Effective Leadership at Zensar Technologies: Riding the Wave of Change SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Effective Leadership at Zensar Technologies: Riding the Wave of Change
At the time when Dr. Ganesh Natrajan took over as the CEO of Zensar Technologies Ltd in India in 2001, the company was in a state of turmoil. Staff morale was low and the company was essentially a staffing agency sending IT professionals to work at client sites abroad. As Natrajan started to implement across-the-board changes at Zensar, the company had grown from 850 employees in 2001 to 4,000 employees in 2007 with the number of clients increased from 57 in 2001 to 273 in 2007. Revenue increased from US$42.8 million in 2001 to US$179.57 million in 2007. This case covers the detailed strategies implemented by Natrajan that resulted in Zensar's explosive growth.
Swot Analysis of "Effective Leadership at Zensar Technologies: Riding the Wave of Change" written by Sumita Rai, Asha Bhandarker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Natrajan Zensar facing as an external strategic factors. Some of the topics covered in Effective Leadership at Zensar Technologies: Riding the Wave of Change case study are - Strategic Management Strategies, IT, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Effective Leadership at Zensar Technologies: Riding the Wave of Change casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing commodity prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, there is backlash against globalization, etc
Introduction to SWOT Analysis of Effective Leadership at Zensar Technologies: Riding the Wave of Change
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Effective Leadership at Zensar Technologies: Riding the Wave of Change case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Natrajan Zensar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Natrajan Zensar 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change can be done for the following purposes –
1. Strategic planning using facts provided in Effective Leadership at Zensar Technologies: Riding the Wave of Change case study
2. Improving business portfolio management of Natrajan Zensar
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 Natrajan Zensar
Strengths Effective Leadership at Zensar Technologies: Riding the Wave of Change | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Natrajan Zensar in Effective Leadership at Zensar Technologies: Riding the Wave of Change Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Effective Leadership at Zensar Technologies: Riding the Wave of Change firm has clearly differentiated products in the market place. This has enabled Natrajan Zensar to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Natrajan Zensar to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Natrajan Zensar has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Natrajan Zensar 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.
Superior customer experience
– The customer experience strategy of Natrajan Zensar in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Natrajan Zensar is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Natrajan Zensar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Natrajan Zensar 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.
Learning organization
- Natrajan Zensar 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 Natrajan Zensar is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Effective Leadership at Zensar Technologies: Riding the Wave of Change Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Effective Leadership at Zensar Technologies: Riding the Wave of Change 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
– Natrajan Zensar 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 Sumita Rai, Asha Bhandarker 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.
Ability to lead change in Leadership & Managing People field
– Natrajan Zensar 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 Natrajan Zensar in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Natrajan Zensar 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
– Natrajan Zensar is one of the most innovative firm in sector. Manager in Effective Leadership at Zensar Technologies: Riding the Wave of Change Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Natrajan Zensar has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Effective Leadership at Zensar Technologies: Riding the Wave of Change Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Effective Leadership at Zensar Technologies: Riding the Wave of Change | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Effective Leadership at Zensar Technologies: Riding the Wave of Change are -
Slow to strategic competitive environment developments
– As Effective Leadership at Zensar Technologies: Riding the Wave of Change HBR case study mentions - Natrajan Zensar 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.
Lack of clear differentiation of Natrajan Zensar products
– To increase the profitability and margins on the products, Natrajan Zensar needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Natrajan Zensar 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.
Products dominated business model
– Even though Natrajan Zensar 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 - Effective Leadership at Zensar Technologies: Riding the Wave of Change should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Natrajan Zensar 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Natrajan Zensar 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. Natrajan Zensar 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Natrajan Zensar has relatively successful track record of launching new products.
Need for greater diversity
– Natrajan Zensar 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Effective Leadership at Zensar Technologies: Riding the Wave of Change, is just above the industry average. Natrajan Zensar needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Natrajan Zensar is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 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 Natrajan Zensar supply chain. Even after few cautionary changes mentioned in the HBR case study - Effective Leadership at Zensar Technologies: Riding the Wave of Change, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Natrajan Zensar vulnerable to further global disruptions in South East Asia.
Opportunities Effective Leadership at Zensar Technologies: Riding the Wave of Change | 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change are -
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. Natrajan Zensar can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Natrajan Zensar can use these opportunities to build new business models that can help the communities that Natrajan Zensar operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Natrajan Zensar to increase its market reach. Natrajan Zensar 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 Natrajan Zensar 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 Natrajan Zensar to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Natrajan Zensar 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.
Developing new processes and practices
– Natrajan Zensar can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Natrajan Zensar 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, Natrajan Zensar 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, Effective Leadership at Zensar Technologies: Riding the Wave of Change, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Natrajan Zensar 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.
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 Natrajan Zensar in the consumer business. Now Natrajan Zensar can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Natrajan Zensar 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
– Natrajan Zensar 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. Natrajan Zensar can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Effective Leadership at Zensar Technologies: Riding the Wave of Change External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Effective Leadership at Zensar Technologies: Riding the Wave of Change are -
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 Natrajan Zensar business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Natrajan Zensar 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.
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. Natrajan Zensar can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Natrajan Zensar 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. Natrajan Zensar can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Natrajan Zensar in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
Shortening product life cycle
– it is one of the major threat that Natrajan Zensar is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Natrajan Zensar 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change .
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 Natrajan Zensar.
Increasing wage structure of Natrajan Zensar
– 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 Natrajan Zensar.
Stagnating economy with rate increase
– Natrajan Zensar 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Effective Leadership at Zensar Technologies: Riding the Wave of Change, Natrajan Zensar 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 .
Weighted SWOT Analysis of Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Effective Leadership at Zensar Technologies: Riding the Wave of Change 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 Natrajan Zensar needs to make to build a sustainable competitive advantage.
