Case Study Description of Jess Westerly at Kauflauf GmbH
Jess Westerly is the assistant product owner of CRM applications for computer and office supply wholesalers and retailers at Kauflauf, a fast-growing provider of subscription enterprise software headquartered in Heidelberg, Germany. Only months into her job, outsider Westerly tries and fails to implement a change in field consultants' sales call patterns. Westerly had introduced the changes to the sales organization via a memo that outlined her directive and explained the reasons behind it. Field consultants immediately complained about the infringement on their decisions about how to spend their time and the insensitivity to the relationship-oriented nature of developing business. Three months later, sales statistics show little difference in calling patterns. After explaining, defending, and reshaping her stalled initiative, Waverly presents her amended proposal to key senior executives and is given three weeks to produce an implementation plan. If the plan is deemed acceptable, she will be asked to implement it.
Swot Analysis of "Jess Westerly at Kauflauf GmbH" written by John J. Gabarro, Colleen Kaftan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Westerly Kauflauf facing as an external strategic factors. Some of the topics covered in Jess Westerly at Kauflauf GmbH case study are - Strategic Management Strategies, Customers, Organizational culture, Product development, Sales, Technology and Organizational Development.
Some of the macro environment factors that can be used to understand the Jess Westerly at Kauflauf GmbH casestudy better are - – geopolitical disruptions, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%,
increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Jess Westerly at Kauflauf GmbH
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jess Westerly at Kauflauf GmbH case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Westerly Kauflauf, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Westerly Kauflauf 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 Jess Westerly at Kauflauf GmbH can be done for the following purposes –
1. Strategic planning using facts provided in Jess Westerly at Kauflauf GmbH case study
2. Improving business portfolio management of Westerly Kauflauf
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Westerly Kauflauf
Strengths Jess Westerly at Kauflauf GmbH | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Westerly Kauflauf in Jess Westerly at Kauflauf GmbH Harvard Business Review case study are -
Organizational Resilience of Westerly Kauflauf
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Westerly Kauflauf does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Westerly Kauflauf 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 Westerly Kauflauf is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jess Westerly at Kauflauf GmbH Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Westerly Kauflauf is one of the most innovative firm in sector. Manager in Jess Westerly at Kauflauf GmbH Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Jess Westerly at Kauflauf GmbH 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.
Ability to lead change in Organizational Development field
– Westerly Kauflauf 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 Westerly Kauflauf 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 Westerly Kauflauf 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.
Analytics focus
– Westerly Kauflauf 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 John J. Gabarro, Colleen Kaftan 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.
Low bargaining power of suppliers
– Suppliers of Westerly Kauflauf in the sector have low bargaining power. Jess Westerly at Kauflauf GmbH has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Westerly Kauflauf to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Westerly Kauflauf digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Westerly Kauflauf 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.
High brand equity
– Westerly Kauflauf has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Westerly Kauflauf to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Westerly Kauflauf is one of the leading recruiters in the industry. Managers in the Jess Westerly at Kauflauf GmbH are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Westerly Kauflauf is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Jess Westerly at Kauflauf GmbH | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jess Westerly at Kauflauf GmbH are -
Products dominated business model
– Even though Westerly Kauflauf 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 - Jess Westerly at Kauflauf GmbH should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Jess Westerly at Kauflauf GmbH 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 Westerly Kauflauf has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Jess Westerly at Kauflauf GmbH 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 Westerly Kauflauf 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Jess Westerly at Kauflauf GmbH, it seems that the employees of Westerly Kauflauf 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.
Increasing silos among functional specialists
– The organizational structure of Westerly Kauflauf is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Westerly Kauflauf needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Westerly Kauflauf to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jess Westerly at Kauflauf GmbH, in the dynamic environment Westerly Kauflauf has struggled to respond to the nimble upstart competition. Westerly Kauflauf has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Westerly Kauflauf products
– To increase the profitability and margins on the products, Westerly Kauflauf needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Westerly Kauflauf 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.
High cash cycle compare to competitors
Westerly Kauflauf 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Westerly Kauflauf needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to strategic competitive environment developments
– As Jess Westerly at Kauflauf GmbH HBR case study mentions - Westerly Kauflauf 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.
Opportunities Jess Westerly at Kauflauf GmbH | 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 Jess Westerly at Kauflauf GmbH are -
Building a culture of innovation
– managers at Westerly Kauflauf 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 Organizational Development segment.
Manufacturing automation
– Westerly Kauflauf can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Better consumer reach
– The expansion of the 5G network will help Westerly Kauflauf to increase its market reach. Westerly Kauflauf 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Westerly Kauflauf in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Westerly Kauflauf 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.
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. Westerly Kauflauf can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Westerly Kauflauf is facing challenges because of the dominance of functional experts in the organization. Jess Westerly at Kauflauf GmbH case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Westerly Kauflauf in the consumer business. Now Westerly Kauflauf can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Westerly Kauflauf can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jess Westerly at Kauflauf GmbH suggest that firm 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.
Creating value in data economy
– The success of analytics program of Westerly Kauflauf has opened avenues for new revenue streams for the organization in the industry. This can help Westerly Kauflauf to build a more holistic ecosystem as suggested in the Jess Westerly at Kauflauf GmbH case study. Westerly Kauflauf can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Westerly Kauflauf 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Westerly Kauflauf 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Westerly Kauflauf 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 Westerly Kauflauf to hire the very best people irrespective of their geographical location.
Threats Jess Westerly at Kauflauf GmbH External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jess Westerly at Kauflauf GmbH are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Westerly Kauflauf with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Westerly Kauflauf needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Westerly Kauflauf 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 Jess Westerly at Kauflauf GmbH .
Technology acceleration in Forth Industrial Revolution
– Westerly Kauflauf has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Westerly Kauflauf needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Westerly Kauflauf 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 Organizational Development industry regulations.
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 Westerly Kauflauf business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Westerly Kauflauf 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.
Stagnating economy with rate increase
– Westerly Kauflauf 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 Jess Westerly at Kauflauf GmbH, Westerly Kauflauf may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Westerly Kauflauf will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Westerly Kauflauf
– 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 Westerly Kauflauf.
Environmental challenges
– Westerly Kauflauf 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. Westerly Kauflauf can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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.
Weighted SWOT Analysis of Jess Westerly at Kauflauf GmbH 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 Jess Westerly at Kauflauf GmbH 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 Jess Westerly at Kauflauf GmbH 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 Jess Westerly at Kauflauf GmbH 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 Jess Westerly at Kauflauf GmbH 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 Westerly Kauflauf needs to make to build a sustainable competitive advantage.
