Case Study Description of Warehouse Consolidation Project at Manipal Hospital Bangalore (A)
This case introduces the concepts of information and material flow analysis, operational improvement procedure and the steps to be taken for successful change management in the context of warehouse consolidation at Manipal Hospitals Bangalore (MHB). The case describes the warehouse consolidation project which was expected to lower operational costs and improve service levels by leveraging economies of scale through aggregation of demand. It discusses the benefits of aggregation of demand and the procedure to design a supply network based on the demand pattern and criticality of products. However the desired outcomes were not achieved initially and the service levels plummeted rather than increasing. The second case then describes the steps taken to manage the change and meet the desired goals. This case goes beyond process improvement, to its implementation, the challenges faced, and related change management techniques needed for ensuring success of the process improvement initiatives. The case challenges the students to think about the various stakeholders involved when change initiatives are implemented on an organization level and to recommend solutions based on the voices of various internal customers. The case also encourages the students to think about the various aspects of organizational behavior that are involved at the time of changes in management processes. The Part B case showcases the changes that were implemented by the protagonist to improve and deliver the necessary service levels.
Swot Analysis of "Warehouse Consolidation Project at Manipal Hospital Bangalore (A)" written by Anshuman Tripathy, Ramanath Pai, Vaibhav Jain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Manipal Warehouse facing as an external strategic factors. Some of the topics covered in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) case study are - Strategic Management Strategies, Operations management, Project management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Warehouse Consolidation Project at Manipal Hospital Bangalore (A) casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, there is increasing trade war between United States & China, increasing transportation and logistics costs, central banks are concerned over increasing inflation, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Warehouse Consolidation Project at Manipal Hospital Bangalore (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Manipal Warehouse, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Manipal Warehouse 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) can be done for the following purposes –
1. Strategic planning using facts provided in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) case study
2. Improving business portfolio management of Manipal Warehouse
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Manipal Warehouse
Strengths Warehouse Consolidation Project at Manipal Hospital Bangalore (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Manipal Warehouse in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Manipal Warehouse 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 Manipal Warehouse in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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.
Analytics focus
– Manipal Warehouse 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 Anshuman Tripathy, Ramanath Pai, Vaibhav Jain 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.
Learning organization
- Manipal Warehouse 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 Manipal Warehouse is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Manipal Warehouse is present in almost all the verticals within the industry. This has provided firm in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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.
Innovation driven organization
– Manipal Warehouse is one of the most innovative firm in sector. Manager in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Manipal Warehouse has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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.
Organizational Resilience of Manipal Warehouse
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Manipal Warehouse does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Manipal Warehouse has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Manipal Warehouse to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Manipal Warehouse in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Manipal Warehouse is one of the leading recruiters in the industry. Managers in the Warehouse Consolidation Project at Manipal Hospital Bangalore (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Manipal Warehouse has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Manipal Warehouse 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.
Weaknesses Warehouse Consolidation Project at Manipal Hospital Bangalore (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Warehouse Consolidation Project at Manipal Hospital Bangalore (A) are -
Capital Spending Reduction
– Even during the low interest decade, Manipal Warehouse has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Manipal Warehouse 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. Manipal Warehouse 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 cash cycle compare to competitors
Manipal Warehouse 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.
Skills based hiring
– The stress on hiring functional specialists at Manipal Warehouse 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Warehouse Consolidation Project at Manipal Hospital Bangalore (A), it seems that the employees of Manipal Warehouse 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Anshuman Tripathy, Ramanath Pai, Vaibhav Jain suggests that, Manipal Warehouse 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Warehouse Consolidation Project at Manipal Hospital Bangalore (A), in the dynamic environment Manipal Warehouse has struggled to respond to the nimble upstart competition. Manipal Warehouse has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Manipal Warehouse has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Manipal Warehouse is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Warehouse Consolidation Project at Manipal Hospital Bangalore (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Manipal Warehouse 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 - Warehouse Consolidation Project at Manipal Hospital Bangalore (A) should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Manipal Warehouse products
– To increase the profitability and margins on the products, Manipal Warehouse needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Warehouse Consolidation Project at Manipal Hospital Bangalore (A) | 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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. Manipal Warehouse can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Manipal Warehouse 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.
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 Manipal Warehouse 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Manipal Warehouse to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Manipal Warehouse to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Manipal Warehouse can use these opportunities to build new business models that can help the communities that Manipal Warehouse operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Manipal Warehouse can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Manipal Warehouse can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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.
Leveraging digital technologies
– Manipal Warehouse 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
– Manipal Warehouse can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Developing new processes and practices
– Manipal Warehouse can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Manipal Warehouse has opened avenues for new revenue streams for the organization in the industry. This can help Manipal Warehouse to build a more holistic ecosystem as suggested in the Warehouse Consolidation Project at Manipal Hospital Bangalore (A) case study. Manipal Warehouse can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Manipal Warehouse to increase its market reach. Manipal Warehouse 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.
Using analytics as competitive advantage
– Manipal Warehouse 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Manipal Warehouse to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Warehouse Consolidation Project at Manipal Hospital Bangalore (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Manipal Warehouse in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Manipal Warehouse 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 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. Manipal Warehouse needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Manipal Warehouse with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Manipal Warehouse is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Manipal Warehouse business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Manipal Warehouse 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. Manipal Warehouse can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Manipal Warehouse
– 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 Manipal Warehouse.
Regulatory challenges
– Manipal Warehouse 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 Technology & Operations industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Manipal Warehouse in the Technology & Operations industry. The Technology & Operations 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.
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.
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 Manipal Warehouse.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Manipal Warehouse 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) .
Weighted SWOT Analysis of Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Warehouse Consolidation Project at Manipal Hospital Bangalore (A) 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 Manipal Warehouse needs to make to build a sustainable competitive advantage.