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 - – increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, increasing transportation and logistics costs, supply chains are disrupted by pandemic , geopolitical disruptions, challanges to central banks by blockchain based private currencies,
digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Jll's Barge 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.
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.
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.
Superior customer experience
– The customer experience strategy of Jll's Barge in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Training and development
– Jll's Barge has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporate Solutions at Jones Lang LaSalle 2001 A 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.
Successful track record of launching new products
– Jll's Barge has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jll's Barge 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.
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 -
Products dominated business model
– Even though Jll's Barge 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 - Corporate Solutions at Jones Lang LaSalle 2001 A should strive to include more intangible value offerings along with its core products and services.
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.
Lack of clear differentiation of Jll's Barge products
– To increase the profitability and margins on the products, Jll's Barge needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Corporate Solutions at Jones Lang LaSalle 2001 A, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporate Solutions at Jones Lang LaSalle 2001 A, in the dynamic environment Jll's Barge has struggled to respond to the nimble upstart competition. Jll's Barge has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Jll's Barge is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Jll's Barge needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jll's Barge to focus more on services rather than just following the product oriented approach.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporate Solutions at Jones Lang LaSalle 2001 A, it seems that the employees of Jll's Barge 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.
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 -
Leveraging digital technologies
– Jll's Barge 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.
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.
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.
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.
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.
Building a culture of innovation
– managers at Jll's Barge can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Jll's Barge to increase its market reach. Jll's Barge 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.
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.
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 -
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 Jll's Barge.
Environmental challenges
– Jll's Barge 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. Jll's Barge can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jll's Barge with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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. Jll's Barge 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.
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.
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.
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.
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.
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.