The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd
This case is part of the suite of teaching materials which employs China as an illustration of the managerial implications resulted from the so-called War for Talent, and is intended to generate insights into "how to best play the talent game" in China, or elsewhere. We aim to generate an interactive and rich class discussion of the issues raised among seasoned business practitioners, by adopting a variety of interesting teaching formats: an opening note, four cases, an "appraisal exercise" and a video. In particular, this case features a state-controlled listed company which is a horizontally-diversified national champion involved in such business categories as tires, batteries, soap, printing ink and real estate, with export sales accounting for 45% of its total sales. The company aspires to increase its international presence and, in particular, to turn its tire operations into "global factories," while building its "Double Coin" domestic brand into a global one. The enterprise's board chairman, Dr Fan Xian, needs experienced managers for its domestic and overseas operations, especially in the areas of general management, finance, and marketing and sales. To him, loyalty is the most important criteria when appraising job candidates. His challenge is to find loyal and competent managers and match them with the right positions in China and overseas. Learning objectives: Among the critical issues in talent management to be addressed in this suite of teaching materials, the following are the most central for the learning of class participants: Since sizing up potential candidates is the first and most fundamental step of talent management, what characteristics should a business leader look for to meet the competency requirements today and to prepare for the future? What would be some creative and feasible practices to source, attract, develop and retain management talent?
Swot Analysis of "The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd" written by William A. Fischer, Rebecca Chung includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Talent China facing as an external strategic factors. Some of the topics covered in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd case study are - Strategic Management Strategies, Talent management and Organizational Development.
Some of the macro environment factors that can be used to understand the The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd casestudy better are - – wage bills are increasing, increasing commodity prices, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, technology disruption, geopolitical disruptions, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Talent China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Talent China 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd can be done for the following purposes –
1. Strategic planning using facts provided in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd case study
2. Improving business portfolio management of Talent China
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Talent China
Strengths The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Talent China in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Talent China 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 Talent China in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Talent China 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Talent China 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 Talent China is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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.
Highly skilled collaborators
– Talent China 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Talent China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Talent China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Talent China is one of the most innovative firm in sector. Manager in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Talent China is present in almost all the verticals within the industry. This has provided firm in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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.
Ability to recruit top talent
– Talent China is one of the leading recruiters in the industry. Managers in the The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Talent China
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Talent China does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Talent China 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.
Training and development
– Talent China has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd are -
High operating costs
– Compare to the competitors, firm in the HBR case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 Talent China 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Talent China 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. Talent China 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.
No frontier risks strategy
– After analyzing the HBR case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd, it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Slow to strategic competitive environment developments
– As The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd HBR case study mentions - Talent China 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd, it seems that the employees of Talent China 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.
Increasing silos among functional specialists
– The organizational structure of Talent China is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Talent China needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Talent China to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Talent China 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 cash cycle compare to competitors
Talent China has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Talent China 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.
Skills based hiring
– The stress on hiring functional specialists at Talent China 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd, in the dynamic environment Talent China has struggled to respond to the nimble upstart competition. Talent China has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd | 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd are -
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 Talent China 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.
Buying journey improvements
– Talent China can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Talent China 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. Talent China 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.
Using analytics as competitive advantage
– Talent China 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Talent China to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Talent China 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 Organizational Development segment.
Learning at scale
– Online learning technologies has now opened space for Talent China 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.
Leveraging digital technologies
– Talent China 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Talent China can use these opportunities to build new business models that can help the communities that Talent China operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Manufacturing automation
– Talent China can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
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. Talent China can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Talent China can develop new processes and procedures in Organizational Development 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Talent China 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, The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Talent China to increase its market reach. Talent China 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.
Threats The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd are -
Technology acceleration in Forth Industrial Revolution
– Talent China has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Talent China needs to keep up with the evolution of technology in the Organizational Development 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.
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. Talent China 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 Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Talent China can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Talent China in the Organizational Development industry. The Organizational Development 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd, Talent China may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Talent China with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Talent China 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.
Regulatory challenges
– Talent China 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 Organizational Development industry regulations.
Consumer confidence and its impact on Talent China 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.
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. Talent China needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Talent China is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Talent China
– 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 Talent China.
Weighted SWOT Analysis of The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 The War for Management Talent in China: Shanghai Tyre & Rubber Co. Ltd 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 Talent China needs to make to build a sustainable competitive advantage.