Case Study Description of Indian Oil Corp. Ltd.: Project Manthan
Indian Oil Corp., a public sector undertaking of the government of India, faces the prospect of the deregulation of the oil industry in India and the need to compete with nimble new market entrants. A major initiative toward this end is the enterprise resource planning system that the company has commissioned. Now, several years into the implementation, a number of snags arise; the implementation is clearly not going as planned. The company must decide how to bring the implementation back on track and also use the lessons it has learned to re-evaluate whether it is headed in the right direction.
Swot Analysis of "Indian Oil Corp. Ltd.: Project Manthan" written by Abhijit Gopal, Manish Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Oil Implementation facing as an external strategic factors. Some of the topics covered in Indian Oil Corp. Ltd.: Project Manthan case study are - Strategic Management Strategies, Competition, IT, Regulation and Technology & Operations.
Some of the macro environment factors that can be used to understand the Indian Oil Corp. Ltd.: Project Manthan casestudy better are - – wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Indian Oil Corp. Ltd.: Project Manthan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Indian Oil Corp. Ltd.: Project Manthan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Oil Implementation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Oil Implementation 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 Indian Oil Corp. Ltd.: Project Manthan can be done for the following purposes –
1. Strategic planning using facts provided in Indian Oil Corp. Ltd.: Project Manthan case study
2. Improving business portfolio management of Oil Implementation
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Oil Implementation
Strengths Indian Oil Corp. Ltd.: Project Manthan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Oil Implementation in Indian Oil Corp. Ltd.: Project Manthan Harvard Business Review case study are -
Ability to recruit top talent
– Oil Implementation is one of the leading recruiters in the industry. Managers in the Indian Oil Corp. Ltd.: Project Manthan are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Oil Implementation 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 Oil Implementation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Indian Oil Corp. Ltd.: Project Manthan 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.
Cross disciplinary teams
– Horizontal connected teams at the Oil Implementation 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.
Learning organization
- Oil Implementation 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 Oil Implementation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Indian Oil Corp. Ltd.: Project Manthan Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Oil Implementation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Oil Implementation 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Oil Implementation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Oil Implementation 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.
Diverse revenue streams
– Oil Implementation is present in almost all the verticals within the industry. This has provided firm in Indian Oil Corp. Ltd.: Project Manthan 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.
Innovation driven organization
– Oil Implementation is one of the most innovative firm in sector. Manager in Indian Oil Corp. Ltd.: Project Manthan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Oil Implementation 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 Indian Oil Corp. Ltd.: Project Manthan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Oil Implementation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Oil Implementation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Oil Implementation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Indian Oil Corp. Ltd.: Project Manthan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Indian Oil Corp. Ltd.: Project Manthan are -
Increasing silos among functional specialists
– The organizational structure of Oil Implementation is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Oil Implementation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Oil Implementation to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Oil Implementation 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.
Interest costs
– Compare to the competition, Oil Implementation 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 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 Oil Implementation supply chain. Even after few cautionary changes mentioned in the HBR case study - Indian Oil Corp. Ltd.: Project Manthan, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Oil Implementation 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 Indian Oil Corp. Ltd.: Project Manthan 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 Oil Implementation has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Oil Implementation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Indian Oil Corp. Ltd.: Project Manthan can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Abhijit Gopal, Manish Kumar suggests that, Oil Implementation 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 operating costs
– Compare to the competitors, firm in the HBR case study Indian Oil Corp. Ltd.: Project Manthan 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 Oil Implementation 's lucrative customers.
Lack of clear differentiation of Oil Implementation products
– To increase the profitability and margins on the products, Oil Implementation needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Oil Implementation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Indian Oil Corp. Ltd.: Project Manthan, in the dynamic environment Oil Implementation has struggled to respond to the nimble upstart competition. Oil Implementation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Indian Oil Corp. Ltd.: Project Manthan | 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 Indian Oil Corp. Ltd.: Project Manthan are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Oil Implementation is facing challenges because of the dominance of functional experts in the organization. Indian Oil Corp. Ltd.: Project Manthan 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 Technology & Operations industry, but it has also influenced the consumer preferences. Oil Implementation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Oil Implementation in the consumer business. Now Oil Implementation can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Oil Implementation 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.
Using analytics as competitive advantage
– Oil Implementation 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 Indian Oil Corp. Ltd.: Project Manthan - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Oil Implementation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Oil Implementation can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Better consumer reach
– The expansion of the 5G network will help Oil Implementation to increase its market reach. Oil Implementation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Oil Implementation 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 Oil Implementation to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Oil Implementation 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 Technology & Operations segment.
Buying journey improvements
– Oil Implementation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Indian Oil Corp. Ltd.: Project Manthan 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Oil Implementation can use these opportunities to build new business models that can help the communities that Oil Implementation operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Oil Implementation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Oil Implementation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Indian Oil Corp. Ltd.: Project Manthan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Indian Oil Corp. Ltd.: Project Manthan are -
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Oil Implementation 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. Oil Implementation can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– Oil Implementation has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Oil Implementation needs to keep up with the evolution of technology in the Technology & Operations 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.
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. Oil Implementation 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.
Shortening product life cycle
– it is one of the major threat that Oil Implementation is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Oil Implementation 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 Technology & Operations industry regulations.
Increasing wage structure of Oil Implementation
– 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 Oil Implementation.
High dependence on third party suppliers
– Oil Implementation 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.
Stagnating economy with rate increase
– Oil Implementation 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Indian Oil Corp. Ltd.: Project Manthan, Oil Implementation may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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 Oil Implementation business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Oil Implementation 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.
Weighted SWOT Analysis of Indian Oil Corp. Ltd.: Project Manthan 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 Indian Oil Corp. Ltd.: Project Manthan 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 Indian Oil Corp. Ltd.: Project Manthan 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 Indian Oil Corp. Ltd.: Project Manthan 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 Indian Oil Corp. Ltd.: Project Manthan 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 Oil Implementation needs to make to build a sustainable competitive advantage.