Case Study Description of Real Property Negotiation Game: Seller Case, Raleigh Commons (A)
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 Case, Raleigh Commons (A)" 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 Case, Raleigh Commons (A) case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Real Property Negotiation Game: Seller Case, Raleigh Commons (A) casestudy better are - – increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, geopolitical disruptions, etc
Introduction to SWOT Analysis of Real Property Negotiation Game: Seller Case, Raleigh Commons (A)
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 Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) can be done for the following purposes –
1. Strategic planning using facts provided in Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) | 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 Case, Raleigh Commons (A) Harvard Business Review case study are -
Ability to recruit top talent
– Raleigh Property is one of the leading recruiters in the industry. Managers in the Real Property Negotiation Game: Seller Case, Raleigh Commons (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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 Case, Raleigh Commons (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
Operational resilience
– The operational resilience strategy in the Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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.
Cross disciplinary teams
– Horizontal connected teams at the Raleigh Property 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.
Organizational Resilience of Raleigh Property
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Raleigh Property does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Raleigh Property in the sector have low bargaining power. Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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.
High switching costs
– The high switching costs that Raleigh Property 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.
Analytics focus
– Raleigh Property 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 Arthur I Segel, John H. Vogel Jr. 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.
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 Case, Raleigh Commons (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Real Property Negotiation Game: Seller Case, Raleigh Commons (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Real Property Negotiation Game: Seller Case, Raleigh Commons (A) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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.
Need for greater diversity
– Raleigh Property 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A), it seems that the employees of Raleigh Property don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High operating costs
– Compare to the competitors, firm in the HBR case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Raleigh Property 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Raleigh Property is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Raleigh Property 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.
Aligning sales with marketing
– It come across in the case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) can leverage the sales team experience to cultivate customer relationships as Raleigh Property is planning to shift buying processes online.
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 Case, Raleigh Commons (A), 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A), 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.
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 Case, Raleigh Commons (A) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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.
Opportunities Real Property Negotiation Game: Seller Case, Raleigh Commons (A) | 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 Case, Raleigh Commons (A) 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.
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 Case, Raleigh Commons (A) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Raleigh Property can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Case, Raleigh Commons (A) - 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.
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.
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.
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.
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 Case, Raleigh Commons (A) 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.
Developing new processes and practices
– Raleigh Property can develop new processes and procedures in Finance & Accounting 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.
Creating value in data economy
– The success of analytics program of Raleigh Property has opened avenues for new revenue streams for the organization in the industry. This can help Raleigh Property to build a more holistic ecosystem as suggested in the Real Property Negotiation Game: Seller Case, Raleigh Commons (A) case study. Raleigh Property can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Raleigh Property can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Raleigh Property 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.
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.
Threats Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) are -
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 Case, Raleigh Commons (A) .
Shortening product life cycle
– it is one of the major threat that Raleigh Property is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Raleigh Property has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Raleigh Property 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.
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.
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.
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.
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.
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. Raleigh Property 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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Real Property Negotiation Game: Seller Case, Raleigh Commons (A), Raleigh Property 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 .
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.
Weighted SWOT Analysis of Real Property Negotiation Game: Seller Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) 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 Case, Raleigh Commons (A) 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.