Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China
The growth and heightened competitiveness of listed companies in China share several central features. These include the gradual transition of state-owned assets to private investors, a rapid pace of product diversification, and impending rapid growth into international markets. In this article, we focus on measuring and identifying the implications of the ownership structure and diversification strategy of listed companies in China. We highlight recent developments in the ownership transition of China's companies, and point to an ownership classification system that can better identify and address differences in the motivations, strategies, and performance of these companies.
Swot Analysis of "Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China" written by Andrew Delios, Nan Zhou, Wei Wei Xu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ownership Diversification facing as an external strategic factors. Some of the topics covered in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China casestudy better are - – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, geopolitical disruptions, cloud computing is disrupting traditional business models, wage bills are increasing,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ownership Diversification, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ownership Diversification 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China can be done for the following purposes –
1. Strategic planning using facts provided in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China case study
2. Improving business portfolio management of Ownership Diversification
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 Ownership Diversification
Strengths Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ownership Diversification in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China Harvard Business Review case study are -
Diverse revenue streams
– Ownership Diversification is present in almost all the verticals within the industry. This has provided firm in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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.
Low bargaining power of suppliers
– Suppliers of Ownership Diversification in the sector have low bargaining power. Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ownership Diversification to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Ownership Diversification in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Ownership Diversification has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ownership Diversification 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.
Strong track record of project management
– Ownership Diversification is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Ownership Diversification is one of the leading recruiters in the industry. Managers in the Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Ownership Diversification is one of the most innovative firm in sector. Manager in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Global Business industry
– Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China firm has clearly differentiated products in the market place. This has enabled Ownership Diversification to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Ownership Diversification to invest into research and development (R&D) and innovation.
Learning organization
- Ownership Diversification 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 Ownership Diversification is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Ownership Diversification 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
– Ownership Diversification 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 Ownership Diversification in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Ownership Diversification has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ownership Diversification to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China are -
No frontier risks strategy
– After analyzing the HBR case study Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China, 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.
Increasing silos among functional specialists
– The organizational structure of Ownership Diversification is dominated by functional specialists. It is not different from other players in the Global Business segment. Ownership Diversification needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ownership Diversification to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Ownership Diversification 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 - Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China HBR case study mentions - Ownership Diversification 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.
Interest costs
– Compare to the competition, Ownership Diversification 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.
Low market penetration in new markets
– Outside its home market of Ownership Diversification, firm in the HBR case study Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Ownership Diversification 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ownership Diversification 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.
High cash cycle compare to competitors
Ownership Diversification 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.
Lack of clear differentiation of Ownership Diversification products
– To increase the profitability and margins on the products, Ownership Diversification needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Diversification has relatively successful track record of launching new products.
Opportunities Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China | 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China are -
Manufacturing automation
– Ownership Diversification 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.
Loyalty marketing
– Ownership Diversification 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.
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. Ownership Diversification 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, Ownership Diversification can use these opportunities to build new business models that can help the communities that Ownership Diversification operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for Ownership Diversification 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.
Better consumer reach
– The expansion of the 5G network will help Ownership Diversification to increase its market reach. Ownership Diversification 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, Ownership Diversification 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ownership Diversification 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. Ownership Diversification can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ownership Diversification is facing challenges because of the dominance of functional experts in the organization. Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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.
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 Ownership Diversification in the consumer business. Now Ownership Diversification can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Ownership Diversification 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ownership Diversification in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ownership Diversification can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China are -
Stagnating economy with rate increase
– Ownership Diversification 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.
Regulatory challenges
– Ownership Diversification 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 Global Business industry regulations.
Shortening product life cycle
– it is one of the major threat that Ownership Diversification is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ownership Diversification in the Global Business sector and impact the bottomline of the organization.
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 Ownership Diversification business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Ownership Diversification
– 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 Ownership Diversification.
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.
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. Ownership Diversification 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.
Technology acceleration in Forth Industrial Revolution
– Ownership Diversification has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Ownership Diversification 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.
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 Ownership Diversification.
High dependence on third party suppliers
– Ownership Diversification 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.
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. Ownership Diversification needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ownership Diversification 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Structure and the Diversification and Performance of Publicly-Listed Companies in China 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 Ownership Diversification needs to make to build a sustainable competitive advantage.
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