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 energy prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, challanges to central banks by blockchain based private currencies, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
there is increasing trade war between United States & China, geopolitical disruptions, 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 -
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.
High brand equity
– W14021 W14020 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W14021 W14020 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Successful track record of launching new products
– W14021 W14020 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. W14021 W14020 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.
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.
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.
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.
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.
High switching costs
– The high switching costs that W14021 W14020 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the W14021 W14020 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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 -
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.
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.
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Samish Dalal, Agarwal Rajiv suggests that, W14021 W14020 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.
Capital Spending Reduction
– Even during the low interest decade, W14021 W14020 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.
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.
Products dominated business model
– Even though W14021 W14020 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 - Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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 W14021 W14020 has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C), 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 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.
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 -
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, W14021 W14020 can use these opportunities to build new business models that can help the communities that W14021 W14020 operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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.
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.
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. W14021 W14020 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. W14021 W14020 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.
Better consumer reach
– The expansion of the 5G network will help W14021 W14020 to increase its market reach. W14021 W14020 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.
Using analytics as competitive advantage
– W14021 W14020 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 Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help W14021 W14020 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 W14021 W14020 in the consumer business. Now W14021 W14020 can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Creating value in data economy
– The success of analytics program of W14021 W14020 has opened avenues for new revenue streams for the organization in the industry. This can help W14021 W14020 to build a more holistic ecosystem as suggested in the Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) case study. W14021 W14020 can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, W14021 W14020 is facing challenges because of the dominance of functional experts in the organization. Indian Steel Ltd: Tri-Party Negotiation - The Consultant (C) 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.
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. W14021 W14020 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents W14021 W14020 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 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.
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.
Consumer confidence and its impact on W14021 W14020 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.
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.
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.
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 acceleration in Forth Industrial Revolution
– W14021 W14020 has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, W14021 W14020 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.
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) .
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.
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.