Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication
Hindustan Petroleum (HPCL), confronted in 2003 with an urgent need to change how it operated externally, adopted a highly innovative approach to communicating internally. This case, set in 2010, presents an overview of the new, more interactive model of employee communication that HPCL introduced as part of its effort to adapt to increased market competition during the early 21st century. (HPCL, previously a wholly state-owned company within a state-controlled industry, had begun to operate in an increasingly privatized environment.) At the center of the new model was a series of "vision workshops"--structured conversations in which employees at all levels of the company took part in developing strategic and organizational visions for their regional offices, for their business units, and for the company as a whole. The case also discusses HPCL's use of digital technology to enhance employee communication; its leaders' increased emphasis on direct, "one-to-one" interaction with employees; and some of the consequences (both external and internal) of this more conversational model of organizational communication. As of 2010, HPCL was a Fortune Global 500 company, with more than 11,000 employees and with annual revenues of more than $23 billion. The question that company leaders now faced was whether HPCL's novel approaches to communicating with employees were appropriate to its next stage of internal development and external growth.
Swot Analysis of "Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication" written by Boris Groysberg, Michael Slind includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hpcl Hpcl's facing as an external strategic factors. Some of the topics covered in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication case study are - Strategic Management Strategies, Communication, Competitive strategy, Motivating people, Organizational culture, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hpcl Hpcl's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hpcl Hpcl's 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication can be done for the following purposes –
1. Strategic planning using facts provided in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication case study
2. Improving business portfolio management of Hpcl Hpcl's
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 Hpcl Hpcl's
Strengths Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hpcl Hpcl's in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication Harvard Business Review case study are -
Organizational Resilience of Hpcl Hpcl's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hpcl Hpcl's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Hpcl Hpcl's is one of the most innovative firm in sector. Manager in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Hpcl Hpcl's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hpcl Hpcl's 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication firm has clearly differentiated products in the market place. This has enabled Hpcl Hpcl's to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Hpcl Hpcl's to invest into research and development (R&D) and innovation.
High brand equity
– Hpcl Hpcl's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hpcl Hpcl's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Hpcl Hpcl's is present in almost all the verticals within the industry. This has provided firm in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hpcl Hpcl's 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)
– Hpcl Hpcl's 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Hpcl Hpcl's 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 Hpcl Hpcl's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Hpcl Hpcl's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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
– Hpcl Hpcl's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Hpcl Hpcl's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication, in the dynamic environment Hpcl Hpcl's has struggled to respond to the nimble upstart competition. Hpcl Hpcl's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication, 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.
Skills based hiring
– The stress on hiring functional specialists at Hpcl Hpcl's 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 cash cycle compare to competitors
Hpcl Hpcl's 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hpcl Hpcl's has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Hpcl Hpcl's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Hpcl Hpcl's 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.
Need for greater diversity
– Hpcl Hpcl's 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 Hpcl Hpcl's 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 - Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Hpcl Hpcl's products
– To increase the profitability and margins on the products, Hpcl Hpcl's needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Hpcl Hpcl's supply chain. Even after few cautionary changes mentioned in the HBR case study - Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hpcl Hpcl's vulnerable to further global disruptions in South East Asia.
Opportunities Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication | 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication are -
Creating value in data economy
– The success of analytics program of Hpcl Hpcl's has opened avenues for new revenue streams for the organization in the industry. This can help Hpcl Hpcl's to build a more holistic ecosystem as suggested in the Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication case study. Hpcl Hpcl's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Hpcl Hpcl's 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.
Loyalty marketing
– Hpcl Hpcl's 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.
Manufacturing automation
– Hpcl Hpcl's 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.
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. Hpcl Hpcl's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hpcl Hpcl's is facing challenges because of the dominance of functional experts in the organization. Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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.
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 Hpcl Hpcl's in the consumer business. Now Hpcl Hpcl's can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hpcl Hpcl's 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.
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. Hpcl Hpcl's 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. Hpcl Hpcl's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hpcl Hpcl's 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.
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. Hpcl Hpcl's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Hpcl Hpcl's to increase its market reach. Hpcl Hpcl's 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.
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 Hpcl Hpcl's 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.
Threats Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication are -
Stagnating economy with rate increase
– Hpcl Hpcl's 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.
Shortening product life cycle
– it is one of the major threat that Hpcl Hpcl's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Hpcl Hpcl's in the Leadership & Managing People sector and impact the bottomline of the organization.
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. Hpcl Hpcl's 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.
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. Hpcl Hpcl's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hpcl Hpcl's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Hpcl Hpcl's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Hpcl Hpcl's 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.
Environmental challenges
– Hpcl Hpcl's 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. Hpcl Hpcl's can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hpcl Hpcl's 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.
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 Hpcl Hpcl's.
Weighted SWOT Analysis of Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hindustan Petroleum Corporation Ltd.: Driving Change Through Internal Communication 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 Hpcl Hpcl's needs to make to build a sustainable competitive advantage.
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