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Midterm Review - Articles.docx

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Simon Fraser University
Business Administration
BUS 201
Peter Tingling

ARTICLES REVIEW 1) "Managing Oneself," by Peter F. Drucker In order to manage yourself  Know your strengths: through feedback analysis, compare actual results with your expectations -- > shows how you can improve and what to do or not to do o A person can perform only from strength, cannot build on weakness o Feedback analysis can show you maybe within 2-3 years where your strengths lie o Shows you full benefits of strength, Shows you where you are not competent, Shows you where you have no strengths and cannot perform o Work on improving your strength o Find your intellectual arrogance and overcome your ignorance o Also important to remedy your bad habits o Feedback also tells you when the problem is lack of manners o Analysis tells you what not to do and that you should not waste effort trying to improve in that area  How you perform: different people perform differently o Non-performance is guaranteed if people work in ways that are not their ways o How a person is performs is given o Reader or listener? o How do you learn? - to be forced to learn the way a school teaches can be difficult for students who learn differently. Learn by writing, note taking, talking?, working best as a team or individually, producing results as a decision maker or advisor? o How you perform under stress, in different environments o Don't change yourself but work hard to improve the way you perform  What are your values: o "mirror test" what kind of person you want to see in the mirror o Ethical behaviour in a kind of organization or situation o It is difficult if you do not accept the company's decisions/value system --> nonperformance o you must have compatible values with an organization in order to work for them  Where do you belong: whether you can take part in a particular position o People should at least be able to decide where they do not belong  What you should contribute: what your situation requires o how you can make the greatest contribution based on your strengths, what results have to be achieved to make a difference must address three distinct elements: What does the situation require? Given my strengths, my way of performing, and my values, how can I make the greatest contribution to what needs to be done? And finally. What results have to be achieved to make a difference?  Responsibility for relationships: work effectively with others, make use of their strengths o Have to know strengths, performance modes, values of your coworkers - since everyone is different o Take responsibility for communication o Trust b/t people - understanding one another  The second half of your life: o three ways to develop a second career - start one (move from one organization to another), develop a parallel career (having another job), social entrepreneurs (have been successful and love what they do) prerequisite for managing the second half of your life: You must begin long before you enter it. 2) "What Is Strategy?" by Michael E. Porter  ***KNOW DIFFERENCE BETWEEN OPERATIONAL EFFECTIVENESS AND STRATEGY  Operational effectiveness is not strategy  OE: performing similar activities better than rivals perform them. Includes but is not limited to efficiency. Refers to any practices that allow a company to better utilize its inputs, for ex by reducing defects in products or developing better products faster  In contrast, strategic positioning means performing different activities from rivals' or performing similar activities in different ways  Constant improvement in OE is necessary to achieve superior profitability o However, resulting major productivity gains are being captured by customers and equipment suppliers, not retained in superior profitability o Also competitive convergence is more subtle and insidious - activities start looking alike  Strategy rests on unique activities: essence is to deliberately choose to perform activites differently than rivals do  Strategic positions emerge from 3 sources: o Can be based on producing a subset of an industry's products/services (variety based positioning): company can produce particular products/services using distinctive sets of activities o Serving most or all the needs of a particular group of customers (needs based positioning) o Segmenting customers who are accessible in different ways (access based positioning): anything that requires a diff. set of activities to reach customers in the best way  A sustainable strategic position requires trade-offs o Create the need for choice o Arise for 3 reasons: inconsistencies in image/reputation, from activities themselves, limits on internal coordination and control  Fit drives both competitive advantage and sustainability o Strategies is all about combining activities and how they relate to one another o Types of fit  simple consistency b/t each activity and the overall strategy (makes it easier to communicate to customers, employees, shareholders, etc)  Activities are reinforcing: supporting the product  Optimization of effort: product availability o Competitive advantage grows out of the entire system of activities o Fit reduces cost or increases differentiation o Also important for sustainability o Requires the integration of decisions & actions o Creates pressures and incentives to improve operational effectiveness - make imitation even harder  Strategy is creating among a company's activities. Success depends on doing many things well and integrating among them  Rediscovering strategy o Failure to choose - threats to strategy --> changes in technology, behaviour of competitors  Internal threat --> misguided view of competition, by organizational failures and especially, by the desire to grow  Managers don't understand the need for a strategy -- go for OE  May imitate their competitors  Mistake "customer focus" o The growth trap  Trade-offs and limits constrain growth  Pressure to grow lead managers to broaden the position by extending product lines, adding new features, imitating competitors, matching processes and even making acquisitions o Profitable growth  Efforts to blur uniqueness, create compromises, reduce fit, and ultimately undermine competitive advantage o The role of leadership  Strong leaders willing to make choices are essential  General management's core is strategy: defining and communicating the company's name, making trade-offs, and forging fit among activities  Requires constant discipline and clear communication - important to guide employees in making choices that arise because of trade-offs in their individual activities and in day-to-day decisions 3) "What Makes a Leader?" by Daniel Goleman Emotional Intelligence  Self-awareness: how their feelings affect them, others and their job performance, understanding of your values and goals, assess oneself realistically, can be recognized by self confidence  Self regulation: control of your feelings and impulses can create an environment of trust and fairness, important for competitive reasons, can roll with changes, enhances integrity, a propensity for reflection and thoughtfulness; comfort with ambiguity and change; and integrity- an ability to say no to impulsive urges.  Motivation: achieving beyond expectations, passion for work itself, driven to do better, pursue goals with energy and persistence, remain optimistic Empathy: thoughtfully considering employees' feelings in the process of making decisions,  understand the team's emotional makeup, improve companies through talent  Social skill: moving people in the direction you desire, effective at managing relationships Emotional intelligence increases with age --> maturity, some people still need training to enhance their emotional intelligence 4) "The Core Competence of the Corporation," by C.K. Prahalad and Gary Hamel Roots of competitive advantage  Company's competitiveness derives from the price/performance attributes of current products  Ability to build at lower cost and faster than competitors the core competencies that spawn unanticipated products  Technologies and product skills  Communication, involvement and a deep commitment to working across organizational boundaries Identifying core competencies  Provides potential access to a wide variety of markets o Participate in diverse businesses  Should make a significant contribution to the perceived customer benefits of the end product  Should be difficult for competitors to imitate o Need individual technologies and production skills  Not about outspending rivals in R&D  Not about shared costs  More ambitious and different than integrating vertically Core products: components that actually contribute to the value of the end products forces a company to distinguish b/t the brand share it achieves in end product markets and the manufacturing share it achieves in any particular core product  Need dominant position in core products - have control 3 diff. planes on which battles of global leadership are waged: core competence, core product, end product  End product battle is more difficult  Problems in others o Underinvestment o Imprisoned resources o Bounded innovation  Goal is to build world leadership in design and development of a particular class of product functionality 5) "Innovation: The Classic Traps," by Rosabeth Moss Kanter 1. Dawn of the global information age in the late 1970s and early 1980s: introduces new industries 2. Pressure to restructure during the takeover scare of the late 1980s: emerging software, main force behind innovation 3. Digital mania of the 1990s: promise/threat of the world wide web -> businesses had to seek new models 4. Current wave followed the dot come crash and global recession  Waves central focus is on new products designed to offer users new features and functionality to meet emerging needs  Each wave brought new concepts Strategy mistakes: hurdles too high, scope too narrow  Potential for premium prices and high margins lures executives to seek blockbuster innovations  Have to be willing to risk more failures to get more successes Process mistakes: controls too tight Structure mistakes: connections too loose, separations too sharp Skills mistakes: leadership too poor, communication too poor Innovation remedies: Strategy remedy: widen the search, broaden the scope Process remedy: add flexibility to planning and control systems Structure remedy: facilitate close connections between innovators and mainstream businesses Skills remedy: select for leadership and interpersonal skills, and surround innovators with a supportive culture of collaboration 6) "Meeting the Challenge of Disruptive Change," by Clayton M. Christensen and Michael Overdorf  Managers need to be skilled not just in assessing people but also in assessing the abilities and disabilities of their organization as a whole  Must understand what types of changes the existing organization is capable and incapable of handling  Where capabilities reside. Factors that affect what an organization can/cannot do: o Resources  both the tangible ones like people, equipment, technologies, and cash, and the less tangible ones like product designs, information, brands, and relationships with suppliers, distributors, and customers o Processes  patterns of interaction, coordination, communication, and decision making employees use to transform resources into products and services of greater worth o Values  Dictates the way the company judges acceptable gross margins  How big a business opportunity has to be before it can be interesting  The Migration of capabilities o Over time, the locus of the organization's capabilities shifts toward its processes and values. o factors that define an organization's capabilities and disabilities evolve over time-they start in resources; then move to visible, articulated processes and values,- and migrate finally to culture o However, disabilities are also considered and when the organization's capabilities reside primarily in its people, changing capabilities to address the new problems is relatively simple. But when the capabilities have come to reside in processes and values, and especially when they have become embedded in culture, change can be extraordinarily difficult  Sustaining versus disruptive innovation o Successful companies are good at responding to sustaining innovation, but have trouble dealing with disruptive innovation o Sustaining technologies are innovations that make a product or service perform better in ways that customers in the mainstream market already value. The resources-process-value routine exists o Disruptive innovations create an entirely new market through the introduction of a new kind of product or service, one that's actually worse, initially, as judged by the performance metrics that mainstream customers value. occur so intermittently that no company has a routine process for handling them Inconsistent with the company's established values Creating capabilities to cope with change o Managers must create organizational space where new capabilities can be developed  create new organizational structures within corporate boundaries in which new processes can be developed spin out an independent organization from the existing organization and develop within it the new processes and values required to solve the new problem acquire a different organization whose processes and values closely match the requirements of the new task. o Creating new capabilities internally  When processes (people/groups) need to change, managers need to pull the relevant people out of the existing organization and draw a new boundary around a new group  "heavyweight teams"** new team boundaries facilitate new patterns of working together that ultimately coalesce as new processes o Creating capabilities through a spinout organization  When the mainstream organization's values would render it incapable of allocating resources to an innovation project, the company should spin it out as a new venture  Only required when a disruptive innovation requires a different cost structure or when the current size of the organization is insignificant relative to the growth needs  when disruptive change appears on the horizon, managers need to assemble the capabilit
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