1. Great By Choice
By Jim Collins and Morten T. Hansen
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2. Great By Choice
• “Why do some companies thrive in uncertainty, even
chaos, and others do not.”
• How the case where analyzed
o Company performance
o Extremity of Environment
Why?
1. The future is unpredictable and the world unstable
2. Insight is gained when studying a company under extreme
conditions. Its what separates the great from mediocre
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3. Great By Choice
• What is a 10X case?
• Moniker to describe a high-performing Enterprise
• Criteria of 10X Enterprise
1. Outperform the market and industry competitors, 15 + years
2. Results were achieved during turbulent times, uncontrollable
events.
3. Began from a position of vulnerability.
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4. WhoMadetheCutandtheirComparisonCompany
(7companiesout20,400studied)
1. Amgen (Genentech)
2. Biomet (Kirshner)
3. Intel (AMD)
4. Microsoft (Apple)
5. Progressive Insurance (Safeco)
6. Southwest Airlines (PSA)
7. Stryker (United States Surgical Corporation USSC)
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5. The Power of Contrast
• “What did the great companies share in common that
distinguished them form their competitors”
• 10Xers outperformed competitors 30 to 1
• Every 10x case beats its industry index by at least 10 times
• If you , $10,000 invested 1972 your return $6 million in 2002.
• 32 times greater than the market
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