The document summarizes key findings from a statistical study of thousands of companies that identified several hundred as truly exceptional performers. It discusses three elementary rules that these exceptional companies consistently followed in their strategic choices over decades of success: 1) compete on differentiators other than price (better before cheaper), 2) prioritize increasing revenue over reducing costs (revenue before cost), and 3) be willing to change anything to follow the first two rules. The study found that positions built on greater differentiation through brand or reliability drove higher performance than those based on lower prices. Exceptional companies relied more on gross margins than costs for profitability.
Moving Beyond Reverse Auctions for Scalable, Sustainable ValueEmptoris, Inc
Learn how companies are stepping back from the one-size fits-all application of the reverse auction and leveraging more advanced sourcing solution that better support their sourcing strategies to generate sustainable savings of 7% in categories repeatedly sourced year after year.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
Equilibrium of firm and Industry under Perfect CompetitionBikash Kumar
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Sultan Mahmud
Md. Shaon Mollah
Md. Mamun Miah
Md. Abid Hasan
Shimul Kumar Mondal
Moving Beyond Reverse Auctions for Scalable, Sustainable ValueEmptoris, Inc
Learn how companies are stepping back from the one-size fits-all application of the reverse auction and leveraging more advanced sourcing solution that better support their sourcing strategies to generate sustainable savings of 7% in categories repeatedly sourced year after year.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
Equilibrium of firm and Industry under Perfect CompetitionBikash Kumar
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Sultan Mahmud
Md. Shaon Mollah
Md. Mamun Miah
Md. Abid Hasan
Shimul Kumar Mondal
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
The improving global economy is pushing prices up – but too much focus on price can blind buyers to the value they can gain by working with suppliers. Just look at Apple’s success, says Bill Michels
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
Firm Strategy for Global or Multi-domestic OrganizationsAssignment Studio
Firms are utilizing and adopting several strategies as per nature of their business to accomplish mission and vision. In this report, several global strategies have been explored and the applications and practical implications have also been compared with a global firm. The operations of IKEA have been studied to see the outcomes of global strategy in its operations.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
The improving global economy is pushing prices up – but too much focus on price can blind buyers to the value they can gain by working with suppliers. Just look at Apple’s success, says Bill Michels
Students should be able to:
Understand the characteristics of this market structure with particular reference to the interdependence of firms
Explain the behaviour of firms in this market structure
Explain reasons for collusive and non-collusive behaviour
Evaluate the reasons why firms may wish to pursue both overt and tacit collusion
Firm Strategy for Global or Multi-domestic OrganizationsAssignment Studio
Firms are utilizing and adopting several strategies as per nature of their business to accomplish mission and vision. In this report, several global strategies have been explored and the applications and practical implications have also been compared with a global firm. The operations of IKEA have been studied to see the outcomes of global strategy in its operations.
Loyal customers are worth up to ten times as much as their first purchase.
86% of consumers will pay up to 25% more for a better customer experience.
It costs six times more to acquire a new customer than retain an existing one
All organisations should continually strive to deliver amazing customer experiences. At retail360, we have a vision to give people the customer experience they are searching for - because we understand customer service can change people's lives.
And any business with customers is in the people business, it all comes back to people.
What does success look like in your industry how do you get topLeul Girma
What does success look like in YOUR industry? How do you get top?
Success is one of the most controversial issues today
Also the concept of industry has become more complex than ever before. Some companies still find it difficult to identify which industry they are in, No matter if you are in one or several industries, you will enjoy this topic.
This video will bring you the most useful tools to analyze your business internal and external environment , then guide you to moving ahead dramatically .After watching this video you will able to know how to lead your business significantly moving forward.
We will discuss deeply how to identify your success factors, in this session will get clear understanding
about industry nature and characteristics very well. Because when you know about the particular city’s road traffic, drivers behavior ,exceptional rule and regulations you will drive greatly. It is very similar with business world
based on industry and company facts we will evaluate your business current position , if is that great you will maintain to being more strong. other ways it motivate you to do something significant action in your business, that could be a milestone to moving ahead dramatically.
The Journey to value: Transforming procurement to drive the enterprise agendaFarid Djaouani
The link between procurement performance and enterprise success is widely accepted and well documented; our 2013 CPO study found, for example, that companies with high-performing procurement organizations have higher profit margins than companies with underperforming procurement departments. Indeed, while many CPOs have led companies to dramatic increases in revenue or impressive levels of profitability, few are adequately recognized for these achievements. Those CPOs—the ones we call procurement role models—drive top-line revenue, bring innovation into the company and improve competitive advantage. They contribute to overall enterprise success and, as a result, certainly deserve a seat at the corporate leadership table. To identify procurement operations worthy of such praise, as well as to understand the underpinnings of their success, the IBM Institute for Business Value and Economist Intelligence Unit surveyed 1,023 CPOs from organizations with annual revenue in excess of US$1 billion. We also took a close look at the 100 companies that achieved the most impressive revenue and profit performance relative to their industry peers so that we could understand the strategies and actions that account for their uniquely valuable contributions to the enterprise.
Michael E. Raynor is adirector at Detoitte ServicesLP, andDioneWang844
Michael E. Raynor is a
director at Detoitte Services
LP, and Mumtaz Ahmed
is a principal witii Deloitte
Consulting LLP and the chief
strategy officer for Deloitte
LLP. They are the authors
of The Three Rules: How Ex-
ceptional Companies Think,
forthcoming from Portfolio.
MUCH OF THE STRATEGY and m a n a g e m e n t a d v i c e
that business leaders turn to is unreliable or im-
practical. That's because those who would guide
us underestimate the power of chance. Gurus draw
pointed lessons from companies whose outstand-
ing results may be nothing more than random fluc-
tuations. Executives speak proudly of corporate
achievements that may be only lucky coincidences.
Unfortunately, almost no one provides scientifically
credible answers to every business leader's basic
questions about superior performance: Which com-
panies are worth studying? What sets them apart?
How can we follow their examples?
Frustrated by the lack of rigorous research, we
undertook a statistical study of thousands of com-
panies, and eventually identified several hundred
among them that have done well enough for a long
enough period of time to qualify as truly exceptional.
Then we discovered something startling: The many
and diverse choices that made certain companies
great were consistent with just three seemingly el-
ementary rules:
1. Better before cheaper—in other words, com-
pete on differentiators other than price.
2. Revenue before cost—that is, prioritize increas-
ing revenue over reducing costs.
3. There are no other rules—so change anything
you must to follow Rules 1 and 2.
The rules don't dictate specific behaviors; nor are
they even general strategies. They're foundational
concepts on which companies have built great-
ness over many years. How did these organizations'
io8 Harvard Business Review April 2013
HBR.ORG
April 2013 Harvard Business Review 109
THREE RULES FOR MAKING A COMPANY TRULY GREAT
leaders come to adopt them? We have no idea—nor
do we know whether the executives even followed
them consciously. Nevertheless, the rules can be
used to help today's and tomorrow's leaders increase
the chances that their companies, too, will deliver de-
cades of exceptional performance.
Beyond Truisms
The impetus for our research was the increasing pop-
ularity over the past 30 years of "success study" busi-
ness books and articles. Perhaps the most famous of
these are Thomas Peters and Robert Waterman's In
Search of Excellence (1982) and Jim Collins's Good to
Great (2001), but there are many others. The prob-
lem with them is they don't give us any way to judge
whether the companies they hold up as examples
are indeed exceptional. Randomness can crown an
average company king for a year, two years, even a
decade, before performance reverts to the mean. If
we can't be sure that the performance of companies
mentioned in success studies was caused by more
than just luck, we can't know whether to imitate their
behaviors.
We tackled the randomness problem ...
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
Growing Your Business In A Hyper Competitive MarketAndrew Samrick
The keynote address at the 2011 TEANA conference, this presentation details the forward expectations of manufacturers and distributors, as well as the operating and commercial activities those in the transportation industry will need to master to remain competitive in a highly fragmented market space.
Strategic Marketing Decisions and Considerations - Madmarketingpro.comBobby Bruno
Here you will learn about what factors to pay attention to when developing a Marketing Mix. Marketers should have a strong understanding of various strategies and possible responses from the market, competitors, and consumers. You can see more like this on madmarketingpro.com
There are a multitude of risks and issues for corporations and.docxssusera34210
There are a multitude of risks and issues for corporations and industries
operating in the international environment. No doubt, issues such as
inferior quality of products manufactured by companies that engage in
outsourced production, or the use of chemicals in the manufacturing
process of edible products imported back to the U.S., which our regulatory
system considers toxic and which are regulated against within our own
borders. These types of issues can result in a tremendous impact to a
corporation's bottom line, from the financial impact to sales to brand
damage that diminishes their reputation in the marketplace.
Why does a company need to grow?
Suppose you started a company using an innovative product idea you
designed and your corporation was the first one to market and sell this
exciting new product in your home country. Sales immediately took off and
your company found itself growing and branching out in cities all across
your nation. Soon, competitors followed your leadership position, chasing
your market and successfully absorbing some of your sales. In order for
your firm to remain the leader, or to even continue to survive, you would
need to develop strategies that allowed your firm to continue to grow its
market share. If you failed to maintain your market position, over time you
could lose enough of your customer base so as to become unable to
financially continue to stay in business. Not only would you close your
doors, but your employees would lose their jobs.
Corporations spend a large amount of time developing strategies that allow
them to remain competitive in the marketplace, earning profits and re-
investing them into the business in order to grow. When a firm reaches a
saturation point in its home market, one strategy it can deploy to remain
profitable is to move into the global marketplace. The key to remaining
competitive is to constantly, and continually, innovate. For global firms,
innovation is exponentially more challenging.
Profit and Loss - What are they and how do
they impact global strategies?
In order to develop sound global strategies, it is critical to understand
profitability. Simply put, profitability means the degree to which a
corporation has been successful at earning revenues and managing
expenses. The difference between its revenue and its expenses is called
the net profit and the ratio of net profit to revenue is called a net profit
margin. Net profits and net margins are tracked and monitored carefully by
a firm's finance department, along with all other financial data Net margins
reflect how much of each dollar earned by the company has been
translated into profits and is determined by dividing the net profit by
revenue.
While some industries operate on very low, or thin, margins, others operate
on much higher margins. Understanding a firm's finances and industry
profitability norms, assists financial experts in assessing the health of the
firm, a ...
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2. A statistical study of thousands of companies
identified several hundred that have been good
enough to qualify as truly exceptional.
It also revealed that their strategic choices over
decades of success have been consistent with
three elementary rules.
3. 1. Better before cheaper—compete on
differentiators other than price.
2. Revenue before cost—prioritize
increasing revenue over reducing costs.
3. There are no other rules—so change
anything that must to follow Rules 1 and
2.
4. With few exceptions, the best companies
behave as though these principles guide
them through all their important decisions
From acquisitions to diversification to
resource allocation to pricing.
Rules (Cont…)
5. More than 25,000 companies that have
traded on U.S. exchanges at any time from
1966 to 2010.
Measured performance using return on
assets (ROA)
Two categories of superior results:
Miracle Workers fell in the top 10% of ROA for all
25,000 companies
Long Runners fell in the top 20% to 40%
6. A total of 174 companies qualified as
Miracle Workers, and
170 qualified as Long Runners.
Beyond Truisms (Cont…)
7.
8. Was customer focus the key? Nope.
Innovation? Risk taking?
All these factors were associated with
great, good, or average performance in
pretty much equal measure.
9. Companies could be successful only if
they did
The right deals,
Pursued the right innovations,
Took the right risk in the right sorts of
ways.
10. But those are truisms, and thus as useless
as the advice business people so typically
get form what might be called the “Do the
Right Thing School of Management”:
Get the right people on the bus!
Have a clear strategy!
Give customers what they want!
11. According to the study, “Competitive
positions built on greater differentiation
through brand, style or reliability are more
likely to drive exceptional performance
than positions built on lower prices.”
12. From the study it has been identified that
Miracle Workers typically rely much more
on gross margins than on lower costs
for their profitability advantage, whereas
Long Runners are as likely to depend on
a cost advantage as on a gross-margin
advantage.
13.
14. Werner Enterprises, the Long Runner in the
trucking trio, expanded in both scale (serving
essentially the entire continental U.S.) and scope
(providing a wide range of services.)
P.A.M. Transportation Services (PAM), the
Average Joe of the three, focused on a narrower
range of customers and services than Werner
did, but sought high volume through lower
prices.
Following the Rules (Mostly)
15. As demand outstripped supply in the
industry, PAM found itself short of drivers and
burdened with idle assets.
To restore profitability, the company switched to
contract trucking, choosing to target the auto
sector.
When exceptional companies abandon non-
price positions, their performance typically
weakens. Maytag, for example, is one of the
Miracle Workers, but only in one distinct era.
Following the Rules (Mostly)
16. However, the study don’t mean to suggest
that a company can afford to ignore its
relative price position, any more than one
that competes through low prices can
afford to ignore product or service quality.
The study means only that in most
cases, outstanding performance is caused
by greater value and not by lower price.
17. For all its virtues, a non price position isn’t
with-out danger. Typically, a company that
competes on dimensions other than price
must constantly battle rivals that have
figured out its formula.
18. Keep an eye out for disruptive threats.
Charging higher prices in pursuit of higher
gross margins is what creates opportunities in
less-demanding market segments and
provides oxygen for would-be disruptors with
cheaper, good-enough products.
But disruption is now well enough understood
that it’s possible to determine pretty
accurately when alternative solutions have
disruptive potential and warrant rearguard
counterattacks.
19.
20. Companies must not only create value but
also capture it in the form of profits.
An overwhelming margin, exceptional
companies garner superior profits by
achieving higher revenue than their rivals,
through either higher prices or greater
volume.
Very rarely is cost leadership a driver of
superior profitability.
21. Range of contexts in which companies have
built businesses on this (higher prices can
lead to higher profits) idea, was impressive.
As an example, the U.S. discounter Family
Dollar Stores, a Miracle Worker, which has
bested the legends in discount retailing since
the mid-1970s.
22. Many of the company’s customers are poor, it’s
perhaps surprising that Family Dollar’s success
has resulted from higher prices, which it can
charge because it offers superior convenience
and selection.
Smaller stores are in locations that are easier
for customers to get to, and many shoppers
buy small amounts of a wide variety of goods.
Running these stores is unavoidably costly—in
fact, the company tolerates higher costs and
lower efficiency than would many of its larger
competitors.
23. But its consistently higher prices have
enabled Family Dollar to enjoy a gross-
margin advantage and, consequently,
superior ROA for decades.
For eight of the nine Miracle Workers in
our sample, revenue was the main driver
of performance.
24. The ninth is the Pennsylvania-based
grocery chain Weis Markets, which
competes on price and drives profitability
through lower costs; more on this company
below.
Six of these eight relied mainly on higher
prices to achieve their revenue levels; the
other two relied largely or entirely on
volume.
25. Merck followed the better-before-cheaper rule,
refusing to compete on price relative to the
alternatives in global markets.
But the lower price ceilings in those markets
prevented the company from using gross
margins as its primary source of advantage.
Higher volume allowed Merck to achieve
superior profitability through better asset
utilization than Eli Lillyb enjoyed, which was the
main reason for the company’s higher ROA.
26.
27. The first two rules should be on the table.
Saw wide variation among companies of all
performance types.
Couldn’t find consistent patterns of how all
the factors mattered.
Takes enormous creativity to remain true to
the first two rules.
Changing the approaches towards the
critical determinants would still keep the
companies exceptional
28. The absence of other rules doesn’t give you
permission to shut down your thinking.
For example, Abercrombie & Fitch has stayed
on top of a constantly changing retail clothing
market.
Brand-intensive value and a higher- price-
driven profitability formula.
A&F has avoided promotions and steep
markdowns.
29. During Recession:
A&F resisted following other clothing
companies down the discount path
In pharmaceuticals and semiconductors
The top performers have shifted from
domestic to global distribution.
30. When these changes have led to superior
profitability, it has been because they
contributed to greater volume more than to
lower costs.
Necessary relationship between how you
create value and how you capture it.
Nonsensical for companies that compete
through lower prices
31. Non price positions, as we’ve said, are
typically associated with higher prices or
greater volume.
Research shows that companies with
lower- price positions tend to rely on lower
costs to achieve profitability.
The grocery chain Weis.
32. Miracle Worker was decades ahead of its
competitors in introducing house-label
products
The top 10% of ROA make Weis a clear
exception to our Rules 1 and 2.
Weis’s advantage began to slip in the
1980s and since 1996 it has not been in
the top 10% even once.
33. The bottom line is that if you want to beat
the odds, you should concentrate on
creating value using better before cheaper
and on capturing value with revenue
before cost.
34. Get a clear picture of a company’s
competitive position and profitability formula.
Comparing with rival firm is more favorable
than comparing with past performance
because today success is not success for
tomorrow.
The comparison can be done through
Benchmarking under single and various
dimensions including cross-functional
activities.
35. Following questions provide the idea
whether executives of company:
• Justify an acquisition in terms of economies of
scale
• Are they talking about an opportunity to expand
and thereby realize the growth potential of a non-
price position that company has already earned in
the markets it currently serves?
Hence understanding the rules can be
useful to antidote the to intuition.
36. An understanding of the rules can be a useful
antidote to intuition
Whether that takes the form of a single
leader’s vision or the collective hunch of a top
management team (which often comes with a
veneer of post hoc rationalization).
When situations are muddy and the data
ambiguous, executives need rules to help
ensure that their interpretation of the data is
more likely to lead to the outcomes they seek.
37. The rules are especially powerful when it comes to
dealing with those financial ratios that govern so
many lives and lead so often to pathological
consequences which are as follows:
• ROA
• Cash flow
• Return on investment,
• Economic value added
It is hard because some of the numerator of
income and the denominator is some measure of
assets.
When customers are no longer willing to pay for
company’s latest innovation and income starts to
decline, it’s too easy to try to make those ratios go
up by shrinking the denominator.