A 'Glocalization' Approach to the Internationalization of Crisis Communication SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of A 'Glocalization' Approach to the Internationalization of Crisis Communication
This article focuses on the field of international crisis communication, whereby multinationals and their expatriate staff respond to crisis events in international and/or multicultural contexts. The field of international crisis communication is at or near a state of crisis due to lack of research and, more importantly, methods used by practitioners. 'Glocalization'-which is used successfully in fields as diverse as marketing, education, theology, and others as an effective and expedient way of leveraging global capabilities to meet local demands-is proposed as one method for addressing this need pragmatically. Using glocalization for the internationalizing of crisis communication benefits practitioners and researchers alike in a way that avoids imposing Western frameworks and interpretations onto non-Western crisis situations. We demonstrate the approach with a case study involving multinational McDonald's Corporation and its foreign subsidiary, McDonald's Japan.
Swot Analysis of "A 'Glocalization' Approach to the Internationalization of Crisis Communication" written by Derek Lehmberg, Jeff Hicks includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Glocalization Crisis facing as an external strategic factors. Some of the topics covered in A 'Glocalization' Approach to the Internationalization of Crisis Communication case study are - Strategic Management Strategies, Strategic planning, Supply chain and Global Business.
Some of the macro environment factors that can be used to understand the A 'Glocalization' Approach to the Internationalization of Crisis Communication casestudy better are - – increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of A 'Glocalization' Approach to the Internationalization of Crisis Communication
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A 'Glocalization' Approach to the Internationalization of Crisis Communication case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Glocalization Crisis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication can be done for the following purposes –
1. Strategic planning using facts provided in A 'Glocalization' Approach to the Internationalization of Crisis Communication case study
2. Improving business portfolio management of Glocalization Crisis
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Glocalization Crisis
Strengths A 'Glocalization' Approach to the Internationalization of Crisis Communication | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Glocalization Crisis in A 'Glocalization' Approach to the Internationalization of Crisis Communication Harvard Business Review case study are -
Innovation driven organization
– Glocalization Crisis is one of the most innovative firm in sector. Manager in A 'Glocalization' Approach to the Internationalization of Crisis Communication Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Glocalization Crisis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A 'Glocalization' Approach to the Internationalization of Crisis Communication 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.
Organizational Resilience of Glocalization Crisis
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Glocalization Crisis does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Glocalization Crisis 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 Glocalization Crisis is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in A 'Glocalization' Approach to the Internationalization of Crisis Communication Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Glocalization Crisis is one of the leading recruiters in the industry. Managers in the A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 Global Business segment
- digital transformation varies from industry to industry. For Glocalization Crisis digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Glocalization Crisis 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.
Diverse revenue streams
– Glocalization Crisis is present in almost all the verticals within the industry. This has provided firm in A 'Glocalization' Approach to the Internationalization of Crisis Communication 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.
Successful track record of launching new products
– Glocalization Crisis has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Glocalization Crisis 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.
Effective Research and Development (R&D)
– Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Global Business industry
– A 'Glocalization' Approach to the Internationalization of Crisis Communication firm has clearly differentiated products in the market place. This has enabled Glocalization Crisis to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Glocalization Crisis to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Glocalization Crisis is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses A 'Glocalization' Approach to the Internationalization of Crisis Communication | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A 'Glocalization' Approach to the Internationalization of Crisis Communication are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Glocalization Crisis is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study A 'Glocalization' Approach to the Internationalization of Crisis Communication can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Glocalization Crisis is dominated by functional specialists. It is not different from other players in the Global Business segment. Glocalization Crisis needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Glocalization Crisis to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Glocalization Crisis products
– To increase the profitability and margins on the products, Glocalization Crisis needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As A 'Glocalization' Approach to the Internationalization of Crisis Communication HBR case study mentions - Glocalization Crisis takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Glocalization Crisis has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Glocalization Crisis 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A 'Glocalization' Approach to the Internationalization of Crisis Communication, in the dynamic environment Glocalization Crisis has struggled to respond to the nimble upstart competition. Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication, is just above the industry average. Glocalization Crisis 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study A 'Glocalization' Approach to the Internationalization of Crisis Communication, it seems that the employees of Glocalization Crisis 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.
No frontier risks strategy
– After analyzing the HBR case study A 'Glocalization' Approach to the Internationalization of Crisis Communication, it seems that company is thinking about the frontier risks that can impact Global Business 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 Glocalization Crisis has relatively successful track record of launching new products.
Opportunities A 'Glocalization' Approach to the Internationalization of Crisis Communication | 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication are -
Loyalty marketing
– Glocalization Crisis 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. Glocalization Crisis can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Glocalization Crisis in the consumer business. Now Glocalization Crisis can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Glocalization Crisis can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Creating value in data economy
– The success of analytics program of Glocalization Crisis has opened avenues for new revenue streams for the organization in the industry. This can help Glocalization Crisis to build a more holistic ecosystem as suggested in the A 'Glocalization' Approach to the Internationalization of Crisis Communication case study. Glocalization Crisis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Glocalization Crisis 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, A 'Glocalization' Approach to the Internationalization of Crisis Communication, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Glocalization Crisis 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 Glocalization Crisis to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Glocalization Crisis 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
– Glocalization Crisis can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A 'Glocalization' Approach to the Internationalization of Crisis Communication 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.
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 Glocalization Crisis 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Glocalization Crisis is facing challenges because of the dominance of functional experts in the organization. A 'Glocalization' Approach to the Internationalization of Crisis Communication 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Glocalization Crisis can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Glocalization Crisis in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Threats A 'Glocalization' Approach to the Internationalization of Crisis Communication External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A 'Glocalization' Approach to the Internationalization of Crisis Communication are -
Increasing wage structure of Glocalization Crisis
– 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 Glocalization Crisis.
Regulatory challenges
– Glocalization Crisis 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Glocalization Crisis has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Glocalization Crisis needs to keep up with the evolution of technology in the Global Business 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.
High dependence on third party suppliers
– Glocalization Crisis 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 Glocalization Crisis 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 Glocalization Crisis in the Global Business industry. The Global Business 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, Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Glocalization Crisis with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Glocalization Crisis is facing in Global Business 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 Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Glocalization Crisis can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Glocalization Crisis.
Consumer confidence and its impact on Glocalization Crisis 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 A 'Glocalization' Approach to the Internationalization of Crisis Communication 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 Glocalization Crisis needs to make to build a sustainable competitive advantage.