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 commodity prices, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing government debt because of Covid-19 spendings,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, 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 -
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.
Analytics focus
– Jll Jll's 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.
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.
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.
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.
High brand equity
– Jll Jll's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jll Jll's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Jll Jll's in the sector have low bargaining power. Growing Integrated Services at Jones Lang LaSalle (2008) (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jll Jll's to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
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.
Training and development
– Jll Jll's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Growing Integrated Services at Jones Lang LaSalle (2008) (C) 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.
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 -
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.
Need for greater diversity
– Jll Jll's 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.
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.
Slow to strategic competitive environment developments
– As Growing Integrated Services at Jones Lang LaSalle (2008) (C) HBR case study mentions - Jll Jll's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Growing Integrated Services at Jones Lang LaSalle (2008) (C), in the dynamic environment Jll Jll's has struggled to respond to the nimble upstart competition. Jll Jll's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C), it seems that the employees of Jll Jll's 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 bargaining power of channel partners
– Because of the regulatory requirements, Ranjay Gulati, Luciana Silvestri suggests that, Jll Jll's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Growing Integrated Services at Jones Lang LaSalle (2008) (C), is just above the industry average. Jll Jll's 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 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jll Jll's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 Jll's supply chain. Even after few cautionary changes mentioned in the HBR case study - Growing Integrated Services at Jones Lang LaSalle (2008) (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jll Jll's vulnerable to further global disruptions in South East Asia.
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 -
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.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Jll Jll's to increase its market reach. Jll Jll's 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.
Loyalty marketing
– Jll Jll's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Building a culture of innovation
– managers at Jll Jll's 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.
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.
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.
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 Jll's 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 Jll's 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.
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.
Leveraging digital technologies
– Jll Jll's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jll Jll's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 -
Shortening product life cycle
– it is one of the major threat that Jll Jll's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
Regulatory challenges
– Jll Jll's 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.
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.
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.
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.
High dependence on third party suppliers
– Jll Jll's 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.
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 Jll's in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jll Jll's 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.
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.