Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D)
This case describes the strategic and organizational challenges that Jones Lang LaSalle (JLL) faced between 2008 and 2012. In 2008, in order to strengthen the firm's brokerage team, JLL merged with The Staubach Company, a real estate services provider with a first-rate brokerage team and great cultural fit with JLL. Staubach paid its brokers with a commission model, which accelerated JLL's decision to let go of its long-standing salary and bonus approach. The merger also surfaced two interesting business opportunities. First, local brokers were now empowered and motivated to open up their client relationships to the rest of the company, growing their business from just local transactions to the full array of services JLL provided. Second, local brokers became aware of a great number of mid-sized clients whose real estate needs were not as sophisticated as those of large corporate accounts but who required multi-service solutions in selected geographies. JLL thus created a group called Markets Corporate Solutions, which specifically targeted mid-sized clients. Toward 2012, with its organizational structure expanding to tackle opportunities for multiple types of clients in a myriad of geographies, JLL was facing challenges associated with managing internal and external complexity. America's CEO Peter Roberts outlines the opportunities and challenges that lied ahead for JLL. This is the final case in a series that also comprises cases A, B, and C, and collectively covers JLL's evolution between the years 1999 and 2012.
Swot Analysis of "Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D)" written by Ranjay Gulati, Luciana Silvestri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jll Brokers facing as an external strategic factors. Some of the topics covered in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) casestudy better are - – central banks are concerned over increasing inflation, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, geopolitical disruptions, wage bills are increasing, technology disruption,
banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jll Brokers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jll Brokers 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) can be done for the following purposes –
1. Strategic planning using facts provided in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) case study
2. Improving business portfolio management of Jll Brokers
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 Brokers
Strengths Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jll Brokers in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Jll Brokers 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 Brokers 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 Brokers 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 Brokers is one of the most innovative firm in sector. Manager in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Jll Brokers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jll Brokers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Jll Brokers is present in almost all the verticals within the industry. This has provided firm in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) firm has clearly differentiated products in the market place. This has enabled Jll Brokers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Jll Brokers to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Jll Brokers 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.
Learning organization
- Jll Brokers 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 Brokers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Jll Brokers 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.
Cross disciplinary teams
– Horizontal connected teams at the Jll Brokers are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Jll Brokers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jll Brokers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Jll Brokers in the sector have low bargaining power. Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jll Brokers to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), in the dynamic environment Jll Brokers has struggled to respond to the nimble upstart competition. Jll Brokers has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Brokers supply chain. Even after few cautionary changes mentioned in the HBR case study - Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jll Brokers vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Jll Brokers 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Brokers 's lucrative customers.
Products dominated business model
– Even though Jll Brokers 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 - Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Brokers has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jll Brokers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Jll Brokers has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High bargaining power of channel partners
– Because of the regulatory requirements, Ranjay Gulati, Luciana Silvestri suggests that, Jll Brokers 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.
Skills based hiring
– The stress on hiring functional specialists at Jll Brokers 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.
Aligning sales with marketing
– It come across in the case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) can leverage the sales team experience to cultivate customer relationships as Jll Brokers is planning to shift buying processes online.
Opportunities Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) | 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jll Brokers 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.
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 Brokers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jll Brokers 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, Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Brokers 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 Brokers 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 Brokers can use these opportunities to build new business models that can help the communities that Jll Brokers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Loyalty marketing
– Jll Brokers 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.
Creating value in data economy
– The success of analytics program of Jll Brokers has opened avenues for new revenue streams for the organization in the industry. This can help Jll Brokers to build a more holistic ecosystem as suggested in the Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) case study. Jll Brokers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Jll Brokers 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jll Brokers to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jll Brokers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Jll Brokers 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jll Brokers 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 Brokers to hire the very best people irrespective of their geographical location.
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 Brokers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Jll Brokers 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.
Threats Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) are -
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.
Shortening product life cycle
– it is one of the major threat that Jll Brokers is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Jll Brokers 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), Jll Brokers 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 .
High dependence on third party suppliers
– Jll Brokers high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jll Brokers 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.
Regulatory challenges
– Jll Brokers 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jll Brokers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Brokers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Jll Brokers
– 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 Brokers.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jll Brokers 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.
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 Brokers in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 Brokers needs to make to build a sustainable competitive advantage.
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