The Trouble With Corporate Compliance Programs SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Trouble With Corporate Compliance Programs
Multinational corporations spend millions of dollars per year on compliance. In highly regulated industries, such as health care and finance, large companies spend much more, sometimes hiring hundreds or even thousands of compliance officers at a time. There is often a belief on the part of corporate leaders that when rigorous compliance programs are in place, employee wrongdoing will largely disappear.If something does go wrong, the hope is that having a comprehensive program will help convince regulators that the company's compliance initiatives were "effective,"the standard used in U.S. sentencing guidelines. Unfortunately, even today's most comprehensive programs won't curtail corporate wrongdoing or the government intervention that follows. Volkswagen AG's compliance program didn't stop its employees from installing "defeat device"software to cheat emissions tests, nor did Wells Fargo & Co.'s policies prevent its employees from opening new customer accounts without authorization. More than 15 years after the Enron Corp. scandal, most companies know very little about how employees make ethical decisions or the psychological mechanisms that cause them to perform unethical and illegal acts. Even fewer have compliance strategies aimed at curbing such behaviors. The goal of this article is to pull together the burgeoning field of behavioral ethics, which provides insight into how individuals make ethical decisions, with the work of criminologists who study individual and corporate criminality. The author seeks to explain why corporate compliance efforts are falling short and how those efforts can be improved. In addition, he offers practical and cost-effective strategies for improving compliance programs that focus on employee behavior, which he says is the best way to make compliance truly effective. Corporate compliance depends on the behavior of individual employees. If employees, officers, and managers always acted in a law-abiding and ethical manner, compliance failures would rarely occur. But that is not realistic. That is why companies need to be aware of how and why employees act the way they do. This starts with understanding how people make decisions generally and how that translates to ethical decision-making. The article describes eight common rationalizations used by those committing unethical and illegal acts within companies. Corporate leaders need to understand these rationalizations and be able to identify their usage as part of an effective compliance program. The author acknowledges that no compliance program will entirely eliminate bad employee conduct. But behaviorally cognizant programs, ones that seek to understand employee decision-making and target the cognitive mechanisms that foster unethicality, hold the promise of reducing unethical and illegal behavior within a company.
Swot Analysis of "The Trouble With Corporate Compliance Programs" written by Todd Haugh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Compliance Unethical facing as an external strategic factors. Some of the topics covered in The Trouble With Corporate Compliance Programs case study are - Strategic Management Strategies, and Organizational Development.
Some of the macro environment factors that can be used to understand the The Trouble With Corporate Compliance Programs casestudy better are - – increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing energy prices, technology disruption, digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of The Trouble With Corporate Compliance Programs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Trouble With Corporate Compliance Programs case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Compliance Unethical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Compliance Unethical 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 The Trouble With Corporate Compliance Programs can be done for the following purposes –
1. Strategic planning using facts provided in The Trouble With Corporate Compliance Programs case study
2. Improving business portfolio management of Compliance Unethical
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Compliance Unethical
Strengths The Trouble With Corporate Compliance Programs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Compliance Unethical in The Trouble With Corporate Compliance Programs Harvard Business Review case study are -
Training and development
– Compliance Unethical has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Trouble With Corporate Compliance Programs 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.
Innovation driven organization
– Compliance Unethical is one of the most innovative firm in sector. Manager in The Trouble With Corporate Compliance Programs Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Compliance Unethical has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Compliance Unethical to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Compliance Unethical 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.
Analytics focus
– Compliance Unethical 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 Todd Haugh 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.
Ability to recruit top talent
– Compliance Unethical is one of the leading recruiters in the industry. Managers in the The Trouble With Corporate Compliance Programs are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Compliance Unethical digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Compliance Unethical 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.
Sustainable margins compare to other players in Organizational Development industry
– The Trouble With Corporate Compliance Programs firm has clearly differentiated products in the market place. This has enabled Compliance Unethical to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Compliance Unethical to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the The Trouble With Corporate Compliance Programs 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.
Successful track record of launching new products
– Compliance Unethical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Compliance Unethical 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.
Low bargaining power of suppliers
– Suppliers of Compliance Unethical in the sector have low bargaining power. The Trouble With Corporate Compliance Programs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Compliance Unethical to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Compliance Unethical
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Compliance Unethical does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses The Trouble With Corporate Compliance Programs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Trouble With Corporate Compliance Programs are -
Interest costs
– Compare to the competition, Compliance Unethical 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.
Capital Spending Reduction
– Even during the low interest decade, Compliance Unethical 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.
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 Compliance Unethical supply chain. Even after few cautionary changes mentioned in the HBR case study - The Trouble With Corporate Compliance Programs, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Compliance Unethical vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Compliance Unethical 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 operating costs
– Compare to the competitors, firm in the HBR case study The Trouble With Corporate Compliance Programs 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 Compliance Unethical 's lucrative customers.
Products dominated business model
– Even though Compliance Unethical 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 - The Trouble With Corporate Compliance Programs should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study The Trouble With Corporate Compliance Programs, it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Trouble With Corporate Compliance Programs, in the dynamic environment Compliance Unethical has struggled to respond to the nimble upstart competition. Compliance Unethical 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 The Trouble With Corporate Compliance Programs, is just above the industry average. Compliance Unethical 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Todd Haugh suggests that, Compliance Unethical 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 star products
– The top 2 products and services of the firm as mentioned in the The Trouble With Corporate Compliance Programs 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 Compliance Unethical has relatively successful track record of launching new products.
Opportunities The Trouble With Corporate Compliance Programs | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Trouble With Corporate Compliance Programs are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Compliance Unethical is facing challenges because of the dominance of functional experts in the organization. The Trouble With Corporate Compliance Programs 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Compliance Unethical 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. Compliance Unethical 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Compliance Unethical can use these opportunities to build new business models that can help the communities that Compliance Unethical operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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 Compliance Unethical in the consumer business. Now Compliance Unethical can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Compliance Unethical has opened avenues for new revenue streams for the organization in the industry. This can help Compliance Unethical to build a more holistic ecosystem as suggested in the The Trouble With Corporate Compliance Programs case study. Compliance Unethical can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Compliance Unethical can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
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 Compliance Unethical 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Compliance Unethical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Compliance Unethical can develop new processes and procedures in Organizational Development 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.
Leveraging digital technologies
– Compliance Unethical 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Compliance Unethical in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Compliance Unethical can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Trouble With Corporate Compliance Programs, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Compliance Unethical can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats The Trouble With Corporate Compliance Programs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Trouble With Corporate Compliance Programs are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Compliance Unethical with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Compliance Unethical can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Trouble With Corporate Compliance Programs .
Shortening product life cycle
– it is one of the major threat that Compliance Unethical is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Compliance Unethical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Compliance Unethical in the Organizational Development sector and impact the bottomline of the organization.
Regulatory challenges
– Compliance Unethical 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 Organizational Development industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Trouble With Corporate Compliance Programs, Compliance Unethical may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Compliance Unethical in the Organizational Development industry. The Organizational Development 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.
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. Compliance Unethical 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.
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 Compliance Unethical business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Compliance Unethical 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 acceleration in Forth Industrial Revolution
– Compliance Unethical has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Compliance Unethical needs to keep up with the evolution of technology in the Organizational Development 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.
Consumer confidence and its impact on Compliance Unethical 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.
Weighted SWOT Analysis of The Trouble With Corporate Compliance Programs Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Trouble With Corporate Compliance Programs needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Trouble With Corporate Compliance Programs is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Trouble With Corporate Compliance Programs is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Trouble With Corporate Compliance Programs 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 Compliance Unethical needs to make to build a sustainable competitive advantage.
