Case Study Description of Olitzki Property Holdings Catalyzes Change in Johannesburg
The large-scale abandonment of property in inner-city Johannesburg had brought waves of crime, illegal building occupation and general disinvestment. The founder of Olitzki Property Holdings (OPH) saw that an improvement at a precinct level, through carefully constructed partnerships with government, other property owners, tenants and illegal residents, was the key to building a sustainable, inclusive and socially grounded entrepreneurial business. OPH identified and bought derelict or illegally occupied buildings, then renovated and leased them to a combination of blue-chip and start-up businesses. While there was no doubt that OPH was profit focused, the ability to see the important role of development was a cornerstone of its success. Could the company - and the city - expand and maintain that success? Anthony Wilson-Prangley is affiliated with University of Pretoria. Jonathan Marks is affiliated with University of Pretoria. Margaret Sutherland is affiliated with Gordon Institute of Business Science.
Authors :: Anthony Wilson-Prangley, Jonathan Marks, Margaret Sutherland
Swot Analysis of "Olitzki Property Holdings Catalyzes Change in Johannesburg" written by Anthony Wilson-Prangley, Jonathan Marks, Margaret Sutherland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Oph Olitzki facing as an external strategic factors. Some of the topics covered in Olitzki Property Holdings Catalyzes Change in Johannesburg case study are - Strategic Management Strategies, Corporate governance, Policy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Olitzki Property Holdings Catalyzes Change in Johannesburg casestudy better are - – geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, wage bills are increasing, technology disruption,
supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Olitzki Property Holdings Catalyzes Change in Johannesburg
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Olitzki Property Holdings Catalyzes Change in Johannesburg case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Oph Olitzki, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Oph Olitzki 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 Olitzki Property Holdings Catalyzes Change in Johannesburg can be done for the following purposes –
1. Strategic planning using facts provided in Olitzki Property Holdings Catalyzes Change in Johannesburg case study
2. Improving business portfolio management of Oph Olitzki
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 Oph Olitzki
Strengths Olitzki Property Holdings Catalyzes Change in Johannesburg | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Oph Olitzki in Olitzki Property Holdings Catalyzes Change in Johannesburg Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Oph Olitzki in the sector have low bargaining power. Olitzki Property Holdings Catalyzes Change in Johannesburg has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Oph Olitzki to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Oph Olitzki has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Oph Olitzki to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Oph Olitzki
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Oph Olitzki does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Oph Olitzki digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Oph Olitzki 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.
Analytics focus
– Oph Olitzki 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 Anthony Wilson-Prangley, Jonathan Marks, Margaret Sutherland 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Olitzki Property Holdings Catalyzes Change in Johannesburg firm has clearly differentiated products in the market place. This has enabled Oph Olitzki to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Oph Olitzki to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Oph Olitzki is present in almost all the verticals within the industry. This has provided firm in Olitzki Property Holdings Catalyzes Change in Johannesburg 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
- Oph Olitzki 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 Oph Olitzki is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Olitzki Property Holdings Catalyzes Change in Johannesburg Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Oph Olitzki is one of the most innovative firm in sector. Manager in Olitzki Property Holdings Catalyzes Change in Johannesburg Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Oph Olitzki has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Oph Olitzki 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.
Ability to recruit top talent
– Oph Olitzki is one of the leading recruiters in the industry. Managers in the Olitzki Property Holdings Catalyzes Change in Johannesburg are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Oph Olitzki 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.
Weaknesses Olitzki Property Holdings Catalyzes Change in Johannesburg | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Olitzki Property Holdings Catalyzes Change in Johannesburg are -
Products dominated business model
– Even though Oph Olitzki 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 - Olitzki Property Holdings Catalyzes Change in Johannesburg should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Oph Olitzki 's lucrative customers.
Need for greater diversity
– Oph Olitzki 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.
High cash cycle compare to competitors
Oph Olitzki 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.
No frontier risks strategy
– After analyzing the HBR case study Olitzki Property Holdings Catalyzes Change in Johannesburg, 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Oph Olitzki is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Olitzki Property Holdings Catalyzes Change in Johannesburg can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Oph Olitzki is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Oph Olitzki needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Oph Olitzki to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Olitzki Property Holdings Catalyzes Change in Johannesburg can leverage the sales team experience to cultivate customer relationships as Oph Olitzki is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Oph Olitzki 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Olitzki Property Holdings Catalyzes Change in Johannesburg, in the dynamic environment Oph Olitzki has struggled to respond to the nimble upstart competition. Oph Olitzki has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Oph Olitzki has relatively successful track record of launching new products.
Opportunities Olitzki Property Holdings Catalyzes Change in Johannesburg | 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 Olitzki Property Holdings Catalyzes Change in Johannesburg are -
Building a culture of innovation
– managers at Oph Olitzki 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Oph Olitzki is facing challenges because of the dominance of functional experts in the organization. Olitzki Property Holdings Catalyzes Change in Johannesburg case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Oph Olitzki 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.
Using analytics as competitive advantage
– Oph Olitzki 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 Olitzki Property Holdings Catalyzes Change in Johannesburg - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Oph Olitzki to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Oph Olitzki can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Olitzki Property Holdings Catalyzes Change in Johannesburg 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Oph Olitzki can use these opportunities to build new business models that can help the communities that Oph Olitzki operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Oph Olitzki 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 Oph Olitzki to hire the very best people irrespective of their geographical location.
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. Oph Olitzki 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. Oph Olitzki 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 Oph Olitzki to increase its market reach. Oph Olitzki 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.
Developing new processes and practices
– Oph Olitzki 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.
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. Oph Olitzki can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Oph Olitzki can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Oph Olitzki 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, Olitzki Property Holdings Catalyzes Change in Johannesburg, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Olitzki Property Holdings Catalyzes Change in Johannesburg External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Olitzki Property Holdings Catalyzes Change in Johannesburg are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Oph Olitzki 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 Olitzki Property Holdings Catalyzes Change in Johannesburg .
Stagnating economy with rate increase
– Oph Olitzki 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.
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.
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 Oph Olitzki in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Olitzki Property Holdings Catalyzes Change in Johannesburg, Oph Olitzki 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 .
Environmental challenges
– Oph Olitzki 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. Oph Olitzki can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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. Oph Olitzki 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.
Shortening product life cycle
– it is one of the major threat that Oph Olitzki is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Oph Olitzki.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Oph Olitzki 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.
Consumer confidence and its impact on Oph Olitzki 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.
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 Oph Olitzki business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Olitzki Property Holdings Catalyzes Change in Johannesburg 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 Oph Olitzki needs to make to build a sustainable competitive advantage.