BSM 600 Lecture Notes - Lecture 1: Blue Ocean Strategy, Factor V, Retained Earnings
20 Jan 2017
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Issues in a mature business: +/-, understand this phase is not indefinite. Most businesses want to align themselves with growing firm image--e. g. apple positions itself as growth, future, etc, but they"ve been around decades. Survival, reinvesting retained earnings (shows past work) Gives cushion--failure of innovation, so it"s important. Signal to outsiders that this firm has done well, so they"re profitable, we should invest. Invest - $, also suppliers, partners - confidence, good relationships and credit, network. If you do something new, existing networks are not enough--e. g. apple had to find suppliers for phone, diff from computers, but they had a huge brand, so that helped. Organized, v. clear things, do what you"re supposed to do, stay on track. Harder to innovate and change procedure = anxiety. Bottom up, transparency, need the shock factor. V. risky but can be managed (e. g. bottom up = talk to market directly, top down = get a new ceo or something)
