Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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 #10-Dealing with External Pressures
This case finds Jack Wright, now Chairman of the Mega Corporation board, having to deal with an offer from a director to buy the company, in either a friendly or unfriendly fashion.
Swot Analysis of "Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures" 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 #10-Dealing with External Pressures 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 #10-Dealing with External Pressures casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures
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 #10-Dealing with External Pressures 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 #10-Dealing with External Pressures can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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 #10-Dealing with External Pressures | 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 #10-Dealing with External Pressures Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Low bargaining power of suppliers
– Suppliers of Wright Jack in the sector have low bargaining power. Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wright Jack to manage not only supply disruptions but also source products at highly competitive prices.
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 #10-Dealing with External Pressures 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.
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.
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 #10-Dealing with External Pressures Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Wright Jack is one of the leading recruiters in the industry. Managers in the Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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 Wright Jack digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wright Jack 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.
Highly skilled collaborators
– Wright Jack 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 #10-Dealing with External Pressures HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
Weaknesses Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures are -
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.
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 #10-Dealing with External Pressures needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures, it seems that the employees of Wright Jack don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Wright Jack 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.
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 #10-Dealing with External Pressures should strive to include more intangible value offerings along with its core products and services.
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.
Interest costs
– Compare to the competition, Wright Jack 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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.
Lack of clear differentiation of Wright Jack products
– To increase the profitability and margins on the products, Wright Jack needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures, 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wright Jack 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 #10-Dealing with External Pressures can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures | 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 #10-Dealing with External Pressures are -
Building a culture of innovation
– managers at Wright Jack 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wright Jack can use these opportunities to build new business models that can help the communities that Wright Jack operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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.
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.
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.
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.
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 #10-Dealing with External Pressures 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
– Wright Jack can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wright Jack 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.
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.
Threats Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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 #10-Dealing with External Pressures are -
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.
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 Wright Jack in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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.
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 Wright Jack 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. Wright Jack needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
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.
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 #10-Dealing with External Pressures .
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 Wright Jack.
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.
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.
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.
Weighted SWOT Analysis of Corporate Governance: The Jack Wright Series #10-Dealing with External Pressures 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 #10-Dealing with External Pressures 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 #10-Dealing with External Pressures 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 #10-Dealing with External Pressures 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 #10-Dealing with External Pressures 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.