Corporate Solutions at Jones Lang LaSalle 2001 A SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporate Solutions at Jones Lang LaSalle 2001 A
This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced at the turn of the millennium. Until then, JLL sold piecemeal commercial real estate services to its corporate clients, who maintained relationships with a variety of vendors. In 2000, JLL's large corporate clients started globalizing their activities and seeking to outsource their real estate needs. They were looking for integrated solutions delivered through a single point of contact, and they cut their providers to a few strategic vendors. JLL's organizational structure, configured around largely autonomous service lines, was not well suited to supporting the development of integrated services. Executive Peter Barge was put in charge of a new team, called Corporate Solutions, whose mission was to draw connections between the service lines in order to foster integration. How should Barge structure Corporate Solutions to make sure it succeeds in its mission? And how should he configure the group's ties to the service lines to ensure their collaboration? The retention of JLL's most profitable clients was at stake. This case is the first in a series that also comprises cases B, C, and D and collectively covers JLL's evolution between the years 1999 and 2012.
Swot Analysis of "Corporate Solutions at Jones Lang LaSalle 2001 A" written by Ranjay Gulati, Luciana Silvestri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jll's Barge facing as an external strategic factors. Some of the topics covered in Corporate Solutions at Jones Lang LaSalle 2001 A case study are - Strategic Management Strategies, Organizational culture, Organizational structure and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporate Solutions at Jones Lang LaSalle 2001 A casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
increasing transportation and logistics costs, increasing commodity prices, etc
Introduction to SWOT Analysis of Corporate Solutions at Jones Lang LaSalle 2001 A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporate Solutions at Jones Lang LaSalle 2001 A case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jll's Barge, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jll's Barge 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 Corporate Solutions at Jones Lang LaSalle 2001 A can be done for the following purposes –
1. Strategic planning using facts provided in Corporate Solutions at Jones Lang LaSalle 2001 A case study
2. Improving business portfolio management of Jll's Barge
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 Jll's Barge
Strengths Corporate Solutions at Jones Lang LaSalle 2001 A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jll's Barge in Corporate Solutions at Jones Lang LaSalle 2001 A Harvard Business Review case study are -
Analytics focus
– Jll's Barge 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 Ranjay Gulati, Luciana Silvestri 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.
Learning organization
- Jll's Barge 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 Jll's Barge is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporate Solutions at Jones Lang LaSalle 2001 A Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Jll's Barge 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.
High brand equity
– Jll's Barge has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jll's Barge to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Jll's Barge is one of the most innovative firm in sector. Manager in Corporate Solutions at Jones Lang LaSalle 2001 A Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Jll's Barge is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Jll's Barge 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 Jll's Barge in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Corporate Solutions at Jones Lang LaSalle 2001 A firm has clearly differentiated products in the market place. This has enabled Jll's Barge to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Jll's Barge to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Jll's Barge is present in almost all the verticals within the industry. This has provided firm in Corporate Solutions at Jones Lang LaSalle 2001 A 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.
Operational resilience
– The operational resilience strategy in the Corporate Solutions at Jones Lang LaSalle 2001 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.
Low bargaining power of suppliers
– Suppliers of Jll's Barge in the sector have low bargaining power. Corporate Solutions at Jones Lang LaSalle 2001 A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jll's Barge to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Jll's Barge 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 Corporate Solutions at Jones Lang LaSalle 2001 A HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Corporate Solutions at Jones Lang LaSalle 2001 A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporate Solutions at Jones Lang LaSalle 2001 A are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jll's Barge is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporate Solutions at Jones Lang LaSalle 2001 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.
Slow decision making process
– As mentioned earlier in the report, Jll's Barge 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. Jll's Barge 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Corporate Solutions at Jones Lang LaSalle 2001 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 Jll's Barge has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Jll's Barge 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.
Need for greater diversity
– Jll's Barge 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 Corporate Solutions at Jones Lang LaSalle 2001 A HBR case study mentions - Jll's Barge 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.
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 Jll's Barge supply chain. Even after few cautionary changes mentioned in the HBR case study - Corporate Solutions at Jones Lang LaSalle 2001 A, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jll's Barge vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Corporate Solutions at Jones Lang LaSalle 2001 A, is just above the industry average. Jll's Barge 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 bargaining power of channel partners
– Because of the regulatory requirements, Ranjay Gulati, Luciana Silvestri suggests that, Jll's Barge is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Low market penetration in new markets
– Outside its home market of Jll's Barge, firm in the HBR case study Corporate Solutions at Jones Lang LaSalle 2001 A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Jll's Barge 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.
Opportunities Corporate Solutions at Jones Lang LaSalle 2001 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 Corporate Solutions at Jones Lang LaSalle 2001 A are -
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. Jll's Barge 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. Jll's Barge 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jll's Barge can use these opportunities to build new business models that can help the communities that Jll's Barge operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Jll's Barge can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jll's Barge 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.
Manufacturing automation
– Jll's Barge 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jll's Barge 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 Jll's Barge to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jll's Barge 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jll's Barge 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, Corporate Solutions at Jones Lang LaSalle 2001 A, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Jll's Barge has opened avenues for new revenue streams for the organization in the industry. This can help Jll's Barge to build a more holistic ecosystem as suggested in the Corporate Solutions at Jones Lang LaSalle 2001 A case study. Jll's Barge can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jll's Barge is facing challenges because of the dominance of functional experts in the organization. Corporate Solutions at Jones Lang LaSalle 2001 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.
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. Jll's Barge can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Jll's Barge can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporate Solutions at Jones Lang LaSalle 2001 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.
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 Jll's Barge in the consumer business. Now Jll's Barge can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Corporate Solutions at Jones Lang LaSalle 2001 A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporate Solutions at Jones Lang LaSalle 2001 A are -
Technology acceleration in Forth Industrial Revolution
– Jll's Barge has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Jll's Barge needs to keep up with the evolution of technology in the Strategy & Execution 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.
Regulatory challenges
– Jll's Barge 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jll's Barge 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.
High dependence on third party suppliers
– Jll's Barge 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.
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.
Stagnating economy with rate increase
– Jll's Barge 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.
Consumer confidence and its impact on Jll's Barge 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 wage structure of Jll's Barge
– 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 Jll's Barge.
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. Jll's Barge 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. Jll's Barge needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Jll's Barge business can come under increasing regulations regarding data privacy, data security, etc.
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 Jll's Barge in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Weighted SWOT Analysis of Corporate Solutions at Jones Lang LaSalle 2001 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 Corporate Solutions at Jones Lang LaSalle 2001 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 Corporate Solutions at Jones Lang LaSalle 2001 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 Corporate Solutions at Jones Lang LaSalle 2001 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 Corporate Solutions at Jones Lang LaSalle 2001 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 Jll's Barge needs to make to build a sustainable competitive advantage.