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 - – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
there is backlash against globalization, 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 -
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.
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.
Successful track record of launching new products
– Accounting Depreciation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Accounting Depreciation 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.
Learning organization
- Accounting Depreciation 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 Accounting Depreciation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Accounting Depreciation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Accounting Depreciation 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.
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.
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.
High switching costs
– The high switching costs that Accounting Depreciation 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.
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.
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.
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.
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 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.
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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Accounting Depreciation supply chain. Even after few cautionary changes mentioned in the HBR case study - Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Accounting Depreciation vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies HBR case study mentions - Accounting Depreciation 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Now You See It, Now You Do Not: The Case Of Jet Airways And Its Accounting Policies 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 Accounting Depreciation 's lucrative customers.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Accounting Depreciation 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.
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.
Need for greater diversity
– Accounting Depreciation 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.
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.
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.
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 -
Leveraging digital technologies
– Accounting Depreciation can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Accounting Depreciation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– 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.
Loyalty marketing
– Accounting Depreciation has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Accounting Depreciation can use these opportunities to build new business models that can help the communities that Accounting Depreciation operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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.
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 -
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 Accounting Depreciation in the Finance & Accounting sector and impact the bottomline of the organization.
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Accounting Depreciation in the Finance & Accounting industry. The Finance & Accounting 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.
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 .
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.
Shortening product life cycle
– it is one of the major threat that Accounting Depreciation is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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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