Case Study Description of Real Property Negotiation Game: Seller, Raleigh Commons (B)
The Real Property Negotiation Game simulates the experience negotiating the sale, purchase, or financing of a property. The class competes as either a lender, buyer, or one of two groups of sellers, Raleigh, North Carolina and Las Vegas, Nevada. The seller case, Raleigh Commons, for the Real Property Negotiation Game. Steve Stroud must decide whether and at what price to sell his property.
Swot Analysis of "Real Property Negotiation Game: Seller, Raleigh Commons (B)" written by Arthur I Segel, John H. Vogel Jr. includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Raleigh Property facing as an external strategic factors. Some of the topics covered in Real Property Negotiation Game: Seller, Raleigh Commons (B) case study are - Strategic Management Strategies, Competition, Financial management, Negotiations, Pricing and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Real Property Negotiation Game: Seller, Raleigh Commons (B) casestudy better are - – challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, geopolitical disruptions, supply chains are disrupted by pandemic , increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Real Property Negotiation Game: Seller, Raleigh Commons (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Real Property Negotiation Game: Seller, Raleigh Commons (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Raleigh Property, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Raleigh Property 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) can be done for the following purposes –
1. Strategic planning using facts provided in Real Property Negotiation Game: Seller, Raleigh Commons (B) case study
2. Improving business portfolio management of Raleigh Property
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Raleigh Property
Strengths Real Property Negotiation Game: Seller, Raleigh Commons (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Raleigh Property in Real Property Negotiation Game: Seller, Raleigh Commons (B) Harvard Business Review case study are -
Innovation driven organization
– Raleigh Property is one of the most innovative firm in sector. Manager in Real Property Negotiation Game: Seller, Raleigh Commons (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Raleigh Property has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Raleigh Property 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.
Highly skilled collaborators
– Raleigh Property 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Raleigh Property in the sector have low bargaining power. Real Property Negotiation Game: Seller, Raleigh Commons (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Raleigh Property to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Finance & Accounting industry
– Real Property Negotiation Game: Seller, Raleigh Commons (B) firm has clearly differentiated products in the market place. This has enabled Raleigh Property to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Raleigh Property to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Raleigh Property in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Finance & Accounting field
– Raleigh Property 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 Raleigh Property in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Raleigh Property 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Raleigh Property digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Raleigh Property 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.
Diverse revenue streams
– Raleigh Property is present in almost all the verticals within the industry. This has provided firm in Real Property Negotiation Game: Seller, Raleigh Commons (B) 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.
Learning organization
- Raleigh Property 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 Raleigh Property is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Real Property Negotiation Game: Seller, Raleigh Commons (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Raleigh Property has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Real Property Negotiation Game: Seller, Raleigh Commons (B) 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.
Weaknesses Real Property Negotiation Game: Seller, Raleigh Commons (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Real Property Negotiation Game: Seller, Raleigh Commons (B) are -
Slow to strategic competitive environment developments
– As Real Property Negotiation Game: Seller, Raleigh Commons (B) HBR case study mentions - Raleigh Property 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.
Capital Spending Reduction
– Even during the low interest decade, Raleigh Property 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Real Property Negotiation Game: Seller, Raleigh Commons (B), in the dynamic environment Raleigh Property has struggled to respond to the nimble upstart competition. Raleigh Property has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Real Property Negotiation Game: Seller, Raleigh Commons (B), it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Raleigh Property has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Raleigh Property 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.
Aligning sales with marketing
– It come across in the case study Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) can leverage the sales team experience to cultivate customer relationships as Raleigh Property is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Real Property Negotiation Game: Seller, Raleigh Commons (B), is just above the industry average. Raleigh Property 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.
Increasing silos among functional specialists
– The organizational structure of Raleigh Property is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Raleigh Property needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Raleigh Property to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Raleigh Property 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 - Real Property Negotiation Game: Seller, Raleigh Commons (B) should strive to include more intangible value offerings along with its core products and services.
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 Raleigh Property supply chain. Even after few cautionary changes mentioned in the HBR case study - Real Property Negotiation Game: Seller, Raleigh Commons (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Raleigh Property vulnerable to further global disruptions in South East Asia.
Opportunities Real Property Negotiation Game: Seller, Raleigh Commons (B) | 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) are -
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 Raleigh Property 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.
Using analytics as competitive advantage
– Raleigh Property 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Raleigh Property to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Raleigh Property 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, Real Property Negotiation Game: Seller, Raleigh Commons (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Raleigh Property is facing challenges because of the dominance of functional experts in the organization. Real Property Negotiation Game: Seller, Raleigh Commons (B) 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.
Better consumer reach
– The expansion of the 5G network will help Raleigh Property to increase its market reach. Raleigh Property 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.
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 Raleigh Property in the consumer business. Now Raleigh Property can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Raleigh Property 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 Finance & Accounting segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Raleigh Property 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 Raleigh Property 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 Raleigh Property to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Raleigh Property 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Raleigh Property can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Raleigh Property can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Real Property Negotiation Game: Seller, Raleigh Commons (B) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Raleigh Property can use these opportunities to build new business models that can help the communities that Raleigh Property operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Threats Real Property Negotiation Game: Seller, Raleigh Commons (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Real Property Negotiation Game: Seller, Raleigh Commons (B) are -
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 Raleigh Property business can come under increasing regulations regarding data privacy, data security, etc.
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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Raleigh Property in the Finance & Accounting sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Raleigh Property in the Finance & Accounting industry. The Finance & Accounting 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.
Consumer confidence and its impact on Raleigh Property 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, Raleigh Property 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) .
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. Raleigh Property 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.
Environmental challenges
– Raleigh Property 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. Raleigh Property can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Regulatory challenges
– Raleigh Property 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 Finance & Accounting industry regulations.
Stagnating economy with rate increase
– Raleigh Property 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.
Increasing wage structure of Raleigh Property
– 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 Raleigh Property.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Raleigh Property can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Raleigh Property 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.
Weighted SWOT Analysis of Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Real Property Negotiation Game: Seller, Raleigh Commons (B) 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 Raleigh Property needs to make to build a sustainable competitive advantage.
