Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do
Longfor, a real estate company in China, treats every customer as an individual with distinctive tastes, preferences and needs; the homes it designs emphasize aesthetics, comfort, landscaping and lifestyle in a holistic way. Likewise, its organizational culture emphasizes equality and professionalism in a country where hierarchy and deference to authority are the norm. Its approach to HR (recruitment, training, evaluation, compensation, role-modeling) is completely at odds with common practice in China. The case asks: Is it possible to succeed in business with an organizational culture that is alien to the society in which the company operates? How can emotional capital be generated and embedded in a company to facilitate strategic innovation?
Authors :: Yidi Guo, Quy Huy, Lisa Duke, Xiao Zhixing
Swot Analysis of "Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do" written by Yidi Guo, Quy Huy, Lisa Duke, Xiao Zhixing includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Longfor Romans facing as an external strategic factors. Some of the topics covered in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do case study are - Strategic Management Strategies, Creativity, Innovation, Organizational culture, Organizational structure, Psychology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do casestudy better are - – increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion,
geopolitical disruptions, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Longfor Romans, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Longfor Romans 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do can be done for the following purposes –
1. Strategic planning using facts provided in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do case study
2. Improving business portfolio management of Longfor Romans
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 Longfor Romans
Strengths Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Longfor Romans in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do firm has clearly differentiated products in the market place. This has enabled Longfor Romans to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Longfor Romans to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Longfor Romans 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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.
Ability to recruit top talent
– Longfor Romans is one of the leading recruiters in the industry. Managers in the Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Longfor Romans has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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.
Innovation driven organization
– Longfor Romans is one of the most innovative firm in sector. Manager in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Longfor Romans 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.
Analytics focus
– Longfor Romans 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 Yidi Guo, Quy Huy, Lisa Duke, Xiao Zhixing 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.
Superior customer experience
– The customer experience strategy of Longfor Romans in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Longfor Romans in the sector have low bargaining power. Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Longfor Romans to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Longfor Romans has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Longfor Romans digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Longfor Romans 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.
Weaknesses Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do are -
High operating costs
– Compare to the competitors, firm in the HBR case study Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor Romans 's lucrative customers.
High cash cycle compare to competitors
Longfor Romans 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.
Increasing silos among functional specialists
– The organizational structure of Longfor Romans is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Longfor Romans needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Longfor Romans to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do, in the dynamic environment Longfor Romans has struggled to respond to the nimble upstart competition. Longfor Romans has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Longfor Romans 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 - Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Longfor Romans 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do, it seems that the employees of Longfor Romans 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.
Slow to strategic competitive environment developments
– As Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do HBR case study mentions - Longfor Romans 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Longfor Romans 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.
No frontier risks strategy
– After analyzing the HBR case study Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Yidi Guo, Quy Huy, Lisa Duke, Xiao Zhixing suggests that, Longfor Romans 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.
Opportunities Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do | 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do are -
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. Longfor Romans can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Longfor Romans has opened avenues for new revenue streams for the organization in the industry. This can help Longfor Romans to build a more holistic ecosystem as suggested in the Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do case study. Longfor Romans can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Longfor Romans in the consumer business. Now Longfor Romans can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Longfor Romans can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Longfor Romans 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Longfor Romans 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, Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Longfor Romans 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Longfor Romans 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.
Learning at scale
– Online learning technologies has now opened space for Longfor Romans 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Longfor Romans can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Longfor Romans to increase its market reach. Longfor Romans 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.
Buying journey improvements
– Longfor Romans can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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.
Developing new processes and practices
– Longfor Romans 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.
Threats Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do are -
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 Longfor Romans business can come under increasing regulations regarding data privacy, data security, etc.
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. Longfor Romans can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Longfor Romans in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Longfor Romans 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. Longfor Romans can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Longfor Romans has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Longfor Romans 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Longfor Romans 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do .
Regulatory challenges
– Longfor Romans 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.
Stagnating economy with rate increase
– Longfor Romans 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 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. Longfor Romans needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Longfor Romans 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 Longfor Romans 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.
Shortening product life cycle
– it is one of the major threat that Longfor Romans is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Longfor Romans 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.
Weighted SWOT Analysis of Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor: A Non-Traditional Company in China - When in Rome, Do Not Do What the Romans Do 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 Longfor Romans needs to make to build a sustainable competitive advantage.
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