GNFC Neem Project: The Ecosystem of Shared Value SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GNFC Neem Project: The Ecosystem of Shared Value
A radical change was triggered in the fertilizer industry in India in fiscal year 2015-16, following a policy directive by the government of India regarding mandatory neem-coated urea, a fertilizer component. The government's policy decision was made to restore the market dynamics by moving control of, and access to, urea from intermediaries and industries toward farmers. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) decided to leverage this policy directive as an opportunity to set up a fully-integrated value chain for the in-house production of neem oil and related product offerings. The decision to pursue an integrated value chain approach was driven by GNFC's belief that neem seed collection, a labour-intensive activity, presented a huge opportunity for the economic and social empowerment of rural women in India. GNFC launched the Neem Project, which showcased a differentiated business model to comply with the government's policy directive. By 2017, the project had benefited approximately 225,000 rural women. Although the project earned GNFC many accolades and the managing director at GNFC was confident about its potential, he was concerned about the challenges associated with scaling the initiative. Sandeep Goyal and Amit Kapoor are affiliated with Institute for Competitiveness.
Swot Analysis of "GNFC Neem Project: The Ecosystem of Shared Value" written by Sandeep Goyal, Amit Kapoor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gnfc Neem facing as an external strategic factors. Some of the topics covered in GNFC Neem Project: The Ecosystem of Shared Value case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the GNFC Neem Project: The Ecosystem of Shared Value casestudy better are - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, wage bills are increasing, challanges to central banks by blockchain based private currencies,
increasing transportation and logistics costs, increasing commodity prices, etc
Introduction to SWOT Analysis of GNFC Neem Project: The Ecosystem of Shared Value
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GNFC Neem Project: The Ecosystem of Shared Value case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gnfc Neem, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gnfc Neem 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 GNFC Neem Project: The Ecosystem of Shared Value can be done for the following purposes –
1. Strategic planning using facts provided in GNFC Neem Project: The Ecosystem of Shared Value case study
2. Improving business portfolio management of Gnfc Neem
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 Gnfc Neem
Strengths GNFC Neem Project: The Ecosystem of Shared Value | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gnfc Neem in GNFC Neem Project: The Ecosystem of Shared Value Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Gnfc Neem are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Gnfc Neem 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.
Organizational Resilience of Gnfc Neem
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gnfc Neem does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Gnfc Neem 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 Gnfc Neem is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GNFC Neem Project: The Ecosystem of Shared Value Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Gnfc Neem in the sector have low bargaining power. GNFC Neem Project: The Ecosystem of Shared Value has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gnfc Neem to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Gnfc Neem has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gnfc Neem 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.
Superior customer experience
– The customer experience strategy of Gnfc Neem in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– GNFC Neem Project: The Ecosystem of Shared Value firm has clearly differentiated products in the market place. This has enabled Gnfc Neem to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Gnfc Neem to invest into research and development (R&D) and innovation.
Innovation driven organization
– Gnfc Neem is one of the most innovative firm in sector. Manager in GNFC Neem Project: The Ecosystem of Shared Value Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Gnfc Neem is one of the leading recruiters in the industry. Managers in the GNFC Neem Project: The Ecosystem of Shared Value are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Leadership & Managing People field
– Gnfc Neem 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 Gnfc Neem in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Gnfc Neem is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses GNFC Neem Project: The Ecosystem of Shared Value | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GNFC Neem Project: The Ecosystem of Shared Value are -
Low market penetration in new markets
– Outside its home market of Gnfc Neem, firm in the HBR case study GNFC Neem Project: The Ecosystem of Shared Value needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Gnfc Neem supply chain. Even after few cautionary changes mentioned in the HBR case study - GNFC Neem Project: The Ecosystem of Shared Value, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gnfc Neem vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Gnfc Neem is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Gnfc Neem needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gnfc Neem to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GNFC Neem Project: The Ecosystem of Shared Value, it seems that the employees of Gnfc Neem 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study GNFC Neem Project: The Ecosystem of Shared Value, in the dynamic environment Gnfc Neem has struggled to respond to the nimble upstart competition. Gnfc Neem has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Gnfc Neem 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.
Products dominated business model
– Even though Gnfc Neem 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 - GNFC Neem Project: The Ecosystem of Shared Value should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Gnfc Neem 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.
Aligning sales with marketing
– It come across in the case study GNFC Neem Project: The Ecosystem of Shared Value 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 GNFC Neem Project: The Ecosystem of Shared Value can leverage the sales team experience to cultivate customer relationships as Gnfc Neem is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Gnfc Neem has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Gnfc Neem even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study GNFC Neem Project: The Ecosystem of Shared Value 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 Gnfc Neem 's lucrative customers.
Opportunities GNFC Neem Project: The Ecosystem of Shared Value | 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 GNFC Neem Project: The Ecosystem of Shared Value are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gnfc Neem 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gnfc Neem can use these opportunities to build new business models that can help the communities that Gnfc Neem operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Creating value in data economy
– The success of analytics program of Gnfc Neem has opened avenues for new revenue streams for the organization in the industry. This can help Gnfc Neem to build a more holistic ecosystem as suggested in the GNFC Neem Project: The Ecosystem of Shared Value case study. Gnfc Neem 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, Gnfc Neem is facing challenges because of the dominance of functional experts in the organization. GNFC Neem Project: The Ecosystem of Shared Value 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.
Loyalty marketing
– Gnfc Neem 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.
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. Gnfc Neem can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gnfc Neem 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, GNFC Neem Project: The Ecosystem of Shared Value, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Gnfc Neem can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GNFC Neem Project: The Ecosystem of Shared Value 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.
Developing new processes and practices
– Gnfc Neem 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.
Learning at scale
– Online learning technologies has now opened space for Gnfc Neem 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.
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. Gnfc Neem can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gnfc Neem can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Gnfc Neem can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats GNFC Neem Project: The Ecosystem of Shared Value External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GNFC Neem Project: The Ecosystem of Shared Value are -
Consumer confidence and its impact on Gnfc Neem 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gnfc Neem 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 GNFC Neem Project: The Ecosystem of Shared Value .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gnfc Neem with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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. Gnfc Neem needs to understand the core reasons impacting the Leadership & Managing People 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.
Stagnating economy with rate increase
– Gnfc Neem 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.
High dependence on third party suppliers
– Gnfc Neem 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.
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. Gnfc Neem can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Gnfc Neem.
Technology acceleration in Forth Industrial Revolution
– Gnfc Neem has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Gnfc Neem 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.
Environmental challenges
– Gnfc Neem 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. Gnfc Neem can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Gnfc Neem
– 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 Gnfc Neem.
Weighted SWOT Analysis of GNFC Neem Project: The Ecosystem of Shared Value 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 GNFC Neem Project: The Ecosystem of Shared Value 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 GNFC Neem Project: The Ecosystem of Shared Value 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 GNFC Neem Project: The Ecosystem of Shared Value 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 GNFC Neem Project: The Ecosystem of Shared Value 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 Gnfc Neem needs to make to build a sustainable competitive advantage.
