HR as Transformation Partner in Maruti Suzuki India Ltd. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HR as Transformation Partner in Maruti Suzuki India Ltd.
The Indian business landscape is marked by uncertainty, turbulence, hyper-competition and non-linear growth. The arena of the automobile sector epitomizes this changing scenario. Increasing competition from foreign born automobile organizations and homegrown organizations such as Tata Motors are posing a threat to the market leader - Maruti Suzuki India Ltd. A fierce battle for market share is ensuing among these automobile giants. In spite of this, Maruti Suzuki has succeeded in maintaining its leadership position. However, with more companies venturing into the bastion of Maruti Suzuki - the small car segment - the threat to their market share is looming larger than before. This case illustrates the journey of Maruti Suzuki since its inception and depicts the changes in its organizational strategy, HR strategy and work culture, in response to business challenges. Maruti Suzuki had to undergo multiple changes from being a public sector undertaking and a monopoly, to one capable of competing with world class automobile companies. This case describes the various challenges faced by the organization in this journey and how HR has partnered in bringing about the much needed transformations. The challenges range from having to create a performing workforce, changing the mindset of the employees, to coping with many cross cultural issues. The most difficult challenge is to engage in breakthrough innovation. HR needs to create an organizational culture that not only supports this endeavour but also helps retain the human resources.
Swot Analysis of "HR as Transformation Partner in Maruti Suzuki India Ltd." written by Anita Ollapally, Asha Bhandarker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maruti Suzuki facing as an external strategic factors. Some of the topics covered in HR as Transformation Partner in Maruti Suzuki India Ltd. case study are - Strategic Management Strategies, Cross-cultural management, Leadership, Organizational culture, Strategy, Talent management and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the HR as Transformation Partner in Maruti Suzuki India Ltd. casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, technology disruption, supply chains are disrupted by pandemic , increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of HR as Transformation Partner in Maruti Suzuki India Ltd.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HR as Transformation Partner in Maruti Suzuki India Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maruti Suzuki, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maruti Suzuki 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 HR as Transformation Partner in Maruti Suzuki India Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in HR as Transformation Partner in Maruti Suzuki India Ltd. case study
2. Improving business portfolio management of Maruti Suzuki
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 Maruti Suzuki
Strengths HR as Transformation Partner in Maruti Suzuki India Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maruti Suzuki in HR as Transformation Partner in Maruti Suzuki India Ltd. Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Maruti Suzuki 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.
Ability to recruit top talent
– Maruti Suzuki is one of the leading recruiters in the industry. Managers in the HR as Transformation Partner in Maruti Suzuki India Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Maruti Suzuki has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maruti Suzuki to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Maruti Suzuki has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Maruti Suzuki 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.
Highly skilled collaborators
– Maruti Suzuki 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 HR as Transformation Partner in Maruti Suzuki India Ltd. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Maruti Suzuki
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Maruti Suzuki does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Maruti Suzuki 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 Maruti Suzuki in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Maruti Suzuki is present in almost all the verticals within the industry. This has provided firm in HR as Transformation Partner in Maruti Suzuki India Ltd. 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.
Strong track record of project management
– Maruti Suzuki is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the HR as Transformation Partner in Maruti Suzuki India Ltd. 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.
Learning organization
- Maruti Suzuki 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 Maruti Suzuki is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HR as Transformation Partner in Maruti Suzuki India Ltd. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Maruti Suzuki 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 Anita Ollapally, Asha Bhandarker 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.
Weaknesses HR as Transformation Partner in Maruti Suzuki India Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HR as Transformation Partner in Maruti Suzuki India Ltd. are -
Slow to strategic competitive environment developments
– As HR as Transformation Partner in Maruti Suzuki India Ltd. HBR case study mentions - Maruti Suzuki 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HR as Transformation Partner in Maruti Suzuki India Ltd., in the dynamic environment Maruti Suzuki has struggled to respond to the nimble upstart competition. Maruti Suzuki has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Maruti Suzuki is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Maruti Suzuki needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Maruti Suzuki to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HR as Transformation Partner in Maruti Suzuki India Ltd., is just above the industry average. Maruti Suzuki needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Maruti Suzuki 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Anita Ollapally, Asha Bhandarker suggests that, Maruti Suzuki 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.
Capital Spending Reduction
– Even during the low interest decade, Maruti Suzuki 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.
Interest costs
– Compare to the competition, Maruti Suzuki 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.
Low market penetration in new markets
– Outside its home market of Maruti Suzuki, firm in the HBR case study HR as Transformation Partner in Maruti Suzuki India Ltd. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Maruti Suzuki 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 - HR as Transformation Partner in Maruti Suzuki India Ltd. should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study HR as Transformation Partner in Maruti Suzuki India Ltd., 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.
Opportunities HR as Transformation Partner in Maruti Suzuki India Ltd. | 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 HR as Transformation Partner in Maruti Suzuki India Ltd. are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Maruti Suzuki 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.
Manufacturing automation
– Maruti Suzuki 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.
Buying journey improvements
– Maruti Suzuki can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HR as Transformation Partner in Maruti Suzuki India Ltd. 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Maruti Suzuki is facing challenges because of the dominance of functional experts in the organization. HR as Transformation Partner in Maruti Suzuki India Ltd. 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.
Loyalty marketing
– Maruti Suzuki 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Maruti Suzuki 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, HR as Transformation Partner in Maruti Suzuki India Ltd., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maruti Suzuki can use these opportunities to build new business models that can help the communities that Maruti Suzuki operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Building a culture of innovation
– managers at Maruti Suzuki 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.
Learning at scale
– Online learning technologies has now opened space for Maruti Suzuki 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 Maruti Suzuki in the consumer business. Now Maruti Suzuki can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Maruti Suzuki 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.
Developing new processes and practices
– Maruti Suzuki 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Maruti Suzuki 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.
Threats HR as Transformation Partner in Maruti Suzuki India Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HR as Transformation Partner in Maruti Suzuki India Ltd. are -
Increasing wage structure of Maruti Suzuki
– 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 Maruti Suzuki.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Maruti Suzuki 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 HR as Transformation Partner in Maruti Suzuki India Ltd. .
Regulatory challenges
– Maruti Suzuki 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Maruti Suzuki with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Maruti Suzuki has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Maruti Suzuki 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.
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.
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. Maruti Suzuki can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Maruti Suzuki business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Maruti Suzuki 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Maruti Suzuki in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Maruti Suzuki 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Maruti Suzuki 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.
Shortening product life cycle
– it is one of the major threat that Maruti Suzuki is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of HR as Transformation Partner in Maruti Suzuki India Ltd. 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 HR as Transformation Partner in Maruti Suzuki India Ltd. 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 HR as Transformation Partner in Maruti Suzuki India Ltd. 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 HR as Transformation Partner in Maruti Suzuki India Ltd. 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 HR as Transformation Partner in Maruti Suzuki India Ltd. 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 Maruti Suzuki needs to make to build a sustainable competitive advantage.
