'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger

On October 2, 2003, on the eve of a special election to choose a new Governor of California, the Los Angeles Times published a lengthy investigative article about allegations of sexual misconduct on the part of the leading candidate: movie star turned Republican gubernatorial hopeful Arnold Schwarzenegger. The result was surprising. As much as it made Schwarzenegger the subject of discussion, so too did it do the same for the Times itself. In part because it appeared within days of the election and, in part because of a history of criticism of the newspaper for what its critics alleged was a liberal political bias, the Times found itself having to defend publicly its decision to do what it understood to be a key responsibility of a major daily newspaper-scrutinizing the record of a politician. HKS Case Number 1790.0

Authors :: Esther Scott, Alex Jones

Topics :: Strategy & Execution

Tags :: Public relations, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger" written by Esther Scott, Alex Jones includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Schwarzenegger Arnold facing as an external strategic factors. Some of the topics covered in 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger case study are - Strategic Management Strategies, Public relations, Social responsibility and Strategy & Execution.

Some of the macro environment factors that can be used to understand the 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger casestudy better are - – technology disruption, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, there is backlash against globalization, there is increasing trade war between United States & China, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, etc

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Introduction to SWOT Analysis of 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Schwarzenegger Arnold, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Schwarzenegger Arnold 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger can be done for the following purposes –
1. Strategic planning using facts provided in 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger case study
2. Improving business portfolio management of Schwarzenegger Arnold
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 Schwarzenegger Arnold

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Strengths 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Schwarzenegger Arnold in 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger Harvard Business Review case study are -

Learning organization

- Schwarzenegger Arnold 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 Schwarzenegger Arnold is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Superior customer experience

– The customer experience strategy of Schwarzenegger Arnold in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Schwarzenegger Arnold digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Schwarzenegger Arnold 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.

Successful track record of launching new products

– Schwarzenegger Arnold has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Schwarzenegger Arnold has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Sustainable margins compare to other players in Strategy & Execution industry

– 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger firm has clearly differentiated products in the market place. This has enabled Schwarzenegger Arnold to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Schwarzenegger Arnold to invest into research and development (R&D) and innovation.

High brand equity

– Schwarzenegger Arnold has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Schwarzenegger Arnold to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Strong track record of project management

– Schwarzenegger Arnold is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to recruit top talent

– Schwarzenegger Arnold is one of the leading recruiters in the industry. Managers in the 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Ability to lead change in Strategy & Execution field

– Schwarzenegger Arnold 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 Schwarzenegger Arnold 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)

– Schwarzenegger Arnold 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Low bargaining power of suppliers

– Suppliers of Schwarzenegger Arnold in the sector have low bargaining power. 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Schwarzenegger Arnold to manage not only supply disruptions but also source products at highly competitive prices.

Analytics focus

– Schwarzenegger Arnold 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 Esther Scott, Alex Jones 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.

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Weaknesses 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger are -

High cash cycle compare to competitors

Schwarzenegger Arnold has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High bargaining power of channel partners

– Because of the regulatory requirements, Esther Scott, Alex Jones suggests that, Schwarzenegger Arnold is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Need for greater diversity

– Schwarzenegger Arnold 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, Schwarzenegger Arnold 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.

Low market penetration in new markets

– Outside its home market of Schwarzenegger Arnold, firm in the HBR case study 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to strategic competitive environment developments

– As 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger HBR case study mentions - Schwarzenegger Arnold takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Slow decision making process

– As mentioned earlier in the report, Schwarzenegger Arnold 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. Schwarzenegger Arnold 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.

Interest costs

– Compare to the competition, Schwarzenegger Arnold 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Schwarzenegger Arnold is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Skills based hiring

– The stress on hiring functional specialists at Schwarzenegger Arnold has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger, in the dynamic environment Schwarzenegger Arnold has struggled to respond to the nimble upstart competition. Schwarzenegger Arnold has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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Opportunities 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger | 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger are -

Using analytics as competitive advantage

– Schwarzenegger Arnold 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Schwarzenegger Arnold 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, Schwarzenegger Arnold 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, 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Schwarzenegger Arnold can use these opportunities to build new business models that can help the communities that Schwarzenegger Arnold operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Better consumer reach

– The expansion of the 5G network will help Schwarzenegger Arnold to increase its market reach. Schwarzenegger Arnold 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 Schwarzenegger Arnold 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.

Leveraging digital technologies

– Schwarzenegger Arnold 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Schwarzenegger Arnold 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Schwarzenegger Arnold is facing challenges because of the dominance of functional experts in the organization. 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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.

Buying journey improvements

– Schwarzenegger Arnold can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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.

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. Schwarzenegger Arnold can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Schwarzenegger Arnold can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Schwarzenegger Arnold 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.

Manufacturing automation

– Schwarzenegger Arnold can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

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Threats 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger are -

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

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. Schwarzenegger Arnold can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Shortening product life cycle

– it is one of the major threat that Schwarzenegger Arnold is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Consumer confidence and its impact on Schwarzenegger Arnold 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.

Increasing wage structure of Schwarzenegger Arnold

– 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 Schwarzenegger Arnold.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Schwarzenegger Arnold 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger, Schwarzenegger Arnold 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 .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Schwarzenegger Arnold with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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 Schwarzenegger Arnold in the Strategy & Execution sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Schwarzenegger Arnold 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.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Schwarzenegger Arnold.

Environmental challenges

– Schwarzenegger Arnold 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. Schwarzenegger Arnold can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

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.

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Weighted SWOT Analysis of 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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 'The Story after the Story': The Los Angeles Time's Coverage of Arnold Schwarzenegger 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 Schwarzenegger Arnold needs to make to build a sustainable competitive advantage.

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