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Managing for Stakeholders and the Purpose of Business SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Managing for Stakeholders and the Purpose of Business


The benefits or harms achieved by a business is determined in part by the choices that business leaders make. One important driver of these choices is a leader's view of the purpose of business. This note: (1) outlines the history of debates about corporate purpose, (2) calls out some myths that persist in the way that people think about corporate purpose, and (3) introduces a view of business called "managing for stakeholders" that has become increasingly influential.

Authors :: R. Edward Freeman, Bidhan L Parmar

Topics :: Leadership & Managing People

Tags :: Ethics, Growth strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Managing for Stakeholders and the Purpose of Business" written by R. Edward Freeman, Bidhan L Parmar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Purpose Harms facing as an external strategic factors. Some of the topics covered in Managing for Stakeholders and the Purpose of Business case study are - Strategic Management Strategies, Ethics, Growth strategy and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Managing for Stakeholders and the Purpose of Business casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, central banks are concerned over increasing inflation, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing commodity prices, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , technology disruption, etc



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Introduction to SWOT Analysis of Managing for Stakeholders and the Purpose of Business


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing for Stakeholders and the Purpose of Business case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Purpose Harms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Purpose Harms 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 Managing for Stakeholders and the Purpose of Business can be done for the following purposes –
1. Strategic planning using facts provided in Managing for Stakeholders and the Purpose of Business case study
2. Improving business portfolio management of Purpose Harms
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Purpose Harms




Strengths Managing for Stakeholders and the Purpose of Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Purpose Harms in Managing for Stakeholders and the Purpose of Business Harvard Business Review case study are -

Superior customer experience

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

Diverse revenue streams

– Purpose Harms is present in almost all the verticals within the industry. This has provided firm in Managing for Stakeholders and the Purpose of Business 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.

Learning organization

- Purpose Harms 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 Purpose Harms is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Managing for Stakeholders and the Purpose of Business Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Analytics focus

– Purpose Harms 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 R. Edward Freeman, Bidhan L Parmar 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.

Training and development

– Purpose Harms has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Managing for Stakeholders and the Purpose of Business 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.

Cross disciplinary teams

– Horizontal connected teams at the Purpose Harms 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.

Successful track record of launching new products

– Purpose Harms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Purpose Harms 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

– Purpose Harms is one of the leading recruiters in the industry. Managers in the Managing for Stakeholders and the Purpose of Business are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

High brand equity

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

Strong track record of project management

– Purpose Harms 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 lead change in Leadership & Managing People field

– Purpose Harms 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 Purpose Harms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy in the Managing for Stakeholders and the Purpose of Business 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.






Weaknesses Managing for Stakeholders and the Purpose of Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Managing for Stakeholders and the Purpose of Business are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Managing for Stakeholders and the Purpose of Business, is just above the industry average. Purpose Harms 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.

No frontier risks strategy

– After analyzing the HBR case study Managing for Stakeholders and the Purpose of Business, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.

Interest costs

– Compare to the competition, Purpose Harms 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.

High bargaining power of channel partners

– Because of the regulatory requirements, R. Edward Freeman, Bidhan L Parmar suggests that, Purpose Harms 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 operating costs

– Compare to the competitors, firm in the HBR case study Managing for Stakeholders and the Purpose of Business 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 Purpose Harms 's lucrative customers.

Low market penetration in new markets

– Outside its home market of Purpose Harms, firm in the HBR case study Managing for Stakeholders and the Purpose of Business needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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 Purpose Harms supply chain. Even after few cautionary changes mentioned in the HBR case study - Managing for Stakeholders and the Purpose of Business, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Purpose Harms vulnerable to further global disruptions in South East Asia.

Products dominated business model

– Even though Purpose Harms has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Managing for Stakeholders and the Purpose of Business should strive to include more intangible value offerings along with its core products and services.

Increasing silos among functional specialists

– The organizational structure of Purpose Harms is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Purpose Harms needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Purpose Harms to focus more on services rather than just following the product oriented approach.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Managing for Stakeholders and the Purpose of Business, in the dynamic environment Purpose Harms has struggled to respond to the nimble upstart competition. Purpose Harms has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Workers concerns about automation

– As automation is fast increasing in the segment, Purpose Harms needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.




Opportunities Managing for Stakeholders and the Purpose of Business | 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 Managing for Stakeholders and the Purpose of Business are -

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 Purpose Harms in the consumer business. Now Purpose Harms can target international markets with far fewer capital restrictions requirements than the existing system.

Better consumer reach

– The expansion of the 5G network will help Purpose Harms to increase its market reach. Purpose Harms 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, Purpose Harms 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.

Using analytics as competitive advantage

– Purpose Harms 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 Managing for Stakeholders and the Purpose of Business - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Purpose Harms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Loyalty marketing

– Purpose Harms 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.

Building a culture of innovation

– managers at Purpose Harms 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 Leadership & Managing People segment.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Purpose Harms in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.

Buying journey improvements

– Purpose Harms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing for Stakeholders and the Purpose of Business 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.

Manufacturing automation

– Purpose Harms can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.

Increase in government spending

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

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. Purpose Harms can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Purpose Harms 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, Managing for Stakeholders and the Purpose of Business, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Purpose Harms 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. Purpose Harms 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.




Threats Managing for Stakeholders and the Purpose of Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Managing for Stakeholders and the Purpose of Business are -

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Managing for Stakeholders and the Purpose of Business, Purpose Harms may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .

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.

Regulatory challenges

– Purpose Harms 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 Leadership & Managing People 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 Purpose Harms.

Consumer confidence and its impact on Purpose Harms 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.

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 Purpose Harms business can come under increasing regulations regarding data privacy, data security, etc.

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

– Purpose Harms 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.

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 Purpose Harms in the Leadership & Managing People sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Purpose Harms 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 Managing for Stakeholders and the Purpose of Business .

Barriers of entry lowering

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

Increasing wage structure of Purpose Harms

– 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 Purpose Harms.

Shortening product life cycle

– it is one of the major threat that Purpose Harms is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.




Weighted SWOT Analysis of Managing for Stakeholders and the Purpose of Business 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 Managing for Stakeholders and the Purpose of Business 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 Managing for Stakeholders and the Purpose of Business 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 Managing for Stakeholders and the Purpose of Business 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 Managing for Stakeholders and the Purpose of Business 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 Purpose Harms needs to make to build a sustainable competitive advantage.



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