Governance Reform at Research in Motion (RIM) Ltd. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Governance Reform at Research in Motion (RIM) Ltd.
The case looks at the board structure of Research in Motion Limited (RIM) since the probe of the Ontario Securities Commission (OSC) and Securities Exchange Commission (SEC) into the company's stock option granting practices in late 2006. Institutional investors, more specifically Northwest & Ethical Investments LP (NEI), were concerned about RIM's leadership and board structure in 2011 not because of non-compliance with regulations or accounting errors, but because of the drastic fall of the company's share price (see TN-Exhibit 1). Indeed, 2011 was a challenging year for RIM (see TN-Exhibit 2 for a list of events affecting RIM in 2011) as its launch of its tablet PlayBook was not as successful as compared to Apple's iPad 2. There was also increasing competition from Apple's iPhone 4S and other smartphones using the Android platform. In addition, a number of executives left the company in summer and early fall. There was also a service disruption, due to a failure of core switch in RIM's infrastructure, which interrupted email messages and internet services for millions of BlackBerry users over five continents in October 2011. Apart from these serious strategic and operational issues, institutional investors, more specifically NEI, questioned the dominance of executives on RIM's Board and asked for a split of the Chair and Co-CEO roles. In order to avert a showdown with shareholders at the Annual General Meeting (AGM) on July 12, 2011, RIM made an agreement with NEI to establish "a committee of independent directors to study its board structure, the merits of a lead director versus a chair, and the 'business necessity' for the company's co-CEOs to hold 'significant' board-level titles". This sets the theme of the case, i.e., assess RIM's board structure in 2011 and recommend resolutions to be included in the report due on January 31, 2012 to address the governance issues raised by NEI.
Swot Analysis of "Governance Reform at Research in Motion (RIM) Ltd." written by Yee-Ching Lilian Chan, Horng-Tzu Hao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nei Rim facing as an external strategic factors. Some of the topics covered in Governance Reform at Research in Motion (RIM) Ltd. case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Governance Reform at Research in Motion (RIM) Ltd. casestudy better are - – increasing commodity prices, wage bills are increasing, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Governance Reform at Research in Motion (RIM) Ltd.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Governance Reform at Research in Motion (RIM) Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nei Rim, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in Governance Reform at Research in Motion (RIM) Ltd. case study
2. Improving business portfolio management of Nei Rim
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 Nei Rim
Strengths Governance Reform at Research in Motion (RIM) Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nei Rim in Governance Reform at Research in Motion (RIM) Ltd. Harvard Business Review case study are -
Organizational Resilience of Nei Rim
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nei Rim does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Finance & Accounting industry
– Governance Reform at Research in Motion (RIM) Ltd. firm has clearly differentiated products in the market place. This has enabled Nei Rim to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Nei Rim to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Finance & Accounting field
– Nei Rim 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 Nei Rim 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)
– Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Nei Rim has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nei Rim 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.
Ability to recruit top talent
– Nei Rim is one of the leading recruiters in the industry. Managers in the Governance Reform at Research in Motion (RIM) Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Nei Rim is one of the most innovative firm in sector. Manager in Governance Reform at Research in Motion (RIM) Ltd. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Governance Reform at Research in Motion (RIM) Ltd. 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Nei Rim digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nei Rim 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.
Training and development
– Nei Rim has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Governance Reform at Research in Motion (RIM) Ltd. 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.
Superior customer experience
– The customer experience strategy of Nei Rim in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Governance Reform at Research in Motion (RIM) Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Governance Reform at Research in Motion (RIM) Ltd. are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Governance Reform at Research in Motion (RIM) Ltd., it seems that the employees of Nei Rim 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.
Capital Spending Reduction
– Even during the low interest decade, Nei Rim 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Governance Reform at Research in Motion (RIM) Ltd., in the dynamic environment Nei Rim has struggled to respond to the nimble upstart competition. Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd., is just above the industry average. Nei Rim 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nei Rim is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Governance Reform at Research in Motion (RIM) Ltd. can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Governance Reform at Research in Motion (RIM) Ltd., it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Increasing silos among functional specialists
– The organizational structure of Nei Rim is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Nei Rim needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nei Rim to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Yee-Ching Lilian Chan, Horng-Tzu Hao suggests that, Nei Rim 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.
Slow decision making process
– As mentioned earlier in the report, Nei Rim 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. Nei Rim 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.
Lack of clear differentiation of Nei Rim products
– To increase the profitability and margins on the products, Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. 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 Nei Rim has relatively successful track record of launching new products.
Opportunities Governance Reform at Research in Motion (RIM) Ltd. | 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 Governance Reform at Research in Motion (RIM) Ltd. are -
Learning at scale
– Online learning technologies has now opened space for Nei Rim 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nei Rim is facing challenges because of the dominance of functional experts in the organization. Governance Reform at Research in Motion (RIM) Ltd. 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.
Better consumer reach
– The expansion of the 5G network will help Nei Rim to increase its market reach. Nei Rim 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Nei Rim can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Nei Rim 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nei Rim 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. Nei Rim 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.
Creating value in data economy
– The success of analytics program of Nei Rim has opened avenues for new revenue streams for the organization in the industry. This can help Nei Rim to build a more holistic ecosystem as suggested in the Governance Reform at Research in Motion (RIM) Ltd. case study. Nei Rim can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Nei Rim 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.
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. Nei Rim can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nei Rim 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, Nei Rim 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, Governance Reform at Research in Motion (RIM) Ltd., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Nei Rim can develop new processes and procedures in Finance & Accounting 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.
Building a culture of innovation
– managers at Nei Rim 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.
Threats Governance Reform at Research in Motion (RIM) Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Governance Reform at Research in Motion (RIM) Ltd. are -
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 Nei Rim in the Finance & Accounting sector and impact the bottomline of the organization.
Environmental challenges
– Nei Rim 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. Nei Rim can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing wage structure of Nei Rim
– 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 Nei Rim.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nei Rim 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 Governance Reform at Research in Motion (RIM) Ltd. .
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. Nei Rim needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Governance Reform at Research in Motion (RIM) Ltd., Nei Rim may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Nei Rim with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Nei Rim 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 Finance & Accounting industry regulations.
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 Nei Rim.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nei Rim 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.
High dependence on third party suppliers
– Nei Rim 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.
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 Nei Rim business can come under increasing regulations regarding data privacy, data security, 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.
Weighted SWOT Analysis of Governance Reform at Research in Motion (RIM) Ltd. 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 Governance Reform at Research in Motion (RIM) Ltd. 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 Governance Reform at Research in Motion (RIM) Ltd. 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 Governance Reform at Research in Motion (RIM) Ltd. 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 Governance Reform at Research in Motion (RIM) Ltd. 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 Nei Rim needs to make to build a sustainable competitive advantage.
