A grey area that I have seen and experienced in the business-world deals with how management executives represent their company to potential shareholders, customers, and other employees. There are conflicting principles that are involved when it comes to giving a "pitch" about the outlook, status, and opportunities of an up-and-coming company. On one hand, management wants to be as optimistic as possible to potential buyers and creditors to show that they are worth doing business with. On the other hand, there is a fine line when it comes to "puffery" and when truth gets blurred into unreasonable opinions and unlikely outlooks.
For example, If a company is standing in front of a venture capital firm and is asked the question about its growth prospects, management wants to let them know that everything will fall into place and they will land all these large contracts. However, in reality, management knows that the likelihood of all these events are very slim and their optimism turns into deception because they are representing something that is not very likely to occur.
This is a very difficult ethichal dilemma that must be faced in balancing optimism with reality. You want to stay positive, but at the same time be reasonable.
Thursday, March 31, 2011
Wednesday, March 16, 2011
Strategy Journal Entry #4: Alignment of Intramural Basketball Team
Unfortunately, the 7-S model found a way into my thoughts as I was reflecting on my intramural basketball game last night. I thought about how my team is struggling with certain alignment issues. Our superordinate goal last night was to win the first round of our division II intramural game. We tried to align our staff (team), systems (offensive plays), and skill (basketball abilities) so that we would be able to accomplish this goal.
Last night I noticed a certain misalignment with our system of substituting players into the games and how it fit in with our goal. Our team primarily consists of three guys over 6' 5'' and then four other guys who are relatively shorter. A misalignment that I notes was that sometime we would substitute so that all three tall guys on the court at the same time with only two of the small guys. Since our zone offense consists of only two centers working the blocks from side-to-side, that left one of the big guys out on the perimeter. This is obviously an uncomfortable situation for a big guy who isn't used to playing on the outside.
Another misalignment I noticed was our skill set on our team really doesn't match the skills required of a winner. We don't have any sharp-shooters on our team who can drain three-pointers, and we lack a player who has speed to be able to run the court. Often times these two skills are needed in order for a team to be consistently successful. Despite these different manifestations of misalignment, we were able to win the game!
Last night I noticed a certain misalignment with our system of substituting players into the games and how it fit in with our goal. Our team primarily consists of three guys over 6' 5'' and then four other guys who are relatively shorter. A misalignment that I notes was that sometime we would substitute so that all three tall guys on the court at the same time with only two of the small guys. Since our zone offense consists of only two centers working the blocks from side-to-side, that left one of the big guys out on the perimeter. This is obviously an uncomfortable situation for a big guy who isn't used to playing on the outside.
Another misalignment I noticed was our skill set on our team really doesn't match the skills required of a winner. We don't have any sharp-shooters on our team who can drain three-pointers, and we lack a player who has speed to be able to run the court. Often times these two skills are needed in order for a team to be consistently successful. Despite these different manifestations of misalignment, we were able to win the game!
Tuesday, February 15, 2011
Strategy Journal Entry #3: Print Me a Stradivarius
"Print Me a Stradivarious: How a new manufacturning technology will change the world" - February 10, 2011
This article talks about a new type of "additive technology" that could change the way that products are manufactured. This new type of technology essentialy would use technology to build a product layer upon layer, much as a printer is able to create an image by adding layers of ink for a picture. This article introduces issues that can affect companies "systems of activities." As manufacturing companies try to implement their various strategies, this new type of additive technologies might affect the way these activities are carried out.
For example, a company may have a competitve advantage based off of various ways they have been able to manufacture their products. But with a new technology coming out, these established competitive advantages may be threatened by competitors. Although this new type of technology is in its initial phase, companies should closely monitor the progress of this new advancement and see when it would be timely to incorporate the additive technology.
This article talks about a new type of "additive technology" that could change the way that products are manufactured. This new type of technology essentialy would use technology to build a product layer upon layer, much as a printer is able to create an image by adding layers of ink for a picture. This article introduces issues that can affect companies "systems of activities." As manufacturing companies try to implement their various strategies, this new type of additive technologies might affect the way these activities are carried out.
For example, a company may have a competitve advantage based off of various ways they have been able to manufacture their products. But with a new technology coming out, these established competitive advantages may be threatened by competitors. Although this new type of technology is in its initial phase, companies should closely monitor the progress of this new advancement and see when it would be timely to incorporate the additive technology.
Friday, January 28, 2011
Strategy Journal Entry #2: Girl Scout Cookies
From the Article: "Cookie Cutters: Girl Scouts Trim Their Lineup for Lean Times"
By Shelly Banjo - Wall Street Journal - January 27, 2011
The downturn in the economy can be felt all the way from Wall Street professionals down to the girl scout who comes to your door selling cookies. The Girl Scout organization is needing to change their strategy in order to cut costs and increase revenues. Like we studied in the Ducati case, struggling organizations cannot survive by isolating cost issues; they also need to find creative ways to enhance revenues without much backing. The Girl Scout organization are pulling both the cost and revenue lever to try to enhance the bottom line of the Girl Scout organization.
In recent years, the Girl Scouts have developed a strategy to offer new and creative cookies such as "Dulce de Leche" and "Thank You Berry Much." However, these product offerings most likely do not produce as much contribution margin as the classic "Thin Mints" and "Samoas." The Girl Scouts have also neglected their marketing efforts in the last six years due to their established brand awareness. Now that folks are downsizing their spending, the Girl Scout organization is going to mirror this sentiment by cutting their exotic cookies and go back to only offering the traditional cookies. This article shows how decisions and strategies need to adapt with changing times.
By Shelly Banjo - Wall Street Journal - January 27, 2011
The downturn in the economy can be felt all the way from Wall Street professionals down to the girl scout who comes to your door selling cookies. The Girl Scout organization is needing to change their strategy in order to cut costs and increase revenues. Like we studied in the Ducati case, struggling organizations cannot survive by isolating cost issues; they also need to find creative ways to enhance revenues without much backing. The Girl Scout organization are pulling both the cost and revenue lever to try to enhance the bottom line of the Girl Scout organization.
In recent years, the Girl Scouts have developed a strategy to offer new and creative cookies such as "Dulce de Leche" and "Thank You Berry Much." However, these product offerings most likely do not produce as much contribution margin as the classic "Thin Mints" and "Samoas." The Girl Scouts have also neglected their marketing efforts in the last six years due to their established brand awareness. Now that folks are downsizing their spending, the Girl Scout organization is going to mirror this sentiment by cutting their exotic cookies and go back to only offering the traditional cookies. This article shows how decisions and strategies need to adapt with changing times.
Thursday, January 20, 2011
Strategy Journal Entry #1: NBA Teams Swimming in New Profit Pools
"NBA Game Promises to Be a Turkey? Send in the Turks - or the Filipinos"
Joel Millman, Wall Street Journal - January 19, 2011
Several NBA teams have started to venture into new "profit pools" in order to increase their revenues from game attendance. The winning teams can leverage their team's success in order to fill seats; however, losing teams are stuck with the difficulty of implementing various activities and ideas to generate revenue. One emerging profit pool that has been found is to hosting heritage events that honor the international players in the NBA. For example, NBA teams will host a Israeli related cultural night in honor of Omri Casspi who is the lone NBA player from Israel. NBA teams can market their games to the Israeli-American population by offering kosher food, yarmulkes, etc. when they designate a night to honor Casspi's appearance.
These types of activities show that teams are pursuing different strategies in order to fill as many seats as possible. In the business of the NBA, the team with talented players are often able to generate more revenue which will lead to more success, whereas the teams that struggle to obtain sufficient revenue are left to search for profits in different pools. This story is a great example of how in the professional sports industry, teams are constantly searching for ways to attract more spectators to the game.
Joel Millman, Wall Street Journal - January 19, 2011
Several NBA teams have started to venture into new "profit pools" in order to increase their revenues from game attendance. The winning teams can leverage their team's success in order to fill seats; however, losing teams are stuck with the difficulty of implementing various activities and ideas to generate revenue. One emerging profit pool that has been found is to hosting heritage events that honor the international players in the NBA. For example, NBA teams will host a Israeli related cultural night in honor of Omri Casspi who is the lone NBA player from Israel. NBA teams can market their games to the Israeli-American population by offering kosher food, yarmulkes, etc. when they designate a night to honor Casspi's appearance.
These types of activities show that teams are pursuing different strategies in order to fill as many seats as possible. In the business of the NBA, the team with talented players are often able to generate more revenue which will lead to more success, whereas the teams that struggle to obtain sufficient revenue are left to search for profits in different pools. This story is a great example of how in the professional sports industry, teams are constantly searching for ways to attract more spectators to the game.
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