Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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 (Abridged)
This abridged 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 :: C.B. Bhattacharya, Anna Hofmann, Urs Mueller
Swot Analysis of "Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged)" written by C.B. Bhattacharya, Anna Hofmann, Urs Mueller 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 (Abridged) case study are - Strategic Management Strategies, 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 (Abridged) casestudy better are - – challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, wage bills are increasing, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, technology disruption,
customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged)
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 (Abridged) 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 (Abridged) 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 (Abridged) 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 (Abridged) | 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 (Abridged) Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Responsibility Axel 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.
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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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.
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 (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 C.B. Bhattacharya, Anna Hofmann, Urs Mueller 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.
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 (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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 (Abridged) 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.
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 (Abridged) 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.
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 (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Weaknesses Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) | 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 (Abridged) are -
Slow to strategic competitive environment developments
– As Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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.
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 (Abridged), 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 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 (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged), 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.
Aligning sales with marketing
– It come across in the case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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 (Abridged) can leverage the sales team experience to cultivate customer relationships as Responsibility Axel is planning to shift buying processes online.
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.
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.
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 (Abridged), 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.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged), 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.
Opportunities Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) | 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 (Abridged) are -
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.
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 (Abridged) - 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.
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.
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.
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 (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Responsibility Axel can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Responsibility Axel can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
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.
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.
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.
Threats Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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 (Abridged) are -
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.
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 (Abridged), 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 .
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.
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.
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.
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.
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.
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 (Abridged) .
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.
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.
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.
Weighted SWOT Analysis of Axel Springer and the Quest for the Boundaries of Corporate Responsibility (Abridged) 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 (Abridged) 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 (Abridged) 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 (Abridged) 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 (Abridged) 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.
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