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 - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing commodity prices, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, technology disruption,
talent flight as more people leaving formal jobs, increasing energy prices, 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 -
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.
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.
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.
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.
Strong track record of project management
– Jll Brokers 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 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.
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.
Effective Research and Development (R&D)
– Jll Brokers has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Jll Brokers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jll Brokers 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.
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.
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.
Operational resilience
– The operational resilience strategy in the Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 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 -
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jll Brokers 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 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), is just above the industry average. Jll Brokers 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.
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.
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.
Increasing silos among functional specialists
– The organizational structure of Jll Brokers is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Jll Brokers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jll Brokers to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Jll Brokers 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 Brokers, firm in the HBR case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D), it seems that the employees of Jll Brokers 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 cash cycle compare to competitors
Jll Brokers has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities 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 -
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jll Brokers 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.
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.
Building a culture of innovation
– managers at Jll Brokers 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.
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.
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 Brokers in the consumer business. Now Jll Brokers can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Jll Brokers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) 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 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.
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.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Jll Brokers to increase its market reach. Jll Brokers 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.
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 -
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 Brokers needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Jll Brokers has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Jll Brokers 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.
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 .
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jll Brokers 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 Jones Lang LaSalle (2012): Integrated Services and the Architecture of Complexity (D) .
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.
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.
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 Brokers.
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.
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.
Consumer confidence and its impact on Jll Brokers 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 Brokers 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 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.
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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