Braniff International: The Ethics of Bankruptcy (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Braniff International: The Ethics of Bankruptcy (A)
Intended to advance understanding of corporate responsibility in the context of a bankruptcy decision. The case documents the implementation of a turnaround plan for financially ailing Braniff International. This includes a new marketing and operations strategy, concessions from labor, changes in management, and a financial restructuring. The narrative describes the worsening financial condition of the company and the choices made by the CEO and CFO to raise cash and avoid filing. These choices and events led to progressively limited options. It was decided that attempting to reorganize under Chapter XI of the Bankruptcy Reform Act was preferable to being placed into involuntary bankruptcy under Chapter VII. This required keeping preparations secret and eventually filing by surprise.
Authors :: Kenneth E. Goodpaster, David E. Whiteside
Swot Analysis of "Braniff International: The Ethics of Bankruptcy (A)" written by Kenneth E. Goodpaster, David E. Whiteside includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Braniff Bankruptcy facing as an external strategic factors. Some of the topics covered in Braniff International: The Ethics of Bankruptcy (A) case study are - Strategic Management Strategies, Financial management, Reorganization, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Braniff International: The Ethics of Bankruptcy (A) casestudy better are - – geopolitical disruptions, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Braniff International: The Ethics of Bankruptcy (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Braniff International: The Ethics of Bankruptcy (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Braniff Bankruptcy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Braniff Bankruptcy 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 Braniff International: The Ethics of Bankruptcy (A) can be done for the following purposes –
1. Strategic planning using facts provided in Braniff International: The Ethics of Bankruptcy (A) case study
2. Improving business portfolio management of Braniff Bankruptcy
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Braniff Bankruptcy
Strengths Braniff International: The Ethics of Bankruptcy (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Braniff Bankruptcy in Braniff International: The Ethics of Bankruptcy (A) Harvard Business Review case study are -
Organizational Resilience of Braniff Bankruptcy
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Braniff Bankruptcy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Braniff Bankruptcy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Braniff Bankruptcy is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Braniff Bankruptcy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Braniff Bankruptcy has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Braniff International: The Ethics of Bankruptcy (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Braniff Bankruptcy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Braniff Bankruptcy 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.
Strong track record of project management
– Braniff Bankruptcy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Braniff Bankruptcy in the sector have low bargaining power. Braniff International: The Ethics of Bankruptcy (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Braniff Bankruptcy to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– Braniff International: The Ethics of Bankruptcy (A) firm has clearly differentiated products in the market place. This has enabled Braniff Bankruptcy to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Braniff Bankruptcy to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Braniff International: The Ethics of Bankruptcy (A) Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
Ability to recruit top talent
– Braniff Bankruptcy is one of the leading recruiters in the industry. Managers in the Braniff International: The Ethics of Bankruptcy (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Braniff Bankruptcy has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Braniff International: The Ethics of Bankruptcy (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Braniff Bankruptcy 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 industry. The technology infrastructure suggested by Kenneth E. Goodpaster, David E. Whiteside can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Braniff International: The Ethics of Bankruptcy (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Braniff International: The Ethics of Bankruptcy (A) are -
Capital Spending Reduction
– Even during the low interest decade, Braniff Bankruptcy 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 industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Braniff International: The Ethics of Bankruptcy (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Braniff Bankruptcy has relatively successful track record of launching new products.
Lack of clear differentiation of Braniff Bankruptcy products
– To increase the profitability and margins on the products, Braniff Bankruptcy needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Braniff International: The Ethics of Bankruptcy (A), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. 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.
Interest costs
– Compare to the competition, Braniff Bankruptcy 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Braniff Bankruptcy 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Braniff International: The Ethics of Bankruptcy (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Braniff Bankruptcy 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Braniff Bankruptcy is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Braniff Bankruptcy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Braniff Bankruptcy to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Braniff Bankruptcy has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Braniff Bankruptcy 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 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 Braniff Bankruptcy supply chain. Even after few cautionary changes mentioned in the HBR case study - Braniff International: The Ethics of Bankruptcy (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Braniff Bankruptcy vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Braniff International: The Ethics of Bankruptcy (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Braniff International: The Ethics of Bankruptcy (A) can leverage the sales team experience to cultivate customer relationships as Braniff Bankruptcy is planning to shift buying processes online.
Opportunities Braniff International: The Ethics of Bankruptcy (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Braniff International: The Ethics of Bankruptcy (A) are -
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Braniff Bankruptcy in the consumer business. Now Braniff Bankruptcy can target international markets with far fewer capital restrictions requirements than the existing system.
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 Braniff Bankruptcy 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.
Building a culture of innovation
– managers at Braniff Bankruptcy 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 Leadership & Managing People segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Braniff Bankruptcy can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Braniff Bankruptcy can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Braniff Bankruptcy can develop new processes and procedures in Leadership & Managing People 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.
Buying journey improvements
– Braniff Bankruptcy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Braniff International: The Ethics of Bankruptcy (A) suggest that firm 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.
Creating value in data economy
– The success of analytics program of Braniff Bankruptcy has opened avenues for new revenue streams for the organization in the industry. This can help Braniff Bankruptcy to build a more holistic ecosystem as suggested in the Braniff International: The Ethics of Bankruptcy (A) case study. Braniff Bankruptcy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Braniff Bankruptcy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Braniff Bankruptcy can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Braniff Bankruptcy 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 Braniff Bankruptcy to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Braniff Bankruptcy has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Braniff International: The Ethics of Bankruptcy (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Braniff Bankruptcy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Braniff Bankruptcy 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, as suggested in case study, Braniff International: The Ethics of Bankruptcy (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Braniff Bankruptcy 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.
Threats Braniff International: The Ethics of Bankruptcy (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Braniff International: The Ethics of Bankruptcy (A) are -
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. Braniff Bankruptcy 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.
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 Braniff Bankruptcy in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Braniff International: The Ethics of Bankruptcy (A), Braniff Bankruptcy may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High dependence on third party suppliers
– Braniff Bankruptcy 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.
Increasing wage structure of Braniff Bankruptcy
– 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 Braniff Bankruptcy.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Braniff Bankruptcy in the Leadership & Managing People industry. The Leadership & Managing People 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.
Shortening product life cycle
– it is one of the major threat that Braniff Bankruptcy is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Braniff Bankruptcy needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Braniff Bankruptcy business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Braniff Bankruptcy 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 Leadership & Managing People industry regulations.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Braniff Bankruptcy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Braniff Bankruptcy 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. Braniff Bankruptcy can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Braniff Bankruptcy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Braniff International: The Ethics of Bankruptcy (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Braniff International: The Ethics of Bankruptcy (A) 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 the case study Braniff International: The Ethics of Bankruptcy (A) 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 the Harvard case study Braniff International: The Ethics of Bankruptcy (A) 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 Braniff International: The Ethics of Bankruptcy (A) is 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 Braniff Bankruptcy needs to make to build a sustainable competitive advantage.