Finolex: Developing an Integrated Corporate Social Responsibility Strategy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Finolex: Developing an Integrated Corporate Social Responsibility Strategy
Finolex Industries Limited was India's largest rigid PVC pipes and fittings manufacturer and the second largest PVC resin manufacturer. It was a family-led enterprise with a long history of philanthropy. The Mukul Madhav Foundation was the charitable arm of the company, and it's functioning needed to be streamlined while considering the resources, timelines, and strategies required to meet its obligations. A strategic framework had to be applied so that Finolex Industries Limited and the Mukul Madhav Foundation could work together on a long-term basis on projects that benefitted the society as well as the organization. Utkarsh Majmudar is affiliated with Indian Institute of Management Udaipur.
Swot Analysis of "Finolex: Developing an Integrated Corporate Social Responsibility Strategy" written by Utkarsh Majmudar, Namrata Rana includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Finolex Mukul facing as an external strategic factors. Some of the topics covered in Finolex: Developing an Integrated Corporate Social Responsibility Strategy case study are - Strategic Management Strategies, Strategy, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Finolex: Developing an Integrated Corporate Social Responsibility Strategy casestudy better are - – increasing energy prices, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, there is backlash against globalization, wage bills are increasing, challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Finolex: Developing an Integrated Corporate Social Responsibility Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Finolex: Developing an Integrated Corporate Social Responsibility Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Finolex Mukul, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Finolex: Developing an Integrated Corporate Social Responsibility Strategy case study
2. Improving business portfolio management of Finolex Mukul
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Finolex Mukul
Strengths Finolex: Developing an Integrated Corporate Social Responsibility Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Finolex Mukul in Finolex: Developing an Integrated Corporate Social Responsibility Strategy Harvard Business Review case study are -
High brand equity
– Finolex Mukul has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Finolex Mukul to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Finolex Mukul
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Finolex Mukul does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Finolex Mukul 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 recruit top talent
– Finolex Mukul is one of the leading recruiters in the industry. Managers in the Finolex: Developing an Integrated Corporate Social Responsibility Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Finolex Mukul 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 Finolex Mukul is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Finolex: Developing an Integrated Corporate Social Responsibility Strategy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Leadership & Managing People industry
– Finolex: Developing an Integrated Corporate Social Responsibility Strategy firm has clearly differentiated products in the market place. This has enabled Finolex Mukul to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Finolex Mukul to invest into research and development (R&D) and innovation.
Analytics focus
– Finolex Mukul 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 Utkarsh Majmudar, Namrata Rana 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 switching costs
– The high switching costs that Finolex Mukul 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.
Low bargaining power of suppliers
– Suppliers of Finolex Mukul in the sector have low bargaining power. Finolex: Developing an Integrated Corporate Social Responsibility Strategy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Finolex Mukul to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Finolex Mukul has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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)
– Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy - 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Finolex: Developing an Integrated Corporate Social Responsibility Strategy are -
Capital Spending Reduction
– Even during the low interest decade, Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy, in the dynamic environment Finolex Mukul has struggled to respond to the nimble upstart competition. Finolex Mukul has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Finolex Mukul 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 - Finolex: Developing an Integrated Corporate Social Responsibility Strategy should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Finolex Mukul 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Utkarsh Majmudar, Namrata Rana suggests that, Finolex Mukul 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Finolex: Developing an Integrated Corporate Social Responsibility Strategy, it seems that the employees of Finolex Mukul don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Finolex Mukul is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Finolex Mukul needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Finolex Mukul to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Finolex Mukul 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.
No frontier risks strategy
– After analyzing the HBR case study Finolex: Developing an Integrated Corporate Social Responsibility Strategy, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Finolex Mukul products
– To increase the profitability and margins on the products, Finolex Mukul needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy | 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy are -
Learning at scale
– Online learning technologies has now opened space for Finolex Mukul 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Finolex Mukul in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Finolex Mukul 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 Finolex Mukul to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Finolex Mukul is facing challenges because of the dominance of functional experts in the organization. Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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.
Manufacturing automation
– Finolex Mukul can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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 Finolex Mukul to increase its market reach. Finolex Mukul 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Finolex Mukul 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. Finolex Mukul 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.
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. Finolex Mukul can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Finolex Mukul can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Finolex Mukul has opened avenues for new revenue streams for the organization in the industry. This can help Finolex Mukul to build a more holistic ecosystem as suggested in the Finolex: Developing an Integrated Corporate Social Responsibility Strategy case study. Finolex Mukul can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Finolex Mukul 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 Finolex Mukul in the consumer business. Now Finolex Mukul can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Finolex Mukul 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Finolex Mukul to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Finolex: Developing an Integrated Corporate Social Responsibility Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Finolex: Developing an Integrated Corporate Social Responsibility Strategy are -
Stagnating economy with rate increase
– Finolex Mukul can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Finolex Mukul can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Finolex Mukul business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Finolex Mukul with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Finolex Mukul 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. Finolex Mukul can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Finolex Mukul in the Leadership & Managing People industry. The Leadership & Managing People 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
– Finolex Mukul 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.
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.
Increasing wage structure of Finolex Mukul
– 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 Finolex Mukul.
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. Finolex Mukul needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Finolex Mukul has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Finolex Mukul needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Consumer confidence and its impact on Finolex Mukul 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.
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 Finolex Mukul in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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 Finolex: Developing an Integrated Corporate Social Responsibility Strategy 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 Finolex Mukul needs to make to build a sustainable competitive advantage.
