Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance
Describes the resolution of the default situation. Further examines the internal control mechanisms and distinct role of the board of directors of a typical LBO association.
Authors :: Michael C. Jensen, Jay Dial, Brian Barry
Swot Analysis of "Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance" written by Michael C. Jensen, Jay Dial, Brian Barry includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lbo Berkshire facing as an external strategic factors. Some of the topics covered in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance case study are - Strategic Management Strategies, Financial management, Mergers & acquisitions and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs,
increasing energy prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lbo Berkshire, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lbo Berkshire 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance can be done for the following purposes –
1. Strategic planning using facts provided in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance case study
2. Improving business portfolio management of Lbo Berkshire
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 Lbo Berkshire
Strengths Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lbo Berkshire in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance Harvard Business Review case study are -
Diverse revenue streams
– Lbo Berkshire is present in almost all the verticals within the industry. This has provided firm in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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.
Strong track record of project management
– Lbo Berkshire is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Lbo Berkshire
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Lbo Berkshire does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Finance & Accounting field
– Lbo Berkshire 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 Lbo Berkshire in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Lbo Berkshire 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Lbo Berkshire 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 Lbo Berkshire is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Lbo Berkshire in the sector have low bargaining power. Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lbo Berkshire to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Lbo Berkshire 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.
Operational resilience
– The operational resilience strategy in the Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Lbo Berkshire is one of the leading recruiters in the industry. Managers in the Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Lbo Berkshire in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Lbo Berkshire 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.
Weaknesses Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance are -
Skills based hiring
– The stress on hiring functional specialists at Lbo Berkshire 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael C. Jensen, Jay Dial, Brian Barry suggests that, Lbo Berkshire 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.
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 Lbo Berkshire supply chain. Even after few cautionary changes mentioned in the HBR case study - Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lbo Berkshire vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Lbo Berkshire 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance, is just above the industry average. Lbo Berkshire 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 decision making process
– As mentioned earlier in the report, Lbo Berkshire 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. Lbo Berkshire 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.
Aligning sales with marketing
– It come across in the case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance can leverage the sales team experience to cultivate customer relationships as Lbo Berkshire is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Lbo Berkshire 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lbo Berkshire is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Lbo Berkshire 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.
Opportunities Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance | 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lbo Berkshire to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Lbo Berkshire to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lbo Berkshire is facing challenges because of the dominance of functional experts in the organization. Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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.
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 Lbo Berkshire in the consumer business. Now Lbo Berkshire can target international markets with far fewer capital restrictions requirements than the existing system.
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. Lbo Berkshire can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Lbo Berkshire 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.
Using analytics as competitive advantage
– Lbo Berkshire 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lbo Berkshire to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lbo Berkshire can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Lbo Berkshire to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Lbo Berkshire to increase its market reach. Lbo Berkshire 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lbo Berkshire 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.
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. Lbo Berkshire 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. Lbo Berkshire 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.
Leveraging digital technologies
– Lbo Berkshire 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.
Buying journey improvements
– Lbo Berkshire can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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.
Threats Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance are -
Environmental challenges
– Lbo Berkshire 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. Lbo Berkshire can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Lbo Berkshire business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lbo Berkshire 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lbo Berkshire 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance, Lbo Berkshire 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 .
Regulatory challenges
– Lbo Berkshire 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.
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. Lbo Berkshire 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 Lbo Berkshire is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Lbo Berkshire needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Lbo Berkshire.
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.
Stagnating economy with rate increase
– Lbo Berkshire 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.
Increasing wage structure of Lbo Berkshire
– 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 Lbo Berkshire.
Weighted SWOT Analysis of Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance 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 Lbo Berkshire needs to make to build a sustainable competitive advantage.
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