Motivation is a key driver why people are getting up in the morning and why they want or do not want to ‘show up in the office’. Motives and motivation are different. People are different in general. From academic perspective, there are several books written on the subject but what works in practice?
Recently, Harvard Business Review published an article on Engineering Reverse Innovations that highlights the idea of designing products and services in developing economies and after exports them to developed countries. Article is definetaly worth reading not only if you are thinking about bringing products and services to the the developing world but also may help to enter markets relatively new markets of European Union where purchasing power is not still as strong as in old Europe. Authors of the article mention few traps and design principles to avoid those however I want to add my thoughts on topics that relate but were not covered by article.
Recently I have come across many (not saying a lot) articles and heard people complaining about loosing out on deals and business in general due to a fact that someone has ‘stolen their industry’ or ‘their business model’. It seems that people are looking more for the ones to be blamed forgetting that also at the time when they started their businesses probably someone felt the same about them. But the purpose of this blog is not to justify anyone, just to impose probably retorical question – do you really think that once you have your business running, you own something more than profits earned (apart from assets)? The short answer would be – ‘No’.
Corporate strategy can be described as a formula that can be used to prepare a medicine. From my point of view this is how corporate strategies should be viewed and understood. Medicine, the outcome, should not be the one from past but the one from future. Attention should be paid on things that actually make strategy – decisions, abilities and goals, as these will be the key elements. Not all of the elements that initially are drown from surveys and other intelligent sources to build up strategy will be useful as corporate strategy must be executable by the company and should be in line with core competence of the company. It means that much attention should be paid to resources and knowledge that is already inside the company not forgetting that business environment is continuously changing. I would agree with opinion of Ram Charan (one of the authors of Forbes magazine) that there are two successful ways how to build your corporate strategy – outside in and future back thinking approaches. Outside In thinking means looking at the business through the lens of a leader sitting elsewhere and identifying global trends without the existing assumptions, biases and rules of thumb. Future-Back requires you to extend your time horizon as you assess the world and imagine what the competitive landscape will be some twenty years out. This longer time frame will help you see what trends are enduring, or unstoppable. Continue reading ““Successful corporate strategies need to be based on simple, measurable rules””
In order to have a competitive advantage company should have assets, knowledge and to identify its specific core competences. By applying corporate strategy company should be able to outperform others on a financial basis – it means having competitive advantage and thus being able to perform better than others. Even though core competence of the company is usually slowly changing over time if ever changing, for example, Kodak disability to change its core competence, corporate strategy should not remain the same for long.
In highly competitive markets core competence is the central concept for corporate strategy. Core competences means particular skill or competence of a company that is fundamental to its business success, for example, McDonald’s probably has a skill in real estate management that allows company to locate their restaurants in the most densely populated areas. Or Lattelecom probably has a core competence in financing and monetizing infrastructure that leads to sustainable competitive advantage.