The Ethical Commitment to Compliance: Building Value-Based Cultures SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Ethical Commitment to Compliance: Building Value-Based Cultures
The 2004 amendments to the Federal Sentencing Guidelines state that organizations should "create a culture that encourages ethical conduct and a commitment to comply with the law." This article presents data that show that procedural fairness-which concerns the objectivity and consistency of organizational procedures-is an essential component of such a culture. The data show that employees tend to believe that procedurally just organizations are legitimate. This belief in legitimacy, in turn, encourages them to act ethically and to comply with rules. This is a "market" approach to compliance because employees "buy in" to the organization, its values, and rules. Command-and-control approaches based on reward-and-punishment programs are significantly less effective, suggesting that rigid, rules-based approaches such as Sarbanes-Oxley are counter-productive. Procedural justice encourages employees to go beyond their job descriptions to create organizational value. This value creation aspect of procedural justice suggests a new role for ethics officers. Finally, this article includes an instrument organizations can use to measure their own level of procedural justice as well as a set of national benchmarks.
Swot Analysis of "The Ethical Commitment to Compliance: Building Value-Based Cultures" written by Tom Tyler, John Dienhart, Terry Thomas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Procedural Justice facing as an external strategic factors. Some of the topics covered in The Ethical Commitment to Compliance: Building Value-Based Cultures case study are - Strategic Management Strategies, Corporate communications, Organizational culture, Regulation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The Ethical Commitment to Compliance: Building Value-Based Cultures casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of The Ethical Commitment to Compliance: Building Value-Based Cultures
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Ethical Commitment to Compliance: Building Value-Based Cultures case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Procedural Justice, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Procedural Justice 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 The Ethical Commitment to Compliance: Building Value-Based Cultures can be done for the following purposes –
1. Strategic planning using facts provided in The Ethical Commitment to Compliance: Building Value-Based Cultures case study
2. Improving business portfolio management of Procedural Justice
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Procedural Justice
Strengths The Ethical Commitment to Compliance: Building Value-Based Cultures | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Procedural Justice in The Ethical Commitment to Compliance: Building Value-Based Cultures Harvard Business Review case study are -
Diverse revenue streams
– Procedural Justice is present in almost all the verticals within the industry. This has provided firm in The Ethical Commitment to Compliance: Building Value-Based Cultures 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Procedural Justice digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Procedural Justice 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.
Effective Research and Development (R&D)
– Procedural Justice 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 The Ethical Commitment to Compliance: Building Value-Based Cultures - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the The Ethical Commitment to Compliance: Building Value-Based Cultures 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.
Organizational Resilience of Procedural Justice
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Procedural Justice does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Procedural Justice is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Procedural Justice 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 Procedural Justice is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Ethical Commitment to Compliance: Building Value-Based Cultures Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Procedural Justice 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.
Training and development
– Procedural Justice has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Ethical Commitment to Compliance: Building Value-Based Cultures Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Procedural Justice in the sector have low bargaining power. The Ethical Commitment to Compliance: Building Value-Based Cultures has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Procedural Justice to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– The Ethical Commitment to Compliance: Building Value-Based Cultures firm has clearly differentiated products in the market place. This has enabled Procedural Justice to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Procedural Justice to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Procedural Justice is one of the leading recruiters in the industry. Managers in the The Ethical Commitment to Compliance: Building Value-Based Cultures are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses The Ethical Commitment to Compliance: Building Value-Based Cultures | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Ethical Commitment to Compliance: Building Value-Based Cultures are -
Slow decision making process
– As mentioned earlier in the report, Procedural Justice 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. Procedural Justice 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.
Slow to strategic competitive environment developments
– As The Ethical Commitment to Compliance: Building Value-Based Cultures HBR case study mentions - Procedural Justice 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.
Skills based hiring
– The stress on hiring functional specialists at Procedural Justice 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Ethical Commitment to Compliance: Building Value-Based Cultures, it seems that the employees of Procedural Justice 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.
Low market penetration in new markets
– Outside its home market of Procedural Justice, firm in the HBR case study The Ethical Commitment to Compliance: Building Value-Based Cultures needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Procedural Justice supply chain. Even after few cautionary changes mentioned in the HBR case study - The Ethical Commitment to Compliance: Building Value-Based Cultures, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Procedural Justice vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Procedural Justice is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Ethical Commitment to Compliance: Building Value-Based Cultures can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Procedural Justice 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 - The Ethical Commitment to Compliance: Building Value-Based Cultures should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study The Ethical Commitment to Compliance: Building Value-Based Cultures 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 Procedural Justice 's lucrative customers.
Aligning sales with marketing
– It come across in the case study The Ethical Commitment to Compliance: Building Value-Based Cultures 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 The Ethical Commitment to Compliance: Building Value-Based Cultures can leverage the sales team experience to cultivate customer relationships as Procedural Justice is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Procedural Justice 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.
Opportunities The Ethical Commitment to Compliance: Building Value-Based Cultures | 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 The Ethical Commitment to Compliance: Building Value-Based Cultures are -
Manufacturing automation
– Procedural Justice can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Learning at scale
– Online learning technologies has now opened space for Procedural Justice 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Procedural Justice is facing challenges because of the dominance of functional experts in the organization. The Ethical Commitment to Compliance: Building Value-Based Cultures 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.
Developing new processes and practices
– Procedural Justice can develop new processes and procedures in Leadership & Managing People 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Procedural Justice can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Procedural Justice can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Procedural Justice 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.
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 Procedural Justice 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.
Building a culture of innovation
– managers at Procedural Justice 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 Leadership & Managing People segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Procedural Justice can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Ethical Commitment to Compliance: Building Value-Based Cultures, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Procedural Justice can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Ethical Commitment to Compliance: Building Value-Based Cultures 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 Procedural Justice 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 Procedural Justice to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Procedural Justice to increase its market reach. Procedural Justice 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.
Threats The Ethical Commitment to Compliance: Building Value-Based Cultures External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Ethical Commitment to Compliance: Building Value-Based Cultures are -
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 Procedural Justice.
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 Procedural Justice business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Procedural Justice with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Procedural Justice 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 The Ethical Commitment to Compliance: Building Value-Based Cultures .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Procedural Justice in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 wage structure of Procedural Justice
– 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 Procedural Justice.
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. Procedural Justice needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Procedural Justice in the Leadership & Managing People sector and impact the bottomline of the organization.
Regulatory challenges
– Procedural Justice 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 Leadership & Managing People industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Ethical Commitment to Compliance: Building Value-Based Cultures, Procedural Justice may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Technology acceleration in Forth Industrial Revolution
– Procedural Justice has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Procedural Justice needs to keep up with the evolution of technology in the Leadership & Managing People 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 The Ethical Commitment to Compliance: Building Value-Based Cultures 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 The Ethical Commitment to Compliance: Building Value-Based Cultures 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 The Ethical Commitment to Compliance: Building Value-Based Cultures 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 The Ethical Commitment to Compliance: Building Value-Based Cultures 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 The Ethical Commitment to Compliance: Building Value-Based Cultures 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 Procedural Justice needs to make to build a sustainable competitive advantage.