Analysis of Thermax Ltd's Strategy, Operations, and Partnerships

This report presents a comprehensive strategic analysis of Thermax Ltd, a company operating in the energy, environment, and chemical industries. The analysis includes an examination of the external environment using PESTLE factors, assessing political, economic, social, technological, legal, and environmental trends. It also applies Porter's Five Forces to evaluate the competitive landscape, analyzing the bargaining power of suppliers and customers, the threat of substitutes and new entrants, and the intensity of rivalry. The report delves into Thermax Ltd's competitive advantages, identifying key issues and developing strategic recommendations. It addresses factors such as innovation, employee treatment, technology adoption, and transparency. Furthermore, it discusses the impact of migrant workforce and environmental awareness. The report provides insights into the company's operations, partnerships, and overall strategic direction, offering a detailed overview of Thermax Ltd's market position and potential growth strategies. The analysis also focuses on the importance of qualified employees, technological advancement, and effective management practices to enhance the company's performance and achieve its objectives in the market.

MANAGING STRATEGY,
OPERATIONS AND
PARTNERSHIPS SG7001

TABLE OF CONTENT
ASSESSMENT 1.............................................................................................................................3
COMPONENT 1.............................................................................................................................3
External analysis..........................................................................................................................3
COMPONENT 2.............................................................................................................................5
INTRODUCTION...........................................................................................................................5
Competitive advantage................................................................................................................5
Issue and develop strategic..........................................................................................................7
Stakeholder group would be adversely affected..........................................................................8
Proposal and preferred strategic direction...................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

ASSESSMENT 1
COMPONENT 1
External analysis
Trends Reference
Political Political fragmentation THERMAX, 2020
Globalization Raju and Wani, 2018
Economic Sharing economy Palm, 2016
Mass migration Sangani, 2019
Social Empowered women Pudumjee, 2013
Crowd sourcing Joshi, 2017
Technological Artificial intelligence Bhanushali and et.al., 2017
Geospatial technology Schaller, Beck and Kahnke, 2018
Legal Focus on transparency Wells, 2017
Partnership models Priavolou, 2018
Environment Climate change Karthikeyan and Benjamin, 2019
Environmental awareness Worley and et.al., 2016
PEST
Thermax Ltd has seen a lot of success and downfalls as well in the market and from that
they have gained experience which is a very good factor for the organization. The company has
to gain more experience and knowledge to be able to expand them successfully in worldwide
which is going to get higher market share. Social factors like women empowerment are also
important in the company and fair treatment for the employees as well so that the company will
be able to get higher performance and ideas in the company which is good for competitive
advantage. There has to be effective legal factors like transparency as well which needs to be
present so that the customers and the other stakeholders of the organization are going to be
satisfied which is a very important aspect in the organization (Karthikeyan and Benjamin, 2019).
Technological aspect in Thermax Ltd will have to be improved so that there are going to be

higher performance which is going to be present for the organization in the market so that the
organization will be able to develop themselves.
Porter’s 5 forces
The company is having a strong grasp on the suppliers in the market because the
company has been operating in the market from a long run but the customers are not in control of
the organization because they are not aware of the products and services which are being served
by Thermax Ltd which is not good for the company. The organization will not find substitute for
their products in the industry because the company is having a strong base for their products and
services in the market but the competitors in this industry can come up soon which the
organization will have to be working towards for so that there are going to be higher results
which the organization can have. The organization will have to make decisions in order to be
able to gain higher profitability and sales in the market by increasing their targeted customers
which is going to be very beneficial for the organization in the market. Thermax Ltd has already
made a lot of investment in this industry which is a great factor for the organization to have in
the market which is expected.
Survival and success factors
The company can take great advantage because the products of the company are unique
and of high quality which is going to make the sales of the company increase. The company has
to be making sure that they are spending the right amount for promotions in the market so that
they will be able to get a higher market share and the company will be able to develop
themselves in the market. The market share and customer base for the organization is low which
needs to be improved so that there is going to be higher results and the company can get what
they expect in the market. Getting right skilled and knowledgeable employees is also going to be
beneficial for the organization since the company will be able to have a stable income and
develop themselves faster in the market as well. There are a lot of risk factors as well which the

company will have to take in order to be able to expand and develop them in the market which is
going to make the company have higher sales and improvement for the future.
COMPONENT 2
INTRODUCTION
There are a lot of factors which an organization must consider and analyse in order to be
able to operate effectively and efficiently in the market. Thermax Ltd is a public limited
company which is belonging from the energy, environment and chemical industry. The
headquarters of the organization is in Pune, India and is serving 75 countries in the world. The
report is going to consist of the issues which the organization is having and their solutions so that
the business will be able to develop and improve them in the market effectively and efficiently.
Competitive advantage
There are a lot of issues which Thermax Ltd. is facing in the market because they are not
being able to promote their products and services effectively in the market. The customers are
not aware of the improvement which the company has made over time and it belongs from an
industry which people are being influenced for. It is important firstly to have a healthy working
environment for the employees which are present in the company. The company is working for
the betterment of the environment but for that they need to have a good working environment so
that the demands of the customers are going to be matched (Schaller, Beck and Kahnke, 2018).
Innovation is important in the organization but there has to be good implementation as well of
the changes as well in the company and till the employees are not going to be supportive and
they are not going to get what is expected out of an organization till then the organization will
not be able to operate effectively in the market. There has to be right treatment which needs to be
present for women in the organization as well. Having Meher Pudumjee as the chairperson was a
very good decision taken by the organization by Anu Aga so that there is going to be effective
working and quality would show in the market as well for the employees of the company. All the
employees have to be treated the same and on the basics of working and influence of them in the

organization they must be rewarded as well so that there is going to be higher motivation which
is going to be present in the organization which is a great factor for the company to have.
Geospatial technology is also very low in the company which is making the company not
be able to progress in the market effectively. The competition for Thermax Ltd is low which a
great opportunity is for the company, they can take advantage of this situation for themselves but
for that the organization will have to improve as well. Technological help in businesses can make
the productivity and operations in the market very high which is going to be very beneficial for
the organization to have in the market. The company will have make sure that they are using the
right modern tool and mapping is analysed by the company so that there are going to be higher
performance which is going to be present of the organization in the market (Bhanushali and
et.al., 2017). Transparency is very important which Thermax Ltd will have to focus on so that the
organization will be able to have a better branding and reputation for themselves in the market.
The company is not being able to create a positive environment for the employees which is a
great drawback because the demands and needs of the customers will not be matched by the
organization which is why it is important for the organization to be able to get in the right
working in the market. There has to be good working and sense of direction which needs to be
present in business so that there is going to be higher achievement of the objectives and targets
which the business is going to have in the market.
Workforce of Thermax Ltd is migrates mostly which needs to be analysed by the
organization because that can get in a huge threat for the organization. The company will have to
make sure that there are permanent and they would be staying in the company for long so that the
organization will be able to benefit from this factor. Migrants always move from one place to
another whenever they find more benefits for themselves and their family and have no particular
location they would want to work. They keep shifting which is not going to be good for Thermax
Ltd which needs to be improved and worked upon by the organization so that there are going to
be higher performance which is going to be present (Joshi, 2017). There are 314 million migrants
who are present in India which is good for the business population and productivity which is
going to be present. Environment is a very important factor which not just customers but
businesses in the market must also consider to be improving so that there is going to be effective
working which is going to be present. Business will have to make sure that everyone is aware of

the environmental changes which are taking place globally which needs to be maintained and
controlled so that there are going to be higher sales of Thermax Ltd which is going to be present
in the market. The company is having products to make sure that the businesses and population
are taking the right measures so that there is going to be higher performance which is going to be
present.
Issue and develop strategic
The organization will have to work on getting more qualified so that there is going to be
effective technology which is going to be used in the organization. Geospatial technology is very
important in Thermax Ltd so that there are going to be effective working which is going to make
the productivity of the organization improve. The company will have to have good technology
higher because there is a lot of chemical and technological based organization so that there is
going to be effective. The company will have to make sure that there are effective measures and
training which is reaching out to the employees of the organization so that there is going to be
effective working (Schaper, 2016). There is already a lot of investment which Thermax Ltd is
made in technological aspect in the organization so that the business will be able to develop them
in the market for better functioning. Technology can make the performance of the organization
effective so that the company will have better functioning. There are a lot of issues which are
present in the market which a business will have to face so that there is going to be higher
direction which is present so that the company will be able to develop themselves.
Thermax Ltd is having a high standard for them in the market which is going to make the
organizations have a well maintained good standard for the organization. There has to be good
treatment of all the employees and fairness of the organization so that there is going to be better
functioning. Employees like women empowerment has to be present in the company so that there
is going to be effective working which would be present in the organization so that the business
will be able to grow in the market. The employees in Thermax Ltd are mostly migrants which are
present in the organization so that there is going to be higher performance (Sangani, 2019). The
employees of the organization will have to be retained in the company so that there is going to be
effective working and the performance is going to be maintained in the organization. Migrants

are shifting a lot in Pune because of the job opportunities which are coming up in the state which
is why Thermax Ltd will have to make sure that there are a lot of factors which are present in the
market. Migrants can be got in Thermax Ltd easily by providing them safety and security which
is going to make the organization have higher performance and loyalty as well so that there is
going to be effective working.
The company will have to solve the issues and another issue is that the organization will
have to improve the focus on transparency which is going to make the organization have higher
performance. The employees will have to be included in the decision making so that there is
going to be higher understanding which is good for the sense of direction which is going to be
good for the performance and higher brand value in the market (Worley and et.al., 2016). The
stakeholders of the company are not aware which is why the organization will have to invest
more in which the company will promote themselves so that there is going to be effective
working which is going to make the organization have higher values. The company will have to
make sure that they are informing all the employees and stakeholders so that there is going to be
better functioning and the company will have to make sure that there are higher performance.
Environmental awareness also has to be present in the market so that the customers can purchase
which is going to be beneficial for the organization. The organization will have to make sure that
there has to be effective promotions which the company will have to make so that there is a
better operation which is going to be present. Environment has to be taken care of by businesses
and customers therefore Thermax Ltd is going to improve their products and services so that
there are going to be higher sales.
Stakeholder group would be adversely affected
The customers are going to be affected the most from the changes and proposal since
they are going to get everything better and the company is going to change according to them as
well. It is important for the organization to be able to make the customers aware as well as make
them know about the changes so that the company will be able to operate effectively
(Karthikeyan and Benjamin, 2019). The lifestyle and demands of the customers are changing and
it is important for the businesses in the market to be able to adapt to them so that there is going to

be higher performance and brand image which the company can have in the market. Thermax
Ltd wants to make the satisfaction of the customers improve and if they are not going to do that
then the company will not be able to operate effectively and their targets are not going to be
achieved.
The employees of the organization are not going to be satisfied with the changes and
planning which the organization is going to have since they are not well trained and
knowledgeable about this industry. The workforce is migrates who do not like changes and they
shift their jobs very easily which is going to make the company’s productivity and operations get
affected which is not a good factor for the organization (Priavolou, 2018). Migrants never want
to change their way of working and it is the organization which needs to develop around this
factor otherwise they can lose their workforce which is present in the market. Stakeholders of a
business have to be satisfied and have all the information which the organization is having so
that there is going to be higher functioning and performance of the business in the market.
Proposal and preferred strategic direction
The proposal is going to make the organization have a lot of improvement on the sales
and increase the productivity as well. Hiring the right employees in the organization is very
important which the company should have done effectively and by having a strong human
resource department as well which would have make the company have higher sales and
maintained standards for the organization as well. There must be healthy environment which
needs to be present for the employees to work within so that the results are going to be higher for
all the employees of the company (Daniotti, 2016). The employees have to be motivated and
given rewards for the hard work they are doing for the company and since there are going to be
so many changes which are going to take place in the company therefore it is even more
important for the company to be able to get this factor. Focusing on the employees is important
for the organization since they are the backbone of the company and they have to be retained in
the organization for a long run which is going to be beneficial. There are two factors which have
to be present, improvement in technologies and transparency by the stakeholders for everyone so
that there would be higher sense of direction which would be present. Without transparency in

the organization there are going to be more mishaps which can take place in the company and
that is not good for the reputation of the organization. There is a standard and brand image and
without having a skilled workforce in the organization as well the investment which the company
will be making is also going to be of no improvement and development for the organization in
the market.
The employees have to be aware about the changes so that they can be mentally prepared
for them to come in the organization effectively which would make the organization be able to
operate effectively in the market. Migrates in Thermax Ltd is high because in India finding these
labour is cheaper for the company which is going to make the cost saving possible and further
investment for improvement the brand image can be done. The company will have to make sure
that they are satisfying these labours so that the productivity and operations are going to be
higher. There has to be good safety and security measures which has to be taken for these people
because around chemical and without proper knowledge is a dangerous situation therefore it is
important to have transparency in the organization so that there would be higher performance
which is going to be present. Migrates cannot be trusted in the organization because they shift
their jobs very easily which is why the organization will have to get in skills and knowledge
employees for the working of the business effectively. There is a reputation which Thermax Ltd
is having for them in the market and that has to be matched by the company so that there is going
to be higher performance which is going to be present. It is without a structure the business in the
market will not be able to operate effectively in the market and the company will not be able to
develop themselves as well according to what the company will plan for themselves in this
competitive industry (Wells, 2017). The company will have to get a better sense of direction
which is going to be present so that the business will have to get higher performance and
advantage is going to be present with the business so that there is going to be higher
performance. Explanation is present in the market so that the issues can be solved by the
business in the market which is going to make the business be able to develop them in the market
which is a very important factor.
The company is working for the benefit of global environment and the products are going
to be sustainable for a long run in the market as well. Thermax Ltd has not been able to promote
and make the customers be aware of their products and services (Pudumjee, 2013). There are a

lot of advantages which the customers can have when they use the products of this organization
which the company has not been able to show to their customers and this factor has to be
improved so that there are going to be more customers which can get attracted. The organization
is selling their products to large organizations and the products can attract other customers in the
market as well if there is going to be effective promotions and awareness which the organization
will be able to create for themselves in the market. There is going to be a use of a lot of
technologies as well which needs skilled and knowledge employees in the company which is
very important for the organization to have so that there is going to be less of mishaps (Yi,
2020). There is high investment which the company will be making on technological aspect
which included artificial intelligence and geospatial technology which is going to make the
company have higher productivity and operations for matching the demands and expectations of
the customers in the market.
CONCLUSION
From the above report it can be concluded that the businesses in the market have to make
sure that they are improving according to the market. There has to be effective working which is
required in the market so that the business will be able to have higher performance and higher
sales which is going to make the profitability increase. There are a lot of issues and
disadvantages which are present in business and they have to be controlled so that the business
will be able to grow effectively.

REFERENCES
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Online
Pudumjee, M., 2013. [Online]. Available Through:
<https://www.researchgate.net/publication/301886961_Turnaround_to_Transformation
_The_case_of_Thermax>.