Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case
Discusses real estate valuation. Reviews "back of the envelope" valuation; real estate appraisal methods, including the income method; market comparables and replacement costs; and more complex computer modeling. Also discusses other variables that could influence valuation.
Swot Analysis of "Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case" written by Arthur I Segel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Valuation Envelope facing as an external strategic factors. Some of the topics covered in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case case study are - Strategic Management Strategies, Financial management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Valuation Envelope, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Valuation Envelope 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case can be done for the following purposes –
1. Strategic planning using facts provided in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case case study
2. Improving business portfolio management of Valuation Envelope
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 Valuation Envelope
Strengths Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Valuation Envelope in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Valuation Envelope digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Valuation Envelope 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case firm has clearly differentiated products in the market place. This has enabled Valuation Envelope to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Valuation Envelope to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Valuation Envelope is present in almost all the verticals within the industry. This has provided firm in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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.
High brand equity
– Valuation Envelope has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Valuation Envelope to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Valuation Envelope 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 Valuation Envelope is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Valuation Envelope has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Valuation Envelope 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.
Superior customer experience
– The customer experience strategy of Valuation Envelope 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
– Valuation Envelope 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 Valuation Envelope in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Valuation Envelope in the sector have low bargaining power. Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Valuation Envelope to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Valuation Envelope
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Valuation Envelope does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Valuation Envelope is one of the leading recruiters in the industry. Managers in the Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case are -
Need for greater diversity
– Valuation Envelope 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, is just above the industry average. Valuation Envelope 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Valuation Envelope has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, in the dynamic environment Valuation Envelope has struggled to respond to the nimble upstart competition. Valuation Envelope has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Valuation Envelope 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.
Increasing silos among functional specialists
– The organizational structure of Valuation Envelope is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Valuation Envelope needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Valuation Envelope to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Valuation Envelope 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 Valuation Envelope supply chain. Even after few cautionary changes mentioned in the HBR case study - Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Valuation Envelope vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Valuation Envelope 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 - Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, 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.
Interest costs
– Compare to the competition, Valuation Envelope 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.
Opportunities Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case | 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Valuation Envelope 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 Valuation Envelope to increase its market reach. Valuation Envelope 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.
Learning at scale
– Online learning technologies has now opened space for Valuation Envelope 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Valuation Envelope in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
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 Valuation Envelope in the consumer business. Now Valuation Envelope can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Valuation Envelope has opened avenues for new revenue streams for the organization in the industry. This can help Valuation Envelope to build a more holistic ecosystem as suggested in the Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case case study. Valuation Envelope can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Valuation Envelope 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Valuation Envelope to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Valuation Envelope 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 Valuation Envelope to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Valuation Envelope 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. Valuation Envelope 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.
Loyalty marketing
– Valuation Envelope 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.
Leveraging digital technologies
– Valuation Envelope 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Valuation Envelope 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, Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Valuation Envelope 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.
Threats Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case are -
Technology acceleration in Forth Industrial Revolution
– Valuation Envelope has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Valuation Envelope needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Valuation Envelope 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.
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 Valuation Envelope.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Valuation Envelope with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case, Valuation Envelope may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Increasing wage structure of Valuation Envelope
– 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 Valuation Envelope.
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. Valuation Envelope needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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.
Environmental challenges
– Valuation Envelope 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. Valuation Envelope can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Valuation Envelope 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case .
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 Valuation Envelope business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Valuation Envelope 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.
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. Valuation Envelope 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.
Weighted SWOT Analysis of Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Technical Note and Discussion on Real Estate Valuation (IBET): Back of the Envelope (BOE) on Bonhomme Place, A Case within a Case 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 Valuation Envelope needs to make to build a sustainable competitive advantage.
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