This paper analyzes concepts related to innovation, small businesses, and not-for-profits from various articles. It discusses how companies must focus on developing new technologies and products to drive innovation, and how not-for-profits face challenges in strategic decision making. The paper also examines how strategic piggybacking can help not-for-profits raise funds, and how new ventures can differentiate themselves and focus on customer needs. The analysis shows how these concepts apply to real organizations like Procter & Gamble, Kodak, Susan G. Komen Foundation, National Council of La Raza, and YouFit Health Clubs. The student learned the importance of applying classroom concepts to understand business challenges and strategies
GLOBAL STRATEGY AND POLICY MAN 4720, Schwartz Distanc.docx
1. GLOBAL STRATEGY AND POLICY
MAN 4720, Schwartz: Distance Learning
COURSE INFORMATION HANDOUT NUMBER 6.1
APPLIED CONCEPT PAPER – STUDENT SAMPLE
Applied Concept Paper
Module F
Web Chapter A – Strategic Issues in Managing Technology and
Innovation
Web Chapter B – Strategic Issues in Entrepreneurial Ventures
and Small
Businesses
Web Chapter C – Strategic Issues in Not-For-Profit
Organizations
2. Janet Gomez
Z: 0000
November 18, 2012
Prepared for: Professor Harry Schwartz
Kevin Concilio
Kevin Concilio
Kevin Concilio
1
Contents
Executive
Summary……………………………………………………………...
..2
Abstracts………………………………………………………………
4. will transition to the complications that not-for-profit’s can
face when formulating a
strategy, and how strategic piggybacking can bring exposure to
an organization. Finally,
this paper will identify some effective new venture business
strategies. The purpose of
this paper is to apply these key concepts listed to real world
business articles. The
concept of this paper is important to business students because
it helps future
entrepreneurs to understand strategies and concepts that are
used by businesses. I learned
from this assignment that every business is faced with many
issues and that it is the way
that the management concepts we are learning about are applied
the help them
strategically find a way to deal with these hurdles. Success or
failure in their industries
may depend on it.
Abstracts
1. At Proctor & Gamble, the Innovation Well Runs Dry, Lauren
Coleman-Lochner
and Carol Hymowitz, 6 September 2012
5. Proctor & Gamble is faced with one of its biggest challenges in
their history, keeping up
with emerging innovation that is being created in new product
categories. The company
has been known for launching new pioneering products and
opening the doors for
different product categories. Lately, though the company has
found itself focusing mainly
on product extensions and embellishments on their current
product line. The article
blames the CEO of Proctor & Gamble, Bob McDonald. Proctor
& Gamble’s main issue is
that top management need to find a way to reverse market share
declines and they need to
emphasize to management what is really important so they can
climb back to the top of
the industry.
2. The Kodak Lie, Larry Keeley, 18 January 2012
Kodak, who was once the classic American innovative and
inventive symbols of our
country, has tragically demised. The company missed their
moment of breakthrough
when new digital photography replaced film photography.
6. Although Kodak’s leaders
knew about the impending shift to digital, they failed to realize
that they couldn’t shift
technology with their signature strengths in film. The company
instead focused on their
3
current technologies such as organic chemistry, optics and films
without trying new
unfamiliar technologies. Essentially, Kodak needed to formulate
ideas outside of the box
and focus on what new innovations their consumers wanted and
needed.
3. Susan G. Komen for the Cure Defunds Planned Parenthood,
Ruth McCambridge,
01 February 2012
Susan G. Komen for the cure, earlier this year, decided that it
would no longer provide
funds to Planned Parenthood for performing breast exams. This
move was a huge risk
that was taken to support pro-life efforts to cut Planned
Parenthood’s federal funding.
7. The reason for the defunding provided by the foundation is their
newly passed policy that
disallows the organization from providing funds for
organizations under congressional
investigation. This new move has raised a lot of controversy for
the organization and the
decision has brought up questions on what the real motive of the
foundation is.
4. La Raza Conference Explores Social Media Strategies, Aine
Creedon, 11 July
2012
This article discusses the not-for-profit organization the
National Council of La Raza’s
recent social media strategies. The organization has been
researching strategies that are
being used that could further develop their brand and help raise
funds online. Social
media is providing the tools that can be used for organizations
to develop and implement
new strategies that will give their brand recognition, which will
in turn generate new
revenue for not for profit agencies. Benefits for an
organization’s shift to social media
8. can be the start of a new venture and achieving new social
goals.
5. At Youfit Health Clubs, patrons can Feel the Burn without
Bells, Whistles,
Alexandra Clough, 18 May 2012
Youfit health Clubs stemmed from Planet Fitness founder Rick
Berks, is a health club
that offers the basics such as resistance training, weightlifting
and cardio, without the
extra bells and whistles that more expensive health clubs offer.
The more expensive
health clubs offered services such as racquetball, basketball,
spas, classes and indoor
swimming pools. The founder would describe these clubs
as a “see and be seen” kind of
attitude about the club. He decided to make a club that is non-
judgmental, affordable, and
still has new equipment, a clean environment, individual
TV’s and iPod/mp3 ports.
Youfit doesn’t have a target group of people;; all types
of people feel more comfortable in
their clubs regardless of age or fitness level.
9. 4
Concepts
1. The Role of Management in Innovation: The most important
driver of corporate
value is innovation. It is important for a company to generate a
strong return from
investment in R&D, and at the same time take innovative risks.
Management has an
obligation to not only encourage new product development but
also develop a system to
ensure that technology is being used most effectively, with the
consumer in mind. The
importance of technology must be reinforced by top
management and encouraged by
everyone throughout the corporation. If top management lacks
desire to concentrate on
investing time and money on innovation, then managers will
follow their lead and show
no interest in the subject.
2. Technological Developments: Corporations need to keep up
with the external
developments of technological advances. When a corporation
falls behind on technology
that can put them in an extremely dangerous point. Companies
that are in the lead of their
10. industry must not focus too closely on ways to improve their
current product line, instead
must focus on new developments that could be their next
technological advance.
Technology grows at an extremely fast rate and it is difficult for
a company to keep up or
surpass that rate if they are not focusing externally. The book
explains one way to learn
about new technological developments in an industry. The
company should locate their
research and development centers in locations where there is a
strong impact on that
products development. Ultimately, that will put their key
employees where they need to
be where the leading edge of technology is.
3. Complications to Strategy Formulation: One of the main
issues in strategic
management for not-for-profit agencies is the tendency to make
decisions based on a
mission rather than a strategy. Not-for-profits’ continued long
range planning and
decision-making can be affected by certain constraints that can
have a negative effect on
11. the formulation of an effective strategy. One constraint can be
when a goal of an
organization can interfere with rational planning. Decisions can
be made by the
organization based on pressures of stakeholders, which make
significant contributions, to
the detriment of the organization as a whole. These decisions
can have a negative effect
on the contributions to the organization, because people may
not agree with the motives
of the decision.
5
4. Strategic Piggybacking: The term strategic piggybacking,
which was coined by
Nielson, is the development of a new activity for a not-for-
profit organization that
generates funds to make up the difference between revenues and
expenses. The purpose
of the new activity is to help the primary service program
generate new revenue yet still
be related to the organizations mission. Strategic piggybacking
is not a new strategy, and
12. it’s actually really popular in not-for-profit agencies. A
great portion of large and popular
not-for-profit’s revenue since the 1970’s has been from
numerous forms of new ventures.
The IRS however advises not-for-profits to not engage in these
types of activities because
it may jeopardize their tax-exempt status if income exceeds 20%
of total revenues from
the activity.
5. New Venture Business Strategy: The two keys for success in
new ventures,
according to Hofer and Sandberg, are (1) to differentiate the
product from those of other
competitors in the areas of quality and service, and (2) to focus
the product on customer
needs in a segment of the market in order to achieve a dominant
share of that part of the
market. It is important for a new venture to study their
competitors, and the needs of their
consumers in order to understand how they would respond to the
companies’ entrance
into the market. To continue growth the company can emphasize
their continued
13. innovation and pursue natural growth in the market.
Additionally, a firm can further
success by forming a strategic alliance with similar markets.
Analysis
1. The Role of Management in Innovation: The CEO of Proctor
and Gamble has
recently been under fire because of failing to keep up
with P&G’s breakthrough image.
Proctor and Gamble is known for their innovative products and
for introducing the
consumers to new product categories. Recently there has been a
decline in the pioneering
of their brands. P&G’s CEO Bob McDonald has
management sectioned in units, which
has slowed innovation. The corporation has instead focused on
reformulating products
and not on inventing new products. As a result of this
customers, have been switching to
cheaper competitors such as Unilever as well as store brands.
Customers don’t mind
paying for technological advances in their household products,
but they do not want to
keep paying the high price for an extended version of the
product when they can get the
14. same advance from a cheaper brand. P & G needs to refocus on
technological
competence as it did in past years.
6
2. Technological Developments: Kodak in the mid 1990’s
was a healthy company.
Kodak was known for developing high end products from their
continued focus on their
signature strengths organic chemistry, optics and films. What
they failed to realize was
that though they focused on innovation of their familiar
products, technology was shifting
to newer unfamiliar things. Kodak missed view of new
developments from businesses
rivals that quietly engineered and focused on new digital
technology basically ignoring
the product life cycle. Unfortunately, they continued to lose
market share in the industry
that they once dominated and because of the lack of new
developments, they would not
be able to regain those consumers.
15. 3. Complications to Strategy Formulation: The Susan G. Komen
foundation for Breast
Cancer Awareness was recently hit hard for withdrawing
funding to Planned Parenthood.
The backlash caused a wave of resignations and the brand has
overwhelmingly
plummeted during their first quarter after the announcement.
The reason that Komen has
given for the action is that its board has just now passed a
policy that disallows them
from funding any organization under congressional
investigation. Susan G. Komen
foundation failed to strategize the decision before making it;
they needed to fully
implement the consequences from all angles before deciding. In
order to proceed from
this decision, Komen needs to become aware of the danger of
goal displacement and
focus on a strategy instead of its mission. This is good example
of the special challenges
organizational governance issues presents to Not-For-Profits.
4. Strategic Piggybacking: The National Council of La Raza
(NCLR) recently decided
to enter new activities with social media, essentially to further
their brand and online
16. funding. One of the new strategies on the panel is accepting
mobile donations. Donors
can easily contribute to the organization using their mobile
devices giving them the
option of donating from anywhere at anytime. A new Facebook
tool for not-for-profit’s
called Facebook Causes is another media strategy that would
allow organizations to draw
attention and raise funds for them online. Also the foundation
has been partaking in
Twitter chats and interacting with Google to qualify for Google
Grants. These new
activities that the National Council of La Raza are engaging in
are forms of strategic
piggybacking which is allowing not-for-profits to generate
revenue and achieve their
social goals.
7
5. New Venture Business Strategy: Youfit Health Clubs came
into an industry that has
been around for a while but the company has become a success
because of their business
17. strategy. Youfit focused on what their customers really wanted
in a health club, instead of
targeting the stereotype of health club goers. Youfit’s Business
strategy targeted both
Hofer and Sandberg’s keys to success. The company
differentiated the health club by
providing the basic needs in a health club making it affordable
to consumers in a hurting
economy. Youfit used a differentiation strategy to focus on its
customers’ needs by
providing the services that they requested without the
extra services that they didn’t use.
This strategy that the founder implemented has made the health
club successful.
Conclusion
In Summary, it is important for today’s future entrepreneurs
to be able to apply concepts
and strategies learned in the classroom to real word business
problems. This paper
provided me with a better understanding of innovation and
technological development. In
the twenty-first century innovation has become a main focus for
a corporation whether
18. small, large, for-profit, or not-for-profit. Small businesses and
not-for-profit agencies also
need to focus on strategies and implementation just as much as
a huge corporation does.
The business world keeps growing at a fast rate and in order to
succeed, you need to be
able to compete. The lessons learned in the classroom can help
an organization compete
and succeed today and in the future.
8
Appendices
a. Bibliography
Clough, Alexandra. "At Youfit Health Clubs, Patrons Can Feel
the Burn without Bells,
Whistles." At Youfit Health Clubs, Patrons Can Feel the Burn
without Bells. The Palm
Beach Post, 18 May 2012. Web. 17 Nov. 2012.
<http://www.palmbeachpost.com/news/business/at-youfit-
health-clubs-patrons-can-feel-
19. the-burn-w/nPKT9/>.
Colman-Lochner, Lauren, and Carol Hymowitz. "At Proctor &
Gamble, the Innovation
Well Runs Dry." Bloomberg Businessweek. Bloomberg.com, 6
Sept. 2012. Web.
17 Nov. 2012. <http://www.businessweek.com/articles/2012-09-
06/at-procter-
and-gamble-the-innovation-well-runs-dry>.
Creedon, Aine. "NPQ." La Raza Conference Explores Social
Media Strategies. Nonprofit
Quarterly, 11 July 2012. Web. 17 Nov. 2012.
<http://www.nonprofitquarterly.org/policysocial-context/20634-
la-raza-
conference-explores-social-media-strategies.html>.
Keeley, Larry. "The Kodak Lie." Fortune Tech Technology
Blogs News and Analysis
from Fortune Magazine RSS. CNN Money, 18 Jan. 2012. Web.
17 Nov. 2012.
<http://tech.fortune.cnn.com/2012/01/18/the-kodak-lie/>.
McCambridge, Ruth. "NPQ." Susan G. Komen for the Cure
Defunds Planned
Parenthood. Nonprofit Quarterly, 01 Feb. 2012. Web. 17 Nov.
2012.
20. <http://www.nonprofitquarterly.org/governancevoice/19541-
susan-b-komen-for-the-cure-
defunds-planned-parenthood.html>.
Wheelen, Thomas L., and J. David Hunger. " Concepts in
Strategic Management and
Business Policy: Achieving Sustainability”. Upper Saddle
River, NJ: Prentice Hall, 2010.
110-14. Print.
b. Articles
Article 1
9
At Proctor & Gamble, the Innovation Well Runs Dry, Lauren
Coleman-Lochner and
Carol Hymowitz, 6 September 2012
For much of its history, Procter & Gamble (PG) didn’t
just launch new products, it
created new product categories, from the first mass-produced
disposable diapers to Crest
teeth-whitening kits. That’s one reason P&G has more than
1,000 Ph.D.’s among the
21. 8,000 employees at its 26 innovation facilities around the
world. “P&G is largely a
branded science company,” says Larry Huston, former
innovation officer at P&G who’s
now managing director of 4inno, a consulting firm.
Lately, though, there’s been a dearth of pioneering brands
emerging from the world’s
largest consumer-products company. Spending on research and
development in fiscal
2012 ended June 30 was $2.03 billion, or 2.4 percent of sales,
the same as the prior year
and down from 3 percent of sales in 2006. P&G’s most
recent homegrown
blockbusters—Swiffer cleaning devices, Crest Whitestrips, and
Febreze odor
fresheners—were all launched at least a decade ago. Says Peter
Golder, a professor at the
Tuck School of Business at Dartmouth College: “P&G is
built on creating new
categories, and innovation is in its DNA, but they need to
rediscover it.”
Regaining its new-product mojo is crucial because P&G’s
business strategy has long
22. been to charge premium prices for cutting-edge products. A
150-oz. container of liquid
Tide detergent is $18 at Target (TGT), for instance, 20 percent
more than the retailer’s
house brand. As rising commodity prices have increased the
cost of most basic household
products, cash-strapped customers may still be willing to pay
more for true innovations
but not necessarily for the kind of product extensions and
embellishments P&G has
turned to.
That’s created a challenge for Chief Executive Officer Bob
McDonald, who has lowered
profit forecasts three times since Jan. 1. He’s trying to
cut $10 billion in costs by 2016
and reverse market-share declines in such key categories as U.S.
detergents. McDonald is
under pressure from activist investor William Ackman, who in
July took a $1.8 billion
stake in P&G and may seek management changes.
Blockbusters have “dried up a bit,”
acknowledges Bruce Brown, P&G’s chief technology
officer. “We want to get back to
23. more of that.”
10
McDonald earlier this year assembled a team of researchers,
marketing managers, and
senior executives from across the company to chart a bolder
innovation course. The
group spent 10 weeks analyzing P&G’s new-product
pipeline and selecting the most
promising ideas for development. But most won’t be ready
for at least another year.
P&G’s 175-year history is filled with such consumer-product
innovations as the first
synthetic detergent (Dreft, in 1933), the first fluoride toothpaste
(Crest, in 1955), and the
first stackable potato chip (Pringle’s, which later dropped
the apostrophe, in 1968).
Researchers typically have leveraged technologies already used
in P&G products to come
up with entirely new ideas. For Crest Whitestrips, launched in
2002, they adapted
24. bleaching methods from P&G’s laundry business, film
technology from the food wrap
business, and glue techniques from the paper business.
In recent years, however, the company’s product pipeline
has been mainly focused on
“reformulating, not inventing, products,” says Victoria
Collin, an analyst at Atlantic
Equities in London. Among these are new scents of Tide for
Eastern European markets
and Secret deodorant’s Natural Mineral line. As a result,
analysts say P&G has lost
customers in the U.S. and other developed countries,
who’ve switched to cheaper
products made by such rivals as Unilever, as well as store
brands.
When former CEO A.G. Lafley took charge in 2000, he sought
to increase the rate of
product development by collaborating with outside partners who
could help with
everything from packaging to product design. Working with
outsiders has enabled P&G
to gain access to some important technologies, such as a
25. wrinkle-reducing ingredient
made by a French company, Sederma (CRDA), that’s used
in its best-selling Olay
Regenerist skin cream.
But Lafley also decentralized R&D, making business-unit heads
responsible for
developing new items. R&D chief Brown says that inadvertently
slowed innovation by
more closely tying research spending to immediate profit
concerns. Between 2003 and
2008, the sales of new launches shrank by half. By the time
McDonald became CEO in
2009, the number of what the company considered to be big
product breakthroughs had
fallen to an average of fewer than six per year as unit heads
focused on short-term results
and smaller inventions, says Brown.
11
McDonald, who has acknowledged that the company’s
R&D has been “inadequate” in
26. some product categories and regions, has now centralized 20
percent to 30 percent of
P&G’s research efforts. He also named Jorge Mesquita,
already chief of its pet care and
snacks businesses, as head of P&G’s new business creation
and innovation unit and given
him responsibility for coordinating product launches.
One area of focus is beauty, where “we lost our way for
a couple of years,” says Brown.
That business, which includes deodorants, cosmetics, and hair
care and made up 24
percent of P&G’s $83.7 billion in sales in fiscal 2012,
has been lagging competitors such
as L’Oréal (OR) in product launches. (L’Oréal says it
rolls out about 500 a year.)
McDonald has said he hopes cost-cutting will free up more
money for product
development. Yet the squeeze has forced P&G to make tough
choices even when it does
introduce appealing products. One example: Spending to
support a popular new Olay hair
removal product last year pulled money from other
products, “so the base business lost
27. more than this new thing gained,” Brown says.
Meanwhile, Unilever says it can roll out 10 new products in 60
countries in the same time
it once took to introduce them in just 10 countries. Recent new
products include Clear
anti-dandruff shampoo and a Rexona deodorant that uses
proprietary Motionsense
technology to activate the product as the wearer moves.
Kimberly-Clark (KMB), maker of Huggies diapers and Kleenex
tissue, has opened
research centers in South Korea and Colombia and increased
R&D spending in the first
half of this year by double-digits from the year before. “Our
international business is
growing so rapidly that the demand for innovation has
increased,” Chief Financial
Officer Mark Buthman says.
P&G still brings plenty of new products to market.
SymphonyIRI’s New Product
Pacesetters report, which tracks the top-selling non-food
innovations, showed P&G with
28. one-third of the top 25 last year. And the company over the
years has acquired big
brands, including the Olay and SK-II skin care lines and
Gillette. Yet homegrown
12
products remain the challenge. Says 4inno’s Huston:
“You’ve got to be constantly
creating innovation.”
The bottom line: P&G, with $84 billion in annual sales, made
its name as a new-product
whiz. But its biggest homegrown hits are at least a decade old.
Article 2
The Kodak Lie, Larry Keeley, 18 January 2012
FORTUNE -- People never seem to notice, but strategies have
fashions. Just as cars had
fins for a while, or business folks try to dress like they just
stepped off the set of Mad
Men, or phones get big touch screens and icons to chase after
Jony Ive's iPhone design
choices, there are also conventions in how we think about what
firms should do to create
29. value. These ways of thinking even have names so we can refer
to them in shorthand:
focus, cost leadership, differentiation, core competence
leverage, supply chain
integration, and the like.
This came to mind over the last few days in the midst of the
Kodak (EK) death vigil.
Most of the Kodak conversation has been standard issue
Chicken Little: the sky is falling;
the American dream is dead; another classic company has bitten
the dust. We're all off to
hell in a handcart and there's not a thing we can do about it.
After all, Kodak was a
symbol of better times, an era when American innovation and
invention was seemingly
ubiquitous. But while George Eastman's goal -- to make
photography "as convenient as
the pencil" has been realized and even exceeded -- Kodak was
not the company that
capitalized on this new ubiquity.
And so, with a mixture of schadenfreude and fear, we hear the
Monday morning
30. quarterbacks explain what went wrong and explain how a
company with so much
promise managed to snatch defeat out of the jaws of victory.
The basic buzz is that
Kodak missed the moment. Addicted to film photography, they
never really could (to
borrow a phrase from another brief strategic fashion) "cross the
chasm" and drive the
growing new digital photography field.
What if this convenient analysis is just too superficial? The
demise of Kodak isn't merely
the classic disruption story that everyone loves to tut tut over.
Nor is the company's
13
downfall merely a result of recent bad decisions or the
mismanagement of senior
executives. It is the more nuanced story of how easy it can be to
get things wrong, even
when trying with the best of intentions to do everything right.
It's a cautionary tale of the
need for deeper understanding of what innovation really means,
31. and how it is infinitely
more vital than most people think it is, even as it isn't about any
single product or widget
or technology.
Kodak knew all about the impending disruption of digital
technology. As many have
noted, they own the primary patents on digital photography and
built one of the world's
first digital cameras in 1975. As The Economist reported
recently, a report circulated
among senior executives in 1979 detailed how the market would
shift permanently from
film to digital by 2010. This disruption was no surprise. But
following the fashions of the
moment back then, Kodak's leaders looked at the whole shift
through the lens of their
signature strengths in chemistry, optics, and films. They tried to
do new things with
familiar capabilities at the exact moment they needed to be
hungrier to do truly new,
unfamiliar things.
One of Kodak's significant attempts to diversify away from the
32. world of film came at the
end of the 1970s. They targeted xerography, specifically aiming
at the other hometown
hero in Rochester, New York. I was consulting with Xerox
(XRX) at the time, and we
took Kodak's threat to enter the world of copying very
seriously. We were right to;
Kodak's strengths in organic chemistry and optics helped them
to create some excellent,
high-end products.
This way of thinking was fashionable at that moment. In 1979,
Sony (SNE) used its skills
in miniaturization to create the craze du jour, the Walkman.
Toyota (TM) used its
strengths in paints and seals to make better quality cars than
Detroit was making. A
decade later, one of my heroes, CK Prahalad, published his
seminal paper on The Core
Competence of the Corporation in Harvard Business Review to
explain the fashion. In
effect, the strategic question was: given what we are already
good at, what new things
can we do that will drive growth?
33. For Kodak a continued focus on chemistry, optics and
depositions on film made perfect
sense. And it made it a healthy company through the mid-1990s.
But what it missed, what
14
most of us chronically miss, was that the new businesses,
however soundly reasoned and
engineered, were dinky, especially viewed in comparison to
their base business. This is
why Pfizer (PFE) loves Lipitor (and the blockbuster drug
model); why Cisco (CSCO)
loves routers; and why it was hard for IBM (IBM) to sell off the
ThinkPad (though it did
so, in sharp contrast with HP (HPQ), which should have). And
it's why PepsiCo (PEP)
has found it so hard to sell healthy snacks, when soda and
potato chips are so very
popular. So often we want innovation to be easy -- allowing us
only to have to tweak the
familiar instead of trying to do something more deeply
connected to how customers live
34. their lives now.
In Kodak's case, the digital photography field not only was slow
growing but it actively
undermined their largest source of profits: photo and motion
picture films. The tiny
sideline businesses simply could not scale at a rate that might
make up for the loss of film
revenues, so those inside the core business were unable or
unwilling to do what it took to
foster drastic transformation.
This exact phenomenon plagues innovation in nearly every large
firm. At least once a
week, top executives tell me that new growth businesses in their
firms are intriguing and
potentially important, but they simply "don't move the needle."
Said in plain American:
"The hot new thing simply cannot produce enough revenues this
quarter to improve my
bonus as a senior executive." So those projects are starved of
resources instead of
nurtured.
So what should Kodak have done? More to the point, what
35. should you do to avoid this
trap? Well, there is a new form of strategic thinking coming
into fashion right now, called
Convergences. Used well, it gives leaders a deeper sense of the
interdependencies that
connect firms, products, systems, and services in new
ecosystems. It challenges the older
notions of supply chains and vertical integration to get at newer
ideas such as platforms,
which move the cost and risk of innovating off your balance
sheet and onto others'. It
uses visualization techniques to reveal where new opportunity
hotspots are emerging --
typically the confluence of new technological capabilities and
new customer behaviors.
This new way of shaping strategy can show you the next big
thing, long before it has a
name and a whole host of competitors. But that insight still
doesn't solve the vexing
cultural and accounting problems that plague most firms
innovation choices: senior
15
36. executives have to be incentivized to create hot new platforms
that are newsworthy, not
just get paid for driving growth in the familiar ways that drove
value yesterday.
Will this latest strategic fashion make a difference? It already
does. Will it be a
fashionable way to think for long? Who knows? Surely, I don't.
That's the trouble with
fashion. Something new is usually just moments away. But for
now this is a solid way of
thinking for those looking for the future to show up a little
ahead of its regularly
scheduled arrival. That, at least, will never go out of style.
Article 3
Susan G. Komen for the Cure Defunds Planned Parenthood,
Ruth McCambridge, 01
February 2012
January 31, 2012; Source: National Journal | The Associated
Press reported Tuesday that
Susan G. Komen for the Cure, in a move that may potentially
risk a portion of its large
base of supporters, has decided that it will no longer fund
Planned Parenthood to perform
37. breast exams. The move appears to be linked to pro-life efforts
to edge Planned
Parenthood out of federal funding due to its willingness to
perform abortions, among a
host of other health services for women. The grants to be cut
went to at least 19 clinics
and Planned Parenthood says they totaled approximately
$680,000 last year.
The reason that Komen has given for the action is that its board
has just now passed a
policy that disallows them from funding any organization under
congressional
investigation. Recently, the House Oversight and Investigations
subcommittee launched
an investigation, spearheaded by Rep. Cliff Stearns (R-Fla.),
into Planned Parenthood’s
use of federal funding and issued a letter demanding
information from Planned
Parenthood. While seen as a nuisance investigation by some, it
was apparently enough
for Komen to hang its hat on in making the decision to defund
Planned Parenthood. A
statement from Komen said that the action had been taken
to “strengthen our grants
38. program” and had “implemented more stringent eligibility
and performance
criteria...While it is regrettable when changes in priorities and
policies affect any of our
grantees, such as a longstanding partner like Planned
Parenthood, we must continue to
evolve to best meet the needs of the women we serve and most
fully advance our
mission.”
16
In cutting the funding Komen is the only known organization to
cut funding to Planned
Parenthood in response to the recent political pressure. Planned
Parenthood, of course,
has been under constant attack by right-to-life legislators who
have repeatedly tried to
block its federal funding but have been met by the resistance of
President Obama and
others who did not wish to see the organization unfairly
pilloried. Some states have also
39. attempted to pass laws preventing abortion providers such as
Planned Parenthood from
receiving Medicaid dollars, but the Center for Medicare and
Medicaid Services warned
states that such policies would put the totality of their Medicaid
funding at risk.
In response to the decision, some have pondered the potential
influence of Komen Senior
Vice President of Public Policy Karen Handel. Handel, the
former Georgia secretary of
state, joined Komen last April after an unsuccessful
electoral run in Georgia’s Republican
gubernatorial primary. During the campaign, Handel promised
to nix state funding for
breast screenings and cervical cancer screenings at Planned
Parenthood if she became
governor. “[S]ince I am pro-life, I do not support the
mission of Planned Parenthood,”
Handel wrote.
In an article on New York Magazine’s Web site, Noreen
Malone notes one tweet sent in
response to the action. “The Komen Foundation just
destroyed its brand, and it’s going to
40. be very, very sorry.” Melinda Henneberger, a columnist in
the Washington Post who has
herself had breast cancer titles her article on the subject,
“Planned Parenthood Will
Recoup but Will Komen?”
She cites a tweet from Daily Show co-creator Lizz Winstead
that reads “I am crying in a
cab at this Komen decision. Tomorrow we will rally. Who is in
this fight with me! You
can no longer sit idly by.” Henneberger then writes, “In
response to the charge that it had
given in to bullying, Komen said in a statement to CBS
News that ‘grant-making
decisions are not about politics.’ The PR team that came
up with that one may have a
future in comedy. Though I guess not at the Daily Show.”
Article 4
La Raza Conference Explores Social Media Strategies, Aine
Creedon, 11 July 2012
A panel at the National Council of La Raza’s (NCLR)
recent conference in Las Vegas
discussed some social media strategies worth noting. Titled
“The Social Media Network
41. 17
Explained: Get Noticed with New Media,” the panel
discussion addressed organizations
looking to further develop their brand and online fundraising.
The NCLR panel brought
attention to fundraising trends and mobile technology that
could increase nonprofits’
online donations.
Based on reporting from VOXXI’s Julissa Bonfante, here
are some take-aways from the
La Raza social media panel:
Mobile donations: Make sure your organization is using the
right tools for supporters to
donate through mobile devices. This will give users the option
to donate from anywhere,
transforming their smart phone into a credit card.
Using Facebook tools: Facebook Causes is a fundraising
application integrated with
Facebook and is one of the largest online advocacy platforms in
42. the world. It allows
nonprofits to draw attention to their causes and to raise funds.
Any Guidestar-verified
nonprofit can collect donations through Causes. Another
important tip is to establish a
strong Facebook page, since this may be the first page someone
sees when looking up
your organization.
Timing is everything: NCLR’s panel spoke on the importance
of posting on social
networks during the weekends, claiming, “It’s when social
media sites get the most
traffic.” This claim conflicts with statistics released by
Bitly several months ago on the
optimal times to post on Twitter, Facebook and Tumblr (prime
times to post on all three
happened during the typical work week, not on the weekend,
according to Bitly). Despite
this discrepancy, few would dispute that posting on social
networks during the weekend
is a useful tactic. Tools such as HootSuite or Later Bro are
handy to automate your
weekend posts or tweets.
43. Partake in live Twitter chats: Make sure your nonprofit is
interacting with its followers on
Twitter; one of the best ways to connect with organizations with
similar missions is by
participating in the right Tweet Chats. Unsure of where to start
with tweet chatting? Here
is a useful Twitter chat wiki.
Take advantage of Google Grants: Google Grants is a great
resource for nonprofits.
Jennifer Edwards, associate coordinator of digital organizing
for NCLR, points out that
18
“Google Grants provides non-profits $10,000 per month in in-
kind AdWords
advertising.”
Summarizing a continual focal point of the panel,
VOXXI’s chief operating officer and
technology expert Ariel Coro said, “The key to social media
is having a good strategy.
Social media is putting all the tools in front of us but we have
44. to understand the strategy
beyond the tools.” In other words, social media can be
erratic and is constantly changing,
but developing and implementing solid and consistent strategies
to approach social media
never grows old. –Aine Creedon
Article 5
At Youfit Health Clubs, patrons can Feel the Burn without
Bells, Whistles,
Alexandra Clough, 18 May 2012
The founder of Planet Fitness health clubs has found a new
world in which to help people
get healthy and fit. Youfit Health Clubs
(www.youfithealthclubs.com ) is the brainchild
of Boca Raton resident Rick Berks, who sold the Planet Fitness
trademark in 2002 and
finally parted ways with the company in 2008.
It was at that point he decided there was a need for a health club
that offered the basics,
such as cardio and resistance training, without the bells and
whistles of other, more
expensive clubs that feature spas, classes and a see-and-be-seen
attitude, Berks said.
45. "There is an evolution to this type of club. In the past, clubs
were everything-to-
everybody types of clubs," Berks said. But Youfit offers a
simple model for people who
want to do strength and cardio training, without the need for
classes or racquetball courts,
for example.
The newest Youfit just opened at the Town Center Mall in Boca
Raton, in the back of the
mall, known as the Terrace, above the Blue Martini bar. Making
the clubs attractive to
customers is that they require no long-term commitments, just
$10 a month for access to
a single club, or $19.99 a month for access to any Youfit club.
There are about 40 Youfit clubs open now, including 32 in
Florida, and Berks hopes to
have 50 open nationwide by the end of the year. The concept
was first started in 2008 but
has really taken off in recent months, and more clubs are
opening locally, Berks said.
19
46. A Wellington location opened a few months ago, and several are
under construction in
Broward County, too. A number of clubs are opening in
Arizona, as well. Berks said he's
also scouting locations in California, the Northeast and the
South.
The soured economy has been an upside for Youfit, because
suddenly there are a number
of spaces, such as now-closed big box retailers, that are
available for Youfit clubs, Berks
said. Berks said the clubs bring in steady traffic all day,
compared with clubs that seem to
have peak periods during lunch and after work. The Simon
Property Co., which owns the
Town Center mall, has asked Berks to open a Youfit in Simon's
Boynton Beach Mall, but
Berks said he wants to see how the gym performs at Town
Center before making a
commitment to Boynton Beach.
The Youfit clubs have a sleek, clean feeling, with all new
equipment and plenty of it, so
there's no need for a wait to exercise, Berks said. An express
47. circuit works every part of
the body in just 30 minutes per session, and includes both a
cardio workout and strength
training. There also is equipment for seniors who want low-
impact equipment to increase
strength and flexibility. In addition, the equipment is outfitted
with individual TVs and
ports for iPods or mp3 players.
Berks says his goal is to make people of any age or fitness level
feel comfortable working
out. "A lot of people who do not (typically work out) feel more
comfortable in our clubs,"
he said. "It's geared toward the person who has not been a
serious exerciser but now
wants to get fit."
· Module C
· Linking chapters 4 and/or 5: External and Internal
Environment concepts to real life business
·
·
· Link between five and eight concepts found in the designated
chapters to one or more business news articles….PICK FROM
BELOW!
KEY TERMS FROM CHAPTER 4
48. · Competitive intelligence
· Competitors
· complementor
· Consolidated industry
· EFAS Table
· Entry barrier
· Environmental uncertainty
· Environmental scanning
· Exit barrier
· Fragmented industry
· Global industry
· Hypercompetition
· Industry
· Industry analysis
· Industry matrix
· Industry scenario
· Key success factor
· Multidomestic industry
· Multinational corporation (MNC)
· Natural environment
· New entrant
· Regional industries
· Societal environment
· STEEP analysis
· Strategic group
· Strategic type
· Substitute product
· Task environment
KEY TERMS FOR CHAPTER 5
· Brand
· Business Model
· Capabilities
· Capital budgeting
· Competency
· Conglomerate structure
· Core competencies
50. Page 1 of 3
GLOBAL STRATEGY AND POLICY: MAN4720, SCHWARTZ,
DISTANCE LEARNING
COURSE INFORMATION HANDOUT NUMBER 6
APPLIED CONCEPT PAPER
PART ONE: ASSIGNMENT GUIDELINES
1. WHAT’S THE PURPOSE?
This paper is intended to demonstrate your understanding of
certain key concepts and your critical
thinking ability to relate them to the real business world.
1.1 How does this work?
You are expected to prepare one such paper during the term
relating the concepts found in the
chapters of modules A, C, D or E to real world business
happenings. Each student will be randomly
assigned to one of the modules for which notification will be
made in a BlackBoard posting, on or about
Wednesday, September 11. Chapter concepts and due dates are
as follows:
Module Conceptual framework Applicable chapters Due dates
A Link between five and eight
concepts found in the
51. designated chapters to one or
more business news articles.
Two and/or three Please refer to the
Syllabus Appendix A
schedule. (Dates are also
on the preference form)
C Four and/or five
D Six, seven and/or eight
E Nine, ten and/or eleven
1.2 Do I need to link all of the concepts in the assigned
chapters?
No. As long as you link enough of them to demonstrate your
comprehension and critical thinking ability,
you may use concepts from any or all of the chapters in the
module you selected. This should be
between five and eight of them, depending on the depth of
analysis for each. The key terms section at
the end of each chapter may be helpful in making your
selection.
1.3 Am I allowed to use more than one article?
Yes. You may use multiple articles if this helps to better
illustrate the concepts. If that is your choice
please be sure to include an abstract for each one and provide
copies of all of them.
1.4 Can I work with another student on these papers?
These are individual assignments and group work will be
52. viewed as plagiarism.
1.5 Can I select the Module on which to do the paper?
No. I will assign the work as indicated in 1.1 above. Past
experience has shown that allowing students this
choice resulted in most of the class waiting until the end of the
term to submit the paper.
1.6 What happens if I don’t submit my paper on time?
Students must submit their papers by e-mail before midnight on
the due date. Penalties for late
submission increase exponentially with the number of days and
late and failure to submit a paper or
doing so more than five days after the due date will result in a
0/15 grade. Documentation must be
provided for medical or family emergency extension requests.
1.7 What are the guidelines for structuring the paper?
A sample paper, included as course information handout 6.1,
and a sample grading sheet in 6.2
provide guidance for structuring the paper. A cover page that
includes the following is also required:
and Z number, course name and section
number, due date and instructor’s name as well
as the module and chapter numbers addressed in your paper as
well as…
work is based. E-mailing the URL or link will
not suffice. Articles should be relatively recent, that is
53. published within the last 24 months.
format in an appendix. In text citation is not
required for this paper. Wikipedia, Investopedia and similar
open forum sites are not academically
valid.
http://owl.english.purdue.edu/owl/section/2/
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Page 2 of 3
1.8 Does this paper need to be posted on SafeAssign?
No it does not. For this course only the Porter’s forces
assignment must be posted on SafeAssign.
1.9 Do writing skills count in grading my work?
Clear composition is vital to understanding what you mean and
assessing your critical thinking skills.
Most importantly, writing ability is crucial in the business
world as well as being an important
component of your grade.
55. 1.10 How many pages are expected and what is the content?
Although I suggest that your paper be between six and nine
pages in length, I tend to be fairly flexible
as long as you avoid both padding and being so excessively
brief that it becomes difficult to read or
understand. Be sure that the content is relevant. Use a 12-point
font, allowing approximately 1½-line
spaces. Structure your paper using titles to divide ideas and
distinguish concepts from one
another. Provide an abstract of one or two paragraphs
summarizing the article(s) briefly in your own
words. Approximately 20% of the paper should be devoted to
defining the textbook and course
document concepts that you intend to link to the article. The
remainder, representing at least half,
should be dedicated to an analysis showing how your article
may be used to interpret the selected
concepts. A one-paragraph conclusion should briefly explain
what you learned from the exercise.
Finally, APA or MLA formatted, source notes are essential.
Your paper should be structured using the
following segments.
Segment General content Page range
Executive
summary
In a couple of paragraphs sum up the purpose of your paper,
provide a
few explicit linkage examples and one sentence stating what
you
learned from the exercise.
½ to 1
Abstract(s)* A factual summary, paraphrasing the article(s)
very briefly in your own
56. words without opinion or editorial comment. Include the article
title, the
author’s name and the date of publication. The number of
pages shown
at the right depends on the number of abstracts, not the length
of each.
½ to 1 ½
Concepts An overview, defining the concepts that you intend
to illustrate with your
article
2 to 3
Analysis Connect the article to the key concepts. Use
subheadings
corresponding to each defined concept and frame your analysis
using
appropriate terminology.
2 to 4
Conclusion Clearly state what you learned from the exercise ½
Appendices Include a copy of the article(s), and cite your
sources in APA or MLA*
format. Wikipedia and other “wiki” type sites are not
academically
acceptable sources
N/A
*If these terms are unfamiliar to you, please click on the links
to research the web for their meanings.
57. 1.11 How will my work be graded?
The grading rubric in course information handout 7.2 includes
the following evaluation criteria.
ted article(s): Inherent relevance 1.50 points
nts
*If this term is unfamiliar to you, please research the
web for the meaning.
1.12 How important is it to use the theoretical terminology?
It is critically important. You are expected to make use of and
integrate the strategic management
concepts, terminology in order to illustrate how the theory
applies to real business world situation.
../CI%20files%20DL%20Fall%202014/CI05%20Porter%20assig
nment%20instructions.pdf
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http://owl.english.purdue.edu/owl/section/2/
http://www.ece.cmu.edu/~koopman/essays/abstract.html
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http://www.ece.cmu.edu/~koopman/essays/abstract.html
58. Page 3 of 3
APPLIED CONCEPT PAPER
PART TWO: HELP
2.1 Can I E-mail you for advice?
Absolutely: Since I generally answer my e-mail between 6 and 7
AM you may expect an answer within 24
hours. However, I will not edit your paper for you by E-mail. If
the answers to your questions are long
and/or complex, or if a full review of your paper is needed I
will ask you to provide me with a daytime
telephone number or to meet with me during office hours.
2.2 Can I ask you to look over my work before submitting the
final paper?
Yes, under certain conditions. You should be well prepared with
specific questions and a draft
beforehand. Time constraints are such that I will not edit your
paper and return it to you by e-mail. For
anything more than straightforward clarification questions,
please E-mail your work and provide a daytime
telephone number and indicate when you will be available.
2.3 Is help also available for other assignments?
Yes. If you find the instructions confusing or simply want
suggestions for improvement, I will be happy to
assist you. Replies to questions of a general nature, the answers
to which your group teammates may
also benefit, will be sent via BlackBoard block e-mail. Once
59. again, be sure that you have completed the
assigned readings beforehand.
2.4 One final and very important note
Please ask for assistance well enough in advance for me to help
you. The likelihood of getting
meaningful help a day or two before the due date is slim to
none.
CI06 Applied concept paper FAQs.docx
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