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 - – increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
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.
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.
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.
Training and development
– Responsibility Axel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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.
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.
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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Axel Springer and the Quest for the Boundaries of Corporate Responsibility firm has clearly differentiated products in the market place. This has enabled Responsibility Axel to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Responsibility Axel to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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 -
Workers concerns about automation
– As automation is fast increasing in the segment, Responsibility Axel needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High 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 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 operating costs
– Compare to the competitors, firm in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility 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 Responsibility Axel 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility, in the dynamic environment Responsibility Axel has struggled to respond to the nimble upstart competition. Responsibility Axel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Responsibility Axel 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. Responsibility Axel 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility, it seems that the employees of Responsibility Axel 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.
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.
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.
Low market penetration in new markets
– Outside its home market of Responsibility Axel, firm in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
Using analytics as competitive advantage
– Responsibility Axel has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Responsibility Axel to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
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 -
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 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.
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.
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.
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.
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.
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.
Environmental challenges
– Responsibility Axel needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Responsibility Axel can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Responsibility Axel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 .
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.
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.
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.
