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 - – there is backlash against globalization, increasing commodity prices, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
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.
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.
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.
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.
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.
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.
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.
Strong track record of project management
– Responsibility Axel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Responsibility Axel is one of the most innovative firm in sector. Manager in Axel Springer and the Quest for the Boundaries of Corporate Responsibility Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Responsibility Axel 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.
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.
Organizational Resilience of Responsibility Axel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Responsibility Axel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
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.
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 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Responsibility Axel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Responsibility Axel 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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Responsibility Axel 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.
Increasing silos among functional specialists
– The organizational structure of Responsibility Axel is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Responsibility Axel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Responsibility Axel to focus more on services rather than just following the product oriented approach.
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.
Need for greater diversity
– Responsibility Axel has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 -
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 Responsibility Axel in the consumer business. Now Responsibility Axel can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Responsibility Axel 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, Axel Springer and the Quest for the Boundaries of Corporate Responsibility, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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 Responsibility Axel 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Responsibility Axel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Buying journey improvements
– Responsibility Axel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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.
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.
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.
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.
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. Responsibility Axel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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 -
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.
Stagnating economy with rate increase
– Responsibility Axel 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.
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.
Consumer confidence and its impact on Responsibility Axel 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 Responsibility Axel 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. Responsibility Axel needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
Increasing wage structure of Responsibility Axel
– 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 Responsibility Axel.
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.
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 .
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.