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 - – wage bills are increasing, increasing household debt because of falling income levels, there is backlash against globalization, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing commodity prices, central banks are concerned over increasing inflation,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , 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 -
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.
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.
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.
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.
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.
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.
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.
Sustainable margins compare to other players in Organizational Development industry
– Jess Westerly at Kauflauf GmbH firm has clearly differentiated products in the market place. This has enabled Westerly Kauflauf to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Westerly Kauflauf to invest into research and development (R&D) and innovation.
Training and development
– Westerly Kauflauf has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jess Westerly at Kauflauf GmbH Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Westerly Kauflauf has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Jess Westerly at Kauflauf GmbH - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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 -
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.
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.
Low market penetration in new markets
– Outside its home market of Westerly Kauflauf, firm in the HBR case study Jess Westerly at Kauflauf GmbH needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Westerly Kauflauf is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jess Westerly at Kauflauf GmbH can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Westerly Kauflauf has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Westerly Kauflauf even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
Loyalty marketing
– Westerly Kauflauf has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
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.
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 -
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 .
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.
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 .
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.
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.
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.
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.
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.
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.
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.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Westerly Kauflauf can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.