Philipp M. Nattermann explains why strategic herding, meaning adopting a competitors successful business plan, may be a good operational tool, but a bad benchmark. When two companies are competing in the same market both of the companies margins decline in the long run. This happens because when more and more companies enter into the same market the amount of profit is split between all of the competing businesses eventually making the market unprofitable. Philipp M. Natermann discusses other possible business plans that may be a better option.
In this article John P. Kotter explains change in companies and steps that need be followed in order to give these change initiatives a higher chance of success. If a company is trying an attempt change, it is most likely due to a new and more challenging market environment. John explains 8 things that a company can do in order to increase the success of change.
In this article Thomas A. Stewart and Anand P. Raman interview Katsuaki Watanabe, the president of Toyota. The main topic includes the Toyota way of operating and whether or not Toyota will be able to keep up with its drastic expansion. When asked about some expansion issues that popped up Watanabe talks about keeping issues public in the company so people become motivated to fix them. He then proceeds to discuss the importance of focusing on quality and what comes along with doing so.
In this article Melanie A. Hughes compares and measures the accuracy of the Myers-Briggs Type Indicator (MBTI) and the Kirton Adaption-Innovation Inventory (KAI) tests. Both of these tests are widely used psychometric instruments used to determine attributes people have. With examinations from 14 psychologists and data from the College of the Armed Forces class of 1994, Melanie determines the accuracy of and the relationships between the two tests.
In this article Brian Pitman talks about changing the performance measure of a company. The example given involved changing performance metrics based on inflation to shareholder value. It takes a lot in order to get a company behind a more aggressive strategy like basing performance measures on shareholder value, but if a company concentrates on a couple fundamental metrics instead of numerous initiatives they become powerful growth strategies.
In this article Joseph L. Bower talks about acquisitions and mergers, why a business would begin this process and the ups and down for each version. Overall there are five different reasons a business would go through an acquisition or merger. In each type the business must take certain initiatives in order to be successful. After a description of each version Joseph gives recommendations that guide businesses to success.
In this article James P. Hackett talks about his company Steelcase and the process they use when designing and implementing new products. Steelcase uses a four step implementation process designed to make them slow down and consider all the aspects of the project before executing. This also allows Steelcase to learn from their mistakes and gives them the ability to scrap a project if the information is leading them down an undesired path.
In this article Michael E. Porter discusses the five forces that strategist should take into consideration: power of suppliers, power of buyers, the threat of substitutes and rivalry among existing competitors. While going into detail about all five forces the author describes the complexities of each force and reveals components that may be overlooked by the everyday strategist. If a strategist takes into consideration the five forces, they have the ability to be successful in any situation they confront.
In this article Chris Zook looks at companies atempting to develope a new core business. A large part of this article includes specific properties and questions companies need to consider before determining whether or not a core adjustment is applicable. There are many examples of businesses that have gone about this process incorrectly resulting in a major downturn. But, if the principles discussed in this article were applied, finding your next core business would overall be a more successful endeavor.
Jeffrey Pfreffer and Robert I. Sutton explain evidenced based management and why businesses adopting this methodology are more successful. Many companies work based on the notion that successfully implemented strategies in a business will help their business be more successful. This article talks about evidence based management and the idea of running a business based on research proven facts instead of inclinations and common practices.