Report
To: The Chief Finance Officer, Wonder Bank Limited
A (draft) report on the SWOT analysis of “Project Sky-High” and the method of finance
Prepared by: Hadley, Deolu and Co.(Chartered Accountants)
Date: 19th May, 2016
Disclaimer
This report (including any enclosures and attachments) has been prepared for the exclusive use and benefit of the WonderBank Limited and solely for the purpose for which it is provided. Unless we provide express prior written consent, no part of this report should be reproduced, distributed or communicated to any third party. We do not accept any liability if this report is used for an alternative purpose from which it is intended, nor to any third party in respect of this report.
1 SWOT analysis of “Project Sky-High”
1.A Wider Issues
WonderBank is currently one of the biggest banks in West Africa. It is planning to invest in a project, “Project Sky-High” to further consolidate its position.
1.B Strengths
The services offered in Wonderbank’s offshore operations will improve due to the migration of staff. This initiative will also improve its profits and cash flows.
WonderBank’s board is committed to the project. Therefore, it is more likely to be successful.
The project fits into WonderBank’s strategic plan because it will help it to achieve its environmental goals i.e. a green environment.
1.C Weaknesses
The projects targets seem too optimistic and may not be achievable within the set time frame. This is because a new project may have a slower start and may need to build momentum.
Also, the project does not seem to have a clear plan. To solve this problem, WonderBank can hire experienced project managers to manage the project. It can also prepare detailed cash flow forecasts to monitor the project.
It will lead to the retrenchment of many employees. This can lead to problems with the trade union. WonderBank should consider alternative courses of action.
1.D Opportunities
The project provides WonderBank with an opportunity for WonderBank to expand to and improve its image in other West African countries.
The planned reduction in paper use will allow WonderBank to contribute to a cleaner environment.
The use of cutting-edge technology will make WonderBank to be seen as a pioneer as far as technological advances are concerned. This will improve its reputation.
1.E Threats
There is a possibility of WonderBank’s competitors getting hold of information relating to “Project Sky-High”. It is also possible that staff retrenched in Lagos may over to its competitors thereby weakening its competitive position.
The problems organized by the workers’ union in Ghana may damage WonderBank’s reputation.
WonderBank may have lawsuits filed against it if it does not pay the retrenched staff a severance package. This may lead to it having to pay a heavy fine. It will also negatively affect its reputation.
1.F Source of information
The information used for the SWOT analysis was provided by its Chief Finance Officer. Therefore, they may be subject to bias.
1.G Ethical issues
WonderBank’s CFO seems to be more concerned about his personal benefits than the severance packages of the employees that will be retrenched. This is unethical and it is made public, it will generate negative press.
It should negotiate the severance packages with the trade union to arrive at the best terms for WonderBank and the employees affected.
1.H Outsourcing
The outsourcing of some services to outside contractors means that WonderBank will lose an element of control over them.
Also, the outsourcing of the security and programming of the robots to a firm in France means the resolution of security issues may not be quick due to the physical distance and language barrier between WonderBank and the french supplier.
1.I Other issues
The additional costs of the project may be understated. Also, maintenance and update
costs are not taken into consideration.
Due to technological advances, there’ll be an ongoing need to update robots. This will lead to additional cost.
1.J Conclusions
The project doesn’t seem to have a clear plan and its objectives are overly optimistic.
There is a risk that actual cashflows will be significantly different from estimated cashflows.
WonderBank may have lawsuits filed against it if it does not pay the retrenched staff a severence package.