Corporate Restructuring of Gujarat State Road Transport Corporation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporate Restructuring of Gujarat State Road Transport Corporation
This case describes the restructuring initiatives undertaken at Gujarat State Road Transport Corporation (GSRTC) and the impediments faced by the managing director. As a consequence of partial sectorial deregulation, GSRTC faced mounting losses due to the activities of stage carriage as well as contract carriage operators from the private sector. The financial health of the corporation was further compromised by the state's taxation policies and restrictions on acquisition of manpower and capital items. The corporation faced a situation where it had a fleet of over-aged, fuel inefficient buses prone to breakdowns, coupled with depleting relevant resources, such as bus drivers. To break out of the vicious downward cycle, the managing director initiated a series of steps aimed at revitalizing the corporation. His initiatives to obtain an operating profit and, then, a net profit were interpreted differently by the trade unions. They took a belligerent stand for wage revision and threatened service disruption. The disruption of an essential service guaranteed by the state eventually led to intervention by the state's chief minister in favour of wage revision. The additional wage burden made the projections for a possible turnaround go awry. Given the added constraints and a stretched resource position, how would the managing director re-initiate change and restructure the organization?
Swot Analysis of "Corporate Restructuring of Gujarat State Road Transport Corporation" written by Shubhabrata Basu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wage Gsrtc facing as an external strategic factors. Some of the topics covered in Corporate Restructuring of Gujarat State Road Transport Corporation case study are - Strategic Management Strategies, International business, Leadership, Organizational culture, Reorganization, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporate Restructuring of Gujarat State Road Transport Corporation casestudy better are - – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing household debt because of falling income levels, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing commodity prices,
increasing government debt because of Covid-19 spendings, wage bills are increasing, etc
Introduction to SWOT Analysis of Corporate Restructuring of Gujarat State Road Transport Corporation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Restructuring of Gujarat State Road Transport Corporation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wage Gsrtc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wage Gsrtc 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 Corporate Restructuring of Gujarat State Road Transport Corporation can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Restructuring of Gujarat State Road Transport Corporation case study
2. Improving business portfolio management of Wage Gsrtc
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 Wage Gsrtc
Strengths Corporate Restructuring of Gujarat State Road Transport Corporation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wage Gsrtc in Corporate Restructuring of Gujarat State Road Transport Corporation Harvard Business Review case study are -
Analytics focus
– Wage Gsrtc 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 Shubhabrata Basu 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.
High brand equity
– Wage Gsrtc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wage Gsrtc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Wage Gsrtc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wage Gsrtc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Wage Gsrtc is one of the leading recruiters in the industry. Managers in the Corporate Restructuring of Gujarat State Road Transport Corporation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Corporate Restructuring of Gujarat State Road Transport Corporation firm has clearly differentiated products in the market place. This has enabled Wage Gsrtc to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Wage Gsrtc to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Wage Gsrtc 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.
Strong track record of project management
– Wage Gsrtc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Wage Gsrtc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wage Gsrtc has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Operational resilience
– The operational resilience strategy in the Corporate Restructuring of Gujarat State Road Transport Corporation 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.
Training and development
– Wage Gsrtc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Restructuring of Gujarat State Road Transport Corporation 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.
Effective Research and Development (R&D)
– Wage Gsrtc 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 Corporate Restructuring of Gujarat State Road Transport Corporation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Wage Gsrtc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wage Gsrtc 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.
Weaknesses Corporate Restructuring of Gujarat State Road Transport Corporation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Restructuring of Gujarat State Road Transport Corporation are -
Aligning sales with marketing
– It come across in the case study Corporate Restructuring of Gujarat State Road Transport Corporation that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Corporate Restructuring of Gujarat State Road Transport Corporation can leverage the sales team experience to cultivate customer relationships as Wage Gsrtc is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Corporate Restructuring of Gujarat State Road Transport Corporation 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 Wage Gsrtc has relatively successful track record of launching new products.
Lack of clear differentiation of Wage Gsrtc products
– To increase the profitability and margins on the products, Wage Gsrtc needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Wage Gsrtc supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Restructuring of Gujarat State Road Transport Corporation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wage Gsrtc vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Corporate Restructuring of Gujarat State Road Transport Corporation HBR case study mentions - Wage Gsrtc 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.
Products dominated business model
– Even though Wage Gsrtc 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 - Corporate Restructuring of Gujarat State Road Transport Corporation should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Wage Gsrtc, firm in the HBR case study Corporate Restructuring of Gujarat State Road Transport Corporation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Wage Gsrtc 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Restructuring of Gujarat State Road Transport Corporation, in the dynamic environment Wage Gsrtc has struggled to respond to the nimble upstart competition. Wage Gsrtc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Shubhabrata Basu suggests that, Wage Gsrtc 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 cash cycle compare to competitors
Wage Gsrtc 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.
Opportunities Corporate Restructuring of Gujarat State Road Transport Corporation | 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 Corporate Restructuring of Gujarat State Road Transport Corporation are -
Building a culture of innovation
– managers at Wage Gsrtc 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.
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. Wage Gsrtc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wage Gsrtc is facing challenges because of the dominance of functional experts in the organization. Corporate Restructuring of Gujarat State Road Transport Corporation case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Wage Gsrtc 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wage Gsrtc 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 Wage Gsrtc to hire the very best people irrespective of their geographical location.
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 Wage Gsrtc 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.
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 Wage Gsrtc in the consumer business. Now Wage Gsrtc can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Wage Gsrtc 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 Corporate Restructuring of Gujarat State Road Transport Corporation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wage Gsrtc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Wage Gsrtc 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. Wage Gsrtc 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.
Manufacturing automation
– Wage Gsrtc can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wage Gsrtc in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Wage Gsrtc to increase its market reach. Wage Gsrtc 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.
Creating value in data economy
– The success of analytics program of Wage Gsrtc has opened avenues for new revenue streams for the organization in the industry. This can help Wage Gsrtc to build a more holistic ecosystem as suggested in the Corporate Restructuring of Gujarat State Road Transport Corporation case study. Wage Gsrtc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Corporate Restructuring of Gujarat State Road Transport Corporation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Restructuring of Gujarat State Road Transport Corporation are -
Consumer confidence and its impact on Wage Gsrtc 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.
Environmental challenges
– Wage Gsrtc 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. Wage Gsrtc can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Wage Gsrtc 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.
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 Wage Gsrtc business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wage Gsrtc 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.
Increasing wage structure of Wage Gsrtc
– 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 Wage Gsrtc.
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. Wage Gsrtc needs to understand the core reasons impacting the Strategy & Execution 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 Wage Gsrtc in the Strategy & Execution sector and impact the bottomline of the organization.
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. Wage Gsrtc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporate Restructuring of Gujarat State Road Transport Corporation, Wage Gsrtc may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Wage Gsrtc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wage Gsrtc 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 Corporate Restructuring of Gujarat State Road Transport Corporation .
Shortening product life cycle
– it is one of the major threat that Wage Gsrtc is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Corporate Restructuring of Gujarat State Road Transport Corporation 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 Corporate Restructuring of Gujarat State Road Transport Corporation 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 Corporate Restructuring of Gujarat State Road Transport Corporation 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 Corporate Restructuring of Gujarat State Road Transport Corporation 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 Corporate Restructuring of Gujarat State Road Transport Corporation 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 Wage Gsrtc needs to make to build a sustainable competitive advantage.
