Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J
In this three-party negotiation exercise, Jesse J, star center in the U.S.A. Women's Basketball League, with her agent, is negotiating a possible compensation package with the Boston Sharks involving a base salary, a possible share of team merchandising profits, and a performance incentive. Each player (Jesse J, her agent, the Sharks general manager) has a confidential brief as the basis for the negotiation.
Authors :: James K. Sebenius, Ian I. Larkin, Guhan Subramanian
Swot Analysis of "Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J" written by James K. Sebenius, Ian I. Larkin, Guhan Subramanian includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jesse Sharks facing as an external strategic factors. Some of the topics covered in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J case study are - Strategic Management Strategies, Compensation, Negotiations and Communication.
Some of the macro environment factors that can be used to understand the Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, technology disruption, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing energy prices,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jesse Sharks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jesse Sharks 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J can be done for the following purposes –
1. Strategic planning using facts provided in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J case study
2. Improving business portfolio management of Jesse Sharks
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jesse Sharks
Strengths Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jesse Sharks in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J Harvard Business Review case study are -
Ability to recruit top talent
– Jesse Sharks is one of the leading recruiters in the industry. Managers in the Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Jesse Sharks 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.
Strong track record of project management
– Jesse Sharks is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Jesse Sharks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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.
Learning organization
- Jesse Sharks 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 Jesse Sharks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Jesse Sharks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Communication industry
– Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J firm has clearly differentiated products in the market place. This has enabled Jesse Sharks to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Jesse Sharks to invest into research and development (R&D) and innovation.
High brand equity
– Jesse Sharks has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jesse Sharks to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Jesse Sharks is present in almost all the verticals within the industry. This has provided firm in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Jesse Sharks
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jesse Sharks does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Jesse Sharks is one of the most innovative firm in sector. Manager in Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J are -
Lack of clear differentiation of Jesse Sharks products
– To increase the profitability and margins on the products, Jesse Sharks needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Jesse Sharks 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 - Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Jesse Sharks has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Jesse Sharks 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Jesse Sharks 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.
High cash cycle compare to competitors
Jesse Sharks 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 strategic competitive environment developments
– As Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J HBR case study mentions - Jesse Sharks 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.
Low market penetration in new markets
– Outside its home market of Jesse Sharks, firm in the HBR case study Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Jesse Sharks 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Jesse Sharks has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Jesse Sharks is dominated by functional specialists. It is not different from other players in the Communication segment. Jesse Sharks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jesse Sharks to focus more on services rather than just following the product oriented approach.
Opportunities Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J | 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J are -
Buying journey improvements
– Jesse Sharks can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jesse Sharks 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 Jesse Sharks to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jesse Sharks 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. Jesse Sharks 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Jesse Sharks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Jesse Sharks can develop new processes and procedures in Communication 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jesse Sharks 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, Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jesse Sharks can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Jesse Sharks 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.
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 Jesse Sharks 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.
Better consumer reach
– The expansion of the 5G network will help Jesse Sharks to increase its market reach. Jesse Sharks 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.
Using analytics as competitive advantage
– Jesse Sharks has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jesse Sharks to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Jesse Sharks can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
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. Jesse Sharks can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Jesse Sharks business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Jesse Sharks has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Jesse Sharks needs to keep up with the evolution of technology in the Communication 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 wage structure of Jesse Sharks
– 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 Jesse Sharks.
Consumer confidence and its impact on Jesse Sharks 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jesse Sharks 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J .
High dependence on third party suppliers
– Jesse Sharks 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.
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.
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. Jesse Sharks 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 Jesse Sharks.
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 Jesse Sharks in the Communication sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Jesse Sharks 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J, Jesse Sharks may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jesse Sharks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Negotiating Star Compensation at the USAWBL (A-1): Confidential Instructions for Jesse J 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 Jesse Sharks needs to make to build a sustainable competitive advantage.
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