Case Study Description of Himachal Fertilizer Corporation (A): An Ethical Conundrum
This case series provides a platform to discuss a broad range of interconnected issues relating to corporate governance, ethical reasoning and giving voice to values in a real-world decision-making context. An independent director (Neil Shah) on the board of directors of National Petroleum Corporation (NPC) is approached by a bidder, Western India Ports Limited (WIPL). Through an unwarranted last minute change in the bidding process, WIPL's bid for handling of Naphtha for NPC's upcoming refinery has been rejected. Neil learns from WIPL that its competitor, Bharat Ports Limited (BPL), may have bribed an NPC official to create a situation that would disqualify WIPL's bid. As a result, only one bidder (BPL) is left in the fray. Neil questions the process followed by NPC, without disclosing that an executive from WIPL had met him about the change in the process. Neil's questioning corrects the situation. WIPL is not only able to participate in the bid, but even wins the NPC contract. However, Neil's joy of righting the wrong is short-lived. A few months after the episode, and after stepping down from the board, Neil learns that the NPC official who had attempted to disqualify WIPL had been recruited by WIPL after his retirement from NPC. Soon after discovering this, Neil himself is approached by WIPL with a proposal to transfer 5000 shares from their holding to Neil, without any payment, as a mark of their gratitude to him. Should Neil accept the gift? Would that be akin to accepting bribe? Should Neil be disturbed by the knowledge that the concerned NPC executive had joined WIPL after retirement from NPC? The cases highlight the ethical dilemmas that individuals face and present challenges in finding a way out of a maze of issues without compromising personal values while protecting interests of the organization. What are the principles of governance that must not be compromised? What are the personal values that must be upheld? How should an individual navigate the organizational processes so as to make one's voice heard? How does one deal with conflicting resolutions provided by different ethical principles?
Swot Analysis of "Himachal Fertilizer Corporation (A): An Ethical Conundrum" written by Samir K Barua, Mahendra R Gujarathi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Npc Wipl facing as an external strategic factors. Some of the topics covered in Himachal Fertilizer Corporation (A): An Ethical Conundrum case study are - Strategic Management Strategies, Ethics and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Himachal Fertilizer Corporation (A): An Ethical Conundrum casestudy better are - – technology disruption, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of Himachal Fertilizer Corporation (A): An Ethical Conundrum
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Himachal Fertilizer Corporation (A): An Ethical Conundrum case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Npc Wipl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Npc Wipl 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum can be done for the following purposes –
1. Strategic planning using facts provided in Himachal Fertilizer Corporation (A): An Ethical Conundrum case study
2. Improving business portfolio management of Npc Wipl
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 Npc Wipl
Strengths Himachal Fertilizer Corporation (A): An Ethical Conundrum | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Npc Wipl in Himachal Fertilizer Corporation (A): An Ethical Conundrum Harvard Business Review case study are -
Ability to recruit top talent
– Npc Wipl is one of the leading recruiters in the industry. Managers in the Himachal Fertilizer Corporation (A): An Ethical Conundrum are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Npc Wipl in the sector have low bargaining power. Himachal Fertilizer Corporation (A): An Ethical Conundrum has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Npc Wipl to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Npc Wipl in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Npc Wipl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Npc Wipl 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
– Npc Wipl is one of the most innovative firm in sector. Manager in Himachal Fertilizer Corporation (A): An Ethical Conundrum Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Npc Wipl 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.
Effective Research and Development (R&D)
– Npc Wipl 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Npc Wipl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Npc Wipl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Leadership & Managing People industry
– Himachal Fertilizer Corporation (A): An Ethical Conundrum firm has clearly differentiated products in the market place. This has enabled Npc Wipl to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Npc Wipl to invest into research and development (R&D) and innovation.
Strong track record of project management
– Npc Wipl is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Npc Wipl
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Npc Wipl does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Npc Wipl has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Himachal Fertilizer Corporation (A): An Ethical Conundrum 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.
Weaknesses Himachal Fertilizer Corporation (A): An Ethical Conundrum | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Himachal Fertilizer Corporation (A): An Ethical Conundrum are -
High operating costs
– Compare to the competitors, firm in the HBR case study Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Npc Wipl 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Himachal Fertilizer Corporation (A): An Ethical Conundrum, in the dynamic environment Npc Wipl has struggled to respond to the nimble upstart competition. Npc Wipl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Npc Wipl is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Himachal Fertilizer Corporation (A): An Ethical Conundrum can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Npc Wipl 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. Npc Wipl 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.
No frontier risks strategy
– After analyzing the HBR case study Himachal Fertilizer Corporation (A): An Ethical Conundrum, 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 star products
– The top 2 products and services of the firm as mentioned in the Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Npc Wipl has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Npc Wipl 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.
High cash cycle compare to competitors
Npc Wipl 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.
Increasing silos among functional specialists
– The organizational structure of Npc Wipl is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Npc Wipl needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Npc Wipl to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Npc Wipl 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 bargaining power of channel partners
– Because of the regulatory requirements, Samir K Barua, Mahendra R Gujarathi suggests that, Npc Wipl 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.
Opportunities Himachal Fertilizer Corporation (A): An Ethical Conundrum | 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum are -
Developing new processes and practices
– Npc Wipl 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 Npc Wipl 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Npc Wipl 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 Npc Wipl to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Npc Wipl has opened avenues for new revenue streams for the organization in the industry. This can help Npc Wipl to build a more holistic ecosystem as suggested in the Himachal Fertilizer Corporation (A): An Ethical Conundrum case study. Npc Wipl can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Npc Wipl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Npc Wipl 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. Npc Wipl 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.
Using analytics as competitive advantage
– Npc Wipl 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Npc Wipl to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Npc Wipl to increase its market reach. Npc Wipl 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Npc Wipl 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, Himachal Fertilizer Corporation (A): An Ethical Conundrum, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Npc Wipl is facing challenges because of the dominance of functional experts in the organization. Himachal Fertilizer Corporation (A): An Ethical Conundrum 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Npc Wipl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Npc Wipl in the consumer business. Now Npc Wipl can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Npc Wipl 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.
Threats Himachal Fertilizer Corporation (A): An Ethical Conundrum External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Himachal Fertilizer Corporation (A): An Ethical Conundrum are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Npc Wipl with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Npc Wipl.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Npc Wipl 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.
Consumer confidence and its impact on Npc Wipl demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Npc Wipl has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Npc Wipl 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Himachal Fertilizer Corporation (A): An Ethical Conundrum, Npc Wipl 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 .
Increasing wage structure of Npc Wipl
– 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 Npc Wipl.
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. Npc Wipl 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 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.
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 Npc Wipl business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Npc Wipl 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.
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 Npc Wipl in the Leadership & Managing People sector and impact the bottomline of the organization.
Environmental challenges
– Npc Wipl 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. Npc Wipl can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Himachal Fertilizer Corporation (A): An Ethical Conundrum 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 Npc Wipl needs to make to build a sustainable competitive advantage.
