Axel Springer and the Quest for the Boundaries of Corporate Responsibility SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Axel Springer and the Quest for the Boundaries of Corporate Responsibility
The case deals with the quest for boundaries of corporates' social and environmental responsibility. It poses the question where the responsibility of a company might start or end in a given context and once the company has been able to assess the extent to which it holds itself responsible, what action it ought to take in this regard. In the case of Axel Springer the question is focused on the aspect how much responsibility the company might have for its supply chain: how far and how deep down the supply chain does or should responsibility of a corporation reach? On what facts does this responsibility depend? The publishing house Axel Springer AG serves as good example as it wonders about the scope of their responsibility: After making the strategic decision to move aggressively into the field of digital news and media, the company wonders about their responsibility for digital devices, in particular with respect to conflict minerals that are extracted for the production and use of such electronic devices under highly problematic conditions.
Authors :: Anna Hofmann, Urs Mueller, C.B. Bhattacharya
Swot Analysis of "Axel Springer and the Quest for the Boundaries of Corporate Responsibility" written by Anna Hofmann, Urs Mueller, C.B. Bhattacharya includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Responsibility Axel facing as an external strategic factors. Some of the topics covered in Axel Springer and the Quest for the Boundaries of Corporate Responsibility case study are - Strategic Management Strategies, Social responsibility, Transparency and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Axel Springer and the Quest for the Boundaries of Corporate Responsibility casestudy better are - – geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Axel Springer and the Quest for the Boundaries of Corporate Responsibility
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Axel Springer and the Quest for the Boundaries of Corporate Responsibility case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Responsibility Axel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Responsibility Axel 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility can be done for the following purposes –
1. Strategic planning using facts provided in Axel Springer and the Quest for the Boundaries of Corporate Responsibility case study
2. Improving business portfolio management of Responsibility Axel
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 Responsibility Axel
Strengths Axel Springer and the Quest for the Boundaries of Corporate Responsibility | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Responsibility Axel in Axel Springer and the Quest for the Boundaries of Corporate Responsibility Harvard Business Review case study are -
Ability to recruit top talent
– Responsibility Axel is one of the leading recruiters in the industry. Managers in the Axel Springer and the Quest for the Boundaries of Corporate Responsibility are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Responsibility Axel 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 Responsibility Axel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Axel Springer and the Quest for the Boundaries of Corporate Responsibility Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Responsibility Axel 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Responsibility Axel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Responsibility Axel 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.
Diverse revenue streams
– Responsibility Axel is present in almost all the verticals within the industry. This has provided firm in Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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.
Analytics focus
– Responsibility Axel 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 Anna Hofmann, Urs Mueller, C.B. Bhattacharya 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.
Highly skilled collaborators
– Responsibility Axel 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Responsibility Axel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Responsibility Axel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Responsibility Axel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Responsibility Axel 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 Responsibility Axel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Responsibility Axel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Responsibility Axel 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.
Operational resilience
– The operational resilience strategy in the Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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.
Weaknesses Axel Springer and the Quest for the Boundaries of Corporate Responsibility | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Axel Springer and the Quest for the Boundaries of Corporate Responsibility are -
Interest costs
– Compare to the competition, Responsibility Axel 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 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 Responsibility Axel supply chain. Even after few cautionary changes mentioned in the HBR case study - Axel Springer and the Quest for the Boundaries of Corporate Responsibility, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Responsibility Axel vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Responsibility Axel 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.
No frontier risks strategy
– After analyzing the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility, is just above the industry average. Responsibility Axel 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Anna Hofmann, Urs Mueller, C.B. Bhattacharya suggests that, Responsibility Axel is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Responsibility Axel products
– To increase the profitability and margins on the products, Responsibility Axel needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Responsibility Axel 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 - Axel Springer and the Quest for the Boundaries of Corporate Responsibility should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility can leverage the sales team experience to cultivate customer relationships as Responsibility Axel is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Axel Springer and the Quest for the Boundaries of Corporate Responsibility HBR case study mentions - Responsibility Axel takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Responsibility Axel has relatively successful track record of launching new products.
Opportunities Axel Springer and the Quest for the Boundaries of Corporate Responsibility | 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility are -
Building a culture of innovation
– managers at Responsibility Axel 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.
Loyalty marketing
– Responsibility Axel 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.
Creating value in data economy
– The success of analytics program of Responsibility Axel has opened avenues for new revenue streams for the organization in the industry. This can help Responsibility Axel to build a more holistic ecosystem as suggested in the Axel Springer and the Quest for the Boundaries of Corporate Responsibility case study. Responsibility Axel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Responsibility Axel 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Responsibility Axel can use these opportunities to build new business models that can help the communities that Responsibility Axel operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Responsibility Axel is facing challenges because of the dominance of functional experts in the organization. Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Responsibility Axel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Responsibility Axel 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 Responsibility Axel to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Responsibility Axel to increase its market reach. Responsibility Axel 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.
Learning at scale
– Online learning technologies has now opened space for Responsibility Axel 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.
Developing new processes and practices
– Responsibility Axel 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.
Manufacturing automation
– Responsibility Axel 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Responsibility Axel 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Responsibility Axel 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.
Shortening product life cycle
– it is one of the major threat that Responsibility Axel is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Responsibility Axel business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Responsibility Axel has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Responsibility Axel 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Responsibility Axel 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 Responsibility Axel in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
High dependence on third party suppliers
– Responsibility Axel 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.
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 Responsibility Axel.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Responsibility Axel 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility, Responsibility Axel 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 .
Regulatory challenges
– Responsibility Axel 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.
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. Responsibility Axel 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.
Weighted SWOT Analysis of Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Responsibility Axel needs to make to build a sustainable competitive advantage.