State Civil Supplies: Value People, Value Their Money SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of State Civil Supplies: Value People, Value Their Money
In November 2014, a senior administrative service officer at Madhya Pradesh State Civil Supplies Corporation Limited was faced with the problem of determining how to best allocate food grain according to location demands. She needed to choose the best delivery routes and provide a cost-effective means of meeting demands for food grain from "fair-price shops." How should she approach this problem? How should she manage any changes that she makes in the distribution plans? The authors Rohit Kapoor, Ayushi Agrawal and Soumyajyoti Datta are affiliated with Indian Institute of Management Indore.
Swot Analysis of "State Civil Supplies: Value People, Value Their Money" written by Rohit Kapoor, Ayushi Agrawal, Soumyajyoti Datta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Grain Supplies facing as an external strategic factors. Some of the topics covered in State Civil Supplies: Value People, Value Their Money case study are - Strategic Management Strategies, Marketing, Supply chain and Global Business.
Some of the macro environment factors that can be used to understand the State Civil Supplies: Value People, Value Their Money casestudy better are - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, geopolitical disruptions, increasing commodity prices, increasing household debt because of falling income levels,
increasing transportation and logistics costs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of State Civil Supplies: Value People, Value Their Money
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in State Civil Supplies: Value People, Value Their Money case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Grain Supplies, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Grain Supplies 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 State Civil Supplies: Value People, Value Their Money can be done for the following purposes –
1. Strategic planning using facts provided in State Civil Supplies: Value People, Value Their Money case study
2. Improving business portfolio management of Grain Supplies
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Grain Supplies
Strengths State Civil Supplies: Value People, Value Their Money | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Grain Supplies in State Civil Supplies: Value People, Value Their Money Harvard Business Review case study are -
Ability to recruit top talent
– Grain Supplies is one of the leading recruiters in the industry. Managers in the State Civil Supplies: Value People, Value Their Money are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Grain Supplies is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Grain Supplies has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in State Civil Supplies: Value People, Value Their Money 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.
Low bargaining power of suppliers
– Suppliers of Grain Supplies in the sector have low bargaining power. State Civil Supplies: Value People, Value Their Money has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Grain Supplies to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Grain Supplies 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 State Civil Supplies: Value People, Value Their Money HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the State Civil Supplies: Value People, Value Their Money 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.
High brand equity
– Grain Supplies has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Grain Supplies to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Grain Supplies digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Grain Supplies 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
– Grain Supplies is one of the most innovative firm in sector. Manager in State Civil Supplies: Value People, Value Their Money Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Grain Supplies
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Grain Supplies does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Grain Supplies is present in almost all the verticals within the industry. This has provided firm in State Civil Supplies: Value People, Value Their Money 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.
Effective Research and Development (R&D)
– Grain Supplies 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 State Civil Supplies: Value People, Value Their Money - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses State Civil Supplies: Value People, Value Their Money | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of State Civil Supplies: Value People, Value Their Money are -
High bargaining power of channel partners
– Because of the regulatory requirements, Rohit Kapoor, Ayushi Agrawal, Soumyajyoti Datta suggests that, Grain Supplies 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.
Need for greater diversity
– Grain Supplies 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, Grain Supplies is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study State Civil Supplies: Value People, Value Their Money can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Grain Supplies 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.
Slow to strategic competitive environment developments
– As State Civil Supplies: Value People, Value Their Money HBR case study mentions - Grain Supplies 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.
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 Grain Supplies supply chain. Even after few cautionary changes mentioned in the HBR case study - State Civil Supplies: Value People, Value Their Money, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Grain Supplies vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study State Civil Supplies: Value People, Value Their Money, is just above the industry average. Grain Supplies 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the State Civil Supplies: Value People, Value Their Money 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 Grain Supplies has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study State Civil Supplies: Value People, Value Their Money, in the dynamic environment Grain Supplies has struggled to respond to the nimble upstart competition. Grain Supplies has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Grain Supplies products
– To increase the profitability and margins on the products, Grain Supplies needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Grain Supplies 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.
Opportunities State Civil Supplies: Value People, Value Their Money | 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 State Civil Supplies: Value People, Value Their Money are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Grain Supplies can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Grain Supplies can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Grain Supplies can develop new processes and procedures in Global Business 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.
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. Grain Supplies can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Grain Supplies 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, State Civil Supplies: Value People, Value Their Money, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Grain Supplies has opened avenues for new revenue streams for the organization in the industry. This can help Grain Supplies to build a more holistic ecosystem as suggested in the State Civil Supplies: Value People, Value Their Money case study. Grain Supplies can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Grain Supplies 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 Global Business segment.
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 Grain Supplies 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Grain Supplies 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 Grain Supplies to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Grain Supplies 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. Grain Supplies 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Grain Supplies is facing challenges because of the dominance of functional experts in the organization. State Civil Supplies: Value People, Value Their Money 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Grain Supplies can use these opportunities to build new business models that can help the communities that Grain Supplies operates in. Secondly it can use opportunities from government spending in Global Business sector.
Leveraging digital technologies
– Grain Supplies 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.
Threats State Civil Supplies: Value People, Value Their Money External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study State Civil Supplies: Value People, Value Their Money are -
Consumer confidence and its impact on Grain Supplies 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.
Stagnating economy with rate increase
– Grain Supplies 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Grain Supplies with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Grain Supplies 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.
Regulatory challenges
– Grain Supplies 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 Global Business industry regulations.
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 Grain Supplies business can come under increasing regulations regarding data privacy, data security, 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. Grain Supplies needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Grain Supplies 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. Grain Supplies can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing wage structure of Grain Supplies
– 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 Grain Supplies.
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 Grain Supplies in the Global Business sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Grain Supplies has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Grain Supplies needs to keep up with the evolution of technology in the Global Business 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.
High dependence on third party suppliers
– Grain Supplies 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.
Weighted SWOT Analysis of State Civil Supplies: Value People, Value Their Money 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 State Civil Supplies: Value People, Value Their Money 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 State Civil Supplies: Value People, Value Their Money 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 State Civil Supplies: Value People, Value Their Money 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 State Civil Supplies: Value People, Value Their Money 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 Grain Supplies needs to make to build a sustainable competitive advantage.