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Efficiency-Based Company<br />
What is it<br />Not “Innovation-based Company”?<br />Innovation based company grows with power of innovating<br />Product:...
What is it (cont.)<br />Efficiency-based company<br />Is a company where it’s survival and growth depends mostly on effici...
Being efficient<br />Keeping operational cost low rather than growth from income<br />Ideally operation would grow as comp...
Cost cutting measures<br />Slow growth of workforce number<br />“use what we had in hand” attitude<br />High but controlle...
Efficiency based company
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Efficiency based company

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Transcript of "Efficiency based company"

  1. 1. Efficiency-Based Company<br />
  2. 2. What is it<br />Not “Innovation-based Company”?<br />Innovation based company grows with power of innovating<br />Product: innovative products and service, opening new opportunity, creating new strength<br />Process: changing itself and evolve to be the frontmost<br />So why not?<br />Not-supportive environment<br />Management that can’t move<br />Stakeholders won’t take the cost for the change or it will shake the flow beyond tolerance<br />The business itself doesn’t lend much room for innovation<br />e.g.: labour-intense factories with single timeless product (such as cigars)<br />
  3. 3. What is it (cont.)<br />Efficiency-based company<br />Is a company where it’s survival and growth depends mostly on efficiency to use resource and potentials it has more than any other means<br />In rude way of speaking, company that grows by milking every last drip of sweat and blood from its labours<br />Usually large company<br />Firmly grounded massive structure and process that are difficult to modify radically without taking cost and victims in the process<br />Has grown big that demand of growth more or less looks unrealistic compared to the market situation<br />
  4. 4. Being efficient<br />Keeping operational cost low rather than growth from income<br />Ideally operation would grow as company grow<br />Growth demanded has become too difficult to achieve<br />E.g. 15% growth in multi-billion Dollars business in stalling market<br />Using previously untapped potentials<br />The “milking every last drip” attitude<br />Raising stakes for individual targets<br />Overtime become norm to reach target<br />Ideally overtime is to achieve more than targetted<br />
  5. 5. Cost cutting measures<br />Slow growth of workforce number<br />“use what we had in hand” attitude<br />High but controlled use of “disposable” outsource employees<br />Early retirement offers<br />Slow vertical movements<br />Slow promotion<br />Reducing need of raise and benefits<br />Cut of benefits<br />Healthcare, family<br />Restructurization<br />Frequent changes to remove workforce in order to stay “lean and mean” in the market<br />
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