HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur
Accompanied by product #PON263.Two-party negotiation between a property owner and a neighboring business over the sale of two real estate parcels. The simulation is set in Hong Kong in 1996, just before the British returned Hong Kong to the People's Republic of China. Lee Wing and Terry Jones each operate a business next door to each other on Tai Po Kau Harbour Road. Between their two businesses is a small lot that is unattractive as a separate building site because it sits between two large warehouses. Lee Wing purchased the small lot in 1990 for $70,000 with the intent of expanding his warehouse. These plans were never realized, and the lot is currently vacant. This is a role play case.
Swot Analysis of "HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur" written by Larry Crump includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wing Lee facing as an external strategic factors. Some of the topics covered in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur case study are - Strategic Management Strategies, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur casestudy better are - – increasing energy prices, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, there is backlash against globalization, talent flight as more people leaving formal jobs,
technology disruption, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wing Lee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wing Lee 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur can be done for the following purposes –
1. Strategic planning using facts provided in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur case study
2. Improving business portfolio management of Wing Lee
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Wing Lee
Strengths HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wing Lee in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Wing Lee in the sector have low bargaining power. HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wing Lee to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur firm has clearly differentiated products in the market place. This has enabled Wing Lee to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Wing Lee to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Wing Lee is one of the leading recruiters in the industry. Managers in the HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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
– Wing Lee is one of the most innovative firm in sector. Manager in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Wing Lee has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wing Lee to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Wing Lee 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Wing Lee are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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.
Analytics focus
– Wing Lee 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 Larry Crump 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.
Effective Research and Development (R&D)
– Wing Lee 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Wing Lee in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Wing Lee is present in almost all the verticals within the industry. This has provided firm in HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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.
Weaknesses HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur are -
Capital Spending Reduction
– Even during the low interest decade, Wing Lee 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 Wing Lee supply chain. Even after few cautionary changes mentioned in the HBR case study - HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wing Lee vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Wing Lee products
– To increase the profitability and margins on the products, Wing Lee needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Wing Lee 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. Wing Lee 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.
Need for greater diversity
– Wing Lee 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 strategic competitive environment developments
– As HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur HBR case study mentions - Wing Lee 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.
Products dominated business model
– Even though Wing Lee 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 - HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur can leverage the sales team experience to cultivate customer relationships as Wing Lee is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wing Lee is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Wing Lee 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 Wing Lee has relatively successful track record of launching new products.
Opportunities HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur | 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur are -
Manufacturing automation
– Wing Lee can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wing Lee is facing challenges because of the dominance of functional experts in the organization. HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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.
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 Wing Lee 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wing Lee in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wing Lee 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 Wing Lee to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wing Lee can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Wing Lee to increase its market reach. Wing Lee 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Wing Lee can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Wing Lee can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Wing Lee 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. Wing Lee 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
– Wing Lee can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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.
Building a culture of innovation
– managers at Wing Lee 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 Strategy & Execution segment.
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 Wing Lee in the consumer business. Now Wing Lee can target international markets with far fewer capital restrictions requirements than the existing system.
Threats HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur are -
Consumer confidence and its impact on Wing Lee 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.
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. Wing Lee 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 Wing Lee.
Regulatory challenges
– Wing Lee 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 Strategy & Execution industry regulations.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Wing Lee 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. Wing Lee needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Wing Lee 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.
Shortening product life cycle
– it is one of the major threat that Wing Lee is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wing Lee 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur .
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur, Wing Lee may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wing Lee in the Strategy & Execution industry. The Strategy & Execution 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.
Environmental challenges
– Wing Lee 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. Wing Lee can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur 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 Wing Lee needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of HONG KONG PROPERTY DEAL: AN INTERNATIONAL NEGOTIATION CASE SIMULATION - Confidential Information for Lee Wing, Importer and Entrepreneur
