Board of Directors at Morgan Stanley Dean Witter (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Board of Directors at Morgan Stanley Dean Witter (A)
Examines the resignation of Philip Purcell as chairman and CEO of Morgan Stanley as a result of poor performance and cultural problems, as well as his relationship to the board of directors.
Swot Analysis of "Board of Directors at Morgan Stanley Dean Witter (A)" written by Jay W. Lorsch, Ashley C. Robertson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Stanley Morgan facing as an external strategic factors. Some of the topics covered in Board of Directors at Morgan Stanley Dean Witter (A) case study are - Strategic Management Strategies, Leadership, Organizational culture, Professional transitions and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Board of Directors at Morgan Stanley Dean Witter (A) casestudy better are - – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Board of Directors at Morgan Stanley Dean Witter (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Board of Directors at Morgan Stanley Dean Witter (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Stanley Morgan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Stanley Morgan 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 Board of Directors at Morgan Stanley Dean Witter (A) can be done for the following purposes –
1. Strategic planning using facts provided in Board of Directors at Morgan Stanley Dean Witter (A) case study
2. Improving business portfolio management of Stanley Morgan
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 Stanley Morgan
Strengths Board of Directors at Morgan Stanley Dean Witter (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Stanley Morgan in Board of Directors at Morgan Stanley Dean Witter (A) Harvard Business Review case study are -
Successful track record of launching new products
– Stanley Morgan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Stanley Morgan 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.
Organizational Resilience of Stanley Morgan
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Stanley Morgan does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– Board of Directors at Morgan Stanley Dean Witter (A) firm has clearly differentiated products in the market place. This has enabled Stanley Morgan to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Stanley Morgan to invest into research and development (R&D) and innovation.
Innovation driven organization
– Stanley Morgan is one of the most innovative firm in sector. Manager in Board of Directors at Morgan Stanley Dean Witter (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Stanley Morgan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Board of Directors at Morgan Stanley Dean Witter (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.
Cross disciplinary teams
– Horizontal connected teams at the Stanley Morgan 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.
Effective Research and Development (R&D)
– Stanley Morgan 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 Board of Directors at Morgan Stanley Dean Witter (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.
Low bargaining power of suppliers
– Suppliers of Stanley Morgan in the sector have low bargaining power. Board of Directors at Morgan Stanley Dean Witter (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Stanley Morgan to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Stanley Morgan 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 Stanley Morgan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Board of Directors at Morgan Stanley Dean Witter (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Stanley Morgan is present in almost all the verticals within the industry. This has provided firm in Board of Directors at Morgan Stanley Dean Witter (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.
Analytics focus
– Stanley Morgan 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 Jay W. Lorsch, Ashley C. Robertson 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.
Ability to recruit top talent
– Stanley Morgan is one of the leading recruiters in the industry. Managers in the Board of Directors at Morgan Stanley Dean Witter (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Board of Directors at Morgan Stanley Dean Witter (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Board of Directors at Morgan Stanley Dean Witter (A) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Board of Directors at Morgan Stanley Dean Witter (A), it seems that the employees of Stanley Morgan 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Board of Directors at Morgan Stanley Dean Witter (A), in the dynamic environment Stanley Morgan has struggled to respond to the nimble upstart competition. Stanley Morgan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Stanley Morgan 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.
Lack of clear differentiation of Stanley Morgan products
– To increase the profitability and margins on the products, Stanley Morgan needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Board of Directors at Morgan Stanley Dean Witter (A) 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 Stanley Morgan 's lucrative customers.
High cash cycle compare to competitors
Stanley Morgan 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.
Aligning sales with marketing
– It come across in the case study Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (A) can leverage the sales team experience to cultivate customer relationships as Stanley Morgan is planning to shift buying processes online.
Need for greater diversity
– Stanley Morgan 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.
Products dominated business model
– Even though Stanley Morgan has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Board of Directors at Morgan Stanley Dean Witter (A) should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Jay W. Lorsch, Ashley C. Robertson suggests that, Stanley Morgan 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Stanley Morgan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Board of Directors at Morgan Stanley Dean Witter (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (A) are -
Buying journey improvements
– Stanley Morgan can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Board of Directors at Morgan Stanley Dean Witter (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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Stanley Morgan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Stanley Morgan has opened avenues for new revenue streams for the organization in the industry. This can help Stanley Morgan to build a more holistic ecosystem as suggested in the Board of Directors at Morgan Stanley Dean Witter (A) case study. Stanley Morgan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Stanley Morgan is facing challenges because of the dominance of functional experts in the organization. Board of Directors at Morgan Stanley Dean Witter (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.
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 Stanley Morgan in the consumer business. Now Stanley Morgan can target international markets with far fewer capital restrictions requirements than the existing system.
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 Stanley Morgan 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Stanley Morgan 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, Board of Directors at Morgan Stanley Dean Witter (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Stanley Morgan 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.
Manufacturing automation
– Stanley Morgan can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Better consumer reach
– The expansion of the 5G network will help Stanley Morgan to increase its market reach. Stanley Morgan 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Stanley Morgan 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.
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. Stanley Morgan can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Stanley Morgan 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 Board of Directors at Morgan Stanley Dean Witter (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Stanley Morgan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Board of Directors at Morgan Stanley Dean Witter (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Board of Directors at Morgan Stanley Dean Witter (A) are -
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. Stanley Morgan can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Stanley Morgan
– 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 Stanley Morgan.
Technology acceleration in Forth Industrial Revolution
– Stanley Morgan has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Stanley Morgan 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Board of Directors at Morgan Stanley Dean Witter (A), Stanley Morgan 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Stanley Morgan 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 Board of Directors at Morgan Stanley Dean Witter (A) .
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.
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 Stanley Morgan 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. Stanley Morgan needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Stanley Morgan 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.
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 Stanley Morgan.
Shortening product life cycle
– it is one of the major threat that Stanley Morgan is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Stanley Morgan in the Leadership & Managing People sector and impact the bottomline of the organization.
Consumer confidence and its impact on Stanley Morgan 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.
Weighted SWOT Analysis of Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (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 Board of Directors at Morgan Stanley Dean Witter (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 Stanley Morgan needs to make to build a sustainable competitive advantage.