CRISIL: Designing a Compelling Employee Value Proposition SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of CRISIL: Designing a Compelling Employee Value Proposition
CRISIL Limited (CRISIL) was a pioneer in the ratings business in India and a market leader in the industry. However, the company was facing a high level of competition in attracting and retaining talent not only from ratings companies but also from other sectors such as start-ups, banks, and financial institutions. Against this backdrop, one of the major strategic tasks for the president and head of Human Resources was to identify the main dimensions of an employee value proposition that could be used to position CRISIL as a strong employer brand in the minds of current and potential employees. Gordhan Saini is affiliated with Tata Institute of Social Sciences.
Swot Analysis of "CRISIL: Designing a Compelling Employee Value Proposition" written by Gordhan Saini, Anupam Kaura includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Crisil Ratings facing as an external strategic factors. Some of the topics covered in CRISIL: Designing a Compelling Employee Value Proposition case study are - Strategic Management Strategies, Human resource management, Labor and Organizational Development.
Some of the macro environment factors that can be used to understand the CRISIL: Designing a Compelling Employee Value Proposition casestudy better are - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing government debt because of Covid-19 spendings,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of CRISIL: Designing a Compelling Employee Value Proposition
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CRISIL: Designing a Compelling Employee Value Proposition case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Crisil Ratings, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Crisil Ratings 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 CRISIL: Designing a Compelling Employee Value Proposition can be done for the following purposes –
1. Strategic planning using facts provided in CRISIL: Designing a Compelling Employee Value Proposition case study
2. Improving business portfolio management of Crisil Ratings
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Crisil Ratings
Strengths CRISIL: Designing a Compelling Employee Value Proposition | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Crisil Ratings in CRISIL: Designing a Compelling Employee Value Proposition Harvard Business Review case study are -
Ability to recruit top talent
– Crisil Ratings is one of the leading recruiters in the industry. Managers in the CRISIL: Designing a Compelling Employee Value Proposition are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Crisil Ratings digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Crisil Ratings 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.
Sustainable margins compare to other players in Organizational Development industry
– CRISIL: Designing a Compelling Employee Value Proposition firm has clearly differentiated products in the market place. This has enabled Crisil Ratings to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Crisil Ratings to invest into research and development (R&D) and innovation.
Strong track record of project management
– Crisil Ratings 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 switching costs
– The high switching costs that Crisil Ratings 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.
Analytics focus
– Crisil Ratings 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 Gordhan Saini, Anupam Kaura 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.
Diverse revenue streams
– Crisil Ratings is present in almost all the verticals within the industry. This has provided firm in CRISIL: Designing a Compelling Employee Value Proposition 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.
Superior customer experience
– The customer experience strategy of Crisil Ratings in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Crisil Ratings 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 Crisil Ratings is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in CRISIL: Designing a Compelling Employee Value Proposition Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Crisil Ratings 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 CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition 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.
Training and development
– Crisil Ratings has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CRISIL: Designing a Compelling Employee Value Proposition 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.
Weaknesses CRISIL: Designing a Compelling Employee Value Proposition | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CRISIL: Designing a Compelling Employee Value Proposition are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study CRISIL: Designing a Compelling Employee Value Proposition, in the dynamic environment Crisil Ratings has struggled to respond to the nimble upstart competition. Crisil Ratings 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 Crisil Ratings 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 - CRISIL: Designing a Compelling Employee Value Proposition should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Crisil Ratings is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study CRISIL: Designing a Compelling Employee Value Proposition can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Crisil Ratings 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 CRISIL: Designing a Compelling Employee Value Proposition, it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Low market penetration in new markets
– Outside its home market of Crisil Ratings, firm in the HBR case study CRISIL: Designing a Compelling Employee Value Proposition needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study CRISIL: Designing a Compelling Employee Value Proposition, it seems that the employees of Crisil Ratings 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.
Aligning sales with marketing
– It come across in the case study CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition can leverage the sales team experience to cultivate customer relationships as Crisil Ratings is planning to shift buying processes online.
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 Crisil Ratings supply chain. Even after few cautionary changes mentioned in the HBR case study - CRISIL: Designing a Compelling Employee Value Proposition, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Crisil Ratings vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Gordhan Saini, Anupam Kaura suggests that, Crisil Ratings 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.
Slow to strategic competitive environment developments
– As CRISIL: Designing a Compelling Employee Value Proposition HBR case study mentions - Crisil Ratings 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.
Opportunities CRISIL: Designing a Compelling Employee Value Proposition | 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 CRISIL: Designing a Compelling Employee Value Proposition are -
Better consumer reach
– The expansion of the 5G network will help Crisil Ratings to increase its market reach. Crisil Ratings 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.
Creating value in data economy
– The success of analytics program of Crisil Ratings has opened avenues for new revenue streams for the organization in the industry. This can help Crisil Ratings to build a more holistic ecosystem as suggested in the CRISIL: Designing a Compelling Employee Value Proposition case study. Crisil Ratings can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Crisil Ratings has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Leveraging digital technologies
– Crisil Ratings 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.
Manufacturing automation
– Crisil Ratings can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Buying journey improvements
– Crisil Ratings can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. CRISIL: Designing a Compelling Employee Value Proposition suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Crisil Ratings 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, CRISIL: Designing a Compelling Employee Value Proposition, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Crisil Ratings in the consumer business. Now Crisil Ratings can target international markets with far fewer capital restrictions requirements than the existing system.
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. Crisil Ratings can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Crisil Ratings is facing challenges because of the dominance of functional experts in the organization. CRISIL: Designing a Compelling Employee Value Proposition 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.
Developing new processes and practices
– Crisil Ratings can develop new processes and procedures in Organizational Development 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Crisil Ratings can use these opportunities to build new business models that can help the communities that Crisil Ratings operates in. Secondly it can use opportunities from government spending in Organizational Development 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 Crisil Ratings 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.
Threats CRISIL: Designing a Compelling Employee Value Proposition External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study CRISIL: Designing a Compelling Employee Value Proposition are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Crisil Ratings 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 CRISIL: Designing a Compelling Employee Value Proposition .
Increasing wage structure of Crisil Ratings
– 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 Crisil Ratings.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Crisil Ratings can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Crisil Ratings has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Crisil Ratings needs to keep up with the evolution of technology in the Organizational Development 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study CRISIL: Designing a Compelling Employee Value Proposition, Crisil Ratings may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
High dependence on third party suppliers
– Crisil Ratings 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.
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. Crisil Ratings needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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.
Shortening product life cycle
– it is one of the major threat that Crisil Ratings is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Crisil Ratings 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 Organizational Development industry regulations.
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 Crisil Ratings in the Organizational Development sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Crisil Ratings with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Crisil Ratings.
Weighted SWOT Analysis of CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition 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 CRISIL: Designing a Compelling Employee Value Proposition 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 Crisil Ratings needs to make to build a sustainable competitive advantage.