Swot Analysis of "Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C)" written by Samish Dalal, Agarwal Rajiv includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W14021 W14020 facing as an external strategic factors. Some of the topics covered in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, technology disruption, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W14021 W14020, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W14021 W14020 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) can be done for the following purposes –
1. Strategic planning using facts provided in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) case study
2. Improving business portfolio management of W14021 W14020
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 W14021 W14020
Strengths Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W14021 W14020 in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) Harvard Business Review case study are -
Organizational Resilience of W14021 W14020
– The covid-19 pandemic has put organizational resilience at the centre of everthing that W14021 W14020 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) firm has clearly differentiated products in the market place. This has enabled W14021 W14020 to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped W14021 W14020 to invest into research and development (R&D) and innovation.
Strong track record of project management
– W14021 W14020 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– W14021 W14020 is one of the most innovative firm in sector. Manager in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– W14021 W14020 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 W14021 W14020 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For W14021 W14020 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. W14021 W14020 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.
Low bargaining power of suppliers
– Suppliers of W14021 W14020 in the sector have low bargaining power. Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W14021 W14020 to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– W14021 W14020 has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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.
Operational resilience
– The operational resilience strategy in the Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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.
Analytics focus
– W14021 W14020 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 Samish Dalal, Agarwal Rajiv 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.
Highly skilled collaborators
– W14021 W14020 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- W14021 W14020 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 W14021 W14020 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C), in the dynamic environment W14021 W14020 has struggled to respond to the nimble upstart competition. W14021 W14020 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, W14021 W14020 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, W14021 W14020 is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 to strategic competitive environment developments
– As Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) HBR case study mentions - W14021 W14020 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.
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 W14021 W14020 supply chain. Even after few cautionary changes mentioned in the HBR case study - Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left W14021 W14020 vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
W14021 W14020 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 W14021 W14020 's lucrative customers.
Lack of clear differentiation of W14021 W14020 products
– To increase the profitability and margins on the products, W14021 W14020 needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of W14021 W14020 is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. W14021 W14020 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help W14021 W14020 to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– W14021 W14020 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.
Interest costs
– Compare to the competition, W14021 W14020 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.
Opportunities Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) | 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects W14021 W14020 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– W14021 W14020 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.
Manufacturing automation
– W14021 W14020 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.
Building a culture of innovation
– managers at W14021 W14020 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, W14021 W14020 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.
Leveraging digital technologies
– W14021 W14020 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.
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 W14021 W14020 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W14021 W14020 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 W14021 W14020 to hire the very best people irrespective of their geographical location.
Buying journey improvements
– W14021 W14020 can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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.
Learning at scale
– Online learning technologies has now opened space for W14021 W14020 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, W14021 W14020 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, Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C), 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
– W14021 W14020 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.
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. W14021 W14020 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) are -
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. W14021 W14020 needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, W14021 W14020 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) .
Shortening product life cycle
– it is one of the major threat that W14021 W14020 is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 W14021 W14020 in the Leadership & Managing People sector and impact the bottomline of the organization.
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 W14021 W14020.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C), W14021 W14020 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 .
Regulatory challenges
– W14021 W14020 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for W14021 W14020 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.
Increasing wage structure of W14021 W14020
– 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 W14021 W14020.
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. W14021 W14020 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.
Environmental challenges
– W14021 W14020 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. W14021 W14020 can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Stagnating economy with rate increase
– W14021 W14020 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.
Weighted SWOT Analysis of Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 W14021 W14020 needs to make to build a sustainable competitive advantage.
