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Summary on “ALWAYS A WINNER”       The title of the book is “Always a winner: Finding your competitive advantage in anup a...
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Always a winner

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Summary of the book : Always a winner, by Peter Navarro.

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Transcript of "Always a winner"

  1. 1. Summary on “ALWAYS A WINNER” The title of the book is “Always a winner: Finding your competitive advantage in anup and down economy”. And the author is Peter Navarro. The book was published in the yearof 2009 by Wiley-India publishers. A recession can do far more damage to your organization than any of your tentoughest competitors. Without question, this is the most important lesson that businessexecutives have all too painfully learned in the carnage of the 2007-2009 economic crash.In a very pragmatic way, the book offersuseful guidance to help companies survive and thrivein the increasingly risky conditions of the twenty-first century, revealing how wecan:Forecast movements and key recessionary turning points in the business cycle,implement a set of “battle-tested” strategies over the course of the business cycle, rebuild ourorganization with a broader strategic business cycle orientation and make our organizationmore recession-resistant resilient over the longer term. Navarro investigates how an organization can better assess the economic cycle inorder to subsequently prepare itself in a way that ensures a continuous advantage over thecompetition. In Always a Winner, the successor to The Well-Timed Strategy from 2006,Navarro develops his position based on quite a large amount of research that shows that arecession does more harm than the ten strongest competitors. Interestingly, Navarro (or so heclaims) not only uses the same method as Jim Collins (for his book Good to Great), i.e.conducting a pairwise comparison of, in this case, organizations who survive a recessioneither strongly or poorly, but he also considers something that Collins has overlooked.According to Navarro, truly „good‟ companies has an excellent knowledge of economic andfinancial market indicators and use this knowledge to actively manage the strategic businesscycle, which is the cycle in which the economy goes up and down in turns. This means that they work in a countercyclical manner based on that information: 1)reducing stock before the peak in the cycle instead of producing large quantities of productsfor anticipated sales that never materialize and, as a result, not being left with unmarketableproducts when demand collapses, 2) hiring extra staff before the low point in the cycle hasbeen reached instead of firing (more) employees, in order to be prepared for the upcominggrowth and enticing the best people away from the competition, 3) at the least, keepingmarketing and advertising expenses at the same level at before the recession, but spending in 1
  2. 2. a more targeted manner, resulting in greater impact since the competition no longeradvertises, and 4) investing and taking over during the low point of the cycle, as this is whenthe best bargains are to be had. Organizations that follow these recommendations are calledMaster Business Cycle Managers and their ability to deal effectively with the strategicbusiness cycle ensures that they emerge from difficult times as the winners. Navarro‟s research shows that an organization must develop the following three skillsin order to become a Master Business Cycle Manager:Ability to predict the economiccycle,ability to apply strategies for managing economic cycles in a well-timed manner andcreating the Master Business Cycle Organization.Navarro examines in depth the economictheory that is necessary to become a Master Business Cycle Organization and does it in a waythat is also easy for a layperson to follow. Navarro does not really closely examine the connection between the skill needed tobecome a Master Business Cycle Organization and the results of other research into highperformance organizations (HPOs). As a result, it can appear that an organization only needsto become adept in strategic business cycle management. But a company needs to not onlysee the economic turning points approaching, but also have the ability to use them to itsadvantage. By learning to strategically manage the business cycle, an organization will be able tocreate a powerful competitive and sustainable advantage over its rivals and thereby find thegrail sought by every executive team in the world-superior financial performance. In thisway, Always a Winner provides us with the in-depth insight and practical advice we need tohelp our company sustain in the perilous economic conditions of the 21st century. I feel thisbook beautifully demonstrates how to skilfully anticipate the ups and downs of the economyand successfully navigate through them. Submitted by: Swarupa Rani Sahu (F11116) 2
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