Highly successful at Go To Market strategies for its products.
- Superb Performance in New Markets – Royal Bancshares of Pennsylvania, Inc. has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
- Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
- Strong Free Cash Flow – Royal Bancshares of Pennsylvania, Inc. has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Strong Brand Portfolio – Over the years Royal Bancshares of Pennsylvania, Inc. has invested in building a strong brand portfolio. The SWOT analysis of Royal Bancshares of Pennsylvania, Inc. just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
Weakness of Royal Bancshares of Pennsylvania, Inc. – Internal Strategic Factors
Weakness are the areas where Royal Bancshares of Pennsylvania, Inc. can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Royal Bancshares of Pennsylvania, Inc. needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
- The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
- There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
- The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. Royal Bancshares of Pennsylvania, Inc. has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
- Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.
- Limited success outside core business – Even though Royal Bancshares of Pennsylvania, Inc. is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
- Investment in Research and Development is below the fastest growing players in the industry. Even though Royal Bancshares of Pennsylvania, Inc. is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
Opportunities for Royal Bancshares of Pennsylvania, Inc. – External Strategic Factors
Article continues after advertisement
- New trends in the consumer behavior can open up new market for the Royal Bancshares of Pennsylvania, Inc. . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
- Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
- Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for Royal Bancshares of Pennsylvania, Inc. in other product categories.
- The new technology provides an opportunity to Royal Bancshares of Pennsylvania, Inc. to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
- New environmental policies – The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Royal Bancshares of Pennsylvania, Inc. to drive home its advantage in new technology and gain market share in the new product category.
- Government green drive also opens an opportunity for procurement of Royal Bancshares of Pennsylvania, Inc. products by the state as well as federal government contractors.
- Decreasing cost of transportation because of lower shipping prices can also bring down the cost of Royal Bancshares of Pennsylvania, Inc.’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.
- The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Royal Bancshares of Pennsylvania, Inc. to increase its profitability.
Threats Royal Bancshares of Pennsylvania, Inc. Facing - External Strategic Factors
- New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
- New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
- As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.
- Imitation of the counterfeit and low quality product is also a threat to Royal Bancshares of Pennsylvania, Inc.’s product especially in the emerging markets and low income markets.
- The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.
- Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
- Liability laws in different countries are different and Royal Bancshares of Pennsylvania, Inc. may be exposed to various liability claims given change in policies in those markets.
- Rising raw material can pose a threat to the Royal Bancshares of Pennsylvania, Inc. profitability.
Limitations of SWOT Analysis for Royal Bancshares of Pennsylvania, Inc.
Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.
- Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
- SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
- The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Royal Bancshares of Pennsylvania, Inc.
- SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
- SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.
Article continues after advertisement
Weighted SWOT Analysis of Royal Bancshares of Pennsylvania, Inc.
In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Royal Bancshares of Pennsylvania, Inc. managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.
Limitation of Weighted SWOT analysis of Royal Bancshares of Pennsylvania, Inc.
This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Royal Bancshares of Pennsylvania, Inc.
Example of Weighted SWOT Analysis
You can email us to get an example document of Weighted SWOT analysis.
SWOT Worksheet & Template
If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template.
References / Citations & Bibliography
- M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
- A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
- O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
- L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)
- R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
Order Now
Previous 5 SWOT Analysis
- Patriot National Bancorp, Inc. SWOT Analysis
- Parke Bancorp, Inc. SWOT Analysis
- Peapack-Gladstone Financial Corporation SWOT Analysis
- Peoples Financial Services Corp. SWOT Analysis
- Peoples Financial Corporation SWOT Analysis
Next 5 SWOT Analysis
- Salisbury Bancorp, Inc. SWOT Analysis
- Sussex Bancorp SWOT Analysis
- Sun Bancorp, Inc. SWOT Analysis
- Stewardship Financial Corporation SWOT Analysis
- S&T Bancorp, Inc. SWOT Analysis
HBR Case Studies Solutions
- Olacabs: Riding on a High case study solution
- The Passion of the Christ (A) case study solution
- A Day in the Life of Alex Sander: Driving in the Fast Lane at Landon Care Products case study solution
- TixToGo: Financing a Silicon Valley Start-Up case study solution
- Fox Broadcasting Co. case study solution