Singareni Collieries: From Gloom to Glory SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Singareni Collieries: From Gloom to Glory
The case narrates how A.P.V.N. Sarma, chairman and managing director (CMD) appointed in 1997, realized the pressing need for change to rescue Singareni Collieries Company Limited (SCCL) from impending bankruptcy. SCCL was declared "sick" (bankrupt) by the Board for Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. It had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the well-being of the organization was critical not only for the mammoth workforce, but also for the state of Andhra Pradesh (AP). The power generation units of the state relied significantly on the coal supplied by SCCL. The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collared workers with low literacy and income levels. It discusses the novel communication strategies to connect with workers. The case describes how numerous strikes plaguing SCCL were curbed, and order was restored to allow productivity to rise. Under Sarma's leadership, SCCL achieved a net profit of 894.1 million rupees for the fourth consecutive year in 2001. Sarma had a fixed tenure of five years which ended in 2001. The task for the new leader was to build on the foundations laid by Sarma and take the performance of SCCL to new heights.
Swot Analysis of "Singareni Collieries: From Gloom to Glory" written by S. Ramnarayan, Neha Gupta includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sccl Sarma facing as an external strategic factors. Some of the topics covered in Singareni Collieries: From Gloom to Glory case study are - Strategic Management Strategies, Communication, International business, Labor, Leadership, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Singareni Collieries: From Gloom to Glory casestudy better are - – technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
increasing commodity prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Singareni Collieries: From Gloom to Glory
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Singareni Collieries: From Gloom to Glory case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sccl Sarma, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sccl Sarma 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 Singareni Collieries: From Gloom to Glory can be done for the following purposes –
1. Strategic planning using facts provided in Singareni Collieries: From Gloom to Glory case study
2. Improving business portfolio management of Sccl Sarma
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Sccl Sarma
Strengths Singareni Collieries: From Gloom to Glory | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sccl Sarma in Singareni Collieries: From Gloom to Glory Harvard Business Review case study are -
Ability to recruit top talent
– Sccl Sarma is one of the leading recruiters in the industry. Managers in the Singareni Collieries: From Gloom to Glory 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 Leadership & Managing People industry
– Singareni Collieries: From Gloom to Glory firm has clearly differentiated products in the market place. This has enabled Sccl Sarma to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Sccl Sarma to invest into research and development (R&D) and innovation.
Strong track record of project management
– Sccl Sarma 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 lead change in Leadership & Managing People field
– Sccl Sarma 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 Sccl Sarma in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Sccl Sarma 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 Singareni Collieries: From Gloom to Glory - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Sccl Sarma is one of the most innovative firm in sector. Manager in Singareni Collieries: From Gloom to Glory 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
– Sccl Sarma is present in almost all the verticals within the industry. This has provided firm in Singareni Collieries: From Gloom to Glory 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.
High brand equity
– Sccl Sarma has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sccl Sarma to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Singareni Collieries: From Gloom to Glory 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Sccl Sarma digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sccl Sarma 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.
Analytics focus
– Sccl Sarma 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 S. Ramnarayan, Neha Gupta 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
- Sccl Sarma 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 Sccl Sarma is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Singareni Collieries: From Gloom to Glory Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Singareni Collieries: From Gloom to Glory | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Singareni Collieries: From Gloom to Glory are -
No frontier risks strategy
– After analyzing the HBR case study Singareni Collieries: From Gloom to Glory, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Aligning sales with marketing
– It come across in the case study Singareni Collieries: From Gloom to Glory 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 Singareni Collieries: From Gloom to Glory can leverage the sales team experience to cultivate customer relationships as Sccl Sarma is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Sccl Sarma is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Sccl Sarma needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sccl Sarma to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Sccl Sarma 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.
Lack of clear differentiation of Sccl Sarma products
– To increase the profitability and margins on the products, Sccl Sarma needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Sccl Sarma 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.
Need for greater diversity
– Sccl Sarma 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 strategic competitive environment developments
– As Singareni Collieries: From Gloom to Glory HBR case study mentions - Sccl Sarma 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.
Products dominated business model
– Even though Sccl Sarma 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 - Singareni Collieries: From Gloom to Glory should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Singareni Collieries: From Gloom to Glory 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 Sccl Sarma 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Sccl Sarma 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 Singareni Collieries: From Gloom to Glory | 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 Singareni Collieries: From Gloom to Glory are -
Learning at scale
– Online learning technologies has now opened space for Sccl Sarma 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sccl Sarma is facing challenges because of the dominance of functional experts in the organization. Singareni Collieries: From Gloom to Glory 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.
Developing new processes and practices
– Sccl Sarma can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sccl Sarma can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Sccl Sarma can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Sccl Sarma 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 Sccl Sarma 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.
Building a culture of innovation
– managers at Sccl Sarma 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 Leadership & Managing People segment.
Buying journey improvements
– Sccl Sarma can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Singareni Collieries: From Gloom to Glory 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
– Sccl Sarma 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Sccl Sarma 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, Singareni Collieries: From Gloom to Glory, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Sccl Sarma can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Sccl Sarma in the consumer business. Now Sccl Sarma can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Singareni Collieries: From Gloom to Glory External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Singareni Collieries: From Gloom to Glory are -
Environmental challenges
– Sccl Sarma 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. Sccl Sarma can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Singareni Collieries: From Gloom to Glory, Sccl Sarma may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Sccl Sarma 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.
Increasing wage structure of Sccl Sarma
– 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 Sccl Sarma.
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 Sccl Sarma.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sccl Sarma can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Sccl Sarma 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 Sccl Sarma business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Sccl Sarma 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.
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.
Regulatory challenges
– Sccl Sarma 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 Leadership & Managing People industry regulations.
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. Sccl Sarma needs to understand the core reasons impacting the Leadership & Managing People 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 Sccl Sarma with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Singareni Collieries: From Gloom to Glory 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 Singareni Collieries: From Gloom to Glory 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 Singareni Collieries: From Gloom to Glory 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 Singareni Collieries: From Gloom to Glory 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 Singareni Collieries: From Gloom to Glory 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 Sccl Sarma needs to make to build a sustainable competitive advantage.