Contract Labor at Regency Hospital: Legal and HR Dynamics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Contract Labor at Regency Hospital: Legal and HR Dynamics
This case brings to the fore different complexities of contract labor employment by principal employers (PE) in the Indian context, including sensitivities involved in handling contract workers' union. Regency Hospital (RH), a corporate Hospital chain in India, acquired Gedex Hospital (GH) in 2005, along with contract workers employed in the latter. In the year 1983, GH's management decided to employ contract workers for operating its support services like House Keeping, etc. Two years later, some contract workers of GH became members of the All Gedex Employees' Union. Apprehending industrial relations (IR) problems, GH decided to take them on its permanent rolls. Later on, more contract workers of GH formally became members of this Union, but GH did not concede their demand for permanency. These workers continued to work at GH and later at RH under different contractors; for they were well-trained hospital workforce. When RH acquired GH in 2005, some of the contract workers were doing the same work as was done by RH's core workers, and continued to work that way. In October 2015 all contract workers of RH went on strike. Their demands included increase in wages and absorbing them in RH's core workforce. RH argued that all that was the obligation of the contractor concerned through whom they were employed. RH's HR manager contacted the local police, which eventually helped in pacifying these contract workers leading to withdrawal of their agitation. In the meantime, the management enhanced some minor welfare benefits for them through the contractor, but no substantive relief was given. RH was pondering on action it should take, and how to prevent reoccurrence of similar complex situations. It was also considering the working environment that should be made available to contract workers so as to promote their engagement, and also avoiding any possible legal lapses on its part in handling contract labor issues.
Authors :: Anjana Nath, Debi S. Saini
Topics :: Communication
Tags :: Business law, Human resource management, Labor, Negotiations, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Contract Labor at Regency Hospital: Legal and HR Dynamics" written by Anjana Nath, Debi S. Saini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gh Rh facing as an external strategic factors. Some of the topics covered in Contract Labor at Regency Hospital: Legal and HR Dynamics case study are - Strategic Management Strategies, Business law, Human resource management, Labor, Negotiations and Communication.
Some of the macro environment factors that can be used to understand the Contract Labor at Regency Hospital: Legal and HR Dynamics casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, increasing transportation and logistics costs,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Contract Labor at Regency Hospital: Legal and HR Dynamics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Contract Labor at Regency Hospital: Legal and HR Dynamics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gh Rh, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gh Rh 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 Contract Labor at Regency Hospital: Legal and HR Dynamics can be done for the following purposes –
1. Strategic planning using facts provided in Contract Labor at Regency Hospital: Legal and HR Dynamics case study
2. Improving business portfolio management of Gh Rh
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gh Rh
Strengths Contract Labor at Regency Hospital: Legal and HR Dynamics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gh Rh in Contract Labor at Regency Hospital: Legal and HR Dynamics Harvard Business Review case study are -
Ability to lead change in Communication field
– Gh Rh 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 Gh Rh in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Gh Rh is present in almost all the verticals within the industry. This has provided firm in Contract Labor at Regency Hospital: Legal and HR Dynamics 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.
Strong track record of project management
– Gh Rh is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Gh Rh
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gh Rh does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Communication industry
– Contract Labor at Regency Hospital: Legal and HR Dynamics firm has clearly differentiated products in the market place. This has enabled Gh Rh to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Gh Rh to invest into research and development (R&D) and innovation.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Gh Rh digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gh Rh 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
– Gh Rh is one of the most innovative firm in sector. Manager in Contract Labor at Regency Hospital: Legal and HR Dynamics Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Gh Rh 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 Contract Labor at Regency Hospital: Legal and HR Dynamics HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Gh Rh has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gh Rh 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.
High brand equity
– Gh Rh has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gh Rh to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Contract Labor at Regency Hospital: Legal and HR Dynamics 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 switching costs
– The high switching costs that Gh Rh 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.
Weaknesses Contract Labor at Regency Hospital: Legal and HR Dynamics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Contract Labor at Regency Hospital: Legal and HR Dynamics are -
High cash cycle compare to competitors
Gh Rh 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.
Aligning sales with marketing
– It come across in the case study Contract Labor at Regency Hospital: Legal and HR Dynamics that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Contract Labor at Regency Hospital: Legal and HR Dynamics can leverage the sales team experience to cultivate customer relationships as Gh Rh is planning to shift buying processes online.
Interest costs
– Compare to the competition, Gh Rh 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gh Rh is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Contract Labor at Regency Hospital: Legal and HR Dynamics can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Contract Labor at Regency Hospital: Legal and HR Dynamics, is just above the industry average. Gh Rh 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.
Skills based hiring
– The stress on hiring functional specialists at Gh Rh 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.
No frontier risks strategy
– After analyzing the HBR case study Contract Labor at Regency Hospital: Legal and HR Dynamics, it seems that company is thinking about the frontier risks that can impact Communication 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.
Increasing silos among functional specialists
– The organizational structure of Gh Rh is dominated by functional specialists. It is not different from other players in the Communication segment. Gh Rh needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gh Rh to focus more on services rather than just following the product oriented approach.
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 Gh Rh supply chain. Even after few cautionary changes mentioned in the HBR case study - Contract Labor at Regency Hospital: Legal and HR Dynamics, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gh Rh vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Gh Rh needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Contract Labor at Regency Hospital: Legal and HR Dynamics, in the dynamic environment Gh Rh has struggled to respond to the nimble upstart competition. Gh Rh has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Contract Labor at Regency Hospital: Legal and HR Dynamics | 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 Contract Labor at Regency Hospital: Legal and HR Dynamics are -
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. Gh Rh can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Gh Rh can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Gh Rh 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 Communication segment.
Better consumer reach
– The expansion of the 5G network will help Gh Rh to increase its market reach. Gh Rh 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gh Rh can use these opportunities to build new business models that can help the communities that Gh Rh operates in. Secondly it can use opportunities from government spending in Communication sector.
Manufacturing automation
– Gh Rh can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
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 Gh Rh in the consumer business. Now Gh Rh can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gh Rh 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, Contract Labor at Regency Hospital: Legal and HR Dynamics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gh Rh 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gh Rh can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Gh Rh has opened avenues for new revenue streams for the organization in the industry. This can help Gh Rh to build a more holistic ecosystem as suggested in the Contract Labor at Regency Hospital: Legal and HR Dynamics case study. Gh Rh can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gh Rh is facing challenges because of the dominance of functional experts in the organization. Contract Labor at Regency Hospital: Legal and HR Dynamics 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gh Rh 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. Gh Rh 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.
Threats Contract Labor at Regency Hospital: Legal and HR Dynamics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Contract Labor at Regency Hospital: Legal and HR Dynamics are -
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 Gh Rh in the Communication sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gh Rh 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 Contract Labor at Regency Hospital: Legal and HR Dynamics .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Gh Rh.
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. Gh Rh 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
– Gh Rh 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 Communication industry regulations.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gh Rh can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Gh Rh 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.
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.
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 Gh Rh business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Contract Labor at Regency Hospital: Legal and HR Dynamics, Gh Rh may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Stagnating economy with rate increase
– Gh Rh 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.
Technology acceleration in Forth Industrial Revolution
– Gh Rh has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Gh Rh needs to keep up with the evolution of technology in the Communication 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.
Environmental challenges
– Gh Rh 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. Gh Rh can take advantage of this fund but it will also bring new competitors in the Communication industry.
Weighted SWOT Analysis of Contract Labor at Regency Hospital: Legal and HR Dynamics 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 Contract Labor at Regency Hospital: Legal and HR Dynamics 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 Contract Labor at Regency Hospital: Legal and HR Dynamics 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 Contract Labor at Regency Hospital: Legal and HR Dynamics 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 Contract Labor at Regency Hospital: Legal and HR Dynamics 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 Gh Rh needs to make to build a sustainable competitive advantage.