Cynthia Cooper and WorldCom (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cynthia Cooper and WorldCom (A)
This case details the in-house discovery of WorldCom's fraudulent accounting practices and the ethical considerations employees faced during the investigation. In May 2002, Cynthia Cooper, vice president of internal audit for WorldCom, the second-largest telecommunications company in the United States, faced an extremely difficult decision. After months of sleuthing, initially not sure what they were seeking, she and two of her employees at the Clinton, Mississippi, WorldCom headquarters had discovered almost $4 billion in questionable accounting entries. The specter of the Enron collapse in the fall of 2001 still loomed large, and Cooper realized that the situation at WorldCom might even be a far greater financial debacle. If this fraud were revealed, much would be at stake: the company's credibility, the fate of thousands of employees, and pension funds loaded with WorldCom stock.
Swot Analysis of "Cynthia Cooper and WorldCom (A)" written by Jenny Mead, Pat Werhane includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Worldcom Cooper facing as an external strategic factors. Some of the topics covered in Cynthia Cooper and WorldCom (A) case study are - Strategic Management Strategies, Corporate governance, Entrepreneurship, Ethics, Leadership, Mergers & acquisitions and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Cynthia Cooper and WorldCom (A) casestudy better are - – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Cynthia Cooper and WorldCom (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cynthia Cooper and WorldCom (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Worldcom Cooper, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Worldcom Cooper 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 Cynthia Cooper and WorldCom (A) can be done for the following purposes –
1. Strategic planning using facts provided in Cynthia Cooper and WorldCom (A) case study
2. Improving business portfolio management of Worldcom Cooper
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 Worldcom Cooper
Strengths Cynthia Cooper and WorldCom (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Worldcom Cooper in Cynthia Cooper and WorldCom (A) Harvard Business Review case study are -
High brand equity
– Worldcom Cooper has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Worldcom Cooper to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Worldcom Cooper 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 Cynthia Cooper and WorldCom (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Worldcom Cooper 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 Jenny Mead, Pat Werhane 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Worldcom Cooper digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Worldcom Cooper 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.
Superior customer experience
– The customer experience strategy of Worldcom Cooper in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Worldcom Cooper 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 Cynthia Cooper and WorldCom (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Worldcom Cooper is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Worldcom Cooper is present in almost all the verticals within the industry. This has provided firm in Cynthia Cooper and WorldCom (A) 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Cynthia Cooper and WorldCom (A) firm has clearly differentiated products in the market place. This has enabled Worldcom Cooper to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Worldcom Cooper to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Worldcom Cooper 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.
Successful track record of launching new products
– Worldcom Cooper has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Worldcom Cooper 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.
Training and development
– Worldcom Cooper has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cynthia Cooper and WorldCom (A) 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.
Weaknesses Cynthia Cooper and WorldCom (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cynthia Cooper and WorldCom (A) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cynthia Cooper and WorldCom (A), is just above the industry average. Worldcom Cooper 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.
Low market penetration in new markets
– Outside its home market of Worldcom Cooper, firm in the HBR case study Cynthia Cooper and WorldCom (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cynthia Cooper and WorldCom (A) 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 Worldcom Cooper has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Cynthia Cooper and WorldCom (A) 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 Cynthia Cooper and WorldCom (A) can leverage the sales team experience to cultivate customer relationships as Worldcom Cooper is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Worldcom Cooper 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.
Interest costs
– Compare to the competition, Worldcom Cooper 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Worldcom Cooper 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.
Slow to strategic competitive environment developments
– As Cynthia Cooper and WorldCom (A) HBR case study mentions - Worldcom Cooper 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 cash cycle compare to competitors
Worldcom Cooper 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
– Worldcom Cooper 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cynthia Cooper and WorldCom (A), in the dynamic environment Worldcom Cooper has struggled to respond to the nimble upstart competition. Worldcom Cooper has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Cynthia Cooper and WorldCom (A) | 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 Cynthia Cooper and WorldCom (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Worldcom Cooper 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.
Using analytics as competitive advantage
– Worldcom Cooper 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 Cynthia Cooper and WorldCom (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Worldcom Cooper to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Worldcom Cooper 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. Worldcom Cooper 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Worldcom Cooper is facing challenges because of the dominance of functional experts in the organization. Cynthia Cooper and WorldCom (A) 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.
Better consumer reach
– The expansion of the 5G network will help Worldcom Cooper to increase its market reach. Worldcom Cooper 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Worldcom Cooper can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Worldcom Cooper can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cynthia Cooper and WorldCom (A) 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.
Creating value in data economy
– The success of analytics program of Worldcom Cooper has opened avenues for new revenue streams for the organization in the industry. This can help Worldcom Cooper to build a more holistic ecosystem as suggested in the Cynthia Cooper and WorldCom (A) case study. Worldcom Cooper can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Worldcom Cooper 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 Worldcom Cooper to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Worldcom Cooper 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
– Worldcom Cooper 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Worldcom Cooper 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, Worldcom Cooper 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 Cynthia Cooper and WorldCom (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cynthia Cooper and WorldCom (A) are -
Technology acceleration in Forth Industrial Revolution
– Worldcom Cooper has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Worldcom Cooper 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.
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 Worldcom Cooper.
Stagnating economy with rate increase
– Worldcom Cooper 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 Worldcom Cooper in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Worldcom Cooper can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Worldcom Cooper needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing wage structure of Worldcom Cooper
– 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 Worldcom Cooper.
Shortening product life cycle
– it is one of the major threat that Worldcom Cooper 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 Worldcom Cooper business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Worldcom Cooper 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. Worldcom Cooper 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 Worldcom Cooper 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.
High dependence on third party suppliers
– Worldcom Cooper 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Worldcom Cooper with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Cynthia Cooper and WorldCom (A) 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 Cynthia Cooper and WorldCom (A) 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 Cynthia Cooper and WorldCom (A) 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 Cynthia Cooper and WorldCom (A) 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 Cynthia Cooper and WorldCom (A) 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 Worldcom Cooper needs to make to build a sustainable competitive advantage.