" INNOVATIVE BUSINESS PRINCIPLES AND MANAGEMENT MARLON B. SIM Manager at PJ Lhuillier Group of Companies
Topics:Definition of terms: Management Basic Functions of a Manager Business Strategy Business Principles By Steve Jobs
MANAGEMENT- in all business andorganizational activities is theact of getting people togetherto accomplish desired goalsand objectives using availableresources efficiently andeffectively.Management comprisesplanning, organizing, staffing,directing, and controlling andorganization (a group of one ormore people or entities) oreffort for the purpose ofaccomplishing a goal.
ManagerManager may refer to:Anyone who uses management skills orholds the organizational title of "manager".• A manager of a department in an organization• A manager of a division (business)• General manager, for managing both the revenue and cost elements of an organization• Project manager, for individual projects• Manager (baseball), head coach of a professional baseball team• Manager (association football), for association football• Coach (sport), in other sports• Manager (professional wrestling), a fictional character• Talent manager, for musicians, actors and other artists• Bank manager
What is a manager?A manager is a person tasked withoverseeing one or more employees ordepartments to ensure these employeesor departments carry out assigned dutiesas required. Depending on the size of thecompany there might be a single, dual ortriple management layer involved.
Basic Functions of a ManagerPlanning: This step involves mapping outexactly how to achieve a particular goal.Organizing: After a plan is in place, amanager needs to organize her team andmaterials according to her plan.Staffing: After a manager discerns hisareas needs, he may decide to beef uphis staffing by recruiting, selecting, training,and developing employees.
Basic Functions of a ManagerLeading/directing: A manager needs todo more than just plan, organize, and staffher team to achieve a goal. She must alsolead.Controlling: After the other elements arein place, a managers job is not finished.He needs to continuously check resultsagainst goals and take any correctiveactions necessary to make sure that hisareas plans remain on track.
Planning“Well plan is halfdone”- means looking ahead and chalking out future courses ofaction to be followed. It is a preparatory step. It is asystematic activity which determines when, how and who isgoing to perform a specific job. Planning is a detailedprogramme regarding future courses of action.“Planning is deciding in advance what to do, how to do andwho is to do it. Planning bridges the gap between where weare to where we want to go. It makes possible things to occurwhich would not otherwise occur”.
PlanningA plan ensures that there issome level of focus on theactivity and all stakeholdersknow what they can expectand when they can expect it.Without a plan nobody willnotice if timings are no longeradhered to and the projectgets delayed or tooexpensive to be beneficial.Not planning can result inexpensive deviations andfailures.
OrganizingOrganizing is the function of managementwhich follows planning. It is a function inwhich the synchronization and combinationof human, physical and financial resourcestakes place. All the three resources areimportant to get results.
OrganizingIf a manager provides thestrategy and the planning, butthen washes his hands fromthe actual implementation tofocus on the next plan, thereis a risk that the team will notbe able to achieve theimplementation. They mightnot understand fully therequirements or dont feel thatthe task is important to theirmanager.
StaffingStaffing involves manning theorganization structure through properand effective selection, appraisal anddevelopment of the personnel to fillthe roles assigned to theemployers/workforce.
Leading/DirectingDirecting is said to be the heart of managementprocess. Planning, organizing, and staffing have gotno importance if direction function does not takeplace.Directing is said to be a process in which themanagers instruct, guide and oversee theperformance of the workers to achievepredetermined goals.Directing is the function of guiding, inspiring,overseeing and instructing people towards
Leading/DirectingIf a manager neglects hisresponsibility to lead his team, theteam will be less productive andmotivated. They might lose track ofwhat is important and what isexpected of them. This might resultin high staff turnover and loss ofinternal knowledge, but also inunsuccessful campaigns andprojects.Without a good team, a managerwill find it hard to achieve businesssuccess. And without being a goodmanager and leading the team, amanager will find it hard to have agood team.
ControllingControl in management means setting standards,measuring actual performance and taking correctiveaction. Controlling measures the deviation of actualperformance from the standard performance,discovers the causes of such deviations and helps intaking corrective actions. Controlling helps to check the errors and to take thecorrective action so that deviation from standards areminimized and stated goals of the organization areachieved in desired manner.
ControllingWithout consistent controlling amanager wont know if theirbudget is spent in the mostprofitable way and a managermight not notice the signs whenchanges should beimplemented. It will reduce thereturn of investment andtherefore limit the success amanager can achieve within hisdepartment.Without measuring andcontrolling, the team wont knowif what they do is best for thecompany and cannot learn fromprevious mistakes. Therefore
What Do We Mean By “Strategy”? Consists of competitive moves and business approaches used by managers to run the company Management’s “action plan” to Grow the business Attract and please customers Compete successfully Conduct operations Achieve target levels of organizational performance
Key Elements of a SuccessfulStrategy Developing a successful strategy hinges on making competitive moves aimed at Appealing to buyers in ways to set the enterprise apart from rivals and Carving out its own market position Involves developing a distinctive “aha” element to Attract customers and Produce a competitive edge Copying competitive moves of other successful companies rarely works!
A Powerful Strategy Leads toSustainable CompetitiveAdvantage A company achieves sustainable competitive advantage when an attractive number or buyers prefer its products/services over those of rivals and when the basis for this preference can be maintained over time Its nice when a strategy produces a temporary competitive edge but a durable edge over rivals greatly enhances a company’s prospects for winning in the marketplace and realizing above- average profits What separates a powerful strategy from an ordinary strategy is management’s ability to forge a series of moves, both in the marketplace and internally, that produces sustainable competitive advantage!
Four “Best” Strategic Approaches toBuilding Sustainable Competitive Advantage Being the industry’s low-cost provider (a cost-based competitive advantage) Incorporate differentiating features (a “superior product” type of competitive advantage keyed to higher quality, better performance, wider selection, value-added services, or some other attribute) Focusing on a narrow market niche (winning a competitive edge by doing a better job than rivals of serving the needs and preferences of buyers comprising the niche) Developing expertise and resource strengths not easily imitated or matched by rivals (a capabilities-based competitive advantage)
Competitive AdvantageExamples Strive to be the industry’s low-cost provider Wal-Mart Southwest Airlines Outcompete rivals on a key differentiating feature Johnson & Johnson – Reliability in baby products Harley-Davidson – King-of-the-road styling Rolex – Top-of-the-line prestige Mercedes-Benz – Engineering design and performance L.L. Bean – Good value Amazon.com – Wide selection and convenience
Competitive Advantage Examples(cont) Focus on a narrow market niche eBay – Online auctions Jiffy Lube International – Quick oil changes McAfee – Virus protection auctions Starbucks – Premium coffees and coffee drinks The Weather Channel – Cable TV Develop expertise, resource strengths, and capabilities not easily imitated by rivals FedEx – Next-day delivery of small packages Walt Disney – Theme park management and family entertainment Toyota – Sophisticated production system Ritz-Carlton – Personalized customer service
What Is a Business Model? A business model addresses “How do we make money in this business?” Is the strategy capable of delivering good bottom-line results? Do the revenue-cost-profit economics of the strategy make good business sense? Look at revenue streams the strategy is expected to produce Look at associated cost structure and potential profit margins Do resulting earnings streams and ROI indicate the strategy makes sense and the company has a viable business model for making money?
Relationship BetweenStrategy and Business Model Strategy . . . Business Model . . . Deals with a company’s Concerns whethercompetitive initiatives and revenues and costs flowing business approaches from the strategy demonstrate a business can be amply profitable and viable
Why Is Strategy Important? A compelling need exists for managers to proactively shape how a firm’s business will be conducted A strategy-focused firm is more likely to be a strong bottom-line performer than one that views strategy as secondary
Good Strategy + Good StrategyExecution = Good Management Crafting and executing strategy are core management functions Among all things managers do, nothing affects a company’s ultimate success or failure more fundamentally than how well its management team Charts a company’s direction, Develops competitively effective strategic moves and business approaches, and Pursues what needs to be done internally to produce good day-in/day-out strategy execution Excellent execution of an excellent strategy is the best test of managerial excellence – and the most reliable recipe for winning in the marketplace!
Tips for Innovative BusinessSuccess 1. Do what you love. "People with passion can change the world for the better." 2. Put a dent in the universe. “Believe in the power of vision”. 3. Kick start your brain. “Creativity is connecting things”. 4. Say no to 1,000 things. “Proud of what Apple chose not to do as he was of what Apple did”.
Tips for Innovative BusinessSuccess 5. Create insanely different experiences. “Innovation in the customer-service experience”. 6. Master the message. “You can have the greatest idea in the world, but if you cant communicate your ideas, it doesnt matter”. 7. Sell dreams, not products. “captured our imagination because he really understood his customer”.