January 2016

Why every aspect of business is about to change ? ~ Article from Fortune

Investment Planning, Identifying multibaggers, Stocks , INvesting for 2016 Ideas

What better way to start new year than analyzing the past ? A Brilliant Summary of changes that is going to hit us one way or other sourced from www.fortune.com

Why every aspect of your business is about to change

Geoff Colvin

Imagine an economy without friction-a new world in which labor, information, and money move easily, cheaply, and almost instantly. Psst-it’s here. Is your company ready?

Cars bursting into flames are never a good thing. So when a Tesla Model S ran over a metal object in Kent, Wash., in October 2013 and burst into flames, owners, potential customers, investors, and company executives got worried. When the same thing happened a few weeks later in Smyrna, Tenn., federal regulators opened an investigation. We all know what happens next: a massive recall, costly repairs at dealerships nationwide, and a painful financial hit to the carmaker. Yet none of that occurred. The problem was that the Model S could lower its chassis at highway speed to be more aerodynamic, and if debris hit the car’s battery pack in just the wrong way, it could catch fire. So Tesla  beamed a software update to the affected cars, raising ground clearance at highway speed by one inch. The problem went away. Just four months after opening their investigation, the regulators closed it.

Using software and the mobile-phone network, Tesla avoided any need for a recall. It doesn’t have any dealerships; customers can configure and order a car online, and they can test-drive cars at company-owned showrooms. Tesla’s advanced electric technology is simpler than gas or diesel technology, so cars can be built with fewer employees and less capital. Combine those factors and here’s what happens: General Motors  creates about $1.85 of market value per dollar of physical assets, while Tesla creates about $11. GM creates $240,000 of market value per employee, while Tesla creates $2.9 million. You don’t get differences like that just by being more efficient. Tesla, though in the same business as GM, is a fundamentally different idea

 

GM is changing, but for now it’s still a 20th-century corporation. Tesla is a 21st-century corporation, built for sweeping new realities that change the rules of success. The big theme is the arrival of the long-heralded friction-free economy, a new world in which labor, information, and money move easily, cheaply, and almost instantly. Companies are forming starkly new, more fluid relationships with customers, workers, and owners; are rethinking the role of capital (as traditionally defined), finding they can thrive while owning less and less of it; are creating value in new ways as they reinvent R&D and marketing; and are measuring their performance by new metrics because traditional gauges no longer capture what counts. (more…)

October 2012

June 2012

Strategy: Evolution of its themes

Strategy, Management, Leadership, Evolution of its themes , MBA, Competitive advantage,500 BC: Chinese General Sun Tzu, from The Art of War:   “The highest form of victory is when the enemy gives up.”

The Civil War and thereafter: the first organizations.

The 50s and Post WW II: Financial control through operating budgets, discounted cash flow.

The 60s: The corporate planners; Diversification and synergy, “the future is knowable”

The 70s and 80s: The marketers and corporate positioning. Industry analysis & market segmentation in chaotic markets.  A new concept….being different.

The 90s: The global corporations. The search for competitive advantage. Evolution of strategic alliances.

Early 21st century:: The technologists. Leveraging disruptive technology. Managing uncertainty. 

Tomorrow: Winner take all?…. What are the winning strategies going forward??????

PEST Strategic Analysis Framework

strategy, plan of action, PEST Analysis, SWOT Analysis, Frameworks, Management, Leadership, Competition, Competitive AdvantageIf you know the enemy and know yourself,
you need not fear the result of a hundred battles.
If you know yourself but not the enemy,
for every victory gained you will also suffer a defeat.
If you know neither the enemy nor yourself, 
you will succumb in every battle 
 ~ Sun Tzu, The Art of War, Special Edition

pest analysis, strategy, management, swot, framework, business, competition, competitive advantage, organization,

PEST analysis is a strategic business measurement tool.

PEST is an acronym for Political, Economic, Social and Technological factors.

These factors are primarily external factors which are used prior to doing a SWOT analysis (which is used to assess both internal and external factors).

PEST is used to assess business/strategy planning, marketing positioning, business and product development, product introduction, new idea, business diversification or to review the strategy or position of a organization.

There are variations to the PEST analysis like the PESTLE (includes Legal and Ecological/Environmental)

There are many situations where systematic PEST analysis gives clarity about the external factors which can affect the decisions such as :

  • Brand in relation to a market
  • Product Launch
  • Merger and Acquisition
  • Entering a new market
  • Potential Partnership
  • Investment opportunity
  • Company assessing the market conditions
  • Product versus competition

More Strategic Frameworks here.

November 2011

Strategy & Human Resource in an Organization!!!!

Strategy & Human Resource , Problem Child, Star Performer, Deadwood, Workaholic.
The moment you feel the need to tightly manage someone, you have made a hiring mistake. The best people don’t need to be managed. Guided, taught, led – ~ Jim Collins
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Typically there are four kinds of people in an organization :
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1. Problem Child – High Potential, Low Performance
2. Star Performers – High Potential, High Performance
3. Deadwood – Low Potential, Low Performance
4. Workaholic  – Low Potential, High Performance
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So, Who gets the maximum attention? This is a question worth pondering. Typically in an organization it is seen that the problem child gets the maximum attention.
This is similar to the first child problem theory in a family. Typically the first child gets and is used to all the attention until the second child arrives. And that is when the problem arises.
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As a manager the objectives are pretty clear : They have to develop plans, programs and intentions to develop the human capability of an organization to meet the future competitive challenges in order to generate superior economic value. They have to and should focus on identifying their star performers.
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This is where the role of managers is becoming increasingly important. HR than is not only the role of the Human Resouce Department, but also of every manager in the organization and the transition is as follows :
Operational to strategic
Qualitative to quantitative
Policing to partnering
Short-term to long-term
Administrative to consultative
Functionally oriented to business oriented
Internally focused to externally and customer-focused
Reactive to proactive
Activity focused to solutions-focused
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September 2011

Porter’s three Generic Business strategies !!!!

If you are in a Business school, invariably you will get references to Porter and theories on Business Strategies. It is Interesting that many theories have come after Porter set out his strategies. However, the simplicity and the power his theories have captured the imagination of Businesses the world over.
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So, presenting here the three business strategies of Porter and typical Organizational Characteristics :

Strategy 1 —>>> Overall Cost Leadership

•Sustained capital investment and access to capital
•Intense supervision of labor
•Tight cost control requiring frequent, detailed control reports
•Low-cost distribution system
•Structured organization and responsibilities
& Products designed for ease in manufacture
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Strategy 2 —>>> Differentiation
•Strong marketing abilities
•Product engineering
•Strong capability in basic research
•Corporate reputation for quality or technological leadership
•Amenities to attract highly skilled labor, scientists, or creative people.
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Strategy 3 —->>>> Focus
•Combination of cost-leadership & differentiation strategy directed at a particular strategic target.
Well that’s that!!!!!! His Five forces… I will put up some other time.