Meinhard vs. Salmon: Court of Appeals of New York--1928 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Meinhard vs. Salmon: Court of Appeals of New York--1928
Meinhard and Salmon were joint venturers who had a 20-year lease on the Hotel Bristol in New York City. Salmon was the managing party. Four months before the lease was to end, the owner approached Salmon and offered to lease all the property, of which the Bristol was only a 25% part, him. The project was to require substantial capital expenditures, a rent increase of about six times over the prior rent, and a lease term that could reach 80 years under renewal options. Salmon kept this opportunity for himself. Meinhard wanted to participate; Salmon refused.
Swot Analysis of "Meinhard vs. Salmon: Court of Appeals of New York--1928" written by Henry B. Reiling includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Salmon Meinhard facing as an external strategic factors. Some of the topics covered in Meinhard vs. Salmon: Court of Appeals of New York--1928 case study are - Strategic Management Strategies, Joint ventures, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Meinhard vs. Salmon: Court of Appeals of New York--1928 casestudy better are - – geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, increasing energy prices, etc
Introduction to SWOT Analysis of Meinhard vs. Salmon: Court of Appeals of New York--1928
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Meinhard vs. Salmon: Court of Appeals of New York--1928 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Salmon Meinhard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Salmon Meinhard 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 can be done for the following purposes –
1. Strategic planning using facts provided in Meinhard vs. Salmon: Court of Appeals of New York--1928 case study
2. Improving business portfolio management of Salmon Meinhard
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Salmon Meinhard
Strengths Meinhard vs. Salmon: Court of Appeals of New York--1928 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Salmon Meinhard in Meinhard vs. Salmon: Court of Appeals of New York--1928 Harvard Business Review case study are -
Successful track record of launching new products
– Salmon Meinhard has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Salmon Meinhard 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.
Highly skilled collaborators
– Salmon Meinhard 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Salmon Meinhard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Salmon Meinhard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Salmon Meinhard 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 Salmon Meinhard is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Meinhard vs. Salmon: Court of Appeals of New York--1928 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Salmon Meinhard 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 Henry B. Reiling 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.
Low bargaining power of suppliers
– Suppliers of Salmon Meinhard in the sector have low bargaining power. Meinhard vs. Salmon: Court of Appeals of New York--1928 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Salmon Meinhard to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Salmon Meinhard is present in almost all the verticals within the industry. This has provided firm in Meinhard vs. Salmon: Court of Appeals of New York--1928 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Salmon Meinhard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Salmon Meinhard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Salmon Meinhard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Salmon Meinhard 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.
High switching costs
– The high switching costs that Salmon Meinhard has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Salmon Meinhard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Salmon Meinhard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Meinhard vs. Salmon: Court of Appeals of New York--1928 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Meinhard vs. Salmon: Court of Appeals of New York--1928 are -
Slow to strategic competitive environment developments
– As Meinhard vs. Salmon: Court of Appeals of New York--1928 HBR case study mentions - Salmon Meinhard 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, Salmon Meinhard 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. Salmon Meinhard 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.
Need for greater diversity
– Salmon Meinhard 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.
Low market penetration in new markets
– Outside its home market of Salmon Meinhard, firm in the HBR case study Meinhard vs. Salmon: Court of Appeals of New York--1928 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Salmon Meinhard products
– To increase the profitability and margins on the products, Salmon Meinhard needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Salmon Meinhard has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry B. Reiling suggests that, Salmon Meinhard 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.
Increasing silos among functional specialists
– The organizational structure of Salmon Meinhard is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Salmon Meinhard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Salmon Meinhard to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Salmon Meinhard 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.
Interest costs
– Compare to the competition, Salmon Meinhard 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, Salmon Meinhard is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Meinhard vs. Salmon: Court of Appeals of New York--1928 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Meinhard vs. Salmon: Court of Appeals of New York--1928 | 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 are -
Buying journey improvements
– Salmon Meinhard can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Meinhard vs. Salmon: Court of Appeals of New York--1928 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, Salmon Meinhard 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.
Building a culture of innovation
– managers at Salmon Meinhard 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 Finance & Accounting segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Salmon Meinhard is facing challenges because of the dominance of functional experts in the organization. Meinhard vs. Salmon: Court of Appeals of New York--1928 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.
Creating value in data economy
– The success of analytics program of Salmon Meinhard has opened avenues for new revenue streams for the organization in the industry. This can help Salmon Meinhard to build a more holistic ecosystem as suggested in the Meinhard vs. Salmon: Court of Appeals of New York--1928 case study. Salmon Meinhard can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Salmon Meinhard can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Salmon Meinhard in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Manufacturing automation
– Salmon Meinhard can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Salmon Meinhard 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, Meinhard vs. Salmon: Court of Appeals of New York--1928, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Salmon Meinhard 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.
Leveraging digital technologies
– Salmon Meinhard 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.
Learning at scale
– Online learning technologies has now opened space for Salmon Meinhard to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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. Salmon Meinhard can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Meinhard vs. Salmon: Court of Appeals of New York--1928 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Meinhard vs. Salmon: Court of Appeals of New York--1928 are -
Shortening product life cycle
– it is one of the major threat that Salmon Meinhard is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Salmon Meinhard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Salmon Meinhard.
Increasing wage structure of Salmon Meinhard
– 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 Salmon Meinhard.
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. Salmon Meinhard needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Salmon Meinhard 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.
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 Salmon Meinhard in the Finance & Accounting sector and impact the bottomline of the organization.
Consumer confidence and its impact on Salmon Meinhard 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Salmon Meinhard 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 .
Stagnating economy with rate increase
– Salmon Meinhard 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.
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.
Technology acceleration in Forth Industrial Revolution
– Salmon Meinhard has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Salmon Meinhard needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Salmon Meinhard in the Finance & Accounting industry. The Finance & Accounting 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.
Weighted SWOT Analysis of Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Meinhard vs. Salmon: Court of Appeals of New York--1928 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 Salmon Meinhard needs to make to build a sustainable competitive advantage.