Tata Power: Corporate Social Responsibility and Sustainability SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tata Power: Corporate Social Responsibility and Sustainability
The case describes the strategic dilemma involved in making a decision on the method of operation of the corporate social responsibility (CSR) department for one of the leading Indian multinational corporations, Tata Power Company (TPC) from Tata Group of Companies. TPC had undertaken the CSR activities for decades, reflecting the company's commitment towards sustainable energy generation without undue compromise to human and environmental development. These activities were undertaken as a voluntary initiative by the employees of TPC, and there was no separate CSR department. However, with large scale expansion, the need to have CSR as a separate entity was felt. The dilemma for the decision manager was whether to create a separate CSR department or continue with the existing set up. Other related issues needed to be addressed strategically as well as tactically to maintain a balance between shareholders' interest and other stakeholders.
Swot Analysis of "Tata Power: Corporate Social Responsibility and Sustainability" written by Rama Deshmukh, Atanu Adhikari includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tpc Csr facing as an external strategic factors. Some of the topics covered in Tata Power: Corporate Social Responsibility and Sustainability case study are - Strategic Management Strategies, Motivating people, Social responsibility, Strategy, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Tata Power: Corporate Social Responsibility and Sustainability casestudy better are - – increasing household debt because of falling income levels, 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, wage bills are increasing, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Tata Power: Corporate Social Responsibility and Sustainability
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tata Power: Corporate Social Responsibility and Sustainability case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tpc Csr, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tpc Csr 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 Tata Power: Corporate Social Responsibility and Sustainability can be done for the following purposes –
1. Strategic planning using facts provided in Tata Power: Corporate Social Responsibility and Sustainability case study
2. Improving business portfolio management of Tpc Csr
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tpc Csr
Strengths Tata Power: Corporate Social Responsibility and Sustainability | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tpc Csr in Tata Power: Corporate Social Responsibility and Sustainability Harvard Business Review case study are -
Ability to recruit top talent
– Tpc Csr is one of the leading recruiters in the industry. Managers in the Tata Power: Corporate Social Responsibility and Sustainability are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Tpc Csr
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tpc Csr does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Tpc Csr is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Tpc Csr 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 Tata Power: Corporate Social Responsibility and Sustainability HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Tpc Csr is one of the most innovative firm in sector. Manager in Tata Power: Corporate Social Responsibility and Sustainability Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Tpc Csr is present in almost all the verticals within the industry. This has provided firm in Tata Power: Corporate Social Responsibility and Sustainability 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.
Training and development
– Tpc Csr has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tata Power: Corporate Social Responsibility and Sustainability 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.
Learning organization
- Tpc Csr 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 Tpc Csr is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tata Power: Corporate Social Responsibility and Sustainability Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Global Business field
– Tpc Csr 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 Tpc Csr in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Global Business industry
– Tata Power: Corporate Social Responsibility and Sustainability firm has clearly differentiated products in the market place. This has enabled Tpc Csr to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Tpc Csr to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Tpc Csr 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 Tata Power: Corporate Social Responsibility and Sustainability - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Tpc Csr has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Tata Power: Corporate Social Responsibility and Sustainability | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tata Power: Corporate Social Responsibility and Sustainability are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tpc Csr is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tata Power: Corporate Social Responsibility and Sustainability can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Tpc Csr 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tata Power: Corporate Social Responsibility and Sustainability, it seems that the employees of Tpc Csr 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Tpc Csr 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.
No frontier risks strategy
– After analyzing the HBR case study Tata Power: Corporate Social Responsibility and Sustainability, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tata Power: Corporate Social Responsibility and Sustainability, in the dynamic environment Tpc Csr has struggled to respond to the nimble upstart competition. Tpc Csr has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Rama Deshmukh, Atanu Adhikari suggests that, Tpc Csr 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Tata Power: Corporate Social Responsibility and Sustainability 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 Tpc Csr has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Tata Power: Corporate Social Responsibility and Sustainability HBR case study mentions - Tpc Csr 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Tata Power: Corporate Social Responsibility and Sustainability 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 Tpc Csr 's lucrative customers.
High cash cycle compare to competitors
Tpc Csr 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.
Opportunities Tata Power: Corporate Social Responsibility and Sustainability | 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 Tata Power: Corporate Social Responsibility and Sustainability are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tpc Csr in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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. Tpc Csr can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Tpc Csr can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Tpc Csr 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.
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 Tpc Csr in the consumer business. Now Tpc Csr can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Tpc Csr can develop new processes and procedures in Global Business 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.
Better consumer reach
– The expansion of the 5G network will help Tpc Csr to increase its market reach. Tpc Csr 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 Tpc Csr has opened avenues for new revenue streams for the organization in the industry. This can help Tpc Csr to build a more holistic ecosystem as suggested in the Tata Power: Corporate Social Responsibility and Sustainability case study. Tpc Csr can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tpc Csr can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tpc Csr can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Tpc Csr can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Tpc Csr can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tpc Csr is facing challenges because of the dominance of functional experts in the organization. Tata Power: Corporate Social Responsibility and Sustainability 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tpc Csr 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.
Threats Tata Power: Corporate Social Responsibility and Sustainability External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tata Power: Corporate Social Responsibility and Sustainability are -
Shortening product life cycle
– it is one of the major threat that Tpc Csr is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tpc Csr will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tpc Csr with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Tpc Csr 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. Tpc Csr can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Tpc Csr 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 wage structure of Tpc Csr
– 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 Tpc Csr.
Regulatory challenges
– Tpc Csr 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 Global Business industry regulations.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tpc Csr can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
High dependence on third party suppliers
– Tpc Csr 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.
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 Tpc Csr business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Tpc Csr 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.
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 Tpc Csr.
Weighted SWOT Analysis of Tata Power: Corporate Social Responsibility and Sustainability 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 Tata Power: Corporate Social Responsibility and Sustainability 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 Tata Power: Corporate Social Responsibility and Sustainability 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 Tata Power: Corporate Social Responsibility and Sustainability 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 Tata Power: Corporate Social Responsibility and Sustainability 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 Tpc Csr needs to make to build a sustainable competitive advantage.
