Growing Integrated Services at Jones Lang LaSalle (2008) (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Growing Integrated Services at Jones Lang LaSalle (2008) (C)
This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced between 2005 and 2008. Having dismantled its long-standing service-line-oriented structure, JLL created two interdependent groups: Accounts and Markets. Accounts housed account managers who served JLL's corporate clients. Markets housed brokers specialized in a certain geography. JLL helped drive integration between Accounts and Markets by emphasizing work at the "intersections" between both groups, i.e., instances that required combining both groups' resources. By 2008, however, JLL was facing challenges associated with harnessing the potential of this new structure. There was more growth that could be obtained from penetrating local markets, and top management wondered how to best strengthen their brokerage team. The acquisition of Spaulding and Slye, a renowned Boston-based firm, provided instant growth in some key markets, but organic growth was harder to achieve. While the industry paid brokers with a commission model, JLL did so with a salary and bonus model that aligned well with JLL's culture but proved unattractive to new recruits. America's CEO Peter Roberts outlines the alternatives JLL analyzed as they considered how to strengthen the organization while maintaining its values and integrity. This case is the third in a case series that also comprises cases A, B, and D, and collectively covers JLL's evolution between the years 1999 and 2012.
Swot Analysis of "Growing Integrated Services at Jones Lang LaSalle (2008) (C)" written by Ranjay Gulati, Luciana Silvestri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jll Jll's facing as an external strategic factors. Some of the topics covered in Growing Integrated Services at Jones Lang LaSalle (2008) (C) case study are - Strategic Management Strategies, Marketing, Mergers & acquisitions, Organizational structure, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Growing Integrated Services at Jones Lang LaSalle (2008) (C) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, technology disruption, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Growing Integrated Services at Jones Lang LaSalle (2008) (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Growing Integrated Services at Jones Lang LaSalle (2008) (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jll Jll's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jll Jll's 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) can be done for the following purposes –
1. Strategic planning using facts provided in Growing Integrated Services at Jones Lang LaSalle (2008) (C) case study
2. Improving business portfolio management of Jll Jll's
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 Jll's
Strengths Growing Integrated Services at Jones Lang LaSalle (2008) (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jll Jll's in Growing Integrated Services at Jones Lang LaSalle (2008) (C) Harvard Business Review case study are -
Successful track record of launching new products
– Jll Jll's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jll Jll's 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.
High switching costs
– The high switching costs that Jll Jll's 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.
Ability to lead change in Strategy & Execution field
– Jll Jll's 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 Jll's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Jll Jll's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Jll Jll's is present in almost all the verticals within the industry. This has provided firm in Growing Integrated Services at Jones Lang LaSalle (2008) (C) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Jll Jll's 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 Jll's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Growing Integrated Services at Jones Lang LaSalle (2008) (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Jll Jll's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Jll Jll's 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Jll Jll's is one of the most innovative firm in sector. Manager in Growing Integrated Services at Jones Lang LaSalle (2008) (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Jll Jll's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jll Jll's 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 Strategy & Execution industry
– Growing Integrated Services at Jones Lang LaSalle (2008) (C) firm has clearly differentiated products in the market place. This has enabled Jll Jll's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Jll Jll's to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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.
Weaknesses Growing Integrated Services at Jones Lang LaSalle (2008) (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Growing Integrated Services at Jones Lang LaSalle (2008) (C) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jll Jll's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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
Jll Jll's 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.
Low market penetration in new markets
– Outside its home market of Jll Jll's, firm in the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Jll Jll's products
– To increase the profitability and margins on the products, Jll Jll's needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Jll Jll's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Jll Jll's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jll Jll's to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) can leverage the sales team experience to cultivate customer relationships as Jll Jll's is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Jll Jll's 's lucrative customers.
Products dominated business model
– Even though Jll Jll's 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 - Growing Integrated Services at Jones Lang LaSalle (2008) (C) should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Jll Jll's 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 Jll's 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.
No frontier risks strategy
– After analyzing the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C), 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.
Skills based hiring
– The stress on hiring functional specialists at Jll Jll's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Growing Integrated Services at Jones Lang LaSalle (2008) (C) | 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jll Jll's 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 Jll's to hire the very best people irrespective of their geographical location.
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 Jll's in the consumer business. Now Jll Jll's can target international markets with far fewer capital restrictions requirements than the existing system.
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 Jll's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Jll Jll's can develop new processes and procedures in Strategy & Execution 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.
Buying journey improvements
– Jll Jll's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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.
Manufacturing automation
– Jll Jll's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jll Jll's 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.
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 Jll's 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
– Jll Jll's 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jll Jll's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jll Jll's 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, Growing Integrated Services at Jones Lang LaSalle (2008) (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Jll's can use these opportunities to build new business models that can help the communities that Jll Jll's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Learning at scale
– Online learning technologies has now opened space for Jll Jll's 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.
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 Jll Jll's 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jll Jll's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jll Jll's 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) .
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 Jll's 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.
Stagnating economy with rate increase
– Jll Jll's 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 Jll's 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.
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 Jll's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Jll Jll's 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 Jll's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Jll's.
Technology acceleration in Forth Industrial Revolution
– Jll Jll's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Jll Jll's 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.
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 Jll's business can come under increasing regulations regarding data privacy, data security, etc.
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 Jll's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Growing Integrated Services at Jones Lang LaSalle (2008) (C), Jll Jll's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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 Jll's needs to make to build a sustainable competitive advantage.
