Based on various researches at Oak Spring University , TGB Banquets Hotels Ltd is operating in a macro-environment that has been destablized by – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of TGB Banquets Hotels Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that TGB Banquets Hotels Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the TGB Banquets Hotels Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd can be done for the following purposes –
1. Strategic planning of TGB Banquets Hotels Ltd
2. Improving business portfolio management of TGB Banquets Hotels Ltd
3. Assessing feasibility of the new initiative in India
4. Making a Conglomerates sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of TGB Banquets Hotels Ltd
Strengths of TGB Banquets Hotels Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of TGB Banquets Hotels Ltd are -
Effective Research and Development (R&D)
– TGB Banquets Hotels Ltd has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – TGB Banquets Hotels Ltd staying ahead in the Conglomerates industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– TGB Banquets Hotels Ltd 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 Conglomerates industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Diverse revenue streams
– TGB Banquets Hotels Ltd is present in almost all the verticals within the Conglomerates industry. This has provided TGB Banquets Hotels Ltd 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.
Strong track record of project management in the Conglomerates industry
– TGB Banquets Hotels Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the TGB Banquets Hotels Ltd 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.
Highly skilled collaborators
– TGB Banquets Hotels Ltd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Conglomerates industry. Secondly the value chain collaborators of TGB Banquets Hotels Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Conglomerates industry
– TGB Banquets Hotels Ltd has clearly differentiated products in the market place. This has enabled TGB Banquets Hotels Ltd to fetch slight price premium compare to the competitors in the Conglomerates industry. The sustainable margins have also helped TGB Banquets Hotels Ltd to invest into research and development (R&D) and innovation.
Organizational Resilience of TGB Banquets Hotels Ltd
– The covid-19 pandemic has put organizational resilience at the centre of everthing TGB Banquets Hotels Ltd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– TGB Banquets Hotels Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. TGB Banquets Hotels Ltd 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.
High switching costs
– The high switching costs that TGB Banquets Hotels Ltd 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.
Learning organization
- TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at TGB Banquets Hotels Ltd emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of TGB Banquets Hotels Ltd in the Conglomerates sector have low bargaining power. TGB Banquets Hotels Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps TGB Banquets Hotels Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of TGB Banquets Hotels Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TGB Banquets Hotels Ltd are -
Slow decision making process
– As mentioned earlier in the report, TGB Banquets Hotels Ltd has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Conglomerates industry over the last five years. TGB Banquets Hotels Ltd 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 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 TGB Banquets Hotels Ltd supply chain. Even after few cautionary changes, TGB Banquets Hotels Ltd is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left TGB Banquets Hotels Ltd vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative at TGB Banquets Hotels Ltd, in the dynamic environment of Conglomerates industry it has struggled to respond to the nimble upstart competition. TGB Banquets Hotels Ltd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, TGB Banquets Hotels Ltd has high operating costs in the Conglomerates industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract TGB Banquets Hotels Ltd lucrative customers.
Increasing silos among functional specialists
– The organizational structure of TGB Banquets Hotels Ltd is dominated by functional specialists. It is not different from other players in the Conglomerates industry, but TGB Banquets Hotels Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help TGB Banquets Hotels Ltd to focus more on services in the Conglomerates industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, TGB Banquets Hotels Ltd 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.
Employees’ less understanding of TGB Banquets Hotels Ltd strategy
– From the outside it seems that the employees of TGB Banquets Hotels Ltd don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of India, TGB Banquets Hotels Ltd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on TGB Banquets Hotels Ltd ‘s star products
– The top 2 products and services of TGB Banquets Hotels Ltd still accounts for major business revenue. This dependence on star products in Conglomerates industry has resulted into insufficient focus on developing new products, even though TGB Banquets Hotels Ltd has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of TGB Banquets Hotels Ltd is just above the Conglomerates industry average. It 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 strategic competitive environment developments
– As TGB Banquets Hotels Ltd is one of the leading players in the Conglomerates industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Conglomerates industry in last five years.
TGB Banquets Hotels Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of TGB Banquets Hotels Ltd are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, TGB Banquets Hotels Ltd can use these opportunities to build new business models that can help the communities that TGB Banquets Hotels Ltd operates in. Secondly it can use opportunities from government spending in Conglomerates sector.
Manufacturing automation
– TGB Banquets Hotels Ltd can use the latest technology developments to improve its manufacturing and designing process in Conglomerates sector. 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, TGB Banquets Hotels Ltd 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.
Creating value in data economy
– The success of analytics program of TGB Banquets Hotels Ltd has opened avenues for new revenue streams for the organization in Conglomerates industry. This can help TGB Banquets Hotels Ltd to build a more holistic ecosystem for TGB Banquets Hotels Ltd products in the Conglomerates industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– TGB Banquets Hotels Ltd 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd to hire the very best people irrespective of their geographical location.
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 TGB Banquets Hotels Ltd 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Conglomerates industry, but it has also influenced the consumer preferences. TGB Banquets Hotels Ltd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– TGB Banquets Hotels Ltd 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.
Learning at scale
– Online learning technologies has now opened space for TGB Banquets Hotels Ltd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, TGB Banquets Hotels Ltd is facing challenges because of the dominance of functional experts in the organization. TGB Banquets Hotels Ltd can utilize new technology in the field of Conglomerates industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– TGB Banquets Hotels Ltd can improve the customer journey of consumers in the Conglomerates industry by using analytics and artificial intelligence. It 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects TGB Banquets Hotels Ltd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats TGB Banquets Hotels Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of TGB Banquets Hotels Ltd are -
Stagnating economy with rate increase
– TGB Banquets Hotels Ltd 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 Conglomerates industry.
Easy access to finance
– Easy access to finance in Conglomerates industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. TGB Banquets Hotels Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– TGB Banquets Hotels Ltd 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.
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.
Consumer confidence and its impact on TGB Banquets Hotels Ltd 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 Conglomerates industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, TGB Banquets Hotels Ltd may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Conglomerates sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for TGB Banquets Hotels Ltd in Conglomerates industry. The Conglomerates 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.
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 TGB Banquets Hotels Ltd business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd prominent markets.
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 TGB Banquets Hotels Ltd in the Conglomerates sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Conglomerates industry are lowering. It can presents TGB Banquets Hotels Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Conglomerates sector.
Regulatory challenges
– TGB Banquets Hotels Ltd 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 Conglomerates industry regulations.
Increasing wage structure of TGB Banquets Hotels Ltd
– 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 TGB Banquets Hotels Ltd.
Weighted SWOT Analysis of TGB Banquets Hotels Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd 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 TGB Banquets Hotels Ltd needs to make to build a sustainable competitive advantage.