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Table of contents
- World's Best Banks 12222: Bank Of America Named Best Bank In The World
- WISE Summit - WISE
- About The Author
- What to Expect
The music industry was similarly disrupted. The technology sector has provided some strategies directly. For example, from the software development industry agile software development provides a model for shared development processes. Peter Drucker conceived of the "knowledge worker" in the s. He described how fewer workers would do physical labor, and more would apply their minds.
World's Best Banks 12222: Bank Of America Named Best Bank In The World
In , John Naisbitt theorized that the future would be driven largely by information: companies that managed information well could obtain an advantage, however the profitability of what he called "information float" information that the company had and others desired would disappear as inexpensive computers made information more accessible. Daniel Bell examined the sociological consequences of information technology, while Gloria Schuck and Shoshana Zuboff looked at psychological factors.
She studied the effect that both had on workers, managers and organizational structures. She largely confirmed Drucker's predictions about the importance of flexible decentralized structure, work teams, knowledge sharing and the knowledge worker's central role. Zuboff also detected a new basis for managerial authority, based on knowledge also predicted by Drucker which she called "participative management". The four stages include:. The initial conclusion of the study was unambiguous: the greater a company's market share, the greater their rate of profit. Market share provides economies of scale.
It also provides experience curve advantages. The combined effect is increased profits. The benefits of high market share naturally led to an interest in growth strategies.
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The relative advantages of horizontal integration , vertical integration , diversification, franchises , mergers and acquisitions , joint ventures and organic growth were discussed. Other research indicated that a low market share strategy could still be very profitable. Schumacher , [] Woo and Cooper , [] Levenson , [] and later Traverso [] showed how smaller niche players obtained very high returns.
In the s business strategists realized that there was a vast knowledge base stretching back thousands of years that they had barely examined. They turned to military strategy for guidance. From Sun Tzu, they learned the tactical side of military strategy and specific tactical prescriptions. From von Clausewitz, they learned the dynamic and unpredictable nature of military action. From Mao, they learned the principles of guerrilla warfare.
The marketing warfare literature also examined leadership and motivation, intelligence gathering, types of marketing weapons, logistics and communications. By the twenty-first century marketing warfare strategies had gone out of favour in favor of non-confrontational approaches. In , Dudley Lynch and Paul L. A variety of aggressiveness strategies were developed.
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In , J. Moore used a similar metaphor. Author Phillip Evans said in that " Henderson's central idea was what you might call the Napoleonic idea of concentrating mass against weakness, of overwhelming the enemy. What Henderson recognized was that, in the business world, there are many phenomena which are characterized by what economists would call increasing returns—scale, experience. The more you do of something, disproportionately the better you get.
And therefore he found a logic for investing in such kinds of overwhelming mass in order to achieve competitive advantage. And that was the first introduction of essentially a military concept of strategy into the business world.
WISE Summit - WISE
It was on those two ideas, Henderson's idea of increasing returns to scale and experience, and Porter's idea of the value chain, encompassing heterogenous elements, that the whole edifice of business strategy was subsequently erected. Like Peters and Waterman a decade earlier, James Collins and Jerry Porras spent years conducting empirical research on what makes great companies.
Six years of research uncovered a key underlying principle behind the 19 successful companies that they studied: They all encourage and preserve a core ideology that nurtures the company. Even though strategy and tactics change daily, the companies, nevertheless, were able to maintain a core set of values. These core values encourage employees to build an organization that lasts.
In Built To Last they claim that short term profit goals, cost cutting, and restructuring will not stimulate dedicated employees to build a great company that will endure. It describes a business culture where technological change inhibits a long term focus. Arie de Geus undertook a similar study and obtained similar results. They are:. A company with these key characteristics he called a living company because it is able to perpetuate itself.
If a company emphasizes knowledge rather than finance, and sees itself as an ongoing community of human beings, it has the potential to become great and endure for decades. Such an organization is an organic entity capable of learning he called it a "learning organization" and capable of creating its own processes, goals, and persona. Will Mulcaster [] suggests that firms engage in a dialogue that centres around these questions:. From Wikipedia, the free encyclopedia. Planning for a company's responses to external issues.
For other uses, see business process.
About The Author
Management accounting Financial accounting Financial audit. Business entities. Corporate group Conglomerate company Holding company Cooperative Corporation Joint-stock company Limited liability company Partnership Privately held company Sole proprietorship State-owned enterprise. Corporate governance.
Annual general meeting Board of directors Supervisory board Advisory board Audit committee. Corporate law. Commercial law Constitutional documents Contract Corporate crime Corporate liability Insolvency law International trade law Mergers and acquisitions. Corporate title. Commodity Public economics Labour economics Development economics International economics Mixed economy Planned economy Econometrics Environmental economics Open economy Market economy Knowledge economy Microeconomics Macroeconomics Economic development Economic statistics.
What to Expect
Types of management. Business analysis Business ethics Business plan Business judgment rule Consumer behaviour Business operations International business Business model International trade Business process Business statistics. Strategy has been practiced whenever an advantage was gained by planning the sequence and timing of the deployment of resources while simultaneously taking into account the probable capabilities and behavior of competition.
It's more important than ever to define yourself in terms of what you stand for rather than what you make, because what you make is going to become outmoded faster than it has at any time in the past. Main article: SWOT analysis.
Main article: Experience curve. Main articles: Modern portfolio theory and Growth—share matrix. Main article: Competitive advantage. Main article: Porter five forces analysis. Main article: Porter's generic strategies. Main article: Value chain.