Rupert Murdoch and News Corp: The Phone Hacking Scandal SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rupert Murdoch and News Corp: The Phone Hacking Scandal
Over fifty years, Rupert Murdoch built one of the most successful media conglomerates in the world. Though there had been criticism of his conduct in the past, it was only in the new millennium that allegations of phone hacking and bribery brought the threat of massive legal action against both Murdoch and his companies.
Swot Analysis of "Rupert Murdoch and News Corp: The Phone Hacking Scandal" written by Robert Crawford, N. Craig Smith includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Murdoch Hacking facing as an external strategic factors. Some of the topics covered in Rupert Murdoch and News Corp: The Phone Hacking Scandal case study are - Strategic Management Strategies, Leadership, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Rupert Murdoch and News Corp: The Phone Hacking Scandal casestudy better are - – increasing commodity prices, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, there is increasing trade war between United States & China,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Rupert Murdoch and News Corp: The Phone Hacking Scandal
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rupert Murdoch and News Corp: The Phone Hacking Scandal case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Murdoch Hacking, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Murdoch Hacking 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal can be done for the following purposes –
1. Strategic planning using facts provided in Rupert Murdoch and News Corp: The Phone Hacking Scandal case study
2. Improving business portfolio management of Murdoch Hacking
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 Murdoch Hacking
Strengths Rupert Murdoch and News Corp: The Phone Hacking Scandal | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Murdoch Hacking in Rupert Murdoch and News Corp: The Phone Hacking Scandal Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Rupert Murdoch and News Corp: The Phone Hacking Scandal 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.
Diverse revenue streams
– Murdoch Hacking is present in almost all the verticals within the industry. This has provided firm in Rupert Murdoch and News Corp: The Phone Hacking Scandal 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
– Murdoch Hacking 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 Robert Crawford, N. Craig Smith 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.
Strong track record of project management
– Murdoch Hacking is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Murdoch Hacking has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rupert Murdoch and News Corp: The Phone Hacking Scandal 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Rupert Murdoch and News Corp: The Phone Hacking Scandal firm has clearly differentiated products in the market place. This has enabled Murdoch Hacking to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Murdoch Hacking to invest into research and development (R&D) and innovation.
Organizational Resilience of Murdoch Hacking
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Murdoch Hacking does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Murdoch Hacking in the sector have low bargaining power. Rupert Murdoch and News Corp: The Phone Hacking Scandal has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Murdoch Hacking to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Murdoch Hacking digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Murdoch Hacking 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.
Ability to lead change in Leadership & Managing People field
– Murdoch Hacking is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Murdoch Hacking in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Murdoch Hacking 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 Murdoch Hacking is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Rupert Murdoch and News Corp: The Phone Hacking Scandal Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Murdoch Hacking has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Murdoch Hacking to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Rupert Murdoch and News Corp: The Phone Hacking Scandal | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rupert Murdoch and News Corp: The Phone Hacking Scandal are -
Low market penetration in new markets
– Outside its home market of Murdoch Hacking, firm in the HBR case study Rupert Murdoch and News Corp: The Phone Hacking Scandal needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Murdoch Hacking 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Murdoch Hacking is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Rupert Murdoch and News Corp: The Phone Hacking Scandal can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal can leverage the sales team experience to cultivate customer relationships as Murdoch Hacking is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Murdoch Hacking 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Murdoch Hacking is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Murdoch Hacking needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Murdoch Hacking to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Rupert Murdoch and News Corp: The Phone Hacking Scandal, it seems that the employees of Murdoch Hacking 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Murdoch Hacking 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Rupert Murdoch and News Corp: The Phone Hacking Scandal, is just above the industry average. Murdoch Hacking 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert Crawford, N. Craig Smith suggests that, Murdoch Hacking 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.
Interest costs
– Compare to the competition, Murdoch Hacking 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.
Opportunities Rupert Murdoch and News Corp: The Phone Hacking Scandal | 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Murdoch Hacking 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, Rupert Murdoch and News Corp: The Phone Hacking Scandal, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Murdoch Hacking can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Murdoch Hacking can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Murdoch Hacking 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Murdoch Hacking to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Murdoch Hacking 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.
Creating value in data economy
– The success of analytics program of Murdoch Hacking has opened avenues for new revenue streams for the organization in the industry. This can help Murdoch Hacking to build a more holistic ecosystem as suggested in the Rupert Murdoch and News Corp: The Phone Hacking Scandal case study. Murdoch Hacking 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, Murdoch Hacking is facing challenges because of the dominance of functional experts in the organization. Rupert Murdoch and News Corp: The Phone Hacking Scandal 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.
Leveraging digital technologies
– Murdoch Hacking 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.
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. Murdoch Hacking can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Murdoch Hacking 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.
Manufacturing automation
– Murdoch Hacking 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.
Loyalty marketing
– Murdoch Hacking 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.
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. Murdoch Hacking 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. Murdoch Hacking 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.
Threats Rupert Murdoch and News Corp: The Phone Hacking Scandal External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rupert Murdoch and News Corp: The Phone Hacking Scandal are -
Environmental challenges
– Murdoch Hacking 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. Murdoch Hacking can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Shortening product life cycle
– it is one of the major threat that Murdoch Hacking 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 Murdoch Hacking in the Leadership & Managing People sector and impact the bottomline 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 Murdoch Hacking business can come under increasing regulations regarding data privacy, data security, etc.
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. Murdoch Hacking 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 Murdoch Hacking
– 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 Murdoch Hacking.
Stagnating economy with rate increase
– Murdoch Hacking 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Murdoch Hacking 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal .
High dependence on third party suppliers
– Murdoch Hacking 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.
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. Murdoch Hacking 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Murdoch Hacking with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Murdoch Hacking needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Murdoch Hacking.
Weighted SWOT Analysis of Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Rupert Murdoch and News Corp: The Phone Hacking Scandal 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 Murdoch Hacking needs to make to build a sustainable competitive advantage.