Why company, like Fairfax, would want to buy Blackberry?
- They might be able to sell it later
- They can take over the company after getting shares
Why does Fairfax take blackberry as a private company?
- If public, there is a possibility that some other companywill buy at a lower price
- If private, they have no obligation to tell anybody any action that they will do.
- They can make more decisions quickly (without having to answer a large pool of investors)
- They don’t have to disclose any informationto the public
Blackberry lacks innovation which is making them suffer
- They also lack the leadership (they suffered from delays and product efficiency)
- They didn’t meet customers needs and wants and so they are falling behind
Lesson: we always have to reinvent ourselvesto stay competitive
Blackberry fails to recognize changes in business (they didn't modify strategies to accommodate
What is business? - no exact definition
- Achieve goals and objectives,bring to market effectivelythrough satisfying customersneeds -
maintain this by constantly innovating
- Making the market bigger and fighting for share (to maintain success)
- A system of integrated mission-based actions
- Developand grow markets for its goods and services
- Create organizational value (wealth) on behalf of its stakeholders
Organizations must properly identify solutions to market place needs/desiresand deliver these
solutions to the right customer,at the right place, at the right time, and for the right price creating a
Commercialendeavours: the product that enter the market
" refers to the markets the organization serves,the products and services it offers, and the needs it
professes to meet in the marketplace."
Employee Interaction Employee Interaction
"refers to the value-creating skills an organization’s employeesbring to the marketplace.The success
of many businesses lies with the specialized skills that exist within its labour force"
Organizational Efficiencyand Structure
"is a reflection of the complexitiesof the business activitiesthat circulate within an organization"
Factors of Production - inputs (add value) to generate outputs
• Assets - any resourcesthat we require to generate income/ revenue (can be intangible
• Labour - production, accounting, finance, janitorial, executives,etc
• How many people, how to organize them, etc
• Capital - how much money we need
• Managerial acumen
• Add everything to get business model composition
• The role of the business manager/owneris to recognize, anticipate, and sense an opportunity
to create a product/servicethat is unique, important and of meaningful value to targeted
• Fundamental to this challenge is a “Strategyand 3C Assessment”
• Strategy = The specific objectivesan organization hopes to achieve during the planning
• 3 C’s = Capabilities,Competencies, Capacity
• COMPETITIVEADVANTAGE = The advantage an organization has over its competitorsthat
enables it to generate more sales, achieve greater margins (on costs), achieve a lower cost
base, and attract/retainmore customers
Fundamental objectivesof business
1. Short term profit
• Ensures immediatesu