Case Study Description of Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead
A chief human resource executive of an automotive company in India, faced with exits of promising employees, was reviewing the efficacy and relevance of the company's 20-year-old high-potential talent identification program in place since 1991. The chief executive was particularly concerned about how well the program met the company's changing leadership needs within the context of a rapidly evolving automotive industry in India in recent years owing to open economy and influx of foreign players in the automotive segment. The challenge facing the executive was how to align the program with the company's organizational strategy to establish a pipeline of successors ready for critical senior roles in a changing business landscape by fostering loyalty and leadership capability of employees.
Swot Analysis of "Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead" written by Tripti Singh, Ritu Waila, Gayatri Phadke includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Automotive Program facing as an external strategic factors. Some of the topics covered in Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead case study are - Strategic Management Strategies, Motivating people and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead casestudy better are - – talent flight as more people leaving formal jobs, increasing commodity prices, cloud computing is disrupting traditional business models, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs,
increasing household debt because of falling income levels, technology disruption, etc
Introduction to SWOT Analysis of Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Automotive Program, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Automotive Program operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead can be done for the following purposes –
1. Strategic planning using facts provided in Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead case study
2. Improving business portfolio management of Automotive Program
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 Automotive Program
Strengths Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Automotive Program in Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead Harvard Business Review case study are -
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Automotive Program digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Automotive Program 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.
Innovation driven organization
– Automotive Program is one of the most innovative firm in sector. Manager in Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead firm has clearly differentiated products in the market place. This has enabled Automotive Program to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Automotive Program to invest into research and development (R&D) and innovation.
Analytics focus
– Automotive Program 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 Tripti Singh, Ritu Waila, Gayatri Phadke 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.
Low bargaining power of suppliers
– Suppliers of Automotive Program in the sector have low bargaining power. Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Automotive Program to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Automotive Program has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Automotive Program 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.
High switching costs
– The high switching costs that Automotive Program 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.
Ability to lead change in Leadership & Managing People field
– Automotive Program 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 Automotive Program 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)
– Automotive Program 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 Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Automotive Program
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Automotive Program does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Automotive Program is one of the leading recruiters in the industry. Managers in the Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Automotive Program is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead are -
Products dominated business model
– Even though Automotive Program has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Automotive Program 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Automotive Program 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Automotive Program is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Automotive Program products
– To increase the profitability and margins on the products, Automotive Program needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead HBR case study mentions - Automotive Program 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.
Interest costs
– Compare to the competition, Automotive Program 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 Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead, 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.
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 Automotive Program supply chain. Even after few cautionary changes mentioned in the HBR case study - Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Automotive Program vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead 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 Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead can leverage the sales team experience to cultivate customer relationships as Automotive Program is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead, is just above the industry average. Automotive Program 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.
Opportunities Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead are -
Loyalty marketing
– Automotive Program 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, Automotive Program can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Automotive Program 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.
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. Automotive Program 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. Automotive Program 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.
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. Automotive Program can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Automotive Program 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Automotive Program 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.
Better consumer reach
– The expansion of the 5G network will help Automotive Program to increase its market reach. Automotive Program will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Automotive Program is facing challenges because of the dominance of functional experts in the organization. Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead 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
– Automotive Program 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.
Buying journey improvements
– Automotive Program can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead 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 Automotive Program 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.
Creating value in data economy
– The success of analytics program of Automotive Program has opened avenues for new revenue streams for the organization in the industry. This can help Automotive Program to build a more holistic ecosystem as suggested in the Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead case study. Automotive Program can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Automotive Program with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Automotive Program 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. Automotive Program can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Automotive Program 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.
Increasing wage structure of Automotive Program
– 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 Automotive Program.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead, Automotive Program 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 .
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 Automotive Program in the Leadership & Managing People sector and impact the bottomline 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. Automotive Program can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Automotive Program 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.
Stagnating economy with rate increase
– Automotive Program 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Automotive Program can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead .
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. Automotive Program 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 Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Tata Motors' Talent Management Fast Track Selection Scheme (C): The Road Ahead 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 Automotive Program needs to make to build a sustainable competitive advantage.
