Strategic Analysis of JLL Company: Internal Capabilities and Options

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Case Study
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This case study provides an internal analysis of JLL Company, a global real estate and investment management firm. The report examines JLL's strategic position, resources, and capabilities, focusing on its strengths such as expert employees, cost leadership, and product differentiation strategies. It explores strategic options, including the use of SWOT and VRIO analyses, to evaluate the company's performance and identify areas for improvement. The analysis also includes a marketing plan for branding and promotion, and evaluates the company's ability to achieve sustainable competitive advantage. The study highlights the importance of adapting to economic changes and maintaining a strong brand image. This report provides a framework for understanding JLL's internal environment and making strategic recommendations for future success.
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JLL Company
Business Internal analysis
Strategic Management analysis
Name of the Author
University Name-
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Executive Summary
It is analyzed that each and every organization needs to take strategic decisions to make
the effective decisions. Organization is associated with the several internal and external factors
which are undertaken to achieve the set objectives and goals. There are several strategic tools
such as SWOT and porter’s five forces analysis which could be used to gauge the business
performance of company. In this report, internal strength of JLL Company has been analyzed to
evaluate the business functioning of organization. The main focus of this report is to evaluate
the possible strategies and justify the approach to evaluate the business strength of company. In
addition to this, the marketing plan has also been prepared for the promotion and branding of
company in long run. The internal strength of JLL Company is related to provide the effective
construction of building and offices to its clients for their better satisfaction. It is analyzed that
company has followed the proper strategic program to provide the customized construction of
building and offices for the better satisfaction of clients. The main strength of JLL Company is
related to its expert employees and effective strategic plans which it has been undertaking to
expand its business in long run. Company has focused on mainly two strategies to strengthen its
business in long run. First is related to cost leadership strategy. It is the strategy in which JLL
Company provides its real estate services at very least cost. In addition to this, product
differentiation strategy is also followed to make its products more customized and different from
others. Organizational support program is accompanied with the highly IT tech experts who
assist the entire business functional department to communicate with each other in effective
manner.
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Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Vision...................................................................................................................................................3
Mission................................................................................................................................................3
Key strength and values.......................................................................................................................3
Evaluating strategic and marketing options............................................................................................4
SWOT analysis.........................................................................................................................................9
Undertaken promotional activities for the marketing plan...................................................................10
How managers could develop strategic capabilities for Company............................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Bibliography...............................................................................................................................................13
Appendix...................................................................................................................................................15
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Introduction
With the increasing ramified economic changes and complex business structure, each and
every organization needs to generate core competency to survive in market. The core
competency is ideally created by using the resources optimally and creatively. In this report,
JLL Company has been undertaken to evaluate the internal strength of company. There are
several approaches to evaluate the internal strength of company such as SWOT analysis, Porter’s
five forces analysis, VRIO analysis (JLL Company, 2017). However, by using the VRIO
analysis, value, rarity, inimitability and organization support could be analyzed. In addition to
this, benchmarking is also one of another tool which is used to evaluate the organization strength
in the market. These all tools assists in identifying where company needs to make improvisation
to make its business functions more effective (Nanjala Wabwile, and Namusonge, 2017).The
JLL Company is NYSE listed company which is leading the market with its professional services
of the real estate and investment management. This company has been operating its real estate
business on international level (JLL Company, 2017).
Vision
The main vision of company is to reimagine the world of real estate by providing
customized real estate and investment management services to clients (JLL Company, 2017).
Mission
The main mission of JLL Company is to cover at least 30% market share in the real estate
business market in United America (JLL Company, 2017).
Key strength and values
It is the fortune 500 companies with its nearly 300 corporate offices which are operated
in over 80 countries. It has international brand image and indulged in using the advance
technologies and digital systems to achieve the certain goals and objectives. It has also followed
product differentiation and cost leadership strategy to win over the market. However, company
has been facing issue to cope up with its undertaken strategic program. It is analyzed that with
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the increasing business trends, company has been facing issues to manage its cost leadership and
product differentiation strategy to win over the market (Vitasek, Fenn, and Flynn, 2018).
Evaluating strategic and marketing options
The internal analysis of business functions, strength and weakness of company focuses
on the internal factors that give an organization certain advantages and disadvantages in the
meeting the need of its target market. The strategies are ideally referred as core competency that
gives organization an advantage to meet the determined targets and goals. It is analyzed that the
strategic programs and undertaking strategies are the key aspects which are used by organization
to achieve the certain goals and objectives in long run. It is analyzed that the JLL Company has
been operating its business on international level to provide the real estate and investment
management services. All the long term and short term strategies adopted by organization has
been formulated with a view to strength the market position of company in market. With the
ramified economic changes and complex business structure, JLL Company has adopted advance
technologies and cyber computing system in its business process. This strategy is adopted to
establish the automation in the business process and increase the overall outcomes of the
business. It has been observed that people in America are inclined towards buying and availing
services from the organizations which are accompanied with the highly advance technologies
and system process in their value chain activities (West, Ford, and Ibrahim, 2015). It is analyzed
that JLL Company has established automation in its several process systems which not only
lower down the cost of capital of the business but also strengthen effectiveness of the business
process. It is one of the best strategies to win over the market (JLL Company, 2017). JLL
Company needs to strengthen its business activities to achieve the set objectives and goals. With
the increasing competition, it has to keep its business distinct from others to win over the market.
In addition to this, company is also having more than 100 employees who have good amount of
experience in their working. These persons endeavor towards achieving organization goals and
objectives of organization. However, JLL Company has used its resources to expand its business
in its existing and new markets. It is analyzed that company follow the matrix project strategic
planning to accomplish its undertaken projects. The matrix project strategic plan is the method in
which selected employees joins together to achieve the certain goals and objectives. These
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matrix projects are ideally used when company takes complicated tasks in its business activities
(Petrulaitiene, and Jylhä, 2015).
There are mainly following areas which are considered by organization to look all of its
internal factors which affect the JLL Company (Chong, and Olesen, 2017).
Resources- These are the main factors and assets which are used by organization to
implement effective business functions. It is accompanied with the profitability, sales, product
and services quality offered in market, existing brand image relative cost of the services provided
in the market, employee capabilities and product portfolio analysis. These are the main key
factors which are undertaken by organization to meet set targets and goals in long run.
Profitability- JLL Company has increased its total revenue to USD $ $5.8 billion which is 22%
higher as compared to last five year data. It has been divulged that company has strengthen its
business by expanding its business in other market. However, company has focused on
increasing quality of its real estate services to achieve the set objectives. Nonetheless, increased
turnover is the best part of increased profitability of the organization (Petrulaitiene, and Jylhä,
2015).
Products and service quality offered- Company has focused to create core competency by
following product differentiation strategy. It is the strategy in which company will offer best
quality real estate and investment management services to keep its offered services different
from those of others in market. However, using cyber computing system and advance
technologies will increase the overall quality of these services and assist organization to develop
core competency in product differentiation strategy. This strategy will also assist JLL Company
to strengthen its brand positioning in market (Alvarez-Rodríguez, Vafopoulos, and Llorens,
2015).
Employee capabilities- There are more than 150 employees who have good amount of
experience in this working field. It is analyzed that these highly experienced employees will
assist in developing core competency in product differentiation strategy of organization.
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Brand positioning- Company has used online marketing channels and system procedure
to strengthen the business position and its business effectiveness in long run. It has been
observed that company has created strong brand image due to its long term sustainable business
functioning in long run. It has also used the eco-system procedure to increase the overall brand
image in society (Kioko, 2017).
These are the resources have been used by company to manage its business and grow
throughout the time. However, company has faced tough competition in market with the ramified
economic changes and it has also impacted the high cash outflow from its business (Alvarez-
Rodríguez, Vafopoulos, and Llorens, 2015).
It is analyzed that in the internal work functioning, the main issue which company is
facing is related to the high employee turnover and increased financial leverage. It is considered
that company needs to undertake proper strategic management process to mitigate these issues
with a view to mitigate these issues throughout the time. These issues have emerged due to the
less effective business functioning and less motivational program of the organization. It is
analyzed that company needs to undertake proper training and development program to motivate
employees and assist them to adapt with the changing business environment (Petrulaitiene, and
Jylhä, 2015).
There are several issues and potential opportunities which have been observed by JLL
Company in its business. It is analyzed that there are main four key criteria by which capabilities
can be assessed in terms of providing a basis for achieving sustainable competitive
advantage in market (Chong, and Olesen, 2017).
Value- It is the business functioning which focuses on achieving the set objectives and
goals of the organization. The business process of JLL Company focuses on the creating the core
competency in cost leadership strategy by offering it’s all the products and services at very least
cost. It is analyzed that company has followed the six sigma business strategic program to offer
the best quality goods and services in market to attract more clients. This strategy is adopted by
using the online cyber computing system in its business process to strengthen the business
process system and increase the overall quality of its offering (Wu, Straub, and Liang, 2015).
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Rarity- It is analyzed to focus on the available resources and assets of the organization. It
is analyzed that company has increased its investment in the business process system to increase
its overall productivity of the organization. However, the management department focuses on
using the capital budgeting process to identify which process would give better business outputs.
In addition to this, company has also invested its capital in its research and development
department to increase its business efficiency and establish the automation in its process (Kämpf-
Dern, and Pfnür, 2014).
Inimitability- It reflects the core competency of organization to beat the market and give
the tough competition to its rivals. It is analysed that company has created core competency in its
product differentiation and cost leadership strategy. It is analysed that JLL Company has
designed its all the products and services as per the clients need and customized all of them to
strengthen the business output of its business. Furthermore, Company has also used IT system in
its business to make its business more effective. It has used advance system process to design the
process to strengthen the overall business functioning. The company has created the inimitability
by using the advance system process to offer best quality goods and services in market (Chong,
and Olesen, 2017).
Organization support- It is the support program which is based on creative and innovation
development plan undertaken in the research and development department. It is considered that
the more than 50 employees is indulged in the research and development program of
organization which focuses on the improving the business functioning and promoting the
creative and innovative business functioning of organization. This organizational support
program is designed to promote the business and create the strong core competency to win over
the market. However, all the business process and value chain activities is supported and based
on the cyber computing enterprises resources planning which assists in strengthen the
communication program of different business organizations (GOH, 2015).
After analysing all these details, it could be inferred that company needs to increase its
overall sales in market. It is analysed that company needs to take proper marketing plan to
strengthen its business outputs and overall business attraction towards its clients. However, in
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order to implement the proper marketing plan, management needs to implement the marketing
mix (Chong, and Olesen, 2017).
Product- JLL Company has been offering real estate services and investment
management products to its clients to add value in their investment. However, preparation of
portfolio should be based on the proper strategic plans and risk and return analysis (GOH, 2015).
Price- The fees, charges charged by company should be undertaken on the basis of
market rivals offering. JLL Company will follow the cost plush pricing method in which prices
and charges will be determined on the basis of cost and determined profit (Dybskaya, and
Vinogradov, 2018).
Process- JLL Company should re-engineer its business process to attract more clients in
market. It is analysed that process system will be supported by the proper cyber computing
system which will assist organization to connect all of its business process with each other
(Ferreira, 2015).
Physical attributes- It is related to company’s offering in market. It is analysed that
company will use the loyalty card and its innovative and creative products offering in market to
attract more clients in market and strengthen its brand image in long run (Dybskaya, and
Vinogradov, 2018).
Promotion- It is the promotional process of the company which will assist organization to
strengthen its brand image. Company have used online social media, promotional development
plan, loyalty card and undertaken ERP online system to promote its business online. It will also
strengthen its business brand image to attract more clients in market (Dybskaya, and
Vinogradov, 2018).
People- It will include all the potential and proposed clients who will buy the services
and products offered by company in market. It is analyzed that people are more inclined towards
buying goods and services from the company which uses advance technologies and system
process (D. McCarty, and Gottschalk, 2014).
Benchmarking
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There is another tool which could be used by JLL Company to strengthen its business
functioning with view to increase its overall market share on international level. It is the tool
which is used to cope up with the existing offering in market. It is analyzed that if company
wants to improve its business functioning then it will have to set up the proper targets and goals
for its employees. It will not only motivate them to set new targets for them but also strengthen
the quality of the business process of JLL Company. This benchmarking technique is used to
prepare the organization for the future challenges and upcoming opportunities in market. It is
analyzed that in order to set up strong marketing plan, company needs to gauge its available
resources and business opportunities available in market. It is analyzed that the business growth
and sustainability of company is highly dependent upon the marketing plan and undertaken
business promotional plans. JLL Company has already faced tough competition from its rivals in
market. It will have to strengthen its business process by investing more capital in its research
and development department (Horstmeier, 2015).
SWOT analysis
It is the analysis which is used to gauge the strength, weakness, opportunity and threats in
market.
Strength- It is analyzed that company has set up strong brand image in market. The main strength
of company is related to its research and development department. JLL Company has invested
USD $ 122 million capital in its business with a view to promote innovation and creation in its
business. Global Cam Network plan undertaken is also one of the PR services program which
allows company to strengthen its communication n network program in its all the business units.
In addition to this, more than 40% of its employees are highly trained and experts who undertake
proper strategic program. These employees will assist organization to manage their business with
a view to set up strong core competency in cost leadership and product differentiation strategic
program (Anthonisz, and Perry, 2015). It is analyzed that company needs to focus on identifying
the potential market requirement and how company could attract clients for its newly offered
products and services (Horstmeier, 2015).
Weakness- The main weakness of company is related to its compliance program. IT has faced
high penalties due to its high compliance issues. It is analyzed that professional services of the
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real estate and investment management covers IT and real estate rules and regulation which
needs to be complied by organization to mitigate the regulation compliance issues. However,
company needs to invest more capital in setting up new compliance program to comply with all
the applicable rules and regulation. In addition this, with the ramified changes in economic, re-
engineering of its value chain activities are required which increase its business costing in long
run (Kaleka, and Morgan, 2017).
Undertaken promotional activities for the marketing plan
The marketing activities of the company are based on the undertaken promotional activities. JLL
Company has used loyalty card and social media approach to promote its business. However, if it
wants to increase its overall market share then it will have to use online cyber computing
enterprises resources planning system which will assist in grabbing the potential clients in
market. These will assist organization to promote its business and set up online business channel
communicate with the clients. The marketing plan is accompanied with the several promotional
activities which will assist in mitigating the business issues and problems. In addition to this, it
will help in attracting more clients and strengthen the overall turnover of organization. These
activities is related to use of social media, online business promotional program and
implemented strategic program which company needs to take for implementing the proper
strategic programs (Meyer, Neck, and Meeks, 2017). It is analyzed that company needs to use
the advance technologies and cyber computing system to promote its business online and
strengthen the attraction of its offered products in market (Dybskaya, and Vinogradov, 2018).
This promotional strategic program will assist JLL Company to expand its business in its
existing and new markets as well. It provides the market expansion and growth of the business
by following the diversification and market development program. In addition to this, with the
use of advance technologies, company could easily win over the existing rivals by set up the
strong nexus between its business units
How managers could develop strategic capabilities for Company
It is analyzed that managers could easily develop effective strategic capabilities for
company if it uses the proper strategic intents and required internal and external data. It is
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considered that if company has faced high competition in its market due to the advancement of
the technologies and ramified economic growth (Hitt, and Duane Ireland, 2017). Managers needs
to understand that perception, values, choice of actions and other details of the clients so that
they could easily customize the products and services with a view to satisfy clients and need in
market. However, Mangers firstly needs to collect the required data and after that assessment of
the business capabilities and resources should be to done to make the improvisation of the
business process to pave with the existing demands and need in market (Vallecilla, et al. 2015).
Mangers are the person who takes all the key imperative decisions. However, in order to develop
strategic capabilities fro company they takes several decisions. In case of JLL Company, it is
analyzed that if company wants to win over the market then it will have to use the diversified
business strategies. This strategy will be very much useful for company to create value on its
investment. JLL Company has strong brand image on international level. By using the
diversifying strategy, company could easily tap the new market on the basis of its strong brand
position in market (Sakas, Vlachos, and Nasiopoulos). It will not only increase the overall
turnover but also increase the overall return on capital employed as well. Nonetheless, managers
could also easily identify the future problems and issues at spot and by using their strategic
intents they could easily avoid the possible issue and losses of business (Chong, and Olesen,
2017).
Recommendation
JLL Company should focus on market expansion strategy to expand its market share. It
will assist organization to increase the overall turnover. With the changes in market factors,
company should focus on following several strategic programs such as merger, amalgamation,
acquisition and strategic alliance to expand its business on international level. In addition to this,
managers need to focus on hiring more expert employees who could undertake creative strategic
program to expand its business through IT system and cyber computing methods. It will assist
organization to set up strong communication among employees.
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Conclusion
After analyzing all these details and internal business process system of JLL Company, it is
inferred that company has used the strong marketing approach to increase its positioning in
market. The use of advance technologies and system process have assisted organization to
manage the business effectively and implementing the strategic approach in the business process.
By using the social media and online cyber computing, company is easily positioning itself in
clients market and increasing the attraction of its offered products and service. It will not only
strengthen the overall turnover but eventually increase the return on capital employed at large.
Now in the end, it could be inferred that company needs to increase its investment in its research
and development department to promote innovation and creation in its business process system.
It will assist in creation of the business synergy but also add value for the effective business
system at large.
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References
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