Case Study Description of Newstar Magazine Exercise: Board Chair Role
In the Newstar Magazine exercise, participants are assigned one of three roles-managing editor, publisher, or board chair-and provided with information about personnel difficulties that have emerged at the independent Canadian magazine. The organization is small, financially strapped, and conflict has appeared within the magazine's leadership. The objective of the exercise is to understand the source of this conflict and ultimately to resolve it. Use with 9B17C050 and 9B17C051.
Swot Analysis of "Newstar Magazine Exercise: Board Chair Role" written by Andrew Stevens, Ann C. Frost includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Magazine Newstar facing as an external strategic factors. Some of the topics covered in Newstar Magazine Exercise: Board Chair Role case study are - Strategic Management Strategies, Labor, Negotiations and Organizational Development.
Some of the macro environment factors that can be used to understand the Newstar Magazine Exercise: Board Chair Role casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Newstar Magazine Exercise: Board Chair Role
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Newstar Magazine Exercise: Board Chair Role case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Magazine Newstar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Magazine Newstar 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 Newstar Magazine Exercise: Board Chair Role can be done for the following purposes –
1. Strategic planning using facts provided in Newstar Magazine Exercise: Board Chair Role case study
2. Improving business portfolio management of Magazine Newstar
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 Magazine Newstar
Strengths Newstar Magazine Exercise: Board Chair Role | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Magazine Newstar in Newstar Magazine Exercise: Board Chair Role Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Newstar Magazine Exercise: Board Chair Role 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.
Innovation driven organization
– Magazine Newstar is one of the most innovative firm in sector. Manager in Newstar Magazine Exercise: Board Chair Role Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Organizational Development industry
– Newstar Magazine Exercise: Board Chair Role firm has clearly differentiated products in the market place. This has enabled Magazine Newstar to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Magazine Newstar to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Magazine Newstar is one of the leading recruiters in the industry. Managers in the Newstar Magazine Exercise: Board Chair Role are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Magazine Newstar has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Newstar Magazine Exercise: Board Chair Role 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 Magazine Newstar 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.
High switching costs
– The high switching costs that Magazine Newstar 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.
Successful track record of launching new products
– Magazine Newstar has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Magazine Newstar 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 Magazine Newstar in the sector have low bargaining power. Newstar Magazine Exercise: Board Chair Role has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Magazine Newstar to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Magazine Newstar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Magazine Newstar 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.
Organizational Resilience of Magazine Newstar
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Magazine Newstar does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Magazine Newstar 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 Andrew Stevens, Ann C. Frost 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.
Weaknesses Newstar Magazine Exercise: Board Chair Role | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Newstar Magazine Exercise: Board Chair Role are -
Slow decision making process
– As mentioned earlier in the report, Magazine Newstar 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. Magazine Newstar 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.
Skills based hiring
– The stress on hiring functional specialists at Magazine Newstar 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 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 Magazine Newstar supply chain. Even after few cautionary changes mentioned in the HBR case study - Newstar Magazine Exercise: Board Chair Role, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Magazine Newstar vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Newstar Magazine Exercise: Board Chair Role HBR case study mentions - Magazine Newstar 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Magazine Newstar is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Newstar Magazine Exercise: Board Chair Role can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Newstar Magazine Exercise: Board Chair Role 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 Newstar Magazine Exercise: Board Chair Role can leverage the sales team experience to cultivate customer relationships as Magazine Newstar is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Newstar Magazine Exercise: Board Chair Role, is just above the industry average. Magazine Newstar 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 operating costs
– Compare to the competitors, firm in the HBR case study Newstar Magazine Exercise: Board Chair Role 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 Magazine Newstar 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Andrew Stevens, Ann C. Frost suggests that, Magazine Newstar 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Newstar Magazine Exercise: Board Chair Role, in the dynamic environment Magazine Newstar has struggled to respond to the nimble upstart competition. Magazine Newstar has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Magazine Newstar products
– To increase the profitability and margins on the products, Magazine Newstar needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Newstar Magazine Exercise: Board Chair Role | 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 Newstar Magazine Exercise: Board Chair Role are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Magazine Newstar is facing challenges because of the dominance of functional experts in the organization. Newstar Magazine Exercise: Board Chair Role 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.
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. Magazine Newstar can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Magazine Newstar 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.
Buying journey improvements
– Magazine Newstar can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Newstar Magazine Exercise: Board Chair Role 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.
Better consumer reach
– The expansion of the 5G network will help Magazine Newstar to increase its market reach. Magazine Newstar 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.
Manufacturing automation
– Magazine Newstar 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.
Leveraging digital technologies
– Magazine Newstar 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Magazine Newstar 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
– Magazine Newstar 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Magazine Newstar can use these opportunities to build new business models that can help the communities that Magazine Newstar operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Magazine Newstar 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, Newstar Magazine Exercise: Board Chair Role, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Magazine Newstar in the consumer business. Now Magazine Newstar can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Magazine Newstar 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 Organizational Development segment.
Threats Newstar Magazine Exercise: Board Chair Role External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Newstar Magazine Exercise: Board Chair Role are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Magazine Newstar 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 Newstar Magazine Exercise: Board Chair Role .
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 Magazine Newstar in the Organizational Development sector and impact the bottomline of the organization.
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 Magazine Newstar.
Environmental challenges
– Magazine Newstar 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. Magazine Newstar can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
High dependence on third party suppliers
– Magazine Newstar 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.
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. Magazine Newstar can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Magazine Newstar has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Magazine Newstar 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 Magazine Newstar 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 Magazine Newstar business can come under increasing regulations regarding data privacy, data security, 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. Magazine Newstar needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Regulatory challenges
– Magazine Newstar 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.
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.
Shortening product life cycle
– it is one of the major threat that Magazine Newstar is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Newstar Magazine Exercise: Board Chair Role 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 Newstar Magazine Exercise: Board Chair Role 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 Newstar Magazine Exercise: Board Chair Role 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 Newstar Magazine Exercise: Board Chair Role 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 Newstar Magazine Exercise: Board Chair Role 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 Magazine Newstar needs to make to build a sustainable competitive advantage.