Responsibilities to Society: The Capitalist's Contract, Module Note SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Responsibilities to Society: The Capitalist's Contract, Module Note
Societies face many pressing challenges with serious implications for business leaders. These include pollution and climate change, poverty and income inequality, obesity and public health, and corruption and regulatory capture. This note presents a way of analyzing the economic, legal, and ethical implications of these challenges for business leaders, in their capacities as corporate fiduciaries and citizens. The note offers a unifying framework by organizing major contemporary societal challenges into four "tragedies of the commons" and by developing the notion of a "capitalist's contract" that can help students consider how they, as future business leaders, will respond to these tragedies.
Swot Analysis of "Responsibilities to Society: The Capitalist's Contract, Module Note" written by Karthik Ramanna includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Capitalist's Tragedies facing as an external strategic factors. Some of the topics covered in Responsibilities to Society: The Capitalist's Contract, Module Note case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Responsibilities to Society: The Capitalist's Contract, Module Note casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing energy prices,
supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Responsibilities to Society: The Capitalist's Contract, Module Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Responsibilities to Society: The Capitalist's Contract, Module Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Capitalist's Tragedies, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Capitalist's Tragedies 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 Responsibilities to Society: The Capitalist's Contract, Module Note can be done for the following purposes –
1. Strategic planning using facts provided in Responsibilities to Society: The Capitalist's Contract, Module Note case study
2. Improving business portfolio management of Capitalist's Tragedies
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 Capitalist's Tragedies
Strengths Responsibilities to Society: The Capitalist's Contract, Module Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Capitalist's Tragedies in Responsibilities to Society: The Capitalist's Contract, Module Note Harvard Business Review case study are -
Training and development
– Capitalist's Tragedies has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Responsibilities to Society: The Capitalist's Contract, Module Note 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.
Superior customer experience
– The customer experience strategy of Capitalist's Tragedies 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
– Capitalist's Tragedies is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Capitalist's Tragedies in the sector have low bargaining power. Responsibilities to Society: The Capitalist's Contract, Module Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Capitalist's Tragedies to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Responsibilities to Society: The Capitalist's Contract, Module Note 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.
Effective Research and Development (R&D)
– Capitalist's Tragedies 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 Responsibilities to Society: The Capitalist's Contract, Module Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Capitalist's Tragedies is one of the leading recruiters in the industry. Managers in the Responsibilities to Society: The Capitalist's Contract, Module Note are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Capitalist's Tragedies is present in almost all the verticals within the industry. This has provided firm in Responsibilities to Society: The Capitalist's Contract, Module Note 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
– Capitalist's Tragedies 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 Karthik Ramanna 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.
Innovation driven organization
– Capitalist's Tragedies is one of the most innovative firm in sector. Manager in Responsibilities to Society: The Capitalist's Contract, Module Note 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 Capitalist's Tragedies
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Capitalist's Tragedies does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Capitalist's Tragedies 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 Responsibilities to Society: The Capitalist's Contract, Module Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Responsibilities to Society: The Capitalist's Contract, Module Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Responsibilities to Society: The Capitalist's Contract, Module Note are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Capitalist's Tragedies is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Responsibilities to Society: The Capitalist's Contract, Module Note can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Capitalist's Tragedies supply chain. Even after few cautionary changes mentioned in the HBR case study - Responsibilities to Society: The Capitalist's Contract, Module Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Capitalist's Tragedies vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Capitalist's Tragedies 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.
Capital Spending Reduction
– Even during the low interest decade, Capitalist's Tragedies 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Responsibilities to Society: The Capitalist's Contract, Module Note 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 Capitalist's Tragedies 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Responsibilities to Society: The Capitalist's Contract, Module Note, 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.
Interest costs
– Compare to the competition, Capitalist's Tragedies 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.
Increasing silos among functional specialists
– The organizational structure of Capitalist's Tragedies is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Capitalist's Tragedies needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Capitalist's Tragedies to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Capitalist's Tragedies 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Responsibilities to Society: The Capitalist's Contract, Module Note, is just above the industry average. Capitalist's Tragedies 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Capitalist's Tragedies 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.
Opportunities Responsibilities to Society: The Capitalist's Contract, Module Note | 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 Responsibilities to Society: The Capitalist's Contract, Module Note are -
Loyalty marketing
– Capitalist's Tragedies 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.
Better consumer reach
– The expansion of the 5G network will help Capitalist's Tragedies to increase its market reach. Capitalist's Tragedies 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.
Buying journey improvements
– Capitalist's Tragedies can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Responsibilities to Society: The Capitalist's Contract, Module Note 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.
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. Capitalist's Tragedies can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Capitalist's Tragedies 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 Capitalist's Tragedies to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Capitalist's Tragedies 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.
Creating value in data economy
– The success of analytics program of Capitalist's Tragedies has opened avenues for new revenue streams for the organization in the industry. This can help Capitalist's Tragedies to build a more holistic ecosystem as suggested in the Responsibilities to Society: The Capitalist's Contract, Module Note case study. Capitalist's Tragedies can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Capitalist's Tragedies can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Capitalist's Tragedies 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, Responsibilities to Society: The Capitalist's Contract, Module Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Capitalist's Tragedies can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Capitalist's Tragedies 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 Responsibilities to Society: The Capitalist's Contract, Module Note - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Capitalist's Tragedies to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Capitalist's Tragedies 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.
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 Capitalist's Tragedies in the consumer business. Now Capitalist's Tragedies can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Responsibilities to Society: The Capitalist's Contract, Module Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Responsibilities to Society: The Capitalist's Contract, Module Note are -
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 Capitalist's Tragedies in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Responsibilities to Society: The Capitalist's Contract, Module Note, Capitalist's Tragedies 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 .
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Capitalist's Tragedies will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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. Capitalist's Tragedies can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Capitalist's Tragedies is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Capitalist's Tragedies 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.
Increasing wage structure of Capitalist's Tragedies
– 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 Capitalist's Tragedies.
High dependence on third party suppliers
– Capitalist's Tragedies 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Capitalist's Tragedies 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.
Environmental challenges
– Capitalist's Tragedies 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. Capitalist's Tragedies can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– Capitalist's Tragedies 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.
Weighted SWOT Analysis of Responsibilities to Society: The Capitalist's Contract, Module Note 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 Responsibilities to Society: The Capitalist's Contract, Module Note 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 Responsibilities to Society: The Capitalist's Contract, Module Note 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 Responsibilities to Society: The Capitalist's Contract, Module Note 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 Responsibilities to Society: The Capitalist's Contract, Module Note 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 Capitalist's Tragedies needs to make to build a sustainable competitive advantage.