Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China
In mid-February 2006, Christopher Smith, a U.S. Republican Congressman, proposed the Global Online Freedom Act, draft legislation that would prohibit U.S.-listed Internet companies from complying with the demands of Internet censorship and the requirement to disclose the personal information of Internet users imposed by the People's Republic of China. These U.S.-listed Internet companies include hardware and/or software vendors and search services providers that enable millions of businesses and individuals to operate on the Internet. The bill was introduced following a congressional hearing in Washington, D.C. called in February 2006, after a number of American Internet companies were found to be participating in the repression of human rights in China. Looks at the dilemma facing multinational firms: how to comply with local laws while at the same time trying to be socially responsible.
Swot Analysis of "Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China" written by Ali F. Farhoomand, Samuel Tsang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Internet Censorship facing as an external strategic factors. Some of the topics covered in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China case study are - Strategic Management Strategies, Globalization, Government, Internet, Social responsibility and Global Business.
Some of the macro environment factors that can be used to understand the Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, increasing energy prices, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Internet Censorship, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China can be done for the following purposes –
1. Strategic planning using facts provided in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China case study
2. Improving business portfolio management of Internet Censorship
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 Internet Censorship
Strengths Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Internet Censorship in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China Harvard Business Review case study are -
Ability to lead change in Global Business field
– Internet Censorship 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 Internet Censorship in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Internet Censorship has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Internet Censorship to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Internet Censorship is present in almost all the verticals within the industry. This has provided firm in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Internet Censorship in the sector have low bargaining power. Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Internet Censorship to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Internet Censorship 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)
– Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Internet Censorship 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.
Superior customer experience
– The customer experience strategy of Internet Censorship in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Internet Censorship 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 Ali F. Farhoomand, Samuel Tsang 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.
Training and development
– Internet Censorship has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China 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.
Innovation driven organization
– Internet Censorship is one of the most innovative firm in sector. Manager in Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Internet Censorship is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China are -
Aligning sales with marketing
– It come across in the case study Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China can leverage the sales team experience to cultivate customer relationships as Internet Censorship is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Internet Censorship 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. Internet Censorship 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China, is just above the industry average. Internet Censorship 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Internet Censorship 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
Internet Censorship 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.
Products dominated business model
– Even though Internet Censorship 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 - Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Internet Censorship products
– To increase the profitability and margins on the products, Internet Censorship needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Internet Censorship is dominated by functional specialists. It is not different from other players in the Global Business segment. Internet Censorship needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Internet Censorship to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Internet Censorship 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Internet Censorship has relatively successful track record of launching new products.
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 Internet Censorship supply chain. Even after few cautionary changes mentioned in the HBR case study - Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Internet Censorship vulnerable to further global disruptions in South East Asia.
Opportunities Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China are -
Developing new processes and practices
– Internet Censorship 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.
Creating value in data economy
– The success of analytics program of Internet Censorship has opened avenues for new revenue streams for the organization in the industry. This can help Internet Censorship to build a more holistic ecosystem as suggested in the Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China case study. Internet Censorship can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Internet Censorship to increase its market reach. Internet Censorship 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Internet Censorship can use these opportunities to build new business models that can help the communities that Internet Censorship operates in. Secondly it can use opportunities from government spending in Global Business sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Internet Censorship is facing challenges because of the dominance of functional experts in the organization. Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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.
Buying journey improvements
– Internet Censorship can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China 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 Internet Censorship 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 Internet Censorship to hire the very best people irrespective of their geographical location.
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 Internet Censorship in the consumer business. Now Internet Censorship can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Internet Censorship has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Internet Censorship to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Internet Censorship 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
– Internet Censorship 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.
Manufacturing automation
– Internet Censorship 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Internet Censorship 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.
Threats Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship in China are -
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 Internet Censorship in the Global Business sector and impact the bottomline 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 Internet Censorship 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.
Regulatory challenges
– Internet Censorship 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.
Stagnating economy with rate increase
– Internet Censorship 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.
Consumer confidence and its impact on Internet Censorship 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.
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 Internet Censorship business can come under increasing regulations regarding data privacy, data security, etc.
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. Internet Censorship needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Internet Censorship.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Internet Censorship with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Increasing wage structure of Internet Censorship
– 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 Internet Censorship.
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. Internet Censorship can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Global Corporate Social Responsibility Vs. Local Legal Compliance: A Case of Internet Censorship 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 Internet Censorship needs to make to build a sustainable competitive advantage.
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