Corporate Reform Elements of the Dodd-Frank Act SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Corporate Reform Elements of the Dodd-Frank Act
This note summarizes the four major changes affecting corporate governance that were made by the Dodd-Frank Act of 2010. These changes relate to: advisory notes by shareholders, refinements to board structure, non-disclosure on compensation and tightening up of certain enforcement provisions.
Authors :: Robert C. Pozen, Phillip Andrews, David Lane
Swot Analysis of "Corporate Reform Elements of the Dodd-Frank Act" written by Robert C. Pozen, Phillip Andrews, David Lane includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dodd Frank facing as an external strategic factors. Some of the topics covered in Corporate Reform Elements of the Dodd-Frank Act case study are - Strategic Management Strategies, Corporate governance and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporate Reform Elements of the Dodd-Frank Act casestudy better are - – technology disruption, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing commodity prices, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, etc
Introduction to SWOT Analysis of Corporate Reform Elements of the Dodd-Frank Act
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Reform Elements of the Dodd-Frank Act case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dodd Frank, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dodd Frank 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 Corporate Reform Elements of the Dodd-Frank Act can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Reform Elements of the Dodd-Frank Act case study
2. Improving business portfolio management of Dodd Frank
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dodd Frank
Strengths Corporate Reform Elements of the Dodd-Frank Act | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dodd Frank in Corporate Reform Elements of the Dodd-Frank Act Harvard Business Review case study are -
Ability to recruit top talent
– Dodd Frank is one of the leading recruiters in the industry. Managers in the Corporate Reform Elements of the Dodd-Frank Act are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Dodd Frank has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dodd Frank to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Dodd Frank has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Corporate Reform Elements of the Dodd-Frank Act HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Dodd Frank
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dodd Frank does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Dodd Frank digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dodd Frank 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
– Dodd Frank is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Dodd Frank 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 Robert C. Pozen, Phillip Andrews, David Lane 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.
Learning organization
- Dodd Frank 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 Dodd Frank is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Reform Elements of the Dodd-Frank Act Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Dodd Frank 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 Corporate Reform Elements of the Dodd-Frank Act - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Dodd Frank are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Corporate Reform Elements of the Dodd-Frank Act firm has clearly differentiated products in the market place. This has enabled Dodd Frank to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Dodd Frank to invest into research and development (R&D) and innovation.
Ability to lead change in Strategy & Execution field
– Dodd Frank 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 Dodd Frank in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Corporate Reform Elements of the Dodd-Frank Act | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Reform Elements of the Dodd-Frank Act are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Corporate Reform Elements of the Dodd-Frank Act 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 Dodd Frank has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dodd Frank is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporate Reform Elements of the Dodd-Frank Act can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Reform Elements of the Dodd-Frank Act, in the dynamic environment Dodd Frank has struggled to respond to the nimble upstart competition. Dodd Frank has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Corporate Reform Elements of the Dodd-Frank Act, is just above the industry average. Dodd Frank needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporate Reform Elements of the Dodd-Frank Act, it seems that the employees of Dodd Frank 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.
Lack of clear differentiation of Dodd Frank products
– To increase the profitability and margins on the products, Dodd Frank needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Dodd Frank supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Reform Elements of the Dodd-Frank Act, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dodd Frank vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Reform Elements of the Dodd-Frank Act 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 Dodd Frank 's lucrative customers.
Need for greater diversity
– Dodd Frank has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Dodd Frank 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.
No frontier risks strategy
– After analyzing the HBR case study Corporate Reform Elements of the Dodd-Frank Act, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities Corporate Reform Elements of the Dodd-Frank Act | 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 Corporate Reform Elements of the Dodd-Frank Act are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dodd Frank is facing challenges because of the dominance of functional experts in the organization. Corporate Reform Elements of the Dodd-Frank Act case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Dodd Frank 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 Corporate Reform Elements of the Dodd-Frank Act - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dodd Frank to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Dodd Frank can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Reform Elements of the Dodd-Frank Act 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dodd Frank 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.
Better consumer reach
– The expansion of the 5G network will help Dodd Frank to increase its market reach. Dodd Frank 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.
Building a culture of innovation
– managers at Dodd Frank 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 Strategy & Execution segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dodd Frank in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Dodd Frank can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dodd Frank 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. Dodd Frank 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Dodd Frank can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Dodd Frank can develop new processes and procedures in Strategy & Execution 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dodd Frank 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, Corporate Reform Elements of the Dodd-Frank Act, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Dodd Frank in the consumer business. Now Dodd Frank can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Corporate Reform Elements of the Dodd-Frank Act External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Reform Elements of the Dodd-Frank Act are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dodd Frank can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Corporate Reform Elements of the Dodd-Frank Act .
High dependence on third party suppliers
– Dodd Frank 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Dodd Frank can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Dodd Frank
– 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 Dodd Frank.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dodd Frank in the Strategy & Execution industry. The Strategy & Execution 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.
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. Dodd Frank needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Dodd Frank 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 the industry and other sectors.
Environmental challenges
– Dodd Frank 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. Dodd Frank can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Dodd Frank can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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. Dodd Frank 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.
Shortening product life cycle
– it is one of the major threat that Dodd Frank is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Reform Elements of the Dodd-Frank Act, Dodd Frank may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Corporate Reform Elements of the Dodd-Frank Act 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 Corporate Reform Elements of the Dodd-Frank Act 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 Corporate Reform Elements of the Dodd-Frank Act 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 Corporate Reform Elements of the Dodd-Frank Act 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 Corporate Reform Elements of the Dodd-Frank Act 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 Dodd Frank needs to make to build a sustainable competitive advantage.