Leadership in Corporate Reporting Policy at Tata Steel SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Leadership in Corporate Reporting Policy at Tata Steel
The case describes the challenges faced by Tata Steel, India's largest private-sector steel company, as it transitions from Indian GAAP to IFRS. It first describes those challenges in the context of the institutional voids that make IFRS adoption difficult in India. The case then focuses on how companies in emerging markets might represent their interests at the IASB, the standard-setting body for IFRS.
Swot Analysis of "Leadership in Corporate Reporting Policy at Tata Steel" written by Karthik Ramanna, Rachna Tahilyani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ifrs Steel facing as an external strategic factors. Some of the topics covered in Leadership in Corporate Reporting Policy at Tata Steel case study are - Strategic Management Strategies, Corporate governance, Globalization, Government, Leadership and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Leadership in Corporate Reporting Policy at Tata Steel casestudy better are - – there is increasing trade war between United States & China, increasing commodity prices, increasing household debt because of falling income levels, technology disruption, wage bills are increasing, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Leadership in Corporate Reporting Policy at Tata Steel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Leadership in Corporate Reporting Policy at Tata Steel case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ifrs Steel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ifrs Steel 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 Leadership in Corporate Reporting Policy at Tata Steel can be done for the following purposes –
1. Strategic planning using facts provided in Leadership in Corporate Reporting Policy at Tata Steel case study
2. Improving business portfolio management of Ifrs Steel
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ifrs Steel
Strengths Leadership in Corporate Reporting Policy at Tata Steel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ifrs Steel in Leadership in Corporate Reporting Policy at Tata Steel Harvard Business Review case study are -
Sustainable margins compare to other players in Finance & Accounting industry
– Leadership in Corporate Reporting Policy at Tata Steel firm has clearly differentiated products in the market place. This has enabled Ifrs Steel to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Ifrs Steel to invest into research and development (R&D) and innovation.
Analytics focus
– Ifrs Steel 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, Rachna Tahilyani can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Ifrs Steel is one of the leading recruiters in the industry. Managers in the Leadership in Corporate Reporting Policy at Tata Steel are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Ifrs Steel 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 Ifrs Steel in the sector have low bargaining power. Leadership in Corporate Reporting Policy at Tata Steel has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ifrs Steel to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Finance & Accounting field
– Ifrs Steel 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 Ifrs Steel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Ifrs Steel 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 Ifrs Steel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Leadership in Corporate Reporting Policy at Tata Steel Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Ifrs Steel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ifrs Steel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Ifrs Steel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Leadership in Corporate Reporting Policy at Tata Steel 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.
Innovation driven organization
– Ifrs Steel is one of the most innovative firm in sector. Manager in Leadership in Corporate Reporting Policy at Tata Steel Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Ifrs Steel 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 Leadership in Corporate Reporting Policy at Tata Steel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Leadership in Corporate Reporting Policy at Tata Steel are -
Capital Spending Reduction
– Even during the low interest decade, Ifrs Steel 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Ifrs Steel 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.
Slow to strategic competitive environment developments
– As Leadership in Corporate Reporting Policy at Tata Steel HBR case study mentions - Ifrs Steel 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Leadership in Corporate Reporting Policy at Tata Steel, in the dynamic environment Ifrs Steel has struggled to respond to the nimble upstart competition. Ifrs Steel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Leadership in Corporate Reporting Policy at Tata Steel, it seems that the employees of Ifrs Steel 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Karthik Ramanna, Rachna Tahilyani suggests that, Ifrs Steel 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Leadership in Corporate Reporting Policy at Tata Steel 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 Ifrs Steel has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Ifrs Steel 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.
High cash cycle compare to competitors
Ifrs Steel 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.
Low market penetration in new markets
– Outside its home market of Ifrs Steel, firm in the HBR case study Leadership in Corporate Reporting Policy at Tata Steel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ifrs Steel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Leadership in Corporate Reporting Policy at Tata Steel can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Leadership in Corporate Reporting Policy at Tata Steel | 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 Leadership in Corporate Reporting Policy at Tata Steel are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ifrs Steel is facing challenges because of the dominance of functional experts in the organization. Leadership in Corporate Reporting Policy at Tata Steel case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Ifrs Steel in the consumer business. Now Ifrs Steel can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Ifrs Steel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Leadership in Corporate Reporting Policy at Tata Steel 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.
Better consumer reach
– The expansion of the 5G network will help Ifrs Steel to increase its market reach. Ifrs Steel 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ifrs Steel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Ifrs Steel can develop new processes and procedures in Finance & Accounting 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, Ifrs Steel 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, Leadership in Corporate Reporting Policy at Tata Steel, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Ifrs Steel has opened avenues for new revenue streams for the organization in the industry. This can help Ifrs Steel to build a more holistic ecosystem as suggested in the Leadership in Corporate Reporting Policy at Tata Steel case study. Ifrs Steel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Ifrs Steel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ifrs Steel can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Ifrs Steel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ifrs Steel can use these opportunities to build new business models that can help the communities that Ifrs Steel operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Loyalty marketing
– Ifrs Steel 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.
Threats Leadership in Corporate Reporting Policy at Tata Steel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Leadership in Corporate Reporting Policy at Tata Steel are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ifrs Steel 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 Leadership in Corporate Reporting Policy at Tata Steel .
Shortening product life cycle
– it is one of the major threat that Ifrs Steel is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Ifrs Steel 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 Finance & Accounting industry regulations.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ifrs Steel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Ifrs Steel 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.
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 Ifrs Steel business can come under increasing regulations regarding data privacy, data security, etc.
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. Ifrs Steel 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.
Stagnating economy with rate increase
– Ifrs Steel 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.
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. Ifrs Steel needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Ifrs Steel in the Finance & Accounting sector and impact the bottomline of the organization.
Environmental challenges
– Ifrs Steel 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. Ifrs Steel can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing wage structure of Ifrs Steel
– 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 Ifrs Steel.
Weighted SWOT Analysis of Leadership in Corporate Reporting Policy at Tata Steel 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 Leadership in Corporate Reporting Policy at Tata Steel 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 Leadership in Corporate Reporting Policy at Tata Steel 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 Leadership in Corporate Reporting Policy at Tata Steel 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 Leadership in Corporate Reporting Policy at Tata Steel 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 Ifrs Steel needs to make to build a sustainable competitive advantage.
