Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 #7-The Board-Management Relationship
There are many aspects of relationships between the board and management that are determined on a best effort basis. That is, the rules and by-laws of the company cannot pre-specify the detailed workings of the intersecting interests. Our system of capitalism depends on the good faith efforts of all concerned to derive effective working relationships. This case provides for a discussion of these issues in the context of Jack Wright and Mega Corporation.
Swot Analysis of "Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship" written by John L. Colley, Wallace Stettinius includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wright Jack facing as an external strategic factors. Some of the topics covered in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 #7-The Board-Management Relationship casestudy better are - – increasing commodity prices, technology disruption, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing household debt because of falling income levels, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship
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 #7-The Board-Management Relationship case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wright Jack, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wright Jack 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 #7-The Board-Management Relationship can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship case study
2. Improving business portfolio management of Wright Jack
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 Wright Jack
Strengths Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wright Jack in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship Harvard Business Review case study are -
Innovation driven organization
– Wright Jack is one of the most innovative firm in sector. Manager in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Wright Jack in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Wright Jack 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 #7-The Board-Management Relationship 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.
Analytics focus
– Wright Jack 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 John L. Colley, Wallace Stettinius 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.
High brand equity
– Wright Jack has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wright Jack to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Wright Jack 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.
Effective Research and Development (R&D)
– Wright Jack 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 Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Finance & Accounting field
– Wright Jack 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 Wright Jack in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Wright Jack 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 Wright Jack is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Wright Jack has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wright Jack 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.
High switching costs
– The high switching costs that Wright Jack 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.
Diverse revenue streams
– Wright Jack is present in almost all the verticals within the industry. This has provided firm in Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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.
Weaknesses Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship are -
High bargaining power of channel partners
– Because of the regulatory requirements, John L. Colley, Wallace Stettinius suggests that, Wright Jack 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship, in the dynamic environment Wright Jack has struggled to respond to the nimble upstart competition. Wright Jack has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship HBR case study mentions - Wright Jack 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 Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 Wright Jack has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Wright Jack 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. Wright Jack 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Wright Jack needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Wright Jack, firm in the HBR case study Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 Wright Jack 's lucrative customers.
Products dominated business model
– Even though Wright Jack 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 - Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship should strive to include more intangible value offerings along with its core products and services.
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 Wright Jack supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wright Jack vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Wright Jack 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.
Opportunities Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship | 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 #7-The Board-Management Relationship are -
Learning at scale
– Online learning technologies has now opened space for Wright Jack 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.
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 Wright Jack 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.
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 Wright Jack in the consumer business. Now Wright Jack can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wright Jack 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wright Jack is facing challenges because of the dominance of functional experts in the organization. Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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.
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. Wright Jack 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. Wright Jack 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. Wright Jack can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Wright Jack can develop new processes and procedures in Finance & Accounting 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.
Better consumer reach
– The expansion of the 5G network will help Wright Jack to increase its market reach. Wright Jack 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wright Jack can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Wright Jack has opened avenues for new revenue streams for the organization in the industry. This can help Wright Jack to build a more holistic ecosystem as suggested in the Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship case study. Wright Jack can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Wright Jack can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wright Jack 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 Wright Jack to hire the very best people irrespective of their geographical location.
Threats Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 #7-The Board-Management Relationship are -
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. Wright Jack can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Wright Jack has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Wright Jack needs to keep up with the evolution of technology in the Finance & Accounting 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.
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.
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. Wright Jack needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Increasing wage structure of Wright Jack
– 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 Wright Jack.
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 #7-The Board-Management Relationship, Wright Jack 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 .
Stagnating economy with rate increase
– Wright Jack 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 Wright Jack 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wright Jack 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 Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship .
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 Wright Jack 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wright Jack with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Wright Jack 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.
Weighted SWOT Analysis of Corporate Governance: The Jack Wright Series #7-The Board-Management Relationship 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 #7-The Board-Management Relationship 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 #7-The Board-Management Relationship 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 #7-The Board-Management Relationship 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 #7-The Board-Management Relationship 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 Wright Jack needs to make to build a sustainable competitive advantage.
