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 - – increasing commodity prices, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China,
there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Judgement Maximization 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 Judgement Maximization 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.
Operational resilience
– The operational resilience strategy in the Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Judgement Maximization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Judgement Maximization 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.
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.
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.
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.
Analytics focus
– Judgement Maximization 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 Rebecca Henderson, Tony He 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.
Effective Research and Development (R&D)
– Judgement Maximization 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 Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? - 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 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.
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 cash cycle compare to competitors
Judgement Maximization 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.
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.
Slow to strategic competitive environment developments
– As Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? HBR case study mentions - Judgement Maximization 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.
Products dominated business model
– Even though Judgement Maximization 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 - Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? should strive to include more intangible value offerings along with its core products and services.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? 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 Judgement Maximization 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Judgement Maximization 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.
Capital Spending Reduction
– Even during the low interest decade, Judgement Maximization 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.
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.
Need for greater diversity
– Judgement Maximization 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Judgement Maximization is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
Manufacturing automation
– Judgement Maximization can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Judgement Maximization 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, Shareholder Value Maximization, Fiduciary Duties, and the Business Judgement Rule: What Does the Law Say?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Judgement Maximization 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. Judgement Maximization 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.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Judgement Maximization 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 Judgement Maximization to hire the very best people irrespective of their geographical location.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Judgement Maximization can use these opportunities to build new business models that can help the communities that Judgement Maximization operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
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 -
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.
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.
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.
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.
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.
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.
Regulatory challenges
– Judgement Maximization needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
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.
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.
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.
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 Judgement Maximization in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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 Judgement Maximization.
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.
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