Case Study Description of Tata Consultancy Services: Protecting a Corporate Reputation
In January 2015, the chief executive officer and managing director of Tata Consultancy Services, India's largest information technology company, expected to face questions from the media related to recent rumours of his company's plans to lay off nearly 30,000 employees. Over the previous four weeks the reports had spread on both social media and conventional media platforms, leading to widespread protests against the company and attempts to unionize information technology employees (a first in India). The company's carefully constructed corporate reputation of being employee friendly was threatened. The chief executive officer needed to design and execute a communication strategy that addressed the concerns of the various stakeholders involved. Dharma Raju Bathini is affiliated with Indian Institute of Management Calcutta. Atul Arun Pathak is affiliated with XLRI-Xavier School of Management.
Swot Analysis of "Tata Consultancy Services: Protecting a Corporate Reputation" written by Dharma Raju Bathini, Atul Arun Pathak includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Consultancy Tata facing as an external strategic factors. Some of the topics covered in Tata Consultancy Services: Protecting a Corporate Reputation case study are - Strategic Management Strategies, Crisis management, IT, Labor, Public relations, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Tata Consultancy Services: Protecting a Corporate Reputation casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is backlash against globalization, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Tata Consultancy Services: Protecting a Corporate Reputation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tata Consultancy Services: Protecting a Corporate Reputation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Consultancy Tata, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Consultancy Tata 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 Consultancy Services: Protecting a Corporate Reputation can be done for the following purposes –
1. Strategic planning using facts provided in Tata Consultancy Services: Protecting a Corporate Reputation case study
2. Improving business portfolio management of Consultancy Tata
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 Consultancy Tata
Strengths Tata Consultancy Services: Protecting a Corporate Reputation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Consultancy Tata in Tata Consultancy Services: Protecting a Corporate Reputation Harvard Business Review case study are -
Successful track record of launching new products
– Consultancy Tata has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Consultancy Tata 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.
Cross disciplinary teams
– Horizontal connected teams at the Consultancy Tata 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.
Low bargaining power of suppliers
– Suppliers of Consultancy Tata in the sector have low bargaining power. Tata Consultancy Services: Protecting a Corporate Reputation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Consultancy Tata to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Consultancy Tata is one of the leading recruiters in the industry. Managers in the Tata Consultancy Services: Protecting a Corporate Reputation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Tata Consultancy Services: Protecting a Corporate Reputation firm has clearly differentiated products in the market place. This has enabled Consultancy Tata to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Consultancy Tata to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Consultancy Tata is present in almost all the verticals within the industry. This has provided firm in Tata Consultancy Services: Protecting a Corporate Reputation case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Consultancy Tata in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Consultancy Tata 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 Consultancy Tata is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tata Consultancy Services: Protecting a Corporate Reputation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Global Business field
– Consultancy Tata 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 Consultancy Tata in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Consultancy Tata has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Consultancy Tata to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Tata Consultancy Services: Protecting a Corporate Reputation 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.
Innovation driven organization
– Consultancy Tata is one of the most innovative firm in sector. Manager in Tata Consultancy Services: Protecting a Corporate Reputation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Tata Consultancy Services: Protecting a Corporate Reputation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tata Consultancy Services: Protecting a Corporate Reputation are -
Products dominated business model
– Even though Consultancy Tata 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 - Tata Consultancy Services: Protecting a Corporate Reputation should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tata Consultancy Services: Protecting a Corporate Reputation, it seems that the employees of Consultancy Tata 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.
Need for greater diversity
– Consultancy Tata 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Tata Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Tata has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Dharma Raju Bathini, Atul Arun Pathak suggests that, Consultancy Tata 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 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 Consultancy Tata supply chain. Even after few cautionary changes mentioned in the HBR case study - Tata Consultancy Services: Protecting a Corporate Reputation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Consultancy Tata vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Consultancy Tata 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.
Interest costs
– Compare to the competition, Consultancy Tata has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As Tata Consultancy Services: Protecting a Corporate Reputation HBR case study mentions - Consultancy Tata 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.
Low market penetration in new markets
– Outside its home market of Consultancy Tata, firm in the HBR case study Tata Consultancy Services: Protecting a Corporate Reputation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Consultancy Tata products
– To increase the profitability and margins on the products, Consultancy Tata needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Tata Consultancy Services: Protecting a Corporate Reputation | 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 Consultancy Services: Protecting a Corporate Reputation are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Consultancy Tata 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Consultancy Tata can use these opportunities to build new business models that can help the communities that Consultancy Tata operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Consultancy Tata 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Consultancy Tata 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 Consultancy Tata to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Consultancy Tata has opened avenues for new revenue streams for the organization in the industry. This can help Consultancy Tata to build a more holistic ecosystem as suggested in the Tata Consultancy Services: Protecting a Corporate Reputation case study. Consultancy Tata can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Consultancy Tata 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.
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. Consultancy Tata can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Consultancy Tata 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
– Consultancy Tata 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.
Buying journey improvements
– Consultancy Tata can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tata Consultancy Services: Protecting a Corporate Reputation 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.
Better consumer reach
– The expansion of the 5G network will help Consultancy Tata to increase its market reach. Consultancy Tata 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.
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. Consultancy Tata can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Consultancy Tata 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, Tata Consultancy Services: Protecting a Corporate Reputation, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Tata Consultancy Services: Protecting a Corporate Reputation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tata Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Tata business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Consultancy Tata 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.
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. Consultancy Tata 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.
Shortening product life cycle
– it is one of the major threat that Consultancy Tata is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Consultancy Tata 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.
Environmental challenges
– Consultancy Tata 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. Consultancy Tata can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Consultancy Tata can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Consultancy Tata 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 Tata Consultancy Services: Protecting a Corporate Reputation .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tata Consultancy Services: Protecting a Corporate Reputation, Consultancy Tata may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Stagnating economy with rate increase
– Consultancy Tata 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Consultancy Tata with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Consultancy Tata 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.
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.
Weighted SWOT Analysis of Tata Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Services: Protecting a Corporate Reputation 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 Consultancy Tata needs to make to build a sustainable competitive advantage.