The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident
This article investigates responses of the international and domestic (South Korean) publics to one of the most hotly debated corporate scandals in recent years: Korean Air's so-called nut rage incident. By analyzing both international and domestic media coverage of the occurrence, we reveal contrasting interpretations between the two. Whereas the South Korean public tends to generate intense debates addressing a lack of ethics in Korean Air's public communication following the incident, international public criticism is dominated by questions regarding South Korea's chronic chaebol system and its negative image in relation to South Korea's unique institutional context. Korean Air's incongruent notice of the employee as a key stakeholder is also discussed in the international media. Our research findings indicate how, rather than focusing on legal responsibility, the normative attitude of businesses toward stakeholder pressures is crucial as a means of escaping legitimacy-threatening events. The results of this study demonstrate how public responses to a single incident are diverse in global society and offer new insights regarding the importance of ethics in management leadership and public communication after a crisis incident.
Authors :: Rebecca Chunghee Kim, Kate Inyoung Yoo, Helal Uddin
Swot Analysis of "The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident" written by Rebecca Chunghee Kim, Kate Inyoung Yoo, Helal Uddin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Korean Incident facing as an external strategic factors. Some of the topics covered in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident case study are - Strategic Management Strategies, Corporate governance, Crisis communication, Crisis management, Ethics, Public relations and Global Business.
Some of the macro environment factors that can be used to understand the The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident casestudy better are - – increasing government debt because of Covid-19 spendings, technology disruption, geopolitical disruptions, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, etc
Introduction to SWOT Analysis of The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Korean Incident, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Korean Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident can be done for the following purposes –
1. Strategic planning using facts provided in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident case study
2. Improving business portfolio management of Korean Incident
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Korean Incident
Strengths The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Korean Incident in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Korean Incident digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Korean Incident 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.
Analytics focus
– Korean Incident 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 Chunghee Kim, Kate Inyoung Yoo, Helal Uddin 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.
Cross disciplinary teams
– Horizontal connected teams at the Korean Incident 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 lead change in Global Business field
– Korean Incident 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 Korean Incident in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Korean Incident has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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.
Successful track record of launching new products
– Korean Incident has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Korean Incident 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.
Organizational Resilience of Korean Incident
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Korean Incident does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Korean Incident in the sector have low bargaining power. The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Korean Incident to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Korean Incident is present in almost all the verticals within the industry. This has provided firm in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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.
Learning organization
- Korean Incident 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 Korean Incident is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Korean Incident in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Korean Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident are -
Slow to strategic competitive environment developments
– As The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident HBR case study mentions - Korean Incident 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident, it seems that the employees of Korean Incident 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 Korean Incident has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident can leverage the sales team experience to cultivate customer relationships as Korean Incident is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Rebecca Chunghee Kim, Kate Inyoung Yoo, Helal Uddin suggests that, Korean Incident 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.
Low market penetration in new markets
– Outside its home market of Korean Incident, firm in the HBR case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Korean Incident 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident, is just above the industry average. Korean Incident 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 cash cycle compare to competitors
Korean Incident 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident, in the dynamic environment Korean Incident has struggled to respond to the nimble upstart competition. Korean Incident has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident | 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident are -
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. Korean Incident can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Korean Incident can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Korean Incident 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 Korean Incident to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Korean Incident has opened avenues for new revenue streams for the organization in the industry. This can help Korean Incident to build a more holistic ecosystem as suggested in the The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident case study. Korean Incident can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Korean Incident 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.
Loyalty marketing
– Korean Incident 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.
Building a culture of innovation
– managers at Korean Incident 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 Global Business segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Korean Incident can use these opportunities to build new business models that can help the communities that Korean Incident operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Korean Incident can develop new processes and procedures in Global Business 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, Korean Incident is facing challenges because of the dominance of functional experts in the organization. The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Korean Incident can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Korean Incident can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Korean Incident can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Korean Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Korean Incident with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Korean Incident has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Korean Incident needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Korean Incident 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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Korean Incident can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Korean Incident 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.
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 Korean Incident in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident, Korean Incident may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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. Korean Incident needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
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 Korean Incident.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Korean Incident in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 The Korean Air Nut Rage Scandal: Domestic Versus International Responses to a Viral Incident 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 Korean Incident needs to make to build a sustainable competitive advantage.
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