The highlight in this chapter is Porter’s Five Forces theoty. Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analysing the competitive strength and position of a corporation or business organization. His five forces include
1. Existing competitive rivalry between suppliers
2. Threat of new market entrants
3. Bargaining power of buyers
4. Power of suppliers
5. Threat of substitute products (including technology change)
Porter's Five Forces model provides suggested points under each main heading, by which you can develop a broad and sophisticated analysis of competitive position, as might be used when creating strategy, plans, or making investment decisions about a business or organization
Friday, April 30, 2010
10-day MBA: D9 Strategy – What is in this big map?
It seems to me, Strategy is a big 3D map of a business. Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. It is about
* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets? (advantage)?
* What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)?
* What external, environmental factors affect the businesses' ability to compete? (environment)?
* What are the values and expectations of those who have power in and around the business? (stakeholders)
* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets? (advantage)?
* What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)?
* What external, environmental factors affect the businesses' ability to compete? (environment)?
* What are the values and expectations of those who have power in and around the business? (stakeholders)
Saturday, April 24, 2010
10-day MBA: D8 Economics – No Economics Cycles in it?!
I was expecting to find something about Economics Cycles in this chapter, but I didn’t. I think it will be interested to know about it though.
The concept of Economic Cycles, which are sometimes referred to as Business Cycles, is a theory that attempts to explain changes in economic activity that vary from a long term growth trend as observed in a developed market economy. Factors considered in defining an economic cycle include growth of GDP, household income, employment rates, etc. Economic Cycles are divided into two main categories: booms and recessions. Booms are associated with a strong economy, while recessions are characterized by below-trend economic growth. The National Bureau of Economic Research (NBER) is considered the authoritative source in the US that reports the dates of the peaks and troughs that quantify Economic Cycles. NBER defines economic cycles a bit differently than Economic Cycle Theory.
Rather than booms and recessions, it classifies the economy as being in expansion or contraction. Expansion is when several pieces of economic data are improving, and contraction is a decline in the same data. These definitions focus more on the movement of data, whereas the boom/recession definition only refers to the data's position relative to historical averages.
The concept of Economic Cycles, which are sometimes referred to as Business Cycles, is a theory that attempts to explain changes in economic activity that vary from a long term growth trend as observed in a developed market economy. Factors considered in defining an economic cycle include growth of GDP, household income, employment rates, etc. Economic Cycles are divided into two main categories: booms and recessions. Booms are associated with a strong economy, while recessions are characterized by below-trend economic growth. The National Bureau of Economic Research (NBER) is considered the authoritative source in the US that reports the dates of the peaks and troughs that quantify Economic Cycles. NBER defines economic cycles a bit differently than Economic Cycle Theory.
Rather than booms and recessions, it classifies the economy as being in expansion or contraction. Expansion is when several pieces of economic data are improving, and contraction is a decline in the same data. These definitions focus more on the movement of data, whereas the boom/recession definition only refers to the data's position relative to historical averages.
10-day MBA: D8 Economics – about Market Structure
I like the explanation about market structures types in Wikipedia better than the one in textbook. I hope my future business can have a monopoly or oligopoly with unique products.
Different types of market structure include
* Monopolistic competition, also called competitive market, where there are a small number of dependent firms which each have a very large proportion of the market share and products from different companies are different.
* Oligopoly, in which a market is dominated by a large number of firms which own more than 40% of the market share.
* Oligopsony, a market, where many sellers can be present but meet only a few buyers.
* Monopoly, where there is only one provider of a product or service.
* Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. A firm is a natural monopoly if it is able to serve the entire market demand at a lower cost than any combination of two or more smaller, more specialized firms.
· Monopsony, when there is only one buyer in a market.
Different types of market structure include
* Monopolistic competition, also called competitive market, where there are a small number of dependent firms which each have a very large proportion of the market share and products from different companies are different.
* Oligopoly, in which a market is dominated by a large number of firms which own more than 40% of the market share.
* Oligopsony, a market, where many sellers can be present but meet only a few buyers.
* Monopoly, where there is only one provider of a product or service.
* Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. A firm is a natural monopoly if it is able to serve the entire market demand at a lower cost than any combination of two or more smaller, more specialized firms.
· Monopsony, when there is only one buyer in a market.
10-day MBA: D7 Operations – about CRM (customer relationship management)
CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. CRM consists of:
· Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team.
· Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices)
· Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service.
· Providing employees with the information and processes necessary to know their customers, understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners.
· Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team.
· Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices)
· Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service.
· Providing employees with the information and processes necessary to know their customers, understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners.
10-day MBA: D7 Operations – about Gantt Chart
Gantt Charts are useful tools for analyzing and planning more complex projects. They:
· Help you to plan out the tasks that need to be completed
· Give you a basis for scheduling when these tasks will be carried out
· Allow you to plan the allocation of resources needed to complete the project, and
· Help you to work out the critical path for a project where you must complete it by a particular date.
When a project is under way, Gantt charts are useful for monitoring its progress. You can immediately see what should have been achieved at a point in time, and can therefore take remedial action to bring the project back on course. This can be essential for the successful and profitable implementation of the project.
· Help you to plan out the tasks that need to be completed
· Give you a basis for scheduling when these tasks will be carried out
· Allow you to plan the allocation of resources needed to complete the project, and
· Help you to work out the critical path for a project where you must complete it by a particular date.
When a project is under way, Gantt charts are useful for monitoring its progress. You can immediately see what should have been achieved at a point in time, and can therefore take remedial action to bring the project back on course. This can be essential for the successful and profitable implementation of the project.
10-day MBA: D7 Operations – about Operational Problem Solving
10-day MBA: D7 Operations – about Operational Problem Solving
Operational Problem Solving is one of the MOST important skills in the operations of any company. The problems within a department or with other departments results in reduced productivity, frustration, low morale, turnover, and work stress. By teaching supervisors and line workers how to recognize problems and giving them the necessary support and resources to turn problems into opportunities for improvement, the line operations become more efficient, customer service improves, and people become more committed to the organization.
The first step is to ensure everyone knows what he/she is to do, have the necessary skills and knowledge, and feels his/her opinions count.
The next step is to implement a continuous improvement process that will reward and/or recognize people for contributing their ideas and suggestions.
Finally, teach supervisors how to encourage each individual to learn more, be more, and do more through regular coaching for performance and development.
Operational Problem Solving is one of the MOST important skills in the operations of any company. The problems within a department or with other departments results in reduced productivity, frustration, low morale, turnover, and work stress. By teaching supervisors and line workers how to recognize problems and giving them the necessary support and resources to turn problems into opportunities for improvement, the line operations become more efficient, customer service improves, and people become more committed to the organization.
The first step is to ensure everyone knows what he/she is to do, have the necessary skills and knowledge, and feels his/her opinions count.
The next step is to implement a continuous improvement process that will reward and/or recognize people for contributing their ideas and suggestions.
Finally, teach supervisors how to encourage each individual to learn more, be more, and do more through regular coaching for performance and development.
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