Strategic Analysis of Thermax Ltd: Operations and Partnerships Report

This report offers a comprehensive strategic analysis of Thermax Ltd, an engineering company specializing in energy and environment solutions. It begins with an introduction highlighting the importance of managing strategies and operations. The main body comprises two components. Component 1 involves a PEST analysis, examining the political, economic, social, and technological factors affecting Thermax. It also applies Porter's Five Forces model to assess the competitive environment, followed by the identification of survival and success factors. Component 2 critically evaluates Thermax's competitive advantage using strategic tools. It addresses key issues identified in Component 1, prioritizes them, and develops strategic options, including a proposal for the company's strategic direction. The analysis considers stakeholder impacts and defends the proposed strategy, emphasizing the importance of each analytical stage. The report concludes with a summary of findings and recommendations, supported by cited references.

MANAGING
STRATEGY,
OPERATIONS AND
PARTNERSHIPS

Table of Contents
Table of Contents.......................................................................................................................2
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
COMPONENT 1........................................................................................................................3
Pest analysis of Thermax limited...........................................................................................3
Porter's five force model........................................................................................................4
Development of survival and success factor..........................................................................4
COMPONENT 2........................................................................................................................4
Critically assess the competitive advantage of Thermax Ltd as a result of their strategy
using the tools taught during the term. Develop issues pertinent to Thermax Ltd in the light
of the success factors developed in component 1...................................................................4
Prioritise the issue and develop strategic options that address at least three of them. Assess
these options and create a strategic proposal including an explanation of the resultant the
strategic direction of Thermax Ltd.........................................................................................6
Consider whether any stakeholder group would be adversely affected by the proposa.........8
Defend your proposal and preferred strategic direction by explaining why each stage of the
analysis was needed in order to ensure your proposal is robust.............................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11
Books and journal.................................................................................................................11

INTRODUCTION
Managing strategies and operation is an important function within the organisation which
is related to using different kind of strategies to improve the functions and achieving the
objectives in the current business (Keers and van Fenema, 2018). Under this, the chosen
organisation is Thermax, it is performing its function as an engineering company which
involve energy and environment. Company was founded in 1966. In this current report there
is discussion on appropriate proposal which can be used by the organisation in order to
maintain its functions and achieve the objectives by analysing the external and competitive
environment.
MAIN BODY
COMPONENT 1
Pest analysis of Thermax limited
Political factor: These are those factors which are related to the political conditions of
the area where the organisation is working. In relation to THERMAX manufactured there are
various political which are important for the organisation profitability. In context of
organisation it is operating in manufacturing boilers to the harness the power of steam. There
is political stability within a majority of the nations where the organisation is work. This
helps the organisation in maintaining a stable policies and manufacturing its products in an
appropriate manner from managing the functions (Nurmala, de Leeuw and Dullaert, 2017).
Economic factor: Economic factors are those which are related to economic
conditions. It includes factors like GDP growth, market demand, interest rates and many
others. In context of organisation, GDP growth at market demand is major factors which
impact the organisation. This is because THERMAX manufacturing products which are
directly impacted to GDP growth. Here, Organisation has to manage the production services
according to GDP growth of the nation where it is operating.
Social factor: Social factor can be defined dost factors which include the cultural
aspect population growth rate age distribution career attributes and emphasis. This factor
impacts positively on THERMAX (Thaler, Priest and Fuchs, 2016). This is because of
nitrogen is using environment friendly and health friendly technology which is helpful in
achieving objectives related to society and fulfil its responsibility towards the society.
Technological factor: Technological factors are those which include technological
changes research and development, activities, automation, technological innovation and many
others. In context of THERMAX, organisation is operating at higher profit. This is helpful to
the firm in achieving its objective and managing the function in an appropriate way so that it
can work accordingly. Organisation is using full automation and highly developed
technology. This is helpful to the form in managing the environment and achieves its
objectives.

Porter's five force model
Porter’s five forces model is a Framework which is used by the organisation to identify
the factors which are related to competitive advantage with the market. In context of
THERMAX, there are various factors within the porter’s five forces which are related to the
organisation. The first practice is threat of new entrants. In context of THERMAX, this
factor does not impact on the organisation because of using innovative ideas which reduce the
chances of new entrants industry and maintain higher profitability (Stafford and Taylor,
2016). Threats of substitute are a second factor and the porter's five force model which also
act in favour of THERMAX. This is because organisation is cellular using product which is
not easier for the competitors to arrange substitute of organisational product. Third most
important factor in porter's five force model is power of customers. In context of this, where
is low number of customer to the organisation product which acts in a negative menu for the
first because this grants more power to the customer for bargaining with the organisation.
Bargaining power of suppliers is also a factor in the porters 5 force model which impact on
the decision-making ability of form within the market. In context of THERMAX, the
bargaining power of suppliers is comparatively low to organisation. This is because there are
not numbers supplied to the services offered by the firm which provide bargaining power to
the organisation and reduce the power suppliers. Competitive rivalry is also act as a porter's
five force model factor which impact on the organisation where it related to the competency
within the industry. This factor does not impact the performance of THERMAX within the
market because organisation is using effective innovation within the firm where there is no
big rivalry of the organisation.
Development of survival and success factor
In context of THERMAX, there are number of success factors which can be use by
organization in relation to achieving its objectives some of these are mentioned below;
 Proper use of sustainability is prime function which helps organization in managing
profitability and using its resources.
 Bringing innovation at workplace is also an success factor which can be use by
THERMAX to achieve its business objectives.
COMPONENT 2
Critically assess the competitive advantage of Thermax Ltd as a result of their strategy using
the tools taught during the term. Develop issues pertinent to Thermax Ltd in the light of
the success factors developed in component 1.
Threats of new entrants: it is the first factor within the competitive analysis which is
helpful to thermex in achieving its objectives. This is because thermax is operating in that
kind of environment where there are low level of new entrants because of high investment
and innovative technology. Organisation is providing and innovative product which is not
easy to acquire by its competitors as well as the cost of investment in this is also high. This
act and competitive advantage to the organisation as there is low amount of third related to
new entrants within the industry.

Threats of substitute furniture: Threat of substitute also acts as a competitive
advantage to the Thermax. This is because it include that threat of substitute with related to
organisational product and can reduce the profitability and sale of products within the market
where organisation is trading. Under this concept, Thermax is operating at profitable level
this is because there is low level of threats from the substitute. The main reason behind this
low level of threat is related to the products and services sold by organisation within the
market. It is selling in innovative product which is not easier to copy a make substitute of the
product. This academic competitive advantage to the organisation in achieving the edge
within the market by using our profitability (Zeng and Yen, 2017).
Power of customer: Power of customer is the most important factor which is directly
related to the competitive advantage to the organisation. If there is large number of customer
to the product of organisation then it will act as an advantage to the organisation because of
large customer base. On the other hand, if there is no number of customers then it can act as a
negative factor to the organisation under the power of customer because it increases the
powers of customer to bargain for organisational product.
Bargaining power of suppliers: Bargaining power of supplier most important factor
in this analysis in context of Thermax. This factor under porters five force model act as a
competitive disadvantage to the organisation in the current business environment (Warner
and Sullivan, 2017). This is because, there are limited number of supplier to the products and
services used by the organisation in order to produce for the production services for the end
user. Here, Thermax has no bargaining power from a supplier where the power supply is
higher than the organisation. Organisation has to follow the norms and rules of suppliers in
order to acquire raw material for producing its products and services. The current business
strategy of sustainability also requires support from suppliers in order to provide effective
functioning and achieve the objectives of different functions.
Competitive rivalry: Competitive rivalry of organisation also important factor which
has to be considered by the firm in order to achieve competitive edge with the market. Under
this system organisation can follow appropriate business idea which will help in managing its
function as well as reducing the power of suppliers. Competitive rivalry within the market
can negatively on the functioning of organisation. Under this factor, there is no big
competitive rivalry to the organisation which positively on the firm. This is helpful in
achieving a competitive edge over the competitors because of no existing competitive rivalry
in the market (Um, 2017).
This can be analysed that thermax is using an appropriate strategies in order to
achieve its objectives with the market. This is helpful for the firm to manage the functions
and perform this function in order to achieve better profitability and production. These are
helpful to the organisation in achieving its objectives by managing the systems in an
appropriate manner. This provide competitive h to the organisation as by linking the porters
five force model factors organisation can use an appropriate approach in order to match the
sustainability and bring innovation at workplace. This will manage different functions in the

direction of goals and objectives and used to promote those functions which bring productive
options in front of organisation within the market where it is trading.
Prioritise the issue and develop strategic options that address at least three of them. Assess
these options and create a strategic proposal including an explanation of the resultant
the strategic direction of Thermax Ltd
There are a number of issues which has to be faced by thermax in order to achieve the
competitive as within the market and perform its function according to the needs and
requirements. This is helpful to the organisation in using appropriate strategy and managing
the function according to the needs. The strategic options can be availed by the firm in order
to create appropriate function and manage its activities. In the current business environment,
there are a number of strategic options which are available in front of organisation to address
the three core issues. These issues are managing the functions to use the sustainability for
maintaining profitability, effective utilisation of resources according to the current
requirements and bringing innovation at workplace to actors and success factor (Boyer,
2016). In context of bringing sustainability within thermax number of strategic options which
can be used by the organisation in order to maintain the function and using the strategy to
perform the business activities.
Going paperless: Use of paperless transaction will be best strategy which can be
adopted by organisation. This is helpful in relation to maintaining sustainability within the
area where organisation is working. The current action of thermax is directly related to
sustainable concept which also improves the functioning of organisation as well as fulfils
various kinds of responsibilities related to maintaining sustainability. In addition to this,
organisation can also use paperless system within the firm which will ensure appropriate
functioning related to sustainable practices. Under this organisation can use the current
system of internet which will be helpful in going paperless and reducing the negative impact
from the environment. Your organisation can use accounting software and tools which will
reduce recording of transaction in papers and save environment.
Eliminating plastic use: decreasing consumption of plastic in different activities is
also useful strategy which can be adopted by the organisation in order to maintain its function
and achieve the goals and objectives. Under this function Thermax can use to eliminate use of
plastic bottles and plastic packaging at its various manufacturing plant which are situated in
Pune, Maharashtra, India. Company has a separate research and development department
which bring innovation as well as help in managing market across the world. There are three
main segments in which organisation is trading where it can reduce the consumption of
plastic and can prove its functioning (Clarke and MacDonald, 2019)
Bring ethical procurement and transparency: linking the functioning of
organisation with ethic is related to achieving objective and managing the functions
according to the needs and requirements. In context of this, Thermax can use to strengthen its
supply chain it mind ethics within the trade and bring sustainable practices. In order to make
business more stable and appropriate organisation can use manager’s function by increasing
productivity of different individuals.

Human resources act as an important part of every organisation where Thermax also
has to maintain an appropriate system in order to use the resource in an appropriate way and
perform the function according to it. This is helpful to the organisation in improving its
function and performing the objective according to the needs and requirement. There are a
number of strategies which can be adopted by Thermax to improve the performance of
human resources as well as use them in an appropriate way. Some of these are suggested
below which can be used as a proposal to improve the functions.
Understanding the organisational objectives: This is a prime function which has to
be done by the management of Thermax to identify and relate the current objectives of the
organisation. Providing information to different individuals about the objectives of the
organisation is essential to achieve the objectives of management of human resources. By
providing appropriate human resources to the individuals will help the organisation in
achieving its objectives and managing human resources (Barnes, 2018).
Evaluation of current capacity: Identification of current capacity of the organisation
and different individuals working within the firm is necessary in order to maintain human
resources and use them in effective manner. This will include identification of skills and
other functions which will help the organisation in evaluating the current performance and
understand how it can easily implement the strategies in order to using the strength of
individuals and minimising their weakness while performing different jobs.
Identification of needs of human resources: In order to increase the efficiency of
human resources as well as manage them in an appropriate manner it is important to
accessing their needs and requirements while performing the job (De Harlez and Malagueno,
2016). This is essential to maintain a motivation within 20 employees so that they can work
according to the needs and requirement of organisation. This is also improving the function
of the organisation in help in managing the jobs according to the needs and requirement.
Innovation is also essential part for Termux as it can be used by Organisation in order
to improve its function as well as achieve the objective of the current business environment.
It includes different kind of functions and strategies which can be followed by Thermax to
improve the organisation and functioning in achieving objectives.
Providing freedom to the workers: It is important for the organisation to provide
freedom to its workers. This will help the employees in improving their function and develop
a sense of creativity which will help in building mentality outside the box. This is helpful in
improving the innovation within the organisation and will help in improving creativity
process as worker will feel more autonomy and can work with delegated functions and Nobel
ideas.
Selection of appropriate resources: Resources are must for innovation within the
organisation. This is because resources help the firm in improving its function and managing
this function according to the needs and requirement. This is because availability of resources
will help the employees in choosing the best system which they can use to perform the
functions. This will also support creative environment (Stadtler and Van Wassenhove, 2016).

Use of democratic leadership: Using democratic leadership style is also important
factor which facilitate innovation within the organisation and help in promoting the functions
of the manager as well as other areas of working. This can also use in Thermax share
organisation can use democratic leadership style which will improve the functioning of
subordinates and help in bringing innovation by improving the functions.
This can be concluded from the above that there are a number of strategies which can
be used by Organisation in order to improve innovation human resources and bringing
productivity within the organisation by the help of improved functioning (Harris and
Houlihan, 2016).
Consider whether any stakeholder group would be adversely affected by the proposa
The above mentioned proposal is directly related to the current functioning of the
organisation where organisation can bring innovation improve the uses of human resources
and bring the concept of sustainability in the firm to achieve better profitability. Using this
concept will impact adversely on some stakeholders which has to be stated and managed
according to the needs and requirements of the project. Some of the major stakeholders which
are impacted by this function in Thermax are discussed below:
Government: Government is a major stakeholder which will be impacted by the use
of this function. This is because organisation is going to use various kind of resources within
the market which will impact on functioning of governments as they have to collect the tax
from the organisation. There will be a decline in the tax collection because of using
sustainability concept (Dempsey, Burton and Duncan, 2016).
Supplier: Suppliers will also affected by the use of this proposal this is because there
is loan number of supplier to Thermax. This act as a competitive disadvantage to the
organisation but by using the concept of sustainability better management of human resources
and higher profitability organisation can attract large number of competitors which will also
attract number of supplied with the industry.
Defend your proposal and preferred strategic direction by explaining why each stage of the
analysis was needed in order to ensure your proposal is robust.
In context of proposal for thermics to improve their function and use appropriate
strategies to achieve their objective that include appropriate systems and strategies which will
be helpful to organisation in maintaining the function achieving the objective. These
strategies are directly related to performance of different functions which will help
organisation in achieving its predetermined standards and maintaining a separate image
within the market. This proposal is helpful to the organisation in implementing the concept of
sustainability by using different factors and analysing the strategies according to the current
market situation. This is also helpful in managing human resources according to the needs
and requirements. This is helpful to the form and managing the resources and achieving the
objectives. This proposal also has quality of providing effective the distance about the
different strategies which can be used by organisation in order to manage innovation and use

innovative ideas to perform its functions. Thermax is a leading organisation where this
proposal helps for improving its functions order to meet objectives related to sustainability,
innovation and human resources (Slack and Brandon-Jones, 2018).
The overall proposal is useful to the organisation in order to achieve its objectives and
maintain appropriate system so that it can perform according to the current needs and
requirements of the environment and will achieve all those objectives which are prescribed
by the firm in its current function. It is important for the organisation to conduct appropriate
proposal which will help in improving its function as well as managing all those resources
according to the needs and requirements. There is discussion about various points which are
stated under this proposal and their effectiveness in context of Thermax.
Identification of external environment capabilities: It is the most crucial part of
forming and proposal where there is identification of different factors which impact the
organisation from the external environment. External environment is directly linked to the
performance of firm and will lead to achieving its objectives because of their function. In the
current business situation, organisation needs to use the external resources in an appropriate
manner. Under this proposal is identification of different external factors which can impact
on the performance of organisation in the correct time and an impact the proposal in a direct
and indirect way. This includes analysis of political economic social and technological
factors which are related to the current business environment where organisation is working
or going to work (Cohen, 2017).
Identification of competitive advantage and its analysis: The second part of
proposal is consisting of discussion about the competitive advantage to the organisation and
use of various functions in order to achieve the competitive advantages. Under this function
there is use of porter's five force model which is helpful in improving the functions as well as
identifies the various factors which are related to the competitive advantage to the
organisation. This is a helpful model which can be used by Thermax in order to improve its
function and identify various factors which will provide competitive edge to the organisation
in the current market.
Analysis of competitive advantage: After evaluating the competitive advantage
framework this proposal is also consistent discussion about the analysis of competitive
advantage and its essential functions in order to meet the objectives in a timely manner. This
is helpful in maintaining the function and performing them according to the needs and
requirements (Heizer, Render and Munson, 2017).
CONCLUSION
It can be concluded from the above mentioned information that there are various
functions which has to be performed by the organization in order to achieve the competitive
advantage and improve its function within the market. These are directly associated with
organizational functioning and will promote appropriate working conditions in order to
achieve the objectives. This will promote number of functions and help in achieving them.

REFERENCES
Books and journal
Keers, B.B. and van Fenema, P.C., 2018. Managing risks in public-private partnership
formation projects. International Journal of Project Management, 36(6), pp.861-
875.
Nurmala, N., de Leeuw, S. and Dullaert, W., 2017. Humanitarian–business partnerships in
managing humanitarian logistics. Supply Chain Management: An International
Journal.
Thaler, T.A., Priest, S.J. and Fuchs, S., 2016. Evolving inter-regional co-operation in flood
risk management: distances and types of partnership approaches in Austria. Regional
Environmental Change, 16(3), pp.841-853.
Stafford, S. and Taylor, J., 2016. Transnational education as an internationalisation strategy:
meeting the institutional management challenges. Journal of higher education policy
and management, 38(6), pp.625-636.
Zeng, B. and Yen, B.P.C., 2017. Rethinking the role of partnerships in global supply chains:
A risk-based perspective. International Journal of Production Economics, 185,
pp.52-62.
Warner, M. and Sullivan, R. eds., 2017. Putting partnerships to work: Strategic alliances for
development between government, the private sector and civil society. Routledge.
Um, J., 2017. Improving supply chain flexibility and agility through variety
management. The international journal of logistics management.
Boyer, E.J., 2016. Identifying a knowledge management approach for public-private
partnerships. Public Performance & Management Review, 40(1), pp.158-180.
Clarke, A. and MacDonald, A., 2019. Outcomes to partners in multi-stakeholder cross-sector
partnerships: A resource-based view. Business & Society, 58(2), pp.298-332.
De Harlez, Y. and Malagueno, R., 2016. Examining the joint effects of strategic priorities,
use of management control systems, and personal background on hospital
performance. Management accounting research, 30, pp.2-17.
Stadtler, L. and Van Wassenhove, L.N., 2016. Coopetition as a paradox: Integrative
approaches in a multi-company, cross-sector partnership. Organization
Studies, 37(5), pp.655-685.
Harris, S. and Houlihan, B., 2016. Implementing the community sport legacy: The limits of
partnerships, contracts and performance management. European sport management
quarterly, 16(4), pp.433-458.
Dempsey, N., Burton, M. and Duncan, R., 2016. Evaluating the effectiveness of a cross-
sector partnership for green space management: The case of Southey Owlerton,
Sheffield, UK. Urban Forestry and Urban Greening, 15, pp.155-164.

Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Cohen, E., 2017. CSR for HR: A necessary partnership for advancing responsible business
practices. Routledge.
Heizer, J., Render, B. and Munson, C., 2017. Principles of Operations Management:
Sustainability and Supply Chain Management (Global editon). Pearson.
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.