Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A)
The process by which the board determines the mix of vehicles for compensation of the CEO and the level of compensation is among the most important aspects of board responsibility. Additionally, the board must appraise the performance of the CEO, many aspects of which necessarily relate to the various methods of compensation. This case provides a vehicle for the discussion of many aspects of these topics.
Swot Analysis of "Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A)" written by John L. Colley, Wallace Stettinius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Compensation Aspects facing as an external strategic factors. Some of the topics covered in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) case study are - Strategic Management Strategies, Compensation, Financial management, Labor, Operations management, Regulation and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) casestudy better are - – 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, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is backlash against globalization, wage bills are increasing, etc
Introduction to SWOT Analysis of Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Compensation Aspects, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Compensation Aspects 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) case study
2. Improving business portfolio management of Compensation Aspects
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Compensation Aspects
Strengths Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Compensation Aspects in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) Harvard Business Review case study are -
Training and development
– Compensation Aspects has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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.
Low bargaining power of suppliers
– Suppliers of Compensation Aspects in the sector have low bargaining power. Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Compensation Aspects to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Compensation Aspects 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.
Innovation driven organization
– Compensation Aspects is one of the most innovative firm in sector. Manager in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Finance & Accounting field
– Compensation Aspects 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 Compensation Aspects 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
– Compensation Aspects is one of the leading recruiters in the industry. Managers in the Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Compensation Aspects digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Compensation Aspects 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) firm has clearly differentiated products in the market place. This has enabled Compensation Aspects to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Compensation Aspects to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Compensation Aspects 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.
Learning organization
- Compensation Aspects 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 Compensation Aspects is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Compensation Aspects
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Compensation Aspects does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Compensation Aspects 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) are -
High bargaining power of channel partners
– Because of the regulatory requirements, John L. Colley, Wallace Stettinius suggests that, Compensation Aspects 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Compensation Aspects is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) HBR case study mentions - Compensation Aspects 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.
Lack of clear differentiation of Compensation Aspects products
– To increase the profitability and margins on the products, Compensation Aspects needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Compensation Aspects 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.
Need for greater diversity
– Compensation Aspects 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.
Interest costs
– Compare to the competition, Compensation Aspects 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A), in the dynamic environment Compensation Aspects has struggled to respond to the nimble upstart competition. Compensation Aspects has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Compensation Aspects 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Compensation Aspects has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Compensation Aspects supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Compensation Aspects vulnerable to further global disruptions in South East Asia.
Opportunities Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) | 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) are -
Buying journey improvements
– Compensation Aspects can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Compensation Aspects 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. Compensation Aspects 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.
Building a culture of innovation
– managers at Compensation Aspects 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 Finance & Accounting segment.
Better consumer reach
– The expansion of the 5G network will help Compensation Aspects to increase its market reach. Compensation Aspects 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, Compensation Aspects 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 Compensation Aspects in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Compensation Aspects 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.
Manufacturing automation
– Compensation Aspects can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Loyalty marketing
– Compensation Aspects 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.
Leveraging digital technologies
– Compensation Aspects 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.
Creating value in data economy
– The success of analytics program of Compensation Aspects has opened avenues for new revenue streams for the organization in the industry. This can help Compensation Aspects to build a more holistic ecosystem as suggested in the Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) case study. Compensation Aspects can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Compensation Aspects can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Compensation Aspects can use these opportunities to build new business models that can help the communities that Compensation Aspects operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) are -
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.
Consumer confidence and its impact on Compensation Aspects 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.
Regulatory challenges
– Compensation Aspects 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 Finance & Accounting industry regulations.
Increasing wage structure of Compensation Aspects
– 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 Compensation Aspects.
Stagnating economy with rate increase
– Compensation Aspects 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 Compensation Aspects in the Finance & Accounting industry. The Finance & Accounting 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 Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Compensation Aspects can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A), Compensation Aspects may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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.
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. Compensation Aspects needs to understand the core reasons impacting the Finance & Accounting 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 Compensation Aspects business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Compensation Aspects 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. Compensation Aspects can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Shortening product life cycle
– it is one of the major threat that Compensation Aspects is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Corporate Governance: The Jack Wright Series #6-CEO Performance Appraisal and Compensation (A) 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 Compensation Aspects needs to make to build a sustainable competitive advantage.
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