Case Study Description of Martin Marietta: Managing Corporate Ethics (B)
The president of one of Martin Marietta's four main operating companies has learned of procurement irregularities in the company he manages. The problems involve U.S. government contracts the company is working on. After getting legal advice from the company's general counsel, the president must decide whether to disclose the irregularities to the U.S. government. Permits students to consider how managers should react if they learn about potential wrong-doing in their companies. Asks students to consider whether a policy of openness and disclosure should be generally favored and how such a policy should be applied.
Swot Analysis of "Martin Marietta: Managing Corporate Ethics (B)" written by Lynn Sharp Paine includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Irregularities Martin facing as an external strategic factors. Some of the topics covered in Martin Marietta: Managing Corporate Ethics (B) case study are - Strategic Management Strategies, Business law, Conflict, Ethics, Firing, Leadership, Negotiations, Regulation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Martin Marietta: Managing Corporate Ethics (B) casestudy better are - – increasing commodity prices, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, technology disruption, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Martin Marietta: Managing Corporate Ethics (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Martin Marietta: Managing Corporate Ethics (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Irregularities Martin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Irregularities Martin 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 Martin Marietta: Managing Corporate Ethics (B) can be done for the following purposes –
1. Strategic planning using facts provided in Martin Marietta: Managing Corporate Ethics (B) case study
2. Improving business portfolio management of Irregularities Martin
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 Irregularities Martin
Strengths Martin Marietta: Managing Corporate Ethics (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Irregularities Martin in Martin Marietta: Managing Corporate Ethics (B) Harvard Business Review case study are -
Innovation driven organization
– Irregularities Martin is one of the most innovative firm in sector. Manager in Martin Marietta: Managing Corporate Ethics (B) 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
– Irregularities Martin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Martin Marietta: Managing Corporate Ethics (B) 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.
Learning organization
- Irregularities Martin 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 Irregularities Martin is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Martin Marietta: Managing Corporate Ethics (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Irregularities Martin 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 Martin Marietta: Managing Corporate Ethics (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Irregularities Martin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Irregularities Martin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Irregularities Martin in the sector have low bargaining power. Martin Marietta: Managing Corporate Ethics (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Irregularities Martin to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Irregularities Martin 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 Martin Marietta: Managing Corporate Ethics (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Irregularities Martin in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Irregularities Martin 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.
Analytics focus
– Irregularities Martin 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 Lynn Sharp Paine 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Martin Marietta: Managing Corporate Ethics (B) firm has clearly differentiated products in the market place. This has enabled Irregularities Martin to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Irregularities Martin to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Irregularities Martin has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Martin Marietta: Managing Corporate Ethics (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Martin Marietta: Managing Corporate Ethics (B) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Martin Marietta: Managing Corporate Ethics (B) 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 Irregularities Martin 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Martin Marietta: Managing Corporate Ethics (B), it seems that the employees of Irregularities Martin 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Irregularities Martin is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Martin Marietta: Managing Corporate Ethics (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Martin Marietta: Managing Corporate Ethics (B), in the dynamic environment Irregularities Martin has struggled to respond to the nimble upstart competition. Irregularities Martin has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Irregularities Martin, firm in the HBR case study Martin Marietta: Managing Corporate Ethics (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Irregularities Martin has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Irregularities Martin even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Interest costs
– Compare to the competition, Irregularities Martin 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.
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 Irregularities Martin supply chain. Even after few cautionary changes mentioned in the HBR case study - Martin Marietta: Managing Corporate Ethics (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Irregularities Martin vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Irregularities Martin 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 - Martin Marietta: Managing Corporate Ethics (B) should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Martin Marietta: Managing Corporate Ethics (B) 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 Irregularities Martin has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Martin Marietta: Managing Corporate Ethics (B) HBR case study mentions - Irregularities Martin 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.
Opportunities Martin Marietta: Managing Corporate Ethics (B) | 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 Martin Marietta: Managing Corporate Ethics (B) are -
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 Irregularities Martin in the consumer business. Now Irregularities Martin can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Irregularities Martin has opened avenues for new revenue streams for the organization in the industry. This can help Irregularities Martin to build a more holistic ecosystem as suggested in the Martin Marietta: Managing Corporate Ethics (B) case study. Irregularities Martin can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Irregularities Martin can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Martin Marietta: Managing Corporate Ethics (B) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Irregularities Martin 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
– Irregularities Martin 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 Martin Marietta: Managing Corporate Ethics (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Irregularities Martin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Irregularities Martin 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. Irregularities Martin can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Irregularities Martin 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Irregularities Martin 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 Irregularities Martin to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Irregularities Martin 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, Martin Marietta: Managing Corporate Ethics (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Irregularities Martin is facing challenges because of the dominance of functional experts in the organization. Martin Marietta: Managing Corporate Ethics (B) 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.
Building a culture of innovation
– managers at Irregularities Martin 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
– Irregularities Martin 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.
Threats Martin Marietta: Managing Corporate Ethics (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Martin Marietta: Managing Corporate Ethics (B) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Irregularities Martin 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.
Stagnating economy with rate increase
– Irregularities Martin 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.
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.
Shortening product life cycle
– it is one of the major threat that Irregularities Martin is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Irregularities Martin 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 Martin Marietta: Managing Corporate Ethics (B) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Martin Marietta: Managing Corporate Ethics (B), Irregularities Martin 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 .
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 Irregularities Martin business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Irregularities Martin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Irregularities Martin has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Irregularities Martin 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.
Increasing wage structure of Irregularities Martin
– 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 Irregularities Martin.
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 Irregularities Martin.
Environmental challenges
– Irregularities Martin 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. Irregularities Martin can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Martin Marietta: Managing Corporate Ethics (B) 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 Martin Marietta: Managing Corporate Ethics (B) 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 Martin Marietta: Managing Corporate Ethics (B) 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 Martin Marietta: Managing Corporate Ethics (B) 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 Martin Marietta: Managing Corporate Ethics (B) 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 Irregularities Martin needs to make to build a sustainable competitive advantage.
