Christo and Jeanne-Claude: The Art of the Entrepreneur SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Christo and Jeanne-Claude: The Art of the Entrepreneur
To maximize their effectiveness, color cases should be printed in color.Christo and Jeanne-Claude, the artists who created The Gates in New York City in 2005, are trying to decide how best to finance their next project. Over the River, a project to drape sections of the Arkansas River with translucent fabric is a very different enterprise from The Gates. Bank Leu, the Swiss back that had provided a line of credit for The Gates, has declined the opportunity to participate in Over the River. As Christo and Jeanne-Claude review the Bank Leu vehicle, they must consider whether it is replicable to other projects and institutions or whether they should consider a different approach. Includes color exhibits.
Swot Analysis of "Christo and Jeanne-Claude: The Art of the Entrepreneur" written by Josh Lerner, G. Felda Hardymon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Claude Jeanne facing as an external strategic factors. Some of the topics covered in Christo and Jeanne-Claude: The Art of the Entrepreneur case study are - Strategic Management Strategies, Financial management, Risk management and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Christo and Jeanne-Claude: The Art of the Entrepreneur casestudy better are - – increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Christo and Jeanne-Claude: The Art of the Entrepreneur
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Christo and Jeanne-Claude: The Art of the Entrepreneur case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Claude Jeanne, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Claude Jeanne 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 Christo and Jeanne-Claude: The Art of the Entrepreneur can be done for the following purposes –
1. Strategic planning using facts provided in Christo and Jeanne-Claude: The Art of the Entrepreneur case study
2. Improving business portfolio management of Claude Jeanne
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Claude Jeanne
Strengths Christo and Jeanne-Claude: The Art of the Entrepreneur | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Claude Jeanne in Christo and Jeanne-Claude: The Art of the Entrepreneur Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Christo and Jeanne-Claude: The Art of the Entrepreneur 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.
Low bargaining power of suppliers
– Suppliers of Claude Jeanne in the sector have low bargaining power. Christo and Jeanne-Claude: The Art of the Entrepreneur has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Claude Jeanne to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Christo and Jeanne-Claude: The Art of the Entrepreneur firm has clearly differentiated products in the market place. This has enabled Claude Jeanne to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Claude Jeanne to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Claude Jeanne is one of the leading recruiters in the industry. Managers in the Christo and Jeanne-Claude: The Art of the Entrepreneur are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Claude Jeanne
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Claude Jeanne does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Claude Jeanne 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 Claude Jeanne is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Christo and Jeanne-Claude: The Art of the Entrepreneur Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Claude Jeanne is one of the most innovative firm in sector. Manager in Christo and Jeanne-Claude: The Art of the Entrepreneur Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Claude Jeanne is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Claude Jeanne 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.
High brand equity
– Claude Jeanne has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Claude Jeanne to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Claude Jeanne 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 Christo and Jeanne-Claude: The Art of the Entrepreneur - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Claude Jeanne digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Claude Jeanne 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 Christo and Jeanne-Claude: The Art of the Entrepreneur | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Christo and Jeanne-Claude: The Art of the Entrepreneur are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Christo and Jeanne-Claude: The Art of the Entrepreneur, is just above the industry average. Claude Jeanne 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 cash cycle compare to competitors
Claude Jeanne 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Claude Jeanne has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Claude Jeanne 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 Claude Jeanne is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Claude Jeanne needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Claude Jeanne to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Claude Jeanne is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Christo and Jeanne-Claude: The Art of the Entrepreneur can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Christo and Jeanne-Claude: The Art of the Entrepreneur HBR case study mentions - Claude Jeanne 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.
Interest costs
– Compare to the competition, Claude Jeanne 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.
Slow decision making process
– As mentioned earlier in the report, Claude Jeanne 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. Claude Jeanne 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Josh Lerner, G. Felda Hardymon suggests that, Claude Jeanne 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.
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 Claude Jeanne supply chain. Even after few cautionary changes mentioned in the HBR case study - Christo and Jeanne-Claude: The Art of the Entrepreneur, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Claude Jeanne vulnerable to further global disruptions in South East Asia.
Opportunities Christo and Jeanne-Claude: The Art of the Entrepreneur | 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 Christo and Jeanne-Claude: The Art of the Entrepreneur are -
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 Claude Jeanne 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.
Leveraging digital technologies
– Claude Jeanne 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.
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. Claude Jeanne can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Claude Jeanne can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
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 Claude Jeanne in the consumer business. Now Claude Jeanne can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Claude Jeanne can use these opportunities to build new business models that can help the communities that Claude Jeanne operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Claude Jeanne 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 Innovation & Entrepreneurship segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Claude Jeanne can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Claude Jeanne has opened avenues for new revenue streams for the organization in the industry. This can help Claude Jeanne to build a more holistic ecosystem as suggested in the Christo and Jeanne-Claude: The Art of the Entrepreneur case study. Claude Jeanne can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Claude Jeanne to increase its market reach. Claude Jeanne 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 Claude Jeanne 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Claude Jeanne in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Claude Jeanne 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 Claude Jeanne to hire the very best people irrespective of their geographical location.
Threats Christo and Jeanne-Claude: The Art of the Entrepreneur External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Christo and Jeanne-Claude: The Art of the Entrepreneur are -
Consumer confidence and its impact on Claude Jeanne 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.
Regulatory challenges
– Claude Jeanne 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 Innovation & Entrepreneurship industry regulations.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Claude Jeanne can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Claude Jeanne business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Claude Jeanne 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.
Shortening product life cycle
– it is one of the major threat that Claude Jeanne is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Claude Jeanne 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Claude Jeanne 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 Christo and Jeanne-Claude: The Art of the Entrepreneur .
Technology acceleration in Forth Industrial Revolution
– Claude Jeanne has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Claude Jeanne needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
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. Claude Jeanne 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.
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 Claude Jeanne.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Claude Jeanne in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Christo and Jeanne-Claude: The Art of the Entrepreneur 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 Claude Jeanne needs to make to build a sustainable competitive advantage.