2. Outside the Box
for ATCO future
innovation Team
MBA, M.A, Dipl. Vet. Specialist. Mohammed Ghorab
Training and Development Manager at ATCO Pharma
Mobile : (+2) 01005474734, (+20) 01090777338
M.ghorab@Atcopharma.com
5. Course objectives
Upon completing this course you will be able to know:
designing, developing, and deploying an effective Supervision
The required plans, programs, policies, processes, and procedures that help
to ensure Reporting system and evaluation system
The needed knowledge and skills to manage Team problems and to estimate
the results
Identify the skills required to identify, prevent, and correct potential and
actual risks and SWOT in all activities
The basic knowledge and skills needed to effectively review, analyze and
evaluate personal competencies and personality types
The Skills and tools required to perform appraisal, rewarding and
punishment system
5
6. Course Content
Module 1 – Strategic Thinking
Module 2 - SWOT analysis and Risk assessment
Module 3 - Blue Ocean Strategy and Red Ocean Strategy
Module 4 - Social innovation and entrepreneurship
Module 5 - Supervision and Coaching
Module 6 – Reporting and Performance evaluation
Module 7- Reward Punishment theory
6
8. Assessment Plan
No. Assessment Tool Points
1 Group work activity 10%
2 Individual Tasks 10%
3 Quiz 10%
4 Roll Play 10%
5 Case Study 10%
6 Presentation 50%
Final 100%
-8-
9. Evaluation procedures
1. Overall course evaluation
2. Evaluation of participants’ performance/ Quizes
3. Peers Evaluation – Group Evaluation- Team activities and case study
4. Participants evaluation to the instructor
9
10. 1. Overall course evaluation
A form for course evaluation will be provided the last day of the course.
You will be asked to complete this form to provide feedback on:
All course’s activities
The instructors
Ways and means to improve the training.
10
11. 2. Evaluation of participants’ performance
Daily progress evaluation
A final evaluation will be administered on the last day of the course.
Minimum pass mark: 80%
11
12. 2. Evaluation of participants’ performance
Objectives of the final evaluation:
verify that participants have understood the planning, implementation and operation of
Blue ocean strategy and Change Management
have understood the importance of its relationship with the company policies and
procedures.
Innovation thinking and strategic thinking within the team or individually.
4 R= Right Place, Person, Time, Method
12
13. 3. Peers Evaluation – Group Evaluation- activities & case study
Peers:
Understand how to evaluate each other in a Psychometric Test.
Groups:
Each group activities and team work would be counted as well as to motivate each team in
challenging others
Activities & Case study
Interaction and learning by doing is the strategy of development to the
trainee, case study evaluation through best practicing and best model of
answer
13
14. 4. Participants evaluation to the instructor
Evaluation: Through
Understand how to evaluate each Module, what is gained, how to improvement
Evaluation: After
Final evaluation of the Trainer/ Instructor to ensure that the aimed results achieved.
14
15. Final Project Presentation 10 Min.
Assessment:
1. Presentation (Group Work) as a role play 25% illustrate the working
environment problems, avoidance of it, final excutive report
2. situation (Individual Task) 25% illustrate the risk assessment giving a final
risk report
3. Peer to Peer assessment in the group
16. Introduction of participants
The 5 W’s
Who are you ?
What is your preferred name in class?
Where do you work?
What is your job title, and
What are your main responsibilities?
Why are you attending this course?
Please define your expectations
16
45. Agenda
1. Introduction
2. Strategic Thinking components
3. Strategic Thinking Map
4. Definition
5. Intercultural Quotes
6. Basic needs and levels of Strategic Thinking
7. Characteristics of Strategic Thinking
8. Strategic Thinking Process
9. Cases Study
10. Prism theory of decision/ Strategic Reflection
11. Business decisions for the balance of strategic thinking
12. Game Theory
13. Perfect Competition and Monopoly & oligopoly
14. Business Strategic Thinking
46. Introduction:
Life is like a game of chess. You make your move,
somebody else makes theirs. Some pieces fall,
others don’t. Everything is in constant motion.
Sometimes you win, sometimes you lose.
Remember that life is beautiful and everybody
experiences it differently, but at the end of the
game, the king and the pawn go back into the
same box.
52. What is strategic thinking
• Organizational
Structure
• Finance
• Human
Resources &
Action Plan
• Objectives• Vision
Why?
Are we there?
What?
Should we do
How?
Will we do it?
Who?
Will do it?
73. 1- Characteristics: (Bases on Harvard Manage Mentor)
Characteristics
Personal Traits
Behaviors &
Attitudes
Cognitive
Capacities
74. A- Personal Traits:
Curiosity
Flexibility: To change whenever needed and appropriate and based on
information.
Future focus
Positive Outlook: View challenges as opportunities
Openness to other opinions and criticism
Breadth: seeing connections to unrelated fields
75. B- Behaviors & Attitudes
Continuously evaluate the impact of your actions on a wide range of people
Identify the forces driving your performance and think about how to improve
that performance
Stay up to date on developments occurring around you
Reassess who your customers are and what they value
Watch the competition
Seek other people’s opinions
Ask questions and challenge assumptions
Focus on the future
Open yourself to ongoing learning by reading books, magazine and industry
reports; attending seminars and talking with experts.
76. C- Cognitive Capacities
Objectively analyze a situation and evaluate the pros, cons and implications
of any course of action
Grasp abstract ideas and put pieces together to form a coherent picture
(connect the disconnected pieces of information)
Generate a wide range of options, visualize new possibilities, and formulate
fresh approaches to their work
Factor hunches into decision making without allowing their hunches to
dominate the final outcome
Understand the cause-and-effect linkages among the many elements that
make up a system
77. 2- Strategic Thinking Process: “Harvard”
Strategic
Thinking
Process
Before
Starting
Seeing the big
picture
Clarifying
strategic
objectives
Implement
Actions
Identifying
Relationships
Thinking
Creatively
Analyzing
Information
Making Trade-
Offs
78. Before Starting
Seeing the big picture
1. Understand organizational strategies
2. Analyze your customers, competitors and industry
3. Consider internal stakeholders
i. Identify potential stakeholders and their interest
ii. Gather information from stakeholders
iii. Listen carefully to underlying issues
Clarifying strategic objective
1. Your own objectives
2. Organization related objectives
3. Defining objectives
79.
80. Examples of being SMART
1. Ahmed team is preparing to launch a new campaign for regional courier
service.
The service is currently used by 15% of the market.
Ahmed has created the following objective:
“ Increasing the Market share to 70% of the national market within a year”
“Decreasing the cost by increasing the production”
81. Example 2:
Rasha’s company processes accounting reports
for its clients. Each report takes typically 6
hours to be completed.
Rasha would like her company to complete
each accounting report and submit it to sign off
before the end of the day.
Rahsa gives her staff the following objective
“ Please complete one accounting report per
day”
82. Now create your own SMART objective:
Based in the following examples please create your own SMART objective
(Personal / Professional) – (Individual/ Group)
4 Paper work!!
86. Design thinking for innovation Strategy
Develop the 5 discovery skills that make up the Innovator’s DNA and optimize
your ability to innovate
Examine the four primary forces that shape innovation and 10 types of
innovation you can leverage
How to connect more deeply with customers to uncover opportunities for
innovation
Transform insights and data into actionable ideas
Explore the tool-sets and skill-sets used by designers: empathy for your
customers, idea generation, critical thinking, aesthetic ways of knowing,
problem-solving, rapid-prototyping and collaboration.
Develop a wide variety of concepts for products, services, experiences,
messages, channels, business models, or strategies.
Create and implement new solutions that create value for your customers,
faster and more effectively.
87. Practical vision
Different visions are healthy feature of society
Visual Thinking strategies
Visual Thinking Strategies
91. Where is the problem between You and Boss
Individual Task:
92. Strategic Thinking Process:
Implementation:
Identifying relationships, patterns and trends: Spotting patterns across
seemingly unrelated events, and categorizing related information to reduce the
number of issues you must grapple with at one time
Thinking creatively: Generating alternatives, visualizing new possibilities ,
Challenging your assumptions, and opening yourself to new information sorting
out and prioritizing the most important information while making a decision,
managing a project, handling a conflict and so forth.
Brainstorming, organizing, and prioritizing objectives are the key foundations
of strategic plans, it helps you gain the insight needed to reach business
decisions and create plans that are actionable
Prioritizing your actions: Staying focused on your objectives while handling
multiple demands and competing priorities
Making Trade – Offs:
93. Strategic Thinking (Process Implementation)
Identifying
relationship/Patterns/ Trends
Thinking Creatively
Prioritizing your action
Making Trade-offs
96. Case Study:
Explain a strategic thinking decision in business market or in pharmaceutical
system how do you think about this decision?
There is No right or wrong but explaining and illustrating your answer will
give you higher grade!
97. Power of Strategic Thinking
Southwest Airlines case study from nothing to the top:
History:
Southwest Airlines 2002
Southwest 2002 / 2
Southwest strategic decision & Thinking process
101. Thinking Creatively
Challenge your assumption
Welcome Provocation
Envision and Ideal world
Gather others perspectives
Create the right environment
109. Now i know my ABC Next time won't you sing
with me?
Do an individual SWOT for yourself
Your group will evaluate a peer to peer SWOT evaluation
Each group must make a business SWOT or a process
the other groups will then evaluate the SWOT of them
Final discussion how to make it better! Where was the problem
110. Analyzing your information:
• Determine Critical information
• Pareto Analysis
• Avoid irrelevant information
• Develop and Implement an information gathering plan
• Build on Existing knowledge
112. Now you can Prioritizing your actions:
Establish clear and realistic timelines
I. Estimate length and time each phase might take
II. Compare your time estimates to time of other similar completed
procedures
III. Identify phases that cannot be completed without the end of other phases
IV. Revise the schedule with others
Develop a final time‐line
114. Making Trade-offs
Consider your options
Assess your choice pros and cons (Exercise pros
and cons for 3 options)
Weight short and long term outcomes
Balance personal and organizational needs
Learn to say “No”
115. For any action there is a reaction equal in attitude
but in opposite direction:
116. Reflection of light in the Prism of your decision:
Market Decision Driven reflection point
117. Prism theory of decision/ Strategic Reflection
Points:
Active
Proactive
122. Tit for tat
A nice German sentence could explain it;
(Wie du mir, so ich dir)
We have 2 effects:
Short Term reaction: one of them will cheat to gain more but as the other
knows he`ll go down with the price.
Long Term: both of them go down with the price and reach the
123. 123
MR
d'
Quantity per Time Period
DollarsperUnit
Comparison of the Perfect Competitor
with the Monopolistic Competitor: Efficiency
Perfect Competition Monopolistic Competition
Quantity per Time Period
DollarsperUnit
ATC
MC
d
MR = P
P1
q1
Minimum ATC ATCMC
P2
q2
Minimum ATC
In Mon Comp:
PMC
Pmin ATC
124. Oligopoly:
1.)Cartel
cartel: a group of firms acting together to minimize strategic behaviour behave like monopoly
collusion: agreement among firms in a market about quantities to produce &/or prices to charge
. Demand is inelastic few substitutes outside the cartel.
Members of the cartel play by the rules; e.g., no price cutting: obey quota
Number of members is low.
Market conditions are good.
Barriers to entry are strong.
Ex. OPEC
127. Dominant Strategy:
A special kind of Best Response Mix from different forms
Strategy that is best no matter what the other player does.
Eg. advertise
128. 128
„Succesfull businesses ride the waves of industry misfortunes;
Less succesfull businesses are sunk by them.“
(Wrong) Believe: The fortune of a business is closely tied to
its industry
129. 129
The role of the industry in determing profitability
Some industries are intrinsically
more profitable than others
In mature environments it is
difficult to sustain high profits
There is little difference in
profitability between industries
Industries inhabited by mature
firms often present great
opportunities for the innovative
Old view New view
It is environmental factors, that
determine whether an industry is
succesful, not the firms in the
industry
Profitable industries are those
populated by imaginative and
profitable firms
130. 130
The role of the industry in determing
profitability (Porter 5 Forces Model)
Is an outside-in business unit strategy tool
Used to make an analysis of attractiveness of an
industry structure
132. 132
The role of the industry in determing profitability
Choosing good industries -> foolish strategy
Choosing good firms -> far more sensible
Percentage of business units`profitability
explained by:
Choice of industry 8.3 percent
Choice of strategy 46.4 percent
Parent company 0.8 percent
Not explaines-random 44.5 percent
Adapted from Rumelt (1991)
133. 133
Mature Industries
Market opportunities are created rather than found:
laptop, computers…
Low-growth mature markets and troubled industries
may offer greater chances of rewards
134. 134
Mature industries
Creative and innovative businesses
Create an environment that attracts customers
Grows industry revenues and makes industry atractive
Are more fiercely competitive
Pace of change may be rapid & minimum standards high
The growth rate of the industry is a reflection of the kind
of business in the industry, not the intrinsic nature of the
environment
135. 135
Questions
What are the characteristics
of the industry?
What is our firm’s industry?
What macro environmental
factors can affect our strategy
implementation?
How stable are these
characteristics?
Firm
?
136. 136
The Spectrum of Industry Structures
Concentration
Entry & Exit
Barriers
Production
Differentiation
Perfect
Competition
Oligopoly
Information
Flow
Duopoly Monolopy
Many firms Few firms Two firms
No Barriers
One firm
High HighSignificant
Restricted
Low
Restricted
Moderate
Restricted
Extensive
Perfect
Homogeneous
Product
Adopted from Pirnay Fabrice
139. 139
Characteristics of SCP
Market Structure Conduct Performance
Goals of the firm
Pricing behaviour
Product design
Advertisement
Marketing
R&D
Merger & Collusion
Profitability
Growth
Product quality & service
Productive efficiency
Allocative efficiency
Government policy
Competition policy
Regulation
Taxes & subsidies
Trade policy
Wages & Price control
Market concentration
Product differentiation
Entry & Exit conditions
Vertical integration
140. 140
Hypotheses
Structure influences Conduct
Low concentration more competition
Conduct influences Performance
More competition less market power
Structure influences performance
No of firms increase
Market power falls
Price gets closer to marginal cost
144. 144
Market share and profitability
Large market share brings lower
costs and higher prices and so
yields greater profits
Small market firms cannot
challenge leaders
Large market share is the reward
for efficiency and effectiveness
If small firms do things better,
they can challenge leaders
Old view New view
Firms follow well-defined
traditional (generic) approaches
to the market
Firms take different approaches.
Firms try to counter yesterday's
ideas by creating new ones
145. 145
Conclusion
Mature organizations with poor performance blame
their environment
The external factors are not the cause but the
symptoms of their failure
Hall(1980): Survival and prosperity are possible even
when business environment turns hostile and industry
trends change from favourable to unfavourable
148. Agenda
What is Risk ?
What is Risk Management ?
Effective Risk Management
Risk Management Process
149. What is Risk ?
Risk is
“The level of exposure to uncertainties that the enterprise/organization must
understand and effectively manage as it executes its strategies to achieve its
business objectives and create value.”
Source: Alain LeBlanc, CD, B.Eng., M. Sc, M. Eng. 2011, Canadian Society of Value Analysis
150. Risk: Internal or External ?
INTERNAL
Your own Project
Your own Business
Inside the organization
External
Legislation
Market Forces
Exchange Rate Fluctuations
153. What is Risk Management ?
Risk management is a structured approach to managing uncertainty and
includes actions taken to:
identify;
assess;
monitor; and
reduce the impact of risks to the business.
Source: Small Business Development Corporation (http://www.smallbusiness.wa.gov.au/risk-management/)
155. Why Risk Management ? (cont.)
Source: Andy Osborne, Risk Management Made Easy
156. Effective Risk Management
Benefits:
Informed Decision Making
Increased Likelihood of Achieving Strategic Goals
Reduce Costs / Increase Profits
Competitive Advantage
Source: Andy Osborne, Risk Management Made Easy
157. Risk Management Process
5. Monitor and Review
4. Implement Countermeasures
3. Identify Countermeasures
2. Quantify Risks
1. Identify Risks
Source: Andy Osborne, Risk Management Made Easy
158. 1. Identify Risks
Categorize and differentiate between different types of risks
Strategic Risks:
Business Planning
Business Growth
New Markets/ Products/Services
Mergers/Alliances
Source: Andy Osborne, Risk Management Made Easy
159. Operational Risks:
Production
Distribution
Service delivery
Pollution/Environmental Issues
Financial Risks:
Cash Flow
Sales
Contracts
1. Identify Risks
Source: Andy Osborne, Risk Management Made Easy
160. Regulatory/Compliance Risks:
Breach of Regulation
Failure to meet Legal Requirements
Loss of Operating License
Healthy and Safety Risks:
Workplace Accidents
Injuries or Death
Litigation
1. Identify Risks
Source: Andy Osborne, Risk Management Made Easy
161. Technology Risks:
IT Failure
Data Loss
Equipment Failure
Project Risks:
Failure to meet time scales
Increased Costs
Failure to meet business requirements
1. Identify Risks
Source: Andy Osborne, Risk Management Made Easy
162. List all the risks the business may face
Assess the loss from each risk
Focus on the most critical type of risk
1. Identify Risks
163. 2. Quantify Risks
Here we want to assess:
How likely a certain risk will happen ?
Probability/ Likelihood to happen
How will it impact/hurt the business ?
Two Types of Impacts
168. A Risk Matrix: a tool used to rate the significance of the identified risks
based on the impacts and likelihood ratings.
Different forms of the risk matrix can be used, however, the simplest one is
2. Quantify Risks
3 X 3 Grid
169. Example:
4 X 4 Matrix
2. Quantify Risks
Source: Andy Osborne, Risk Management Made Easy pp.30
170. 2. Quantify Risks
Risk Assessment Summary
Source: Andy Osborne, Risk Management Made Easy pp.31
171. 2. Quantify Risks
•The risk rating which is a
combination of likelihood and
impact is a rating of the
significance of each identified
risk.
•The nearer is the risk to the
top-right right corner of the
matrix, the more significant is
the risk.
Source: Andy Osborne, Risk Management Made Easy pp.32
172. 3. Identify Countermeasures
After the assessment of the identified risk and prioritizing the risks.
How to deal with these risks ?
174. How to response to risks ?
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.36
175. Risk Acceptance: When ?
Likelihood = Low & Impact = Low
Costs of addressing risk > Potential loss
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.37
176. Risk Management: When ?
Likelihood = High & Impact = Low
Approaches through training, education and monitoring, improving processes
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.38
177. Contingency Planning: When ?
Likelihood = Low & Impact = High
E.g. Large financial losses, reputation damage
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.38
178. Contingency Plans could be:
3. Identify Countermeasures
- Crisis Management
- Communication with customers and stakeholders
- Alternative ways of supply and distribution
- Relocation and recovery of critical business functions
179. Risk Reduction/Transfer: When ?
Likelihood = High & Impact = High
Here risk reduction/transfer is ESSENTIAL
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.40
181. Risk Reduction and Control include:
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.43
182. Risk Reduction and Control include:
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.44
183. Risk Reduction and Control include:
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.44
184. Risk Reduction and Control include:
3. Identify Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.45
185. 4. Implement Countermeasures
Decide on how much to invest in:
Time
Effort
Money
It is important to assign the responsibility of the implementation; to make
sure that it will happen.
186. Risk Residual
It is impossible to eliminate all the risk
Left over risk is the Risk Residual/Net Risk
4. Implement Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.48
187. The Risk Register
A document that summarizes:
Risks Identified
Likelihood, Impact and Risk Ratings
Suitable Countermeasures
Actions taken and Current Status for Countermeasures
The Risk Register should be a working document that is
regularly reviewed and updated.
4. Implement Countermeasures
188. Risk Register Example
4. Implement Countermeasures
Source: Andy Osborne, Risk Management Made Easy pp.49
189. 5. Monitor and Review
Evaluate the results from the strategies and measures followed to mitigate
risks.
Different questions to be answered in order to effectively monitor risk
management.
190. 5. Monitor and Review
Source: Andy Osborne, Risk Management Made Easy pp.52
191. How to maintain an Effective Risk Management Process ?
Source: Andy Osborne, Risk Management Made Easy
192. Risk Awareness in the Organization
Make people aware of risks
Involve them
Assign people the responsibility of managing risks within their control
Source: Andy Osborne, Risk Management Made Easy
195. Exam
1- Design thinking *Steps, Analysis
2- Power of Strategic thinking * How powerful *what effect * how different
3- Game theory application in Work/ Life example of the 4 situations
4- Why Increasing the Quantity decreases the price? When it’ll stop?
5- Thinking is a process compare between strategic thinking process and
Industry process? Is there is a big difference in business mentality?
196. Trust is the main long run relationship
Dr.
Mo
ha
mm196
197. Creating a value? What is the value? Strategic
thinking in Business Methodology
Dr.
Mo
ha
mm197
198. Task 2: Explain: Group Discussion
1. Explain every character in the previous video in the market and show the
advantage and disadvantage in the given way of thinking?
2. How it could affect the business performance?
3. Which direction organization may fulfill to satisfy their needs?
Dr.Mohammed Ghorab198
201. Task5: Example of SWOT/ Innovational thinking in
practice
Dr.Mohammed Ghorab
201
202. It’s all about the design of your Business
Dr.
Mo
ha
mm202
203. Ethical ways of doing business in marketing .. Not only
more but better trends
Dr.
Mo
ha
mm203
204. Now broad your view using SWOT :
Team1:
Team 2:
Team 3:
Dr.
Mo
ha
mm204
205. Teams & Report , Now formulate a full report to
the top management regarding the SWOT of each
person in the team and create a combined SWOT,
Please Hire a team leader
Dr.
Mo
ha
mm205
206. Write a brief plan (Pestel)
• Boundaries
• Situation of the Market
• Goals and expected results of success
• Resources
• SWOT
Dr.
Mo
ha
mm206
212. What we really need for change management:
Is it Environment?
Or may be going International?
Is it a payment or a circumstances problem?
How to get better?
Jim Rohn change yourself to change others
Dr.
Mo
ha
mm212
213. Special precautions on business strategies and
directions
1. Risks Assessments and crises management
2. Profit orientation
3. Why it’s important
4. See things differently, things will get better
5. Forget about the past (only learning could be useful), go forward and
adapt with the present situation
Dr.Mohammed
Ghorab213
214. Thinking 6 hats:
Task 3: Classify yourself mentioning a situation to your
team and let them decide whom you are:
Dr.
Mo
ha
mm214
To make your point of view understandable
215. Resources classification
- Menschen = Men
- Methode = Method
- Maschine = Machine
- Material = Material
- Messen = Measuring / Monitoring
- Mitwelt = Environment
- Information = Most expensive tool
However Best Thinking + Best Practicing
= best Quality
Dr.
Mo
ha
mm215
218. Dutch Disease
Dutch disease has two main effects:
1. A decrease in the price competitiveness, and thus the export, of the affected
country's manufactured goods
2. An increase in imports
In the long run, both these factors can contribute to manufacturing jobs being
moved to lower-cost countries. The end result is that non-resource industries are
hurt by the increase in wealth generated by the resource-based industries.
The term "Dutch disease" originates from a crisis in the Netherlands in the 1960s
that resulted from discoveries of vast natural gas deposits in the North Sea. The
newfound wealth caused the Dutch guilder to rise, making exports of all non-oil
products less competitive on the world market.
In the 1970s, the same economic condition occurred in Great Britain, when the price
of oil quadrupled and it became economically viable to drill for North Sea Oil off the
coast of Scotland. By the late 1970s, Britain had become a net exporter of oil; it had
previously been a net importer. The pound soared in value, but the country fell into
recession when British workers demanded higher wages and exports became
uncompetitive.
Dr.Mohammed Ghorab
218
219. Life cycle of any international product
Dr.
Mo
ha
mm219
220. Innovation Marketing
An Innovation: is an idea, practice or product perceived to be new by the
relevant individual or groups.
Dr.
Mo
ha
mm220
223. Diffusion Process
It is the manner in which innovations spread throughout a market. The term
spread refers to purchase behavior with regularity.
Dr.Mohammed Ghorab
223
224. Factors affecting diffusion process
1. Type of group
2. Type of decision
3. Marketing effort
4. Fulfillment of felt need
5. Compatibility
6. Relative advantage
7. Complexity
8. Observability
9. Trialability
10. Perceived risk
Dr.Mohammed Ghorab224
225. Company HR affecting Innovation
Academics
Personal
Skills
Professional
Experience
Dr.
Mo
ha
mm225
227. Adopters Categories
Dependency on the following:
Academics
• BVSC
• Diplom
• Master
• PhD
• (Publications)
• References
Professional
Experience/ Practical
• Field of Work
• Is it the same as your
previous study?
• 4W+H (Why, Where,
What, When) + How
• Advantages and
Disadvantages
Personal Skills
• Languages
• Computer
• Leadership, Comunication
..
• Acquired or Natural or
both
• Courses, Experience
Dr.
Mo
ha
mm227
228. Business Strategy
1. Define the core business from your business model
2. Stay with you the core business
3. Protect your core business
4. Formulate a portfolio of on going business
229. Important notes:
Connect the disconnected pieces of information and details of
your market and marketing strategies
Look for small details because it can make a huge differences
Plan for a short term and a long term plan with time schedule
management and performance monitoring
Start With Advantage and Disadvantage of yourself, formulate
SWOT then use all data to make the Short run and long run
planning then ask your community opinions then compare
Decision makers must site together from different fields to
discuss the different point of views and brainstorming
Listen to the sound that when somebody couldn’t do something
they will push you to believe that nobody could do that as well!
Dr.
Mo
ha
mm229
230. Adopters Categories
Innovators:
Risk takers
Young, well educated
Use commercial media, professional sources in learning about new products
Dr.
Mo
ha
mm230
231. Adopters Categories
Early adopters:
Opinion leaders
Successful, well educated, concerned with failure
Provide information to others
Dr.
Mo
ha
mm231
232. Adopters Categories
Early majority:
Cautious with innovations
Socially active , not leaders
Rely on interpersonal sources of information
Dr.
Mo
ha
mm232
233. Adopters Categories
Late majority:
Skeptical about innovations
Adopt innovations in response to social pressures or the decreased availability of old
product
Older, less social status
Dr.
Mo
ha
mm233
235. Business Strategy & Diffusion Process
Diffusion Enhancement
Strategies
Diffusion InhibitorDiffusion Determinant
-Use media
-Conflict reduction
themes
GroupType of decision
-High service outlets
-Skilled sales force
-Extensive marketing
efforts
HighComplexity
-Success
documentation
-Endorsement by
credible sources
-Guarantees
HighPerceived risk
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236. The business will create competitive
advantages by selecting one of the following
strategies
1. Cost Leadership
2. Differentiation
3. Concentration
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264. Red Ocean Vs. Blue Ocean
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space Create uncontested market space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new demands
Make the value / Cost trade-off Break the value cost trade-off
Align the whole system of a company’s
activities with its strategist choice of
differentiation or low cost
Align the whole system of a company’s
activities in pursuit of differentiation and
low cost
Dr.Mohammed Ghorab
264
265. Principle 1
Reconstruct your market boundaries
- Define your industry factors
- Draw your strategy canvas
Dr.Mohammed
Ghorab
265
266. 6 Paths for reaching principle 1
1. Look across alternative industries
2. Look across strategic groups within industries
3. Look across the chain buyers
4. Look across complementary product and service offerings
5. Look across functional or emotional appeal to buyers
6. Look across time
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267. Path 1:
Look across alternative industries through:
• Substitutes
• Alternatives
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"do communications over the mobile network",
and is also from a compound word dokomo, meaning "everywhere" in Japanese.
268. Path 3: Look across the chain of buyers
• A chain of buyers
• Purchasers
• Users
• Influencers
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269. Look across functional or emotional appeal to buyers
Dr.Mohammed Ghorab269
Make the world better place with us, It’s not just a hair cut it’s unforgettable experience:
Enjoy life and see your smile again in 10 min.!
Get your money back in case: More than 10 Min. Not satisfied
Or Didn’t discover the joy of cutting your hair, unforgettable experience
270. Principle 2
Focus on the big picture, not the numbers:
• Explore the six paths
• Test your growth potential
4 Steps of Visual strategy:
• Visual Awakening
• Visual Exploration
• Visual Strategy Fair
• Visual Communication
Dr.Mohammed Ghorab270
271. Principle 3
Third Tire;
Unexplored non customers: Who
are in markets distant from yours
Second Tire:
Refusing non customers
‘Who consciously choose against your
market
First Tire:
Soon to be non customers
“ Who are on the edge of
your market waiting to
jump ship"
Dr.Mohammed Ghorab271
272. Principle 4
Get the strategic sequence right:
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Utility • Exceptional
Price • Reasonable
Cost • Profitable
Adaptions • Risky
273. The Six Stages of buyer experience cycle
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279. Case Study 1, 2, 3, 4: Skype Vs. Apple
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280. الشغل لزوم الشغل من أهم اللي
Customer service compliance: the customer don’t need the
product or service he needs the need to fulfill his desire and
reaching the satisfaction situation
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284. Results Common: Difference:
1. Happiness
2. Feeling comfort
3. Social Partner
4. Private life
5. Human & Emotions
6. Out of stress
bounders
1. Color/ Race
2. Age
3. Ethnic group
4. Dresses & Fashion
5. Number of family
members
6. Different life style
At the End they are all different people common in there happiness do you all agree?
So does business-consumer relationship main focus
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290. A- Market Potential
Market potential
1. Market size
2. Competition
3. Resources
4. Customer demand, wants, income etc.
291. Similarity & Accessibility
Similarity (to home or other well known foreign markets)
Geographic proximity
Psychological proximity
1. Economies of scale
2. Optimization of marketing
3. Easier diffusion of products
4. Ease of operation, management and control
5. Greater profitability
Accessibility
Geographic accessibility
Psychological access
Political distance
Management communications
293. Marketing Strategies
Marketing
environment
and scale of
marketing Competitors Objectives
Marketing
mix
variables
Marketing
budgets
Expected
outcome
1.Should we go international?
2.Where should we go?
3.How should we go there?
4.What should we sell?
5.How should we market it?
6.How do we organize?
295. The role of strategy in international business
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296. Five common approaches for worldwide
organisational structure
1. Country and regional centres
2. Functional operation
- Best suited to companies with a narrow product base with relatively
homogeneous customers around the world
3. Product structuring
- for companies with portfolio of seemingly unrelated product lines where
each product group may have its own international division
4. Matrix structuring
- very popular in late 70s, mostly by product and market, often not used
due to problems with complexity and power struggles
5. Strategic business units (SBUs)
- dividing the organization into defined businesses, each addressing an
identified customer base either by country or even on a worldwide basis
297. Trends in global organisations
1. Ethnocentric: headquarters personnel and culture dominates
2. Polycentric: here the culture of the subsidiary countries take the lead
3. Regiocentric: a mid point, attempting to coordinate a geographic region,
e.g. EU or utilizing a country such as Singapore as a regional hub
4. Geocentric: Simply the attempt to manage and integrate strategy globally
- It is worth mentioning that no one method is the correct one - the one that
reflects the strategic intent matched to the objectives is the most
appropriate
298. Globalization
International or global?
Domestic marketing: marketing directed at the domestic or home market
only
Export marketing: making the product or service in the home markets and
selling it in international markets
International marketing: moving beyond exporting, the organization often
still makes the product or service in the home market but has its own
representation for sales, marketing and distribution in the foreign market(s)
Multinational marketing: the next stage of growth and involvement. The
organization has greater proportion of its assets in markets other than its
domestic base. The domestic market is now one of many markets all
approached mainly on an individual basis (also called multidomestic
strategy)
299. Multiregional marketing: in an attempt to find economies of scale in their
operations, the organization has started to standardize its international
marketing strategies around regional groupings of markets
Global marketing:
- some authors describe this process as the EPRG framework. This stands
for Ethnocentrism (domestic/export marketing orientation), Polycentrism
(international marketing orientation), Regiocentrism (multinational
marketing orientation) and Geocentrism (global marketing orientation)
(Source: Douglas, S.P. and Craig, C.S., 1995 Global Marketing Strategy)
- The organisation defines a single strategy for a product, service or
company that can be followed in all markets in which the organization
operates. Typically senior management will set general strategic guidelines
and local offices will develop these at local market levels
317. Economic Value & Market Structure
In order to develop principles and make predictions
about markets and how producers will behave in
them, economists have developed four principal
models of market structure:
perfect competition
monopoly
oligopoly
monopolistic competition
318. Perfect Competition
Perfect competition is when there is enough competition:
In a perfect competitive market we have:
Price-taking producers : when its action cannot affect the market price of
the good or service it sells.
Price-taking consumer: a consumer who cannot influence the market price
of the good or service by his or her actions.
319. Conditions
1-It must contain many producers, none of whom have a large market share.
2-The industry output is a standardized product.
Standardized product: is a product that consumers regard as the same good
even when it comes from different producers, sometimes known as a
commodity.
3-It is easy for new firms to enter (not strictly necessary) or for firms who
are in the market to leave. Economists refer to this concepts as ”free entry
and exit"
320. Competing in Prices vs. Competing in Quantities
Firms may decide to engage in quantity or price competition.
The basic insight of the quantity competition
(or the Cournot model) is that when firms are restricted in how much they
can produce, it is easier for them to avoid excessive competition and to
“divvy up” the market, thereby pricing above marginal cost and earning
profits.
It is easier for them to achieve an outcome that looks like collusion without
a formal agreement
321. The logic behind the price competition (or the Bertrand model) is that when
firms produce perfect substitutes and have sufficient capacity to satisfy
demand when price is equal to marginal cost, then each firm will be
compelled to engage in competition by undercutting its rival’s price until the
price reaches marginal cost—that is, perfect competition
322. Price Discrimination
Up to this point we have considered only the case of a single-price
monopolist, one who charges all consumers the same price. As the term
suggests, not all monopolists do this.
In fact, many if not most monopolists find that they can increase their
profits by charging different customers different prices for the same good:
they engage in price discrimination
323. The Logic of Price Discrimination
Price discrimination is profitable when consumers differ in their sensitivity
to the price. A monopolist would like to charge high prices to consumers
willing to pay them without driving away others who are willing to pay less.
It is profit-maximizing to charge higher prices to low-elasticity consumers
and lower prices to high elasticity ones.
325. German Wings: Blind booking & last minute
reservation as a price discrimination model
326. Price Discrimination and Elasticity
A monopolist able to charge each consumer his or her willingness to pay for
the good achieves perfect price discrimination and does not cause
inefficiency because all mutually beneficial transactions are exploited.
In this case, the consumers do not get any consumer surplus! The entire
surplus is captured by the monopolist in the form of profit
328. Perfect Price Discrimination
Perfect price discrimination takes place when a monopolist charges each
consumer his or her willingness to pay—the maximum that the consumer is
willing to pay
329. Forms of Price Discrimination
Advance purchase restrictions
Volume discounts
Two-part tariffs
331. Dr.
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You Choose it, Buy it, Do it!
Do it by yourself to save money and to make it beautiful!
Customize your product to suit you!
It’s all about you, Your choice and your design
- You gives a private feeling
- Product customization for more profits
- When customer pay an effort, he always like what he did and appreciate
- Unforgettable experience for any consumer behavior
336. Definition
Social innovation
“ refers to the creation, development, adoption, and
integration of new concepts and practices that put
people and the planet first. Social Innovations resolve
existing social, cultural, economic, and environmental
challenges. Some social innovations are systems-
changing – they permanently alter the perceptions,
behaviors, and structures that previously gave rise to
these challenges.”
From : Social innovation center: http://socialinnovation.ca/about/social-innovation
338. Shareholder ValueInternal External
Today
Tomorrow
Strategy and Sustainability
Drivers:
Disruption
Clean
Technology
Footprint
Drivers:
Population
Poverty
Inequity
Drivers:
Pollution
Consumption
Waste
Drivers:
Civil Society
Transparency
Connectivity
Sources of
Creative
Tension on
Each Axis
Innovation &
Repositioning
Growth Path &
Trajectory
Cost & Risk
Reduction
Reputation &
Legitimacy
Minimize
waste and
emissions from
operations
Integrate
stakeholders
into business
processes
Develop new
sustainable
competencies
Create shared
roadmap for
meeting unmet
needs
Source: Hart & Milstein, 2003
Economic
Disparity
Economic
Empowerment
of Women
Integrated
Urban
Management
Energy
Efficiency in
Production
Close
Loop
Design
CSR Reporting
339. Social Innovation Conditions
1. Diversity: Not in homogenous structures
2. The Right Environment: conducive physical environment
3. Animate and watch it grow: Not rigid
Source: http://socialinnovation.ca/about/theory-of-change
340. The Social Innovation Pyramid
Source: http://socialinnovation.ca/about/theory-of-change
341.
342. Social Innovation is a novel solution to a social problem
that is more effective, efficient, sustainable, or just than
existing solutions and for which the value created accrues
primarily to society as a whole rather than private
individuals.
Value through Social Innovation
Source: James A. Phills Jr., Kriss Deiglmeier, and Dale T. Miller, Rediscovering Social Innovation, Stanford
Social Innovation Review, 2008. http://www.ssireview.org/articles/entry/rediscovering_social_innovation/
343. Social Innovation is an initiative, product or process or
program that profoundly changes the basic routines,
resource and authority flows or beliefs of any social system
(e.g. individuals, organizations, neighborhoods',
communities, whole societies).
343
Source: Social Innovation Generation, Canada,
http://www.socialinnovationexchange.org/files/images/SI_Primer_R5.pdf
Value through Social Innovation
(cont’)
345. In 2009, The White House opened an Office of Social Innovation and in 2010 made a
$50million investment in 11 projects.
Governments across the world are showing “an explosion of interest” and social
innovation is seen as “an important and legitimate public policy approach”
Source: http://socialinnovationresearch.wordpress.com/definitions/examples/
Government
346. Danone’s annual “Social Innovation Lab”
Dell’s “Social Innovation Competition” – Dell announced in May 2011 that they will invest a
further $5 million into the competition.
The Financial Times has Social Innovation Awards
Source: http://socialinnovationresearch.wordpress.com/definitions/examples/
Business/
Entrepreneurship
347. Social entrepreneur programs; implementing new organizational models – such as social
enterprises
Advocating for systemic change – such as the need for social finance
Source: http://socialinnovationresearch.wordpress.com/definitions/examples/
Non-Profit
Organization
348. Corporate Social Innovation
Five Key Factors:
1. A Purpose
2. A defined need
3. Measurement
4. Partners
5. An innovation-enhancing structure
Source: http://www.theguardian.com/sustainable-business/corporate-social-innovation
349. Social Innovation in Egypt
The SEKEM Development Foundation (SDF)
The SEKEM initiative was founded to realize the vision of sustainable human
development. Its mission is the development of the individual, society and environment
through a holistic concept integrating economic, societal and cultural life.
Source: http://www.sekem.com/
351. The SEKEM Sustainability Flower
Economic life: Products Sold and values along the value chain.
Societal life: Protection and regulation of human rights.
Cultural life: How to develop the individual.
353. Social Innovation in Egypt (cont’)
Bey2ollak Application
A Cross Platform Mobile application for people to exchange info about traffic that uses the
power of crowd-sourcing, social interaction and localization
354. Social Innovation in Egypt (cont’)
Bey2ollak
Launched virally on 10/10/10 and got more than 5K Registered users on the 1st day!
Has Vodafone-Egypt as a current VAS (Value Added Services) partner!
Has currently around 1 Million registered users!
355. Why Social Innovation ?
What does these 2 innovations have in common?
Why they are considered as “Social Innovations” ?
356. Source: Kim Alter, http://www.4lenses.org/setypology/print
Value through Social
Entrepreneurship
357.
358. • Social impact – motivation is for rapid diffusion through sharing of assets
and innovations
• Business growth – motivation is for rapid growth through protection of
assets and innovations
Source: Young Foundation, “Open Book of Social Innovation”
http://www.youngfoundation.org/files/images/Open_Book_of_Social_Innovation.pdf
Value through Social
Entrepreneurship (cont’)
359. Value through Social Entrepreneurship (cont’)
Four Key Questions
What is the social problem you are trying to solve?
What are the social impacts you are trying to create?
What is the market you are trying to serve?
What is the most effective way to attract customers ?
362. Social Entrepreneurship Example 1 (cont’)
• THE SOCIAL CHALLENGE: 65% of the world’s cocoa comes from Africa. Less
than 1% of chocolate is made there.
362
365. What does it take?
• Integrative Thinking: Ability to find a solution
where nobody else sees it
• Pro-social Cost-Benefit Analysis: Including benefits
to others in assessments.
• Commitment to Alleviating Suffering of Others:
Willingness to take “unreasonable” risks
366.
367. “Innovation is the specific instrument of entrepreneurship. The
act that endows resources with a new capacity to create
wealth.”
- Peter Drucker -
368.
369. Recommended Books
The Decision Book: 50 Models for Strategic Thinking von Mikael Krogerus,
Roman Tschäppeler, Philip Earnhart und Jenny
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HBR's 10 Must Reads on Strategy von Harvard
Business Review von Harvard Business Review Press
The First Mile: A Launch Manual for Getting
Great Ideas into the Market
by Scott D. Anthony
370. Reference:
• Marketing Management, Millenium Edition, Philip Kotler
• International Business Environments and Operations; Daniels, John D.;
Radebaugh, Lee H.; Sullivan, Daniel P.; 12th Edition, Pearson Prentice Hall, 2009
(core source for powerpoint handout)
• International Business Environments and Operations; Daniels, John D.;
Radebaugh, Lee H.; Sullivan, Daniel P.; 10th Edition, Pearson Prentice Hall, 2004
(older version, mostly still valid)
• Transnational Management, Bartlett, Christopher, A., Ghoshal, Sumantra;
Birkinshaw, Julian, 4th Edition, 2004, McGraw-Hill
• International Business, Themes and issues in the modern global economy,
Johnson, Debra, Turner, Colin, 2003, Routledge
• Strategien der Internationalisierung, Schmid, Stefan, 2. Auflage 2007
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371. References:
http://harthelps.wordpress.com/
http://harthelps.wordpress.com/
http://blog.mindjet.com/2011/03/use-case-creating-a-strategic-plan-with-mindmanager/
http://blog.martinruss.com/2010/05/innovation-catalyst.html
http://www.creativityatwork.com/design-thinking-strategy-for-innovation/
Dr. Mostafa Hunter, Lead Expert for Healthcare sector, DAAD 09/Nov./2009
The firm matters not the industry by Charles Baden-Fuller and John Stopford
http://www.quickmba.com/strategy/porter.shtml
http://www.limitlesspress.com/grief.htm
http://kisi.deu.edu.tr/sedef.akgungor/dosyalar/Class_1.ppt
http://www.strath.ac.uk/media/faculties/business/economics/mscemp/IE2.ppt