Rajghat Power House: The Economy or the Environment SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rajghat Power House: The Economy or the Environment
In response to a recommendation at a government-sponsored power forum, Delhi's aging and inefficient Rajghat Power House (RPH) was scheduled to close its doors. The coal-based plant had reached the end of its 25-year useful life, and its outdated equipment spewed toxins into Delhi's air and water on a daily basis. Environmentalist bodies and power-distributing units in Delhi had made similar recommendations for the RPH's closure over the years, and while the government had gone so far as to approve some of those plans, nothing had ever come of them. With the arrival of the forum's recommended date of October 2015 for the plant's closure, Delhi's government officials faced a difficult decision. Should they ignore the environmental degradation to achieve a high growth rate in the short run, or should they protect the environment to achieve a sustainable growth rate in the long run? Veena Keshav Pailwar is affiliated with Institute of Management Technology, Nagpur.
Swot Analysis of "Rajghat Power House: The Economy or the Environment" written by Veena Keshav Pailwar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Delhi's Rajghat facing as an external strategic factors. Some of the topics covered in Rajghat Power House: The Economy or the Environment case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Rajghat Power House: The Economy or the Environment casestudy better are - – wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices,
increasing household debt because of falling income levels, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Rajghat Power House: The Economy or the Environment
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rajghat Power House: The Economy or the Environment case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Delhi's Rajghat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Delhi's Rajghat 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 Rajghat Power House: The Economy or the Environment can be done for the following purposes –
1. Strategic planning using facts provided in Rajghat Power House: The Economy or the Environment case study
2. Improving business portfolio management of Delhi's Rajghat
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 Delhi's Rajghat
Strengths Rajghat Power House: The Economy or the Environment | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Delhi's Rajghat in Rajghat Power House: The Economy or the Environment Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Delhi's Rajghat 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 Delhi's Rajghat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Delhi's Rajghat has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Delhi's Rajghat to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Delhi's Rajghat in the sector have low bargaining power. Rajghat Power House: The Economy or the Environment has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Delhi's Rajghat to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Delhi's Rajghat is one of the leading recruiters in the industry. Managers in the Rajghat Power House: The Economy or the Environment are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Delhi's Rajghat 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 Rajghat Power House: The Economy or the Environment HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Delhi's Rajghat 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 Delhi's Rajghat is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Rajghat Power House: The Economy or the Environment Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Delhi's Rajghat is present in almost all the verticals within the industry. This has provided firm in Rajghat Power House: The Economy or the Environment 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
– Delhi's Rajghat is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Delhi's Rajghat 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 Rajghat Power House: The Economy or the Environment - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Delhi's Rajghat digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Delhi's Rajghat 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Rajghat Power House: The Economy or the Environment firm has clearly differentiated products in the market place. This has enabled Delhi's Rajghat to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Delhi's Rajghat to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Delhi's Rajghat has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Rajghat Power House: The Economy or the Environment | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rajghat Power House: The Economy or the Environment are -
Aligning sales with marketing
– It come across in the case study Rajghat Power House: The Economy or the Environment 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 Rajghat Power House: The Economy or the Environment can leverage the sales team experience to cultivate customer relationships as Delhi's Rajghat is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Rajghat Power House: The Economy or the Environment 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 Delhi's Rajghat 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Delhi's Rajghat, firm in the HBR case study Rajghat Power House: The Economy or the Environment needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Rajghat Power House: The Economy or the Environment 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 Delhi's Rajghat has relatively successful track record of launching new products.
Need for greater diversity
– Delhi's Rajghat 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Delhi's Rajghat is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Rajghat Power House: The Economy or the Environment can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Delhi's Rajghat 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.
Skills based hiring
– The stress on hiring functional specialists at Delhi's Rajghat 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 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 Delhi's Rajghat supply chain. Even after few cautionary changes mentioned in the HBR case study - Rajghat Power House: The Economy or the Environment, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Delhi's Rajghat vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Delhi's Rajghat 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.
No frontier risks strategy
– After analyzing the HBR case study Rajghat Power House: The Economy or the Environment, 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 Rajghat Power House: The Economy or the Environment | 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 Rajghat Power House: The Economy or the Environment are -
Building a culture of innovation
– managers at Delhi's Rajghat 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.
Manufacturing automation
– Delhi's Rajghat 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.
Learning at scale
– Online learning technologies has now opened space for Delhi's Rajghat 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.
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. Delhi's Rajghat 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. Delhi's Rajghat 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Delhi's Rajghat can use these opportunities to build new business models that can help the communities that Delhi's Rajghat operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Delhi's Rajghat 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, Rajghat Power House: The Economy or the Environment, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Delhi's Rajghat 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Delhi's Rajghat 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.
Leveraging digital technologies
– Delhi's Rajghat 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Delhi's Rajghat 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 Delhi's Rajghat to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Delhi's Rajghat can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Delhi's Rajghat is facing challenges because of the dominance of functional experts in the organization. Rajghat Power House: The Economy or the Environment case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Delhi's Rajghat can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Rajghat Power House: The Economy or the Environment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rajghat Power House: The Economy or the Environment are -
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. Delhi's Rajghat 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
– Delhi's Rajghat 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Delhi's Rajghat with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Delhi's Rajghat business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Delhi's Rajghat 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.
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 Delhi's Rajghat in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing wage structure of Delhi's Rajghat
– 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 Delhi's Rajghat.
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.
Shortening product life cycle
– it is one of the major threat that Delhi's Rajghat is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Delhi's Rajghat 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Rajghat Power House: The Economy or the Environment, Delhi's Rajghat 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Delhi's Rajghat 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.
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. Delhi's Rajghat needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Rajghat Power House: The Economy or the Environment 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 Rajghat Power House: The Economy or the Environment 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 Rajghat Power House: The Economy or the Environment 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 Rajghat Power House: The Economy or the Environment 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 Rajghat Power House: The Economy or the Environment 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 Delhi's Rajghat needs to make to build a sustainable competitive advantage.
