Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice
The article suggests that when reward strategies fail, it is because they are frequently subsumed to a meaningless search for a best practice that delivers shareholder value that could be applied uniformly across countries, sectors, or workplace contexts. For instance, executive compensation schemes incorporating stock options are focused too much on delivering value for shareholders, and ignore other important stakeholders such as employees. Flexible benefits schemes tend to be designed and implemented top-down, without employee involvement or customizing them to meet their needs. I argue that reward practices should move away from shareholder-value reward to stakeholder reward, making full use of employee voice mechanisms as a key ingredient of workplace innovation. I consider the case of shared capitalism practices and outline the benefits of broad-based employee ownership schemes. The article concludes by offering prescriptive advice for the application of such schemes to enhance productivity and boost employee satisfaction.
Swot Analysis of "Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice" written by Andreas Kornelakis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reward Schemes facing as an external strategic factors. Some of the topics covered in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice case study are - Strategic Management Strategies, Corporate communications, Corporate governance, Human resource management, Innovation, Labor, Motivating people, Workspaces and Communication.
Some of the macro environment factors that can be used to understand the Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice casestudy better are - – challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing energy prices, wage bills are increasing, increasing transportation and logistics costs, 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,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reward Schemes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reward Schemes 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice can be done for the following purposes –
1. Strategic planning using facts provided in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice case study
2. Improving business portfolio management of Reward Schemes
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Reward Schemes
Strengths Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reward Schemes in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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.
Training and development
– Reward Schemes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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.
Sustainable margins compare to other players in Communication industry
– Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice firm has clearly differentiated products in the market place. This has enabled Reward Schemes to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Reward Schemes to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Reward Schemes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reward Schemes 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.
Highly skilled collaborators
– Reward Schemes 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Reward Schemes is one of the most innovative firm in sector. Manager in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Reward Schemes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Reward Schemes 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.
Ability to recruit top talent
– Reward Schemes is one of the leading recruiters in the industry. Managers in the Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Reward Schemes is present in almost all the verticals within the industry. This has provided firm in Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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.
High brand equity
– Reward Schemes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reward Schemes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Reward Schemes 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice, is just above the industry average. Reward Schemes 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reward Schemes is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Reward Schemes, firm in the HBR case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Reward Schemes 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.
Slow to strategic competitive environment developments
– As Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice HBR case study mentions - Reward Schemes 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Reward Schemes has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice, in the dynamic environment Reward Schemes has struggled to respond to the nimble upstart competition. Reward Schemes 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, Reward Schemes 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. Reward Schemes 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.
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 Reward Schemes supply chain. Even after few cautionary changes mentioned in the HBR case study - Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reward Schemes vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice, it seems that the employees of Reward Schemes 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.
Aligning sales with marketing
– It come across in the case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice can leverage the sales team experience to cultivate customer relationships as Reward Schemes is planning to shift buying processes online.
Opportunities Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice | 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Reward Schemes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Reward Schemes 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 Communication segment.
Leveraging digital technologies
– Reward Schemes 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.
Better consumer reach
– The expansion of the 5G network will help Reward Schemes to increase its market reach. Reward Schemes 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Reward Schemes 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 Reward Schemes 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Reward Schemes 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. Reward Schemes 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.
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. Reward Schemes 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 Reward Schemes in the consumer business. Now Reward Schemes can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reward Schemes 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, Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reward Schemes in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Buying journey improvements
– Reward Schemes can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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.
Learning at scale
– Online learning technologies has now opened space for Reward Schemes 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.
Threats Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice are -
Regulatory challenges
– Reward Schemes 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 Communication industry regulations.
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 Reward Schemes in the Communication 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 Reward Schemes.
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.
Consumer confidence and its impact on Reward Schemes 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.
Environmental challenges
– Reward Schemes 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. Reward Schemes can take advantage of this fund but it will also bring new competitors in the Communication industry.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Reward Schemes will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reward Schemes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Reward Schemes 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice .
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 Reward Schemes business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Reward Schemes can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Reward Schemes 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.
Weighted SWOT Analysis of Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Why Are Your Reward Strategies Not Working? The Role of Shareholder Value, Country Context, and Employee Voice 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 Reward Schemes needs to make to build a sustainable competitive advantage.
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