Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis
In 2014, the production manager at Hari Krishna Exports Pvt. Ltd., a diamond manufacturer and exporter in India, faced the challenge of maintaining his duty towards the company's employees while it experienced low growth and profitability after a downturn in the industry. High attrition among employees was a common problem across the industry; it cost the company heavily and had a significant impact on employees' morale. Recruiting strong employees and retaining them was a challenge, especially during a time of crisis. The production manager wanted to build on the initiatives of the chairman and founder and pursue a performance-based incentive system, value-added incentives, and other employee-friendly human resource policies. Could these strategies keep the attrition rate low and help the company create a high-performance work environment? Success could help Hari Krishna Exports in its plan to grow from a diamond manufacturer to a diamond jewelry retailer with a global reach. The authors Nitika Sharma and Archana Shrivastava are affiliated with Birla Institute of Management Technology.
Swot Analysis of "Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis" written by Nitika Sharma, Archana Shrivastava includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Diamond Hari facing as an external strategic factors. Some of the topics covered in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis case study are - Strategic Management Strategies, Manufacturing, Organizational structure and Global Business.
Some of the macro environment factors that can be used to understand the Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, wage bills are increasing,
competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Diamond Hari, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Diamond Hari 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis can be done for the following purposes –
1. Strategic planning using facts provided in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis case study
2. Improving business portfolio management of Diamond Hari
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 Diamond Hari
Strengths Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Diamond Hari in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis Harvard Business Review case study are -
High switching costs
– The high switching costs that Diamond Hari 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.
Superior customer experience
– The customer experience strategy of Diamond Hari in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Diamond Hari is present in almost all the verticals within the industry. This has provided firm in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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.
Analytics focus
– Diamond Hari 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 Nitika Sharma, Archana Shrivastava 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.
Organizational Resilience of Diamond Hari
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Diamond Hari does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Diamond Hari is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Diamond Hari has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Diamond Hari to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Diamond Hari in the sector have low bargaining power. Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Diamond Hari to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Diamond Hari has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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.
Ability to lead change in Global Business field
– Diamond Hari 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 Diamond Hari in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Diamond Hari 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 Diamond Hari is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Diamond Hari digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Diamond Hari 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.
Weaknesses Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis, is just above the industry average. Diamond Hari 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Diamond Hari is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 cash cycle compare to competitors
Diamond Hari 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Diamond Hari 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis, it seems that the employees of Diamond Hari 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.
Slow to strategic competitive environment developments
– As Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis HBR case study mentions - Diamond Hari 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.
Interest costs
– Compare to the competition, Diamond Hari 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 Diamond Hari supply chain. Even after few cautionary changes mentioned in the HBR case study - Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Diamond Hari vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Diamond Hari products
– To increase the profitability and margins on the products, Diamond Hari needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Diamond Hari 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Diamond Hari has relatively successful track record of launching new products.
Opportunities Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis | 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis are -
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 Diamond Hari in the consumer business. Now Diamond Hari can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Diamond Hari can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Diamond Hari in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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. Diamond Hari can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Diamond Hari 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.
Developing new processes and practices
– Diamond Hari 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.
Better consumer reach
– The expansion of the 5G network will help Diamond Hari to increase its market reach. Diamond Hari 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 Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Diamond Hari 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. Diamond Hari 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Diamond Hari can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Diamond Hari can use these opportunities to build new business models that can help the communities that Diamond Hari operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Diamond Hari 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.
Using analytics as competitive advantage
– Diamond Hari 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Diamond Hari to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Diamond Hari can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis are -
Technology acceleration in Forth Industrial Revolution
– Diamond Hari has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Diamond Hari 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 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. Diamond Hari needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Diamond Hari can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Diamond Hari 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 Diamond Hari 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 Diamond Hari with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Diamond Hari in the Global Business industry. The Global Business 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.
Stagnating economy with rate increase
– Diamond Hari 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Diamond Hari 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis .
Regulatory challenges
– Diamond Hari 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.
Consumer confidence and its impact on Diamond Hari demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Diamond Hari 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. Diamond Hari can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing wage structure of Diamond Hari
– 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 Diamond Hari.
Weighted SWOT Analysis of Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Hari Krishna Diamond Cutting: Retaining Talent in Times of Crisis 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 Diamond Hari needs to make to build a sustainable competitive advantage.
