Swot Analysis of "Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B)" written by David J. Sharp, Sudershan Kuntluru, Paritosh Basu, Sanjay Chauhan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gaap W13226 facing as an external strategic factors. Some of the topics covered in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) casestudy better are - – supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, central banks are concerned over increasing inflation,
banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gaap W13226, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gaap W13226 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) can be done for the following purposes –
1. Strategic planning using facts provided in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) case study
2. Improving business portfolio management of Gaap W13226
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gaap W13226
Strengths Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gaap W13226 in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) Harvard Business Review case study are -
Training and development
– Gaap W13226 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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.
Strong track record of project management
– Gaap W13226 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Gaap W13226 is one of the leading recruiters in the industry. Managers in the Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Gaap W13226 in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Gaap W13226 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Gaap W13226 is present in almost all the verticals within the industry. This has provided firm in Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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.
Highly skilled collaborators
– Gaap W13226 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Gaap W13226 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 David J. Sharp, Sudershan Kuntluru, Paritosh Basu, Sanjay Chauhan 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.
High brand equity
– Gaap W13226 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gaap W13226 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Gaap W13226 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gaap W13226 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Gaap W13226 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gaap W13226 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.
Low bargaining power of suppliers
– Suppliers of Gaap W13226 in the sector have low bargaining power. Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gaap W13226 to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) are -
Aligning sales with marketing
– It come across in the case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) can leverage the sales team experience to cultivate customer relationships as Gaap W13226 is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B), it seems that the employees of Gaap W13226 don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gaap W13226 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Gaap W13226 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.
Increasing silos among functional specialists
– The organizational structure of Gaap W13226 is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Gaap W13226 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gaap W13226 to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B), in the dynamic environment Gaap W13226 has struggled to respond to the nimble upstart competition. Gaap W13226 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Gaap W13226, firm in the HBR case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Gaap W13226 has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Gaap W13226 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B), is just above the industry average. Gaap W13226 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 Gaap W13226 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.
Opportunities Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) | 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) are -
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 Gaap W13226 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gaap W13226 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gaap W13226 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Gaap W13226 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 Finance & Accounting segment.
Better consumer reach
– The expansion of the 5G network will help Gaap W13226 to increase its market reach. Gaap W13226 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gaap W13226 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, Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gaap W13226 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gaap W13226 can use these opportunities to build new business models that can help the communities that Gaap W13226 operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Loyalty marketing
– Gaap W13226 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.
Learning at scale
– Online learning technologies has now opened space for Gaap W13226 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.
Manufacturing automation
– Gaap W13226 can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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
– Gaap W13226 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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
– Gaap W13226 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) are -
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 Gaap W13226 business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gaap W13226 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Gaap W13226 can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Gaap W13226
– 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 Gaap W13226.
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 Gaap W13226 in the Finance & Accounting sector and impact the bottomline of the organization.
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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gaap W13226 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B), Gaap W13226 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Consumer confidence and its impact on Gaap W13226 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.
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. Gaap W13226 needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Gaap W13226.
Shortening product life cycle
– it is one of the major threat that Gaap W13226 is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Gaap W13226 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. Gaap W13226 can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Weighted SWOT Analysis of Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Essar Energy: Indian GAAP, U.S. GAAP or IFRS? (B) 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 Gaap W13226 needs to make to build a sustainable competitive advantage.
