...A Critical Review of STRATEGY AS REVOLUTION Introduction Hamel strategic revolution seems to be the value of re-cognition. In the "Strategy is revolution", Hamel said that "Let us face the reality of it: the world is about to reach the asymptotic limit of the development." For enterprises, "or else it will hand over to the next challenger who has a revolutionary or innovation spirit, or on their company's strategic approach to a revolution." Therefore, Hamel made to establish a new strategic concept: "Strategy is Revolution, everything else is just tactics Optimization, Innovation and Revolution Strategy There are several theoretical debates in business strategy namely prescriptive versus emergent (Carr et al, 2004), positioning versus resource based view (Mosakowski, 1998) and innovation versus optimization (Johnston et al, 2001). In this article, innovation versus optimization which concentrates on the transformation of the industry is the mainly debate to discuss. In a broader context that innovation means new approach to doing business (Slavik, 2002, p. 43). The human now, face of one pair of sharp social contradictions: on the one hand: the uses of various resources available are scarce; on the other hand, the human desire is infinite, and will not stay at a certain level. Therefore, the nature of the economy is to make a choice, to the appropriate allocation and full use of scarce resources to produce products, and assigned to social groups and members...
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...The power of cloud You can hardly look at an IT strategy document today without seeing mention of cloud computing, even though it has been around for years. This model has now crossed the chasm to penetrate corporate America, which traditionally relied on internal infrastructure. This is a significant shift in IT mindset in what will certainly be remembered as a disruptive technology strategy that changed the way the world works, literally. What is cloud? Cloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources (for example, networks, servers, storage, applications, services). Typically, these are highly scalable resources delivered over the Internet to multiple companies, which pay only for what they use. Cloud delivery models can help organizations scale their investments as they grow their business. They can also open the door to new business approaches through standardized applications, infrastructure, testing environments and business processes that help improve service delivery and efficiency. Although cloud is widely recognized as a technology game changer, its potential for driving business innovation remains virtually untapped. Indeed, cloud has the power to fundamentally shift competitive landscapes by providing a new platform for creating and delivering business value. To take advantage of cloud’s potential to transform internal operations, customer relationships and industry value chains...
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...Strategy Exam Framework Executive Summary (5%) I would recommend that (the company)… The company faces (the main issue), which has caused (major symptoms)… However, the following constraints must be addressed… - Timing - - In addressing this issue, the following alternatives were considered: - - - The alternatives were evaluated based on the following set of decision criteria: - - - The first alternative was selected because it satisfies (decision criteria). The second alternative was not chosen because it does not satisfy (decision criteria). Similarly, the third alternative was not preferred because it does not address (decision criteria). To implement the recommendations, the company should first (action plan). In the short term… In the long term… Issue Identification (10%) * Quantitative calculations Rule of 7272/# of years=Time it takes to double growth Rule of 114Number of years to triple growth Rule of 144Number of years to quadruple growth CAGR calculations CAGR=(1+Percentage growth)^n years Market share now versus market share in the future? (Current sales/Current market size) (Projected sales/Projected organic market size growth) Quantitative calculations Rule of 7272/# of years=Time it takes to double growth Rule of 114Number of years to triple growth Rule of 144Number of years to quadruple growth CAGR calculations CAGR=(1+Percentage growth)^n years Market share now versus market share in the future? (Current...
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...Synopsis - Marketing Strategies In The Current Business Environment – Julia Cupman, April 2009 About this synopsis This synopsis provides a brief insight into findings obtained from the Marketing Strategy Survey which was conducted in February 2009. The research will provide a foundation for my dissertation for a Masters in Marketing. I will also use my dissertation to create a white paper for B2B International. This will be called Effective Marketing Strategies For A Recession. I expect this to be available in May/June of this year. Who responded to the survey A total of 396 people generously gave their time responding to the survey which was designed to find out how marketing teams across continents are responding to the current economic environment. These respondents represented a broad spread covering all industrial sectors, many b2c sectors and most countries of the world. Three quarters work in organisations that employ more than 250 people and many are occupied in some of the largest corporates in the world. There was an acknowledgement from around 70% of respondents that they are one of a team involved in determining the appropriate marketing strategy for their organisation. How organisations are affected by the current business environment There is no doubt that the recession is affecting everyone and 4 out of 10 respondents said the effect has been very significant. As might be expected, national and overseas sales have been affected, investment has been cut back...
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...Chapter !, What is “operations”? * Production and delivery of goods and services * What is “management”? * Plan * Implement * Control * Essential business functions * Marketing * Finance Operations * Important terminology * Tier, echelon * Customer versus consumer * Upstream versus downstream * Inbound versus outbound * Consumer demand versus derived demand All demand is derived from consumers * Demand originates from consumers (individual wants and needs) * It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers. * If your customers can’t sell you can’t sell! * Why care about customers’ customers, etc? 2. Quality of distribution channel * Who has bought a product from Coca Cola? * The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.) * Sales agreements, business relationships, competitors * Geographical coverage 3. Market orientation * Gathering, analyzing and disseminating customer information * Channel members provide important information about customers, markets, trends, changes, opportunities and challenges 4. Reverse logistics * Returns, repairs, unsold merchandize, etc. * Important for customer satisfaction, major concern for...
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...Global E-Commerce Advanced Multichannel Expectations in Highly Developed Markets Joanne Bethlahmy, Paul Schottmiller Cisco Internet Business Solutions Group December 2011 Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1 Executive Summary Many retailers are ―going global‖ to capture a larger share of the $1.4 trillion e-commerce market Leading-edge multichannel experiences are becoming the norm in highly developed markets around the globe To compete, retailers will need to understand customers’ needs and expectations in each market, and deliver highly advanced multichannel experiences Source: Cisco IBSG, 2011 Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2 1 Global E-Commerce Background and Challenges Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3 E-Commerce 2015: $1.4T, Still High Percentage in Developed, Non-U.S. Markets E-Commerce Spending (US$B) $1,600 Global e-commerce, including travel, will reach $1.36T by 2015—13.5% CAGR over six years This study focuses primarily on highly developed e-commerce and technology markets in Europe and Asia – Generally, high penetration of broadband and mobile, sophisticated delivery infrastructure – Example: U.K., Japan, France, and S. Korea will still represent almost...
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...Trend Report: Cloud Computing First, information technology is an essential factor in the success of many businesses around the world. Innovation and following currents trends in the market are necessary for a business to stay up float. The big buzz of new technology and gadgets has reached a fever pitch. There is a new wave around cloud computing. Cloud computing signifies a major shift in information technology. Cloud computing is an Internet based computing system where you can share and view software and information anywhere and at anytime with computer devices, such as: Smart phones, tablets, and computers. Many companies are currently using it as the main storage of data so that their employees, partners, and other interested parties can access their data and information. All this data and information is being directly stored all in the web. This cloud provides the storage of software and data without using the same access point, meaning only relying on one computer. Hence, the users do not require knowing the source and specific location of the data. This process enables people can access information over long distances, without acquiring prior knowledge of how and when hat information was stored in the cloud. Second, in an article by Gartner – an information and technology research company that delivers insight on necessary IT information. They communicate that they are already seeing a massive migration by users to personal cloud computing services. Gmail, Dropbox...
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...intermediate production processes to make a variety of different products (move into related markets) • Functional divisions • First movers: companies that quickly dominated their industries by making large investments and gaining competitive advantage. (high market share) - created national and international marketing distribution organizations - recruited teams of managers • Management hierarchy: - lower and middle managers: coordinate products though production and distribution - top managers: coordinate and monitor current operations and to plan and Allocate resources for future activities • Research & development: to improve products and processes. Innovation and strategy is more important than price. • Diversification, related & unrelated: - Unrelated diversification: when managers acquire businesses in which they have few if any organizational capabilities to give them a competitive edge (ignore logic of managerial enterprise) This leads to: • Separation of top vs middle managers: - Top managers have little knowledge of or experience with the technological processes and markets of the new acquisitions - Overload in decision making at the corporate office • Stock market pressures: loose profits and market share if: - Entrepreneurial enterprises fail to become managerial enterprises - Managerial enterprises fail to maintain their...
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...NEW PRODUCT INNOVATION No. 9 in a Series of Papers Reference Paper by: Teresa Jurgens-Kowal PhD, PE, NPDP Global NP Solutions 2323 Clear Lake City Blvd., #180 Suite 177 Houston, TX 77062 PHONE: 281-280-8717 FAX: 281-280-8689 www.globalnpsolutions.com page 1 © Copyright 2010 Global NP Solutions, LLC changes in the market or technology environments. In this paper, we present four idealized case studies, representing one view of innovation strategy types. These were first described by Raymond Miles and Charles Snow in 1978 Miles & Snow’s structures, response characterization and to in changes (1) THE ENTREPENEURIAL PROBLEM As with any strategy assessment, a choice must be made regarding the market arena, the technology, and the products or services to be offered. Miles & Snow identify this as “The In short, how . Despite the intervening thirty or so years, of in management management’s particular Entrepreneurial Problem.” should the company manage share? it market technology or markets, remains as a dominant theory for Innovation Strategy. Many other papers have evaluated Miles & Snow strategy typologies (2) (3) (4) , yet few In NPD terms, we would say that The Entrepreneurial Problem should be addressed is Stages 1 and 2, or the Fuzzy Front End, such that we have identified a clear and present market need for our new product, service, or program. authors have specifically address how each would approach and implement the...
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...Best Snacks Problem Solution Creativity and innovation are the lifeblood of modern organizations. Creativity and innovation can provide a company with a competitive advantage in an increasingly competitive global market. Individual and organizational learning, management practices and modern technology can enhance individual and organizational creativity. Sales at Best Snack have been slipping and the issue has been identified as a complacent corporate culture that has managed business in one way for too long. The organization needs a shakeup, a change of culture that embraces change, innovates and is continuously looking for the next big idea. Describe the Situation Issue and Opportunity Identification (At least four issues and opportunities must be identified) During the last check the snack food industry has changed. Consumers now buy product based on price rather than banned loyalty, Best Snack has historically been the number 1 or 2 snack vendor in the industry. Sales have slipped and stock prices have fallen over the last 2 years. Several smaller companies are pushing Best Snack and the company is in danger of losing even more market share. Best Snack due to the companies long standing success has been slow to change or alter any research, development or marketing activities. The organization has become complacent. Best Snack did not anticipate or see the changing nature of the snack food market. The company became comfortable in the way the organization...
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...ST 504 E Session 3. 1 Corporate Strategy Diversification Maryam Nasiriyar maryam.nasiriyar@esc-rennes.fr Key Strategic Choices Business level (CA) Cost Leadership (Volume) Differentiation Focused (Niche) Corporate level (CA) Expansion within the same industry versus Diversification Vertical Integration along the value chain or Outsourcing Internationalization Learning Objectives 1.Understand when and how business diversification can enhance shareholder value. 2.Gain an understanding of how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. 3.Become aware of the merits and risks of corporate strategies keyed to unrelated diversification. 4.Gain command of the analytical tools for evaluating a firm’s diversification strategy. ’ When to Diversity A firm should consider diversifying when: • It can expand into businesses whose technologies and products complement its present business. • Its resources and capabilities can be used as valuable competitive assets in other businesses. • Costs can be reduced by cross-business sharing or transfer of resources and capabilities. • Transferring a strong brand name to the products of other businesses helps drive up sales and profits of those businesses. Testing Whether Diversification Will Add Value The Attractiveness Test: • Are the industry’s returns on investment as good or better than present business(es)? The Cost of Entry Test: • Is the...
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...carrier. SIA is engaged in air transportation and other related businesses. It has been consistently one of the most profitable airlines in the world, and it is routinely voted the ‘best airline’, ‘best business class’, ‘best cabin crew service’, ‘best in-flight food’, ‘best for punctuality and safety’, ‘best for business travelers’, ‘best air cargo carrier’, even ‘Asia’s most admired company’. It operates worldwide as the flag carrier of Republic of Singapore, aiming to provide service of the highest quality at reasonable prices for customers and provides them with the best options for travelling. They have a modern and young fleet of aircraft and covers 40 countries and 76 cities. SIA has far-sighted planning, investment and product innovation that propelled its growing reputation and profitability. For its high-level service and operational excellence, SIA has won more than 100 international prizes. With the traditions of the Company - outstanding service, and innovative spirit, SIA will continue to progress, and render the best services to its passengers just as it always has. Accidents from SIA (Needs for change) • 26 March 1991 – Singapore Airlines Flight 117, an Airbus A310-300 was hijacked by Pakistani militants en route from Kuala Lumpur to Singapore, where it was stormed by the Singapore Special Operations Force. All of the hijackers were killed in the operation, with no fatalities amongst the passengers and crew. • 31 October 2000 – Singapore Airlines Flight 006...
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...1. Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. The current competitive conditions in the business world make it difficult to acquire and retain the top talents. Once the organization is able to identify, it can be unable to offer the right pay and to manage the pay increases to retain top talents. The compensation strategy is the extremely important piece of the overall HR Strategy to keep the company competitive and successful. On the other hand, the compensation strategy is important to keep the personnel budget under the control and to manage the jobs in the right salary (pay) brackets. The compensation strategy differentiates the organization on the job market and builds the attractiveness of the company for the top talents. They love to be hired by the attractive organization; they do not like to be hired by the average company offering the same conditions as any other average organization in the industry. They have the problem to distinguish the employers and they are not able to recognize the excellent organization, when it is not different from the rest. The competitive advantage is the essential part of the mix for the success. The organization has to present itself differently, not just by the presentation, but it should differentiate itself by the different approach toward its employees. The compensation strategy is one of the most successful differentiators. The excellent compensation...
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...Skype’s partnership with AT&T only fuels the boost usage of Voice- over Internet Protocol usage over land line usage. In the wake of these technology advancements, it became clear to entrepreneurs that offered voice traffic and internet service would be one of the next major applications to take full advantage of Voice-over Internet Protocol. There are more advances than innovations in the VOIP world. That’s because some of the most important developments had more to do with commercial and political maneuvers than with technical creativity. One of the most prominent developments was net net neutrality which enables user access to participating networks that advocates no restrictions to materials throughout the modes of communication allowed online ("The mobile World," 2011, para. 4). Further, this industry also have to consider pressures influenced by the government ( FCC) that could dismantle net neutrality by limited user access as well as decrease the power of big wireless communication giants like AT&T. Still, such maneuvers often helped spread the benefits of VOIP much more than technical innovation. And collectively, the advances brought some already evident trends in the increasing integration of voice with other applications and services, not to mention the intensifying interest in mobile Voice-over Internet Protocol (Hunger & Wheelen, 2007, p. 155). Over the past decade, the greatest growth occurred in developing markets where the demand for mobile-internet...
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...structures on innovation performance Matthias de Visser a,Ã, Petra de Weerd-Nederhof a,1, Dries Faems a,2, Michael Song b,3, Bart van Looy c,4, Klaasjan Visscher a,5 a University of Twente, Capitool 15, 7521 PL Enschede, The Netherlands University of Missouri-Kansas City, 5100 Rockhill Road, Kansas City, MO 64110-2499, USA c Katholieke Universiteit Leuven, Naamsestraat 69, 30000 Leuven, Belgium b a r t i c l e in fo Keywords: New product development process Cross-functional structure Structural ambidexterity Derivative innovation performance Breakthrough innovation performance abstract Based on a survey study of 155 U.S. firms, we conducted a firm-level assessment of the impact of different kinds of structures (i.e., functional versus cross-functional) in different kinds of new product development (NPD) processes (i.e., incremental versus radical) on different kinds of firm innovation performance (i.e., derivative versus breakthrough). We observe that most firms opt for similar structures for their incremental and radical NPD processes. At the same time, though, we find strong evidence that (1) firms that apply a cross-functional structure for the radical NPD process perform significantly better in terms of breakthrough innovation performance than firms that apply a functional structure for the radical NPD process and (2) firms that apply a functional structure for the incremental NPD process perform significantly better in terms of derivative innovation performance...
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