Case Study Description of Himachal Fertilizer Corporation (B): An Ethical Conundrum
Supplement to case NA0409. 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 (B): 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 (B): 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 (B): An Ethical Conundrum casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, wage bills are increasing,
increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Himachal Fertilizer Corporation (B): 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 (B): 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 (B): An Ethical Conundrum can be done for the following purposes –
1. Strategic planning using facts provided in Himachal Fertilizer Corporation (B): 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 (B): 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 (B): 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 (B): 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.
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 (B): 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.
Successful track record of launching new products
– Npc Wipl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Npc Wipl 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.
Diverse revenue streams
– Npc Wipl is present in almost all the verticals within the industry. This has provided firm in Himachal Fertilizer Corporation (B): An Ethical Conundrum 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.
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.
Innovation driven organization
– Npc Wipl is one of the most innovative firm in sector. Manager in Himachal Fertilizer Corporation (B): 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.
Operational resilience
– The operational resilience strategy in the Himachal Fertilizer Corporation (B): An Ethical Conundrum 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.
Ability to lead change in Leadership & Managing People field
– Npc Wipl 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 Npc Wipl in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Npc Wipl 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 Npc Wipl is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Himachal Fertilizer Corporation (B): An Ethical Conundrum Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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 (B): 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.
Analytics focus
– Npc Wipl 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 Samir K Barua, Mahendra R Gujarathi 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.
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.
Weaknesses Himachal Fertilizer Corporation (B): An Ethical Conundrum | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Himachal Fertilizer Corporation (B): An Ethical Conundrum are -
Need for greater diversity
– Npc Wipl 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Himachal Fertilizer Corporation (B): 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.
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.
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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Himachal Fertilizer Corporation (B): 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.
No frontier risks strategy
– After analyzing the HBR case study Himachal Fertilizer Corporation (B): 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.
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.
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 (B): 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Himachal Fertilizer Corporation (B): An Ethical Conundrum, it seems that the employees of Npc Wipl don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
Opportunities Himachal Fertilizer Corporation (B): 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 (B): An Ethical Conundrum are -
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.
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.
Manufacturing automation
– Npc Wipl 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.
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.
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. Npc Wipl can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Npc Wipl 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.
Buying journey improvements
– Npc Wipl can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Himachal Fertilizer Corporation (B): An Ethical Conundrum 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, Npc Wipl is facing challenges because of the dominance of functional experts in the organization. Himachal Fertilizer Corporation (B): 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.
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 (B): 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.
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 (B): 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.
Threats Himachal Fertilizer Corporation (B): 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 (B): An Ethical Conundrum are -
Stagnating economy with rate increase
– Npc Wipl 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.
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. Npc Wipl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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. Npc Wipl needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Npc Wipl 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 Himachal Fertilizer Corporation (B): An Ethical Conundrum .
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.
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.
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.
Weighted SWOT Analysis of Himachal Fertilizer Corporation (B): 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 (B): 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 (B): 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 (B): 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 (B): 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.
