ArcelorMittal in India: Sustainable Partnership Model SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ArcelorMittal in India: Sustainable Partnership Model
The case explores a public-private partnership initiative on environment education in India, highlighting the strategic, institutional, and reputational implications for corporate social responsibility in an emerging country context. Launched in 2010 with a target to reach 200,000 schools, "Paryavaran Mitra" (Friends of the Environment) was a multi-layered collaboration with three primary and more than 160 secondary partners. The case is positioned in 2013, when the senior manager of corporate responsibility for the firm that serves as the corporate sponsor of the project must make a decision about the future of the initiative. Asha Kaul is affiliated with Indian Institute of Management, Ahmedabad. Vidhi Chaudhri is affiliated with Erasmus University - Rotterdam
Swot Analysis of "ArcelorMittal in India: Sustainable Partnership Model" written by Asha Kaul, Vidhi Chaudhri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chaudhri Erasmus facing as an external strategic factors. Some of the topics covered in ArcelorMittal in India: Sustainable Partnership Model case study are - Strategic Management Strategies, Joint ventures, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ArcelorMittal in India: Sustainable Partnership Model casestudy better are - – increasing government debt because of Covid-19 spendings, increasing commodity prices, technology disruption, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing energy prices, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of ArcelorMittal in India: Sustainable Partnership Model
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ArcelorMittal in India: Sustainable Partnership Model case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chaudhri Erasmus, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model can be done for the following purposes –
1. Strategic planning using facts provided in ArcelorMittal in India: Sustainable Partnership Model case study
2. Improving business portfolio management of Chaudhri Erasmus
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chaudhri Erasmus
Strengths ArcelorMittal in India: Sustainable Partnership Model | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chaudhri Erasmus in ArcelorMittal in India: Sustainable Partnership Model Harvard Business Review case study are -
Training and development
– Chaudhri Erasmus has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in ArcelorMittal in India: Sustainable Partnership Model 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 Strategy & Execution industry
– ArcelorMittal in India: Sustainable Partnership Model firm has clearly differentiated products in the market place. This has enabled Chaudhri Erasmus to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Chaudhri Erasmus to invest into research and development (R&D) and innovation.
Ability to lead change in Strategy & Execution field
– Chaudhri Erasmus 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 Chaudhri Erasmus in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Chaudhri Erasmus has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chaudhri Erasmus has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the ArcelorMittal in India: Sustainable Partnership Model 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.
Superior customer experience
– The customer experience strategy of Chaudhri Erasmus in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Chaudhri Erasmus 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.
Cross disciplinary teams
– Horizontal connected teams at the Chaudhri Erasmus 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.
Effective Research and Development (R&D)
– Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Chaudhri Erasmus in the sector have low bargaining power. ArcelorMittal in India: Sustainable Partnership Model has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chaudhri Erasmus to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Chaudhri Erasmus has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chaudhri Erasmus to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Chaudhri Erasmus is present in almost all the verticals within the industry. This has provided firm in ArcelorMittal in India: Sustainable Partnership Model 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.
Weaknesses ArcelorMittal in India: Sustainable Partnership Model | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ArcelorMittal in India: Sustainable Partnership Model are -
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 Chaudhri Erasmus supply chain. Even after few cautionary changes mentioned in the HBR case study - ArcelorMittal in India: Sustainable Partnership Model, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chaudhri Erasmus vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Chaudhri Erasmus is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Chaudhri Erasmus needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chaudhri Erasmus to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Chaudhri Erasmus 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chaudhri Erasmus is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study ArcelorMittal in India: Sustainable Partnership Model can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Chaudhri Erasmus 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. Chaudhri Erasmus 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, Chaudhri Erasmus 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 star products
– The top 2 products and services of the firm as mentioned in the ArcelorMittal in India: Sustainable Partnership Model 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 Chaudhri Erasmus has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model, is just above the industry average. Chaudhri Erasmus 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 operating costs
– Compare to the competitors, firm in the HBR case study ArcelorMittal in India: Sustainable Partnership Model 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 Chaudhri Erasmus 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study ArcelorMittal in India: Sustainable Partnership Model, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Opportunities ArcelorMittal in India: Sustainable Partnership Model | 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 ArcelorMittal in India: Sustainable Partnership Model are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chaudhri Erasmus can use these opportunities to build new business models that can help the communities that Chaudhri Erasmus operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Chaudhri Erasmus can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Chaudhri Erasmus can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. ArcelorMittal in India: Sustainable Partnership Model 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.
Developing new processes and practices
– Chaudhri Erasmus can develop new processes and procedures in Strategy & Execution 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.
Creating value in data economy
– The success of analytics program of Chaudhri Erasmus has opened avenues for new revenue streams for the organization in the industry. This can help Chaudhri Erasmus to build a more holistic ecosystem as suggested in the ArcelorMittal in India: Sustainable Partnership Model case study. Chaudhri Erasmus 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, Chaudhri Erasmus is facing challenges because of the dominance of functional experts in the organization. ArcelorMittal in India: Sustainable Partnership Model 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chaudhri Erasmus 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, ArcelorMittal in India: Sustainable Partnership Model, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Chaudhri Erasmus 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.
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 Chaudhri Erasmus 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.
Building a culture of innovation
– managers at Chaudhri Erasmus 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 Strategy & Execution segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Chaudhri Erasmus 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. Chaudhri Erasmus 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chaudhri Erasmus can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Chaudhri Erasmus 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.
Threats ArcelorMittal in India: Sustainable Partnership Model External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ArcelorMittal in India: Sustainable Partnership Model are -
Technology acceleration in Forth Industrial Revolution
– Chaudhri Erasmus has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Chaudhri Erasmus needs to keep up with the evolution of technology in the Strategy & Execution 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.
Environmental challenges
– Chaudhri Erasmus 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. Chaudhri Erasmus can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Chaudhri Erasmus needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Chaudhri Erasmus 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chaudhri Erasmus can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Chaudhri Erasmus business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Chaudhri Erasmus 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chaudhri Erasmus with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Chaudhri Erasmus in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Chaudhri Erasmus 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.
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 Chaudhri Erasmus.
Shortening product life cycle
– it is one of the major threat that Chaudhri Erasmus is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chaudhri Erasmus in the Strategy & Execution industry. The Strategy & Execution 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.
Weighted SWOT Analysis of ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 Chaudhri Erasmus needs to make to build a sustainable competitive advantage.