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 - – there is backlash against globalization, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing energy prices, there is increasing trade war between United States & China, increasing commodity prices, challanges to central banks by blockchain based private currencies,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, 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 -
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.
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.
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.
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.
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 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.
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.
Diverse revenue streams
– Westerly Kauflauf is present in almost all the verticals within the industry. This has provided firm in Jess Westerly at Kauflauf GmbH case study 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.
Successful track record of launching new products
– Westerly Kauflauf has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Westerly Kauflauf 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 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.
Superior customer experience
– The customer experience strategy of Westerly Kauflauf in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Westerly Kauflauf has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Jess Westerly at Kauflauf GmbH HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
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.
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.
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.
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.
Need for greater diversity
– Westerly Kauflauf has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Skills based hiring
– The stress on hiring functional specialists at Westerly Kauflauf has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jess Westerly at Kauflauf GmbH, is just above the industry average. Westerly Kauflauf 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.
Capital Spending Reduction
– Even during the low interest decade, Westerly Kauflauf has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 Westerly Kauflauf supply chain. Even after few cautionary changes mentioned in the HBR case study - Jess Westerly at Kauflauf GmbH, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Westerly Kauflauf vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Jess Westerly at Kauflauf GmbH that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Jess Westerly at Kauflauf GmbH can leverage the sales team experience to cultivate customer relationships as Westerly Kauflauf is planning to shift buying processes online.
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 -
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Westerly Kauflauf can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Westerly Kauflauf can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
Using analytics as competitive advantage
– Westerly Kauflauf has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Jess Westerly at Kauflauf GmbH - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Westerly Kauflauf to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Westerly Kauflauf can use these opportunities to build new business models that can help the communities that Westerly Kauflauf operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Westerly Kauflauf can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Jess Westerly at Kauflauf GmbH, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Westerly Kauflauf 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.
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.
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 -
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.
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.
Consumer confidence and its impact on Westerly Kauflauf 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 the industry and other sectors.
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 .
Shortening product life cycle
– it is one of the major threat that Westerly Kauflauf is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Westerly Kauflauf.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Westerly Kauflauf in the Organizational Development industry. The Organizational Development 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.
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.
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.
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.
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.
