Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies
The case highlights issues arising from changes in accounting policies followed by Jet Airways during the accounting year ended March 31, 2009. During the first quarter ended June 30, 2008, Jet Airways changed its accounting policy of charging depreciation from written down value method to straight line method on certain aircraft, which resulted in a writeback of excess depreciation of Rs. 9159 million. The company adopted an accounting policy that capitalized and deferred the losses arising out of certain foreign currency exchange difference instead of charging it to the income statement. They had also revalued some of their assets in the previous year. Airline companies have significant fixed assets, and therefore the accounting for depreciation is important. The accounting policy choice that the company makes impacts not only profits and asset values for the current year but those of future years.
Swot Analysis of "Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies" written by Padmini Srinivasan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Accounting Depreciation facing as an external strategic factors. Some of the topics covered in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies case study are - Strategic Management Strategies, Change management, Financial management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies casestudy better are - – increasing household debt because of falling income levels, technology disruption, geopolitical disruptions, increasing commodity prices, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Accounting Depreciation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Accounting Depreciation 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies can be done for the following purposes –
1. Strategic planning using facts provided in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies case study
2. Improving business portfolio management of Accounting Depreciation
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Accounting Depreciation
Strengths Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Accounting Depreciation in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies Harvard Business Review case study are -
Ability to recruit top talent
– Accounting Depreciation is one of the leading recruiters in the industry. Managers in the Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Accounting Depreciation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Accounting Depreciation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Finance & Accounting field
– Accounting Depreciation 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 Accounting Depreciation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Accounting Depreciation 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.
Operational resilience
– The operational resilience strategy in the Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies firm has clearly differentiated products in the market place. This has enabled Accounting Depreciation to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Accounting Depreciation to invest into research and development (R&D) and innovation.
Analytics focus
– Accounting Depreciation 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 Padmini Srinivasan can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Strong track record of project management
– Accounting Depreciation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Accounting Depreciation 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Accounting Depreciation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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
– Accounting Depreciation is one of the most innovative firm in sector. Manager in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Accounting Depreciation 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies are -
High cash cycle compare to competitors
Accounting Depreciation 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Accounting Depreciation is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Aligning sales with marketing
– It come across in the case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies can leverage the sales team experience to cultivate customer relationships as Accounting Depreciation is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Padmini Srinivasan suggests that, Accounting Depreciation 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies, in the dynamic environment Accounting Depreciation has struggled to respond to the nimble upstart competition. Accounting Depreciation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Accounting Depreciation has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Accounting Depreciation even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, Accounting Depreciation 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 Accounting Depreciation is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Accounting Depreciation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Accounting Depreciation to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies, is just above the industry average. Accounting Depreciation 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 Accounting Depreciation 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.
Opportunities Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies | 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Accounting Depreciation 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. Accounting Depreciation 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.
Creating value in data economy
– The success of analytics program of Accounting Depreciation has opened avenues for new revenue streams for the organization in the industry. This can help Accounting Depreciation to build a more holistic ecosystem as suggested in the Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies case study. Accounting Depreciation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Accounting Depreciation can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Buying journey improvements
– Accounting Depreciation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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
– Accounting Depreciation can develop new processes and procedures in Finance & Accounting 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.
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 Accounting Depreciation in the consumer business. Now Accounting Depreciation can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Accounting Depreciation to increase its market reach. Accounting Depreciation 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Accounting Depreciation 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 Accounting Depreciation to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Accounting Depreciation 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 Finance & Accounting segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Accounting Depreciation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Accounting Depreciation 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Accounting Depreciation is facing challenges because of the dominance of functional experts in the organization. Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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.
Learning at scale
– Online learning technologies has now opened space for Accounting Depreciation 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.
Threats Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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. Accounting Depreciation needs to understand the core reasons impacting the Finance & Accounting 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 Accounting Depreciation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Accounting Depreciation
– 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 Accounting Depreciation.
Regulatory challenges
– Accounting Depreciation 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 Finance & Accounting industry regulations.
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. Accounting Depreciation 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.
Consumer confidence and its impact on Accounting Depreciation 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.
Environmental challenges
– Accounting Depreciation 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. Accounting Depreciation can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Stagnating economy with rate increase
– Accounting Depreciation 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.
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 Accounting Depreciation.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Accounting Depreciation 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies .
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Accounting Depreciation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Accounting Depreciation has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Accounting Depreciation needs to keep up with the evolution of technology in the Finance & Accounting 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.
High dependence on third party suppliers
– Accounting Depreciation 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.
Weighted SWOT Analysis of Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Accounting Depreciation needs to make to build a sustainable competitive advantage.
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