Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network
Case A offers an overview and Case B explores specific aspects of a major Indian construction firm which seeks to use corporate social responsibility as a strategic tool in its quest for rapid growth at home and abroad. Source materials include on-site interviews of the firm's executives, line managers and workers in Delhi, Mumbai and Lavasa, as well as corporate reports, scholarly articles, and domestic and international press articles.
Swot Analysis of "Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network" written by Mark Hunter, Luk Van Wassenhove includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Articles Lavasa facing as an external strategic factors. Some of the topics covered in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network case study are - Strategic Management Strategies, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network casestudy better are - – increasing energy prices, increasing commodity prices, there is backlash against globalization, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Articles Lavasa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Articles Lavasa 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network can be done for the following purposes –
1. Strategic planning using facts provided in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network case study
2. Improving business portfolio management of Articles Lavasa
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 Articles Lavasa
Strengths Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Articles Lavasa in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network Harvard Business Review case study are -
Training and development
– Articles Lavasa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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.
Low bargaining power of suppliers
– Suppliers of Articles Lavasa in the sector have low bargaining power. Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Articles Lavasa to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Articles Lavasa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Articles Lavasa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Articles Lavasa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Articles Lavasa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Articles Lavasa 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 Articles Lavasa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Articles Lavasa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Articles Lavasa 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.
Operational resilience
– The operational resilience strategy in the Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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.
Effective Research and Development (R&D)
– Articles Lavasa 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network - 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
– Articles Lavasa is one of the most innovative firm in sector. Manager in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Articles Lavasa 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 Articles Lavasa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Articles Lavasa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Articles Lavasa 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.
Weaknesses Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network are -
Lack of clear differentiation of Articles Lavasa products
– To increase the profitability and margins on the products, Articles Lavasa needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Articles Lavasa 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 - Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Articles Lavasa, firm in the HBR case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network, it seems that the employees of Articles Lavasa 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 decision making process
– As mentioned earlier in the report, Articles Lavasa has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Articles Lavasa even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Articles Lavasa 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network, in the dynamic environment Articles Lavasa has struggled to respond to the nimble upstart competition. Articles Lavasa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Articles Lavasa 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Articles Lavasa 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Articles Lavasa 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.
Need for greater diversity
– Articles Lavasa 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.
Opportunities Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network | 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network are -
Using analytics as competitive advantage
– Articles Lavasa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Articles Lavasa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Articles Lavasa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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.
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 Articles Lavasa to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Articles Lavasa 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 Articles Lavasa to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Articles Lavasa 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. Articles Lavasa 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
– Articles Lavasa 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Articles Lavasa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Articles Lavasa 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.
Learning at scale
– Online learning technologies has now opened space for Articles Lavasa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Articles Lavasa can use these opportunities to build new business models that can help the communities that Articles Lavasa operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Articles Lavasa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Articles Lavasa is facing challenges because of the dominance of functional experts in the organization. Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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.
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. Articles Lavasa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Articles Lavasa in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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. Articles Lavasa 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.
Technology acceleration in Forth Industrial Revolution
– Articles Lavasa has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Articles Lavasa needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Articles Lavasa 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 dependence on third party suppliers
– Articles Lavasa 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.
Shortening product life cycle
– it is one of the major threat that Articles Lavasa is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Articles Lavasa business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Articles Lavasa 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. Articles Lavasa can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Articles Lavasa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Articles Lavasa needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Articles Lavasa 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 Articles Lavasa
– 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 Articles Lavasa.
Weighted SWOT Analysis of Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Hindustan Construction Company (HCC) (B): Building the Disaster Resource Network 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 Articles Lavasa needs to make to build a sustainable competitive advantage.
