business management

1. " INNOVATIVE BUSINESS
PRINCIPLES AND
MANAGEMENT
MARLON B. SIM
Manager at PJ Lhuillier
Group of Companies

2. Topics:
Definition of terms:
Management
 Basic Functions of a Manager
 Business Strategy
 Business Principles By Steve
Jobs

3. MANAGEMENT
- in all business and
organizational activities is the
act of getting people together
to accomplish desired goals
and objectives using available
resources efficiently and
effectively.
Management comprises
planning, organizing, staffing,
directing, and controlling and
organization (a group of one or
more people or entities) or
effort for the purpose of
accomplishing a goal.

4. Manager
Manager may refer to:
Anyone who uses management skills or
holds 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

5. What is a manager?
A manager is a person tasked with
overseeing one or more employees or
departments to ensure these employees
or departments carry out assigned duties
as required. Depending on the size of the
company there might be a single, dual or
triple management layer involved.

6. Basic Functions of a Manager
Planning: This step involves mapping out
exactly how to achieve a particular goal.
Organizing: After a plan is in place, a
manager needs to organize her team and
materials according to her plan.
Staffing: After a manager discerns his
area's needs, he may decide to beef up
his staffing by recruiting, selecting, training,
and developing employees.

7. Basic Functions of a Manager
Leading/directing: A manager needs to
do more than just plan, organize, and staff
her team to achieve a goal. She must also
lead.
Controlling: After the other elements are
in place, a manager's job is not finished.
He needs to continuously check results
against goals and take any corrective
actions necessary to make sure that his
area's plans remain on track.

8. Planning
“Well plan is half
done”
- means looking ahead and chalking out future courses of
action to be followed. It is a preparatory step. It is a
systematic activity which determines when, how and who is
going to perform a specific job. Planning is a detailed
programme regarding future courses of action.
“Planning is deciding in advance what to do, how to do and
who is to do it. Planning bridges the gap between where we
are to where we want to go. It makes possible things to occur
which would not otherwise occur”.

9. Planning
A plan ensures that there is
some level of focus on the
activity and all stakeholders
know what they can expect
and when they can expect it.
Without a plan nobody will
notice if timings are no longer
adhered to and the project
gets delayed or too
expensive to be beneficial.
Not planning can result in
expensive deviations and
failures.

10. Organizing
Organizing is the function of management
which follows planning. It is a function in
which the synchronization and combination
of human, physical and financial resources
takes place. All the three resources are
important to get results.

11. Organizing
If a manager provides the
strategy and the planning, but
then washes his hands from
the actual implementation to
focus on the next plan, there
is a risk that the team will not
be able to achieve the
implementation. They might
not understand fully the
requirements or don't feel that
the task is important to their
manager.

12. Staffing
Staffing involves manning the
organization structure through proper
and effective selection, appraisal and
development of the personnel to fill
the roles assigned to the
employers/workforce.

13. Leading/
Directing
Directing is said to be the heart of management
process. Planning, organizing, and staffing have got
no importance if direction function does not take
place.
Directing is said to be a process in which the
managers instruct, guide and oversee the
performance of the workers to achieve
predetermined goals.
Directing is the function of guiding, inspiring,
overseeing and instructing people towards

14. Leading/Directing
If a manager neglects his
responsibility to lead his team, the
team will be less productive and
motivated. They might lose track of
what is important and what is
expected of them. This might result
in high staff turnover and loss of
internal knowledge, but also in
unsuccessful campaigns and
projects.
Without a good team, a manager
will find it hard to achieve business
success. And without being a good
manager and leading the team, a
manager will find it hard to have a
good team.

15. Controlling
Control in management means setting standards,
measuring actual performance and taking corrective
action.
Controlling measures the deviation of actual
performance from the standard performance,
discovers the causes of such deviations and helps in
taking corrective actions.
Controlling helps to check the errors and to take the
corrective action so that deviation from standards are
minimized and stated goals of the organization are
achieved in desired manner.

16. Controlling
Without consistent controlling a
manager won't know if their
budget is spent in the most
profitable way and a manager
might not notice the signs when
changes should be
implemented. It will reduce the
return of investment and
therefore limit the success a
manager can achieve within his
department.
Without measuring and
controlling, the team won't know
if what they do is best for the
company and cannot learn from
previous mistakes. Therefore

17. 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

18. Key Elements of a Successful
Strategy
 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!

19. A Powerful Strategy Leads to
Sustainable Competitive
Advantage
 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!

20. Four “Best” Strategic Approaches to
Building 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)

21. Competitive Advantage
Examples
 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

22. 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

23. 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?

24. Relationship Between
Strategy and Business Model
Strategy . . . Business Model . . .
Deals with a company’s Concerns whether
competitive initiatives and revenues and costs flowing
business approaches from the strategy
demonstrate a business
can be amply profitable
and viable

25. 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

26. Good Strategy + Good Strategy
Execution = 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!

27. Tips for Innovative Business
Success
 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”.

28. Tips for Innovative Business
Success
 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 can't
communicate your ideas, it doesn't matter”.
 7. Sell dreams, not products. “captured our
imagination because he really understood his
customer”.

29. “God Bless the work
of your hands”
THANK YOU.