Tag - strategy

October 2012

June 2012

Innovation Success ~ Wow list ~ Firms that have created sustainable value creation

Innovation Success , Business Model, Wow list , Firms that have created sustainable value creation, leadership,success

Business Model Innovation Success ~ Wow list ~ Firms that have created sustainable value creation
 
These firms have consistently followed these Twin Objectives in order to create and sustain value over a long period of time:
– Keeping current business model fresh and innovative
—- Systematically search for breakthrough new innovation opportunities
 — Going beyond Product/Technology Innovation and creating platform ecosystem
 
The Business Model Innovation framework consists of 5 complementary, value creating
components. Each component is analyzed in order to create value across the model… :
 
– Who do we serve? — Customers, Market Segments, Geographies, Buyers
 
– What do we provide? — Products/Services, Benefits/Solutions to customers
 
– How do we provide it? — Distribution Channels, Value chain, Processes, Activities, Strategic fit of competencies, Partner Collaboration to add value
 
– How do we make money? — Pricing Policies, Costs, Extract Value, Pricing Model
 
– How do we differentiate and sustain an advantage? Competitive advantage/differentiation, Customer Satisfaction,   Core Competencies, Strategic Assets, Customer Value
 
 
 

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.

May 2012

Procter & Gamble – Foundations of Branding leading to decades of success!!!

Procter & Gamble, FMCG, Branding, Marketing, strategy, Innovation, Brand Management , Success, How the Foundations of Branding led to the dominance of P&G in future years using Innovation, Strategy, and Branding & Responsiveness.

Strategic Vision & Risk taking ability of P&G led to the companies’ dominance in the early decades.

The company was started amongst financial crisis with the founders focus on competing with the other manufactures of soap and candles.

Even during the impending civil war rumors in 1850’s, the founders went ahead and built a new plant. Needless to say in 1862, factories were running to full capacity during the civil war and P&G also earned the reputation of ‘Soldiers return home with P&G products’.

Innovation, technology and Strategic progressive thinking in marketing efforts and employees partnership programs led to the beginning of branding and positioning of the products and led the company in the decades leading to 20th century. Eg: Introduction of the Ivory soap as pure and a floating bar and subsequent nation wide large scale marketing efforts to promote the soap.

Employee partnership programs were initiated as a strategic response to the unrest.

By end of 19th century company had innovated 30 different type of soaps and launched full scale marketing efforts to fuel consumer demand.

Global Expansion, Growth of Product categories & Introduction of Brand Management System

The Global Management system was born out of a need for managing the multiple product categories and brands across many countries.

Under the brand management system, each brand manager was responsible for managing and competing with both external and internal brands.

This was breakthrough in branding and led to dominance and beginning of a system to be successfully followed in decades later.

Sir Winston Churchill on Strategy

Winston Churchill, Strategy, Quotes, Pictures, Management, Leadership, wise,enrich

Sir Winston Churchill (1874 – 1965):
British politician and statesman known for his leadership of the United Kingdom during the Second World War (WWII). Widely regarded as one of the great wartime leaders.
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                  Words from luminaries and thought leaders – both past and present – never fail to inspire and ignite our    
                  thinking. Reminding us that our journey of personal betterment to attain enlightenment is far from over.
                                                   Because in the end, knowledge imparted, is wisdom gained.

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.