In the opening trigger we discussed the case of Fuji Film and its problems and came up with problems as follows:
7 Build a fully-validated simulation model to confirm
exactly what to do, when and how much across all decisions relating to the
challenge.
Discussions:
Fujifilm Thrived by changing focus:
CEO Says Firm, Kodak Saw Digital Age Coming, 'The Question Was, What to do
about it'
To reach a goal, to adapt a market,
we need innovation. They need to be innovative. Because of the demands of
market Fujifilm venture into new businesses too. They utilize their market,
their technology. They make some targets.
Problem: Facing small (falling) revenues.
Unemployment were rising. The problem
was marketing. They need to be innovative. Lack of experts. How do they decide
which area to develop more. Demand of market.
They are losing their main revenue source. The company is losing their main revenue
source, so what they do about it? How we
define the company’s strategy? The
company’s main function is to make profit to the owner. Strategy is to adapt to the market. They
formed new strategy and they succeed. But the challenge was utilization.
What are the factors affecting the
choice of strategy?
A good strategic
choice process enables a company to make sustainable strategic
decisions. Management is in charge of evaluating different strategies and on
basis of that to present and to decide which strategies the company should
adapt. It can be for instance about which markets to go to, what kind of
products they should produce or should they sell parts of its operations.
First management
should decide what´s the fundament purpose of the organization. It should lay
out who benefits from the organization and how. It should be clear how
performance is measured. Management should also be clear about how decisions
impact the company and why they are being made. Company should decide what they
are aiming for (how much sales, quality, quantity etc).
Management should
evaluate company´s strengths, weaknesses, threats and opportunities, and
summarize in a swot-analysis.
The choice of strategy can include an
abcd-model. Autencity: it should be a real
choice, where there are
many options to choose from. It should be targeted to specific group as well
and it should be useful. Believability: the
choice should be documented, discussed and if necessary it can be explained
afterwards. The process should be conducted in way that is is clear way the
choice was made. Communicability: it should be
conducted in a way that it is understood and not misunderstood. It should be
easy to understand the key concepts. Deliverability:
Strategic choice should be one that can be executed. Should be able to break
down in doable steps. It should be concrete things which can be done in the
real-world.
How do companies utilize the
resources to reach the goal?
Business
resources should be managed wisely. It´s anything of value as you operate
business successfully. Understand your resources in order to use them fully and
gain best return of your investment. You your human business resources, your
employees with respect so that they enjoy working, become skilled workers and
have good motivation. Use your tangible resources economically, so that they
are operational longer and brings savings when maintenance and new purchases
are less needed. Negotiate your financial agreements in order to have most
funds for your core business operations.
What is the purpose of determining
company's business strategy?
If you want your business to be successful,
you need to have a good business strategy. It should be
clear and understandable. If it´s not the business won´t grow optimally. A
business strategy should point out what your strengths and weaknesses are and
what the market has to offer. It defines what needs to be done in order to
reach business goals. It also helps making decisions about resource
allocations, such as possible hirings, investments in production. It also
ensures all departments work in the same direction and there is no conflicts
between them.
How do companies form strategies to
tackle (to handle) challenges?
Strategic management involves both continual steering
of the strategy and performance via strategic plans and the tackling of one-off
issues and challenges, such as entering a new market, dealing with an aging
workforce, defending against a competitor’s attack, or responding to market
down-turns or other shifts in external conditions. The Strategy Challenge
process can be used to tackle a wide range of issues, from very simple cases up
to larger and more complex situations.
This
process is as follows according to strategydynamics:
1 A
white-board workshop lays out the architecture of the challenge, which will
itself generate value in terms of changes to decisions or increased confidence
in what to do.
2
If
this is successful and sufficient value is at stake, you can go on to stage 2
3
4
Develop
a small demonstration simulation, using readily available information and
estimate, which will give more value, through testing alternative scenarios and
policies.
5
6
If
this is successful, and again, if there is a lot of value at stake,
7
What
they should do in raising world?
How do
companies come back from failure?
Ford was not successful until it
gained recognition in an auto-show and made a affordable car the T-Ford.
The
Body shop was not considered a good name, but when the owner protested it to a
newspaper people became intetersted
Steve
Jobs burned Millions in Next. In 1996 apple bought the company and Jobs became
CEO and introduced IPhone, IPod and IPad.
How do
they decide which area to develop more? How do they decide to do it?
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