Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?
Swot Analysis of "Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?" written by Rebecca Henderson, Tony He includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Judgement Maximization facing as an external strategic factors. Some of the topics covered in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Judgement Maximization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Judgement Maximization 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? can be done for the following purposes –
1. Strategic planning using facts provided in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? case study
2. Improving business portfolio management of Judgement Maximization
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 Judgement Maximization
Strengths Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Judgement Maximization in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? Harvard Business Review case study are -
Successful track record of launching new products
– Judgement Maximization has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Judgement Maximization 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.
Training and development
– Judgement Maximization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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.
Learning organization
- Judgement Maximization 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 Judgement Maximization is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Leadership & Managing People industry
– Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? firm has clearly differentiated products in the market place. This has enabled Judgement Maximization to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Judgement Maximization to invest into research and development (R&D) and innovation.
Strong track record of project management
– Judgement Maximization is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Judgement Maximization in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Judgement Maximization has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Judgement Maximization to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Judgement Maximization 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 Judgement Maximization in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Judgement Maximization is one of the leading recruiters in the industry. Managers in the Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Judgement Maximization is one of the most innovative firm in sector. Manager in Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Judgement Maximization in the sector have low bargaining power. Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Judgement Maximization to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Judgement Maximization 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? are -
High bargaining power of channel partners
– Because of the regulatory requirements, Rebecca Henderson, Tony He suggests that, Judgement Maximization 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?, it seems that the employees of Judgement Maximization 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.
Low market penetration in new markets
– Outside its home market of Judgement Maximization, firm in the HBR case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Judgement Maximization products
– To increase the profitability and margins on the products, Judgement Maximization needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Judgement Maximization has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Judgement Maximization 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?, is just above the industry average. Judgement Maximization 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?, in the dynamic environment Judgement Maximization has struggled to respond to the nimble upstart competition. Judgement Maximization has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Judgement Maximization 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. Judgement Maximization even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Aligning sales with marketing
– It come across in the case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? can leverage the sales team experience to cultivate customer relationships as Judgement Maximization is planning to shift buying processes online.
Interest costs
– Compare to the competition, Judgement Maximization 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.
Opportunities Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? | 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Judgement Maximization 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Judgement Maximization 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.
Learning at scale
– Online learning technologies has now opened space for Judgement Maximization to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Judgement Maximization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Judgement Maximization 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.
Developing new processes and practices
– Judgement Maximization can develop new processes and procedures in Leadership & Managing People 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Judgement Maximization is facing challenges because of the dominance of functional experts in the organization. Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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.
Using analytics as competitive advantage
– Judgement Maximization 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Judgement Maximization to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Judgement Maximization 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Judgement Maximization can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Judgement Maximization can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Judgement Maximization can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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.
Creating value in data economy
– The success of analytics program of Judgement Maximization has opened avenues for new revenue streams for the organization in the industry. This can help Judgement Maximization to build a more holistic ecosystem as suggested in the Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? case study. Judgement Maximization can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Judgement Maximization in the Leadership & Managing People industry. The Leadership & Managing People 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Judgement Maximization 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 Judgement Maximization is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Judgement Maximization needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Judgement Maximization can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Judgement Maximization 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? .
Consumer confidence and its impact on Judgement Maximization 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.
Increasing wage structure of Judgement Maximization
– 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 Judgement Maximization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Judgement Maximization can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– Judgement Maximization 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. Judgement Maximization can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Judgement Maximization business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Judgement Maximization has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Judgement Maximization needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Weighted SWOT Analysis of Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Judgement Maximization needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?