The Theory of Ohana:

A Mini-Strategic Case Study of Salesforce

Presented by Innov8

OGL355: Leading Organizational Innovation and Change

Dr B
April 29, 2020
Arizona State University
Agenda
● Agenda - Brief overview of the Presentation
● Introduction - Overview of Salesforce and their Mission and Vision
● Organizational Structure - How Salesforce is Organized
● Leadership - Salesforce’s Leadership Team
● Environmental Analysis - Environmental Analysis & Target Market
● SWOT - Salesforce’s Strengths, Weaknesses, Opportunities, & Threats
● Competitive Advantage - Salesforce’s Point of View & Competitive Advantage
● Going Global - Innov8’s suggested Country
● Recommendations - Innov8’s Consulting Recommendations
● Conclusion/Summary - Conclusion
● References - Resources used by Innov8
Introduction: Salesforce
● A Customer Relationship Management (CRM) Service.
● Company Culture of Ohana
● Environmental Messages

Mission: “Deliver the personalized experiences your customers expect by using the
integrated CRM platform that we call Salesforce Customer 360” (Salesforce, 2020d)

Vision: “We believe that the business of business is to improve the state of the world . . .
through serving the interests of all our stakeholders — employees, customers, partners,
communities and the environment” (Salesforce, 2020c)
Organizational Structure
CEO, Salesforce.org

Chief Technology and Chief Strategic

Product Officer Engagement Officer

Senior Vice Senior Vice President

Senior Vice President, Senior Vice President,
President, & General Manager
Nonprofit Sales Solution Engineering
Higher Education EMEA
Sales

Senior Vice
President,
Customer Success
Senior Vice President,
Group
Marketing

Staff
Leadership
● Employees, stockholders, customers and communities
○ “We’re a group of change makers with a passion for impact” (Salesforce, 2014)

● Laissez-Faire Leadership (Boogaard, 2019)

○ Necessary tools and resources provided by leaders
○ No micromanagement
○ Team members are able to make decisions and problem solve

● Democratic Leadership (Boogaard, 2019)

○ Creativity and innovation are encouraged
○ Emphasis on working together
○ Teams involved in decision making
Environmental Analysis
Industry Analysis
● Threat of New Entrants • HIGH
● Bargaining Power of Buyers • HIGH
● Bargaining Power of Suppliers • LOW
● Threat of Substitute Products • HIGH
● Threat of Industry Rivalry • HIGH

Target Market
● Businesses of all shapes and sizes
● Large organizations, including healthcare, and government
● Customers with similar, people-centered or environmental values
SWOT
Strengths Weaknesses
● Holds 20% of Market Share ● Easy to Imitate
● Environmentalism & Philanthropy ● High Price Point
● Strong Organizational Relationships ● Steep Learning Curve

Opportunities Threats
● Acquisitions ● Competitors
● Expansion ● Pandemic
● Technology Collaboration ● Security Breaches

Source
Competitive Advantage
Competitive Advantage: Software Is Tailored To Meet Individual Needs Of Clients

● Engineers customize client solutions and integrate with several third-party systems (VRP
Consulting, n.d.)
● Business practices can be automated to help a company be more productive
● Customized automation along with configuration can be used to create workflow rules and
automated approval processes (Zhinko, 2019).

Point Of View: Resource Based View (RBV)

● Exploit organizational resources

● Customize software for each customer
● Develop processes to help a business stand out
Going Global: Chile
Chile’s Percent
Household Internet
Access Growth

From 2006 to 2017

Recommendations
Narrow down and focus on key target market
● Increased efficiency and customization
● Proficiency in addressing needs

Address opportunities
● Steamline applications and price for small and startup companies

Innovating Technology
● Integration and Collaboration

Global Expansion
● Expand the Salesforce brand
Conclusion/Summary

Strategic Options for Growth

Increase Effectiveness
by refining target market

Increase Sales
Industry leader in CRM market by focusing on small firms and startups

Philanthropic/Environmental Values Increase Competitive Edge

by updating and improving technology
Ohana-style Relationships

Technology Innovator Increase Global Presence

by expanding into Chile
References
Boogaard, K. (2019, January 23). 8 common leadership styles (and how to find yours). Retrieved from https://www.themuse.com/advice/common-leadership-styles-with-pros-and-cons
Columbus, L. (2019, June). Salesforce Now Has Over 19% Of The CRM Market. Forbes. Retrieved from https://www.forbes.com/sites/louiscolumbus/2019/06/22/salesforce-now-has-
over-19-of-the-crm-market/#483f71c6333a
Crunchbase. (n.d.). Query builder | Acquisitions | Crunchbase. Retrieved April 29, 2020, from
https://www.crunchbase.com/search/acquisitions/field/organizations/num_acquisitions/salesforce
OECD. (2017). Internet Access. Retrieved from: https://data.oecd.org/chile.htm
Salesforce. (n.d.). World's #1 CRM. Salesforce.com. https://www.salesforce.com/campaign/worlds-number-one-CRM/
Salesforce. (2014, February 18). Our leadership team. Retrieved from https://www.salesforce.org/team/
Salesforce. (2019a). 2019 Annual Report: Celebrating 20 years of Salesforce (FY19). Retrieved from https://s23.q4cdn.com/574569502/files/doc_financials/2019/Salesforce-FY-2019-
Annual-Report.pdf
Salesforce. (2019b). Dreamforce'19 Investor Day Finance Review Presentation. Retrieved from
https://s23.q4cdn.com/574569502/files/doc_presentations/2019/Dreamforce'19-Investor-Day-Finance-Review-Presentation.pdf
Salesforce. (2020a, April 28). Global offices. Salesforce.com. https://www.salesforce.com/company/locations/
Salesforce. (2020b). Our story. Retrieved April 29, 2020, from https://www.salesforce.com/company/about-us/
Salesforce. (2020c). Vision. Retrieved April 25, 2020, from https://www.salesforce.com/company/sustainability/vision/
Salesforce. (2020d). What is salesforce?. Retrieved April 25, 2020, from https://www.salesforce.com/products/what-is-salesforce/
Usmani, F. (2019, December 15). What is a functional organization structure?. Retrieved from https://pmstudycircle.com/2012/08/what-is-a-functional-organization-structure/
VRP Consulting. (n.d.). Salesforce development services | VRP consulting. Retrieved April 12, 2020, from https://vrpconsulting.com/salesforce-development-SALESFORCE
COMPETITIVE ADVANTAGE 8services?
yagla=53269676&utm_source=google&utm_medium=cpc&utm_campaign=9766721401&utm_content=100598478860&utm_term=salesforce
%20customization&matchtype=e&gclid=EAIaIQobChMIzrid6s7j6AIVRT2tBh3VqwxAEAAYBCAAEgJXxPD_BwE
Zhinko, D. (2019, July 25). How to reach your business goals with salesforce customization [Blog post]. Retrieved from
https://www.scnsoft.com/blog/salesforce-customization#what-is-customization
Swinhoe, D. (2020, April 17). The 15 biggest data breaches of the 21st century. Retrieved from https://www.csoonline.com/article/2130877/the-biggest-data-breaches-of-the-21st-
century.html