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 - – increasing transportation and logistics costs, there is increasing trade war between United States & China, there is backlash against globalization, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, wage bills are increasing,
increasing energy prices, increasing government debt because of Covid-19 spendings, 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 -
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.
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.
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.
Diverse revenue streams
– Wage Gsrtc is present in almost all the verticals within the industry. This has provided firm in Corporate Restructuring of Gujarat State Road Transport Corporation 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.
Learning organization
- Wage Gsrtc 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 Wage Gsrtc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Restructuring of Gujarat State Road Transport Corporation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
Ability to lead change in Strategy & Execution field
– Wage Gsrtc 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 Wage Gsrtc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Innovation driven organization
– Wage Gsrtc is one of the most innovative firm in sector. Manager in Corporate Restructuring of Gujarat State Road Transport Corporation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Wage Gsrtc in the sector have low bargaining power. Corporate Restructuring of Gujarat State Road Transport Corporation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wage Gsrtc to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Wage Gsrtc 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 Corporate Restructuring of Gujarat State Road Transport Corporation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
Workers concerns about automation
– As automation is fast increasing in the segment, Wage Gsrtc 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporate Restructuring of Gujarat State Road Transport Corporation 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 Wage Gsrtc 's lucrative customers.
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.
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.
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 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.
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.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Wage Gsrtc 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. Wage Gsrtc 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.
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.
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.
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. Wage Gsrtc can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wage Gsrtc 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, Corporate Restructuring of Gujarat State Road Transport Corporation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wage Gsrtc can use these opportunities to build new business models that can help the communities that Wage Gsrtc operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wage Gsrtc 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 Wage Gsrtc 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.
Buying journey improvements
– Wage Gsrtc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Restructuring of Gujarat State Road Transport Corporation 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.
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.
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.
High dependence on third party suppliers
– Wage Gsrtc 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 Wage Gsrtc business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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 .
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.
Regulatory challenges
– Wage Gsrtc 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 Strategy & Execution industry regulations.
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.
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.
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.