Case studies

The buying proforma includes (Multiple Response): A profile of the target group as well as buyer influencing groups or persons Key customer values of your target group Key market players and their relative positions A detailed picture of a realistic buying process All influencing factors. Any differential advantages to fear - these must be combated Emerging and fast-moving rivals, including substitute solutions to customers' needs The business's own standing, which should improve over time

- All influencing factors. - A profile of the target group as well as buyer influencing groups or persons - Key customer values of your target group - A detailed picture of a realistic buying process

Pro-cyclical (approach)

- Consolidation and cost-cutting to ensure survival - Essentially defensive in nature

Corporate Life Cycle Concept

- Corporate Life cycle describes the process of development of business or org. - It goes from birth to death of a company.

Anti- cyclical approach

- Exploit specific opportunities from recessionary environment to expand business - More effensive/aggressive in nature

Start up 5th Phase

- Focus on leveraging internal growth: Shared services - Items of phases 2-4 are replaced by professional good sense of staff group and regroup -Flexibility and teams to deliver projects in a matrix structure supported by sophisticated information systems -Team based financial rewards -This phase asked if a crisis of internal growth fabric roof can only come by developing partnerships both complementary organisations -Ends with growth crisis

Start up 4th Phase

- Get rid of rigid systems: Build "new" corporate culture -> Matrix structure - Business units reorganised into product groups or services practices -Investment finance is allocated centrally and managed according to return on investment and not just profits -Incentives are shared for company by profit share scenes aligned to corporate goals -Bureaucratic system develops -Growth may become stifled -Crisis of red tape can emerge where many administrative obstacle reduce efficiency and innovation -It end with the red tape crisis

Start up: 1nd Phase:

- Informal communication - Professional Management is needed - Rewards for long hours are probably through profit share or stock -With the time and more investment will emerge a need for more formal communication -The owner may change his/hers style but is often needed someone new - Ends with leadership crises

What can influence the customers choice?

- Labor market/ Wages - Market for loans/ interest rate - Availability and prices of other products - Consumption/ savings preferences

In economics, industries are customarily classified as:

- Primary e.g. agriculture, forestry, finishing) - Secondary (manufacturing industry) - Tertiary (service industry)

Product life cycle

- Products have a limited life - Product sales pass through distinct stages, each posing different challenged, opportunities, and problems to the marketing & sales, - Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

Summary startup stage

- The development of a company will be influenced by its ability to identify and explore opportunities. Hereby, the company will depend on its internal resources & external conditions. - According to Greiner's growth curve, growing organizations move through periods of evolution, which each of ends with a period of crisis and revolution. These crises may be seen as turning points, which companies can plan for.

Please choose the correct answers. Recessions are generally characterized by ... - falling profits -increasing unemployment -decreasing competition because firms disappear from the market -better access to credit for consumers -reduced uncertainty, given that the expected downturn is now reality -idle production capacity -a rise of inflation

- falling profits -increasing unemployment

Whats are the main issues in HR growth phase?

1. More recruiting activities also at universities 2. Job analysis - finer definition of roles 3.Implementation of selection processes - specialization of tasks 4.Professionalization of the leadership team 5. Focus on training and development 6.Standardization of internal processes 7. Work's council / trade unions 8. Diversity, inclusion and integration 9. Encourage transparent communication 10.Performance-related bonuses

Start up

1. Small business by size 2. Limited number of employees 3. Limited product range 4. Focus on R&D 5. Many are less knowledgeable in Marketing &Sales 6. Limited geographical scope & Distributed in limited number of channels 7. Low demand for their products & low number of business transactions

Maturity

1. Well-established firm in their industry, with a well-known product and loyal customer following with average growth 2. Firm has passed the stage of rapid growth and tend now to grow at the same rate as the overall economy 3. Missed to identify and pursue innovations 4. Intensive competition & limited demand 5. Need to consider aspirations by internal and external stakeholders

Challenges & Defining the value preposition (start up)

Challenges: Sales focus on product Important to define the value preposition. Defining the value preposition: It defines which benefits you provide for whom and how you do it unique well. It includes the target customer, problem you solve and why its better than other alternatives.

(marketing) Growth Stage

Characteristics 1- Higher transaction volumes & sales/turnover 2- Exponentially growing profits 3- Rapidly developing markets 4-Harnessing new potential

(marketing) Maturity Stage

Characteristics: Well-established firm in their industry, with a well-known product and loyal customer following with average growth. Firm has passed the stage of rapid growth and tend now to grow at the same rate as the overall economy Missed to identify and pursue innovations Intensive competition & limited demand Need to consider aspirations by internal and external stakeholders. High cash flow Increasing demand because of the more expending on ads

How does the company use its capital?

Long-term assets Current Assets

Anti-cyclical

Look to employ high qualified work by law wages (they could leave when the boom comes or stay and be happy) Increase of production efficiency -making use of lower costs and loans Research in development expenditure Cultivate customer layout and cos of ads would be lower/ new product intro low cost Bandling or transiting to privat branding

Market Penetration

It may increase the market share within a existing market

Understand the main characteristics of business cycles and their impact on enterprises

It shows how an economy would react to a certain input and how this would affect the institutions and people. It can affect positively or negatively, it can make the "weak" firms pressured to close while the strong and creatively one to find an advantage in a moment of recession, for example.

Effects on firms

It will be very unevenly Some firm will inevitably disappear Many others will deteriorate their position However, some firms are going to thrive and improve their position for the next boom

Categorize the following goods accordingly

Laptop- depends on its use Business organization software - investment good Toothpaste - consumption good Kitchen utensil in a restaurant- investment good Car- depends on its use Chocolate- consumption good Children's Toy - consumption good

Diversification

Launch new products in existing markets

Whats are the main issues in HR start up phase?

1. Limited capital resources force business owner to focus on a limited number of employees. 2. Employees usually cover a variety of different tasks - often no specialized HR person 3. Limited HRM planning / developing activities 4. Simple organization structure / low hierarchies 5. Use of other incentives than the monthly payment 6. Create documentation - job descriptions, health, and medical records, leave, etc 7. Create policies on dress code, leave, training, etc 8. Team-building 9. Consider using outsourced HR professionals 10. Establish a corporate culture

Start up 3rd Phase

-Mid-level management -With a manager that suppose to react fast to utilize opportunities for new products or in new markets -The top management has a monitory task and is dealing with big issues -At this stage, many business struggles as a mid-level manager may struggle with new roles as leaders. -This phase ends with a control crisis

Start up 2dn Phase:

-New structures on delegation are needed -Applies more formal communications -Budgeting -will focus on saturated tickets like: marketing, human resources, management and production. -Teams replace stock as a financial reward -Bigger team is necessary -New structures based on delegation is needed -Ends with an autonomy crisis

Start-Up companies need to perform the named activities in the following order:

1 Define a value proposition 2 Develop a Go-to-Market-Concept

The case study on Procter & Gamble reveals, that about [...] % of all ideas found by Open Innovation ends up in the market. 1% 5% 10% 15% 20%

1%

The five stages of industry life cycle:

1- Embryonic: Slow growth, high prices, significant investment and high risks. 2- Growth: Rapidly increasing demand, improving profitability, falling prices and low competition. 3- Shakeout: slowing growth, intense competition and declining profitability. 4- Mature: Little or no growth, industry consolidation and high barriers to entry. 5- Decline: negative growth, excess capacity and high competition.

Technology life cycle

1- Phase one: Technology development and application 2- Phase 3/4: searching to sell their technology and application growth 3- Technology modified and approved by the company and customer and time to decrease costs.

Whats are the main issues in HR Decline or Turnaround phase?

1. Concentration on survival by strategic new orientation and cost reduction by reducing the workforce 2. Change organization structure (e.g. SSC) 3. Reducing peripheral staff to protect the skeleton staff 4. Training now on reskilling and outplacement counseling 5. More emphasis on outsourcing

Whats are the main issues in HR maturity phase?

1. Decentralization & delegation of responsibilities (abroad) 2.Implementation of selection methods 3. Global HRM approach 4. Offshoring / outsourcing activities 5. Stabilization of labour costs 6. Less perceived need for training/development 7. Matrix structure

Growth

1. Higher transaction volumes & sales/turnover 2. Exponentially growing profits 3. Rapidly developing markets 4. Harnessing new potential

Main Management tasks of the "Decline Stage":

Find ways to improve the company procedures in order to produce more efficient and better to stand out in the competition. Find a better way to reallocate resources and investment.

According to the Harvard Innovation Lab, the value proposition includes 5 elements, which are typically brought together in a fixed sequence. Please arrange accordingly:

3 What your product solution is about. 5 Why you consider it as different in comparison to other alternatives. 1 For whom your product was designed. 2 Why existing alternatives lead to dissatisfaction of those people. 4 Which problems of consumers it's going to solve.

The case study on Procter & Gamble reveals, that in 2006, about [...] of all new P&G products in market had elements which originated from Open Innovation. 12% 35% 52% 77%

35%

Please rank the activities to perform a turnaround of a declining company in the right sequences.

4 Strategic divestments on market and brand portfolio level/Identify markets with sustainable potential/market cultivation of existing markets. 1 Separate internal and external reasons of downturn 3 Cut back resources on marketing spending/reducing irrelevant products and weak brands/allocate limited resources to most relevant fields of business 2 Identify underlying causes of downturn

How can Start-Ups protect themselves from copying?

Accelerating time to global market and putting focus over important countries in different continents, in order to tropicalize your company as you go. Or maybe, you may prefer to buy your future copycats for a large sum of money...

Evaluate your solution with regard to uniqueness & competitive

After being clear about the problem solving ability, the design product solution need to be evaluated with focus on the uniqueness and competitiveness. The companies can use the Maslow's pyramid or in the degree of needs and also the urgency of needs.

(marketing) Go to market concept

After designing the value proposition the go to market needs to be developed. It includes: Strategy Target segment Brand Positioning (designing, communicating and delivering value, creating an appropriate image of your offering in the mind of customers, understanding the unique value prepositions of your offering.) Tactics Buying proforma A buying proforma includes: Setting a customer profile Buying center Key customers values

Corporate Lifecycle Concepts

An organisation passes different stages and initial points within their development. These stages have great impact on their survival.

Main Management tasks of the "Start Up Stage":

Apply the transition of informal to formal communication as the company expands. Be very professional is important. Risk management.

Explain why in a recession, the demand for investment/ capital goods may be affected more strongly than the demand for consumption goods.

Because most of the firms would look for expending the money on the essential (such as materials, things that the company could not go without) and a demand for machinery, for example, would decrease.

Characteristics of Business Cycles

Boom: If GDP is strongly growing and production eventually exceeds the longer run production capacity of an economy, this economy is said to be in a BOOM. Recession: A situation of weakening growth rates, eventually leading to an under-utilization of capacity, is called a recession. Depression: If growth rates turn negative, the economy is in a severe recession or depression.

Resume (BC)

Business cycles are a regular occurrence in all market economies. v Recessions generally increase competitive pressure on companies. They trigger a process of "creative destruction" in which some firms will disappear whereas others thrive. v Strategies to manage a recession can principally be pro- or anticyclical, or of a mixed nature.

Ansoff's matrix is a strategic marketing tool used to plan for: Product life cycle changes Market segmentation Business growth New product development Product positioning

Business growth

Growth Through Collaboration

Collaboration The growing antagonism of cold coordination is addressed by attention to human connection and more collaborative, supportive approaches. Bureaucracy is simplified and trust is rebuilt with a greater focus on common organizational goals. Structures may be implemented to connect people in multiple dimensions, such as the use of matrix management. Reward systems may also be realigned to promote team and organizational success rather than just individual performance. Growth crisis While a collaborative organization is better in many ways than previous forms, there are now problems in how to grow further without overloading current systems and processes.

For Western Europe, the following 3 industries hold most of "The World's Most Innovative Companies" according to the "World's Most Innovative Companies (ranked by Forbes)": Automobiles & Components Capital Goods Commercial & Professional Services Consumer Durables & Apparel Food & Staples Retailing Food, Beverages & Tobacco Health Care & Equipment Household and personal products Materials Media Pharmaceuticals, Bio Tech & Life Science Retailing Semiconductors & Semiconductors Equipment Software & Services Technology Hardware & Equipment Telecommunication Services Broadcasting & Cable Construction Services & Material Industrial Equipment

Commercial & Professional Services Consumer Durables & Apparel Food & Staples Retailing

In 2000 Procter & Gamble had introduced an open source innovation concept by the title: Connect & Develop Collaborate & Innovate Innovation Jam Ask & Share

Connect & Develop

According to the "World's Most Innovative Companies" (ranked by Forbes), in which industries do companies from Western Europe represent more than 50% of the total number of innovative corporations. Automobiles & Components Capital Goods Commercial & Professional Services Consumer Durables & Apparel Food & Staples Retailing Food, Beverages & Tobacco Health Care & Equipment Household and personal products Materials Media Pharmaceuticals, Bio Tech & Life Science Retailing Semiconductors & Semiconductors Equipment Software & Services Technology Hardware & Equipment Telecommunication Services Broadcasting & Cable Construction Services & Material Industrial Equipment

Consumer Durables & Apparel Semiconductors & Semiconductors Equipment

Effects of a Recession on Demand

Consumer goods: Consumer goods are products from final use. For example, all products found in a supermarket are consumer goods. Investment goods: Investment goods are also known as capital goods. Capital goods are durable goods that are used in the production of other goods (other capital goods or consumption goods). Classical examples are machinery and equipment.

Growth Through Coordination

Coordination The response to the loss of control is to put additional effort into reporting up and communicating in all directions. Isolated business teams and product organizations are joined up in business units and other collective organizations. Finance is still managed centrally and becomes more sophisticated, looking at such as business unit return on investment. Reporting becomes more sophisticated with increasing demands on business units for information about all aspects of the business. Red tape crisis This coordination does not come at a price and the increased reporting and control adds layers of bureaucracy at all levels. Layers in the company face off against one another and perhaps play cat and mouse games of reports that look good and audits that seek hidden problems.

Income Statement

Cost of Sales Layout (Functions of Expenditure) Expense Layout (Components of Expenditures)

Growth Through Creativity (Greiners growth model)

Creativity When companies form and enter the Creative Phase, they are typically driven by the creative force of the founder and the new products and services that create value for customers. Innovation is natural and people do whatever is needed to make things work. Leadership crisis Initially, the founder (or the startup team) is able to cope with the demands of leadership, but as the company grows, they are pulled more and more in different directions until they are unable to fulfil their duties. The increasing complexities of the firm may lead to challenges to the leader's ability, who may originally be the inventor and developer of the company products and who may find management and leadership a difficult challenge.

How does the company raises the money it needs?

Current liabilities Long-term liabilities

Categorize the following elements of a business strategy to survive in a recession.

Cut back marketing expenditure - pro-cyclical strategy Focus on the firm's core competences.- pro-cyclical strategy Increase efforts to cut cost- pro-cyclical strategy Increase R&D expenditure- anti-cyclical strategy Cut back expenditure on employee training- pro-cyclical strategy Decrease wages, for example for putting pressure- Indeterminate Increase product prices- pro-cyclical strategy Cut production in the late stage of a boom,- anti-cyclical strategy Launch advertising campaigns to acquire new- anti-cyclical strategy Take advantage of better credit opportunities to avoid- anti-cyclical strategy Recruit new workers, especially in the high-qualified- anti-cyclical strategy

Examples of practical business

Defensive vs aggressive Cost cutting management Strategic orientation Acquisition and timing Advertising Pricing Industry specific-strategy

In order to develop a compelling value proposition, The Harvard Innovation Lab recommends the following 4 steps. Define the problem you are about to solve; Measure potential customer adoption; Evaluate your solution with regard to uniqueness and competitiveness; Build the Value Proposition Define the problem you are about to solve; Evaluate your solution with regard to uniqueness; Measure potential competitive advantage; Build the Value Proposition Define the problem you are about to solve; Analyze your target group; Measure potential customer adoption; Build the Value Proposition Define the problem you are about to solve; Evaluate your solution with regard to uniqueness and competitiveness; Measure potential customer adoption; Build the Value Proposition

Define the problem you are about to solve; Evaluate your solution with regard to uniqueness and competitiveness; Measure potential customer adoption; Build the Value Proposition

Main Management tasks of the "Growth Stage":

Delegating tasks to the team, react fast to utilize opportunities for new products or in new markets and monitory tasks and deal with big issues.

Growth Through Delegation

Delegation The response to the autonomy crisis is to divide and conquer with greater structure and deeper hierarchy, where individual departments and operational units have individual managers and are delegated greater autonomy. This is the time when middle managers appear, running multiple operational units where they manage managers rather than give direct orders to the front line. Control crisis There are problems in delegation and in particular as it gets more complex in a growing firm, for example where the communicated requirements are not always understood, and where managers make autonomous decisions that, while they may make sense at their level are suboptimal for the overall organization. Not knowing enough about what is really going on at the bottom of the organization, middle and senior managers at the end of this stage start to lose control over everyday operations.

According to the handed out case study, Procter & Gamble had shifted to an Open Innovation approach for the following external reasons (Multiple Response): Innovation was increasingly being done by SME Stagnating Research & Development productivity Explosion of new technologies as well as the Internet, which opened up access to talents outside the company Lackluster new product launches University & government labs had interests in forming industry partnerships Nimble competitors

Explosion of new technologies as well as the Internet, which opened up access to talents outside the company

Market Development

Developing new products for existing markets

Direct vs Indirect Communication

Direct Communication Negative feedback is given honestly and not softened. This can be given with words like totally, absolutely etc. There is no beating around the bush, no wasting time with niceties. Indirect Communication Negative feedback to a colleague is given diplomatically and softly and often wrapped with positive messages. Not out in the open.

Growth Through Direction

Direction The response to the leadership crisis is to get more professional in management, for example by hiring managers who have got more experience and education in the subject, typically at a larger firm. Professional managers know more about planning and tactics and help out with strategic thinking and operation plans. Rather than rushing around doing what seems to be needed at the time, a longer-term view starts to emerge, giving direction and focus to proceedings. This stage also includes separation of activities such as budgeting and marketing, although these are probably not yet done by a separate department. Autonomy crisis As professional managers start to direct the proceedings they typically have a greater interest in their own areas of interest than those of others or the overall firm. They seek personal success and will fight to achieve this. When they own all the resources they need, this is fine, but as the firm grows they fall into conflict with one another, arguing over resources and rewards. The question hence arises of how to give managers and individuals the freedom to choose and succeed in a way that also helps the whole company.

15 von 27 Inorganic growth arises from an increase in the company's own business activity. True False

False

Open Innovation is the same as outsourcing innovation. True False

False

The main difference between strong and weak brands is the unique image. True False

False

Within the article "Transitioning from a startup to growth-stage company", Glenn Solomon points out that absolute growth targets of companies in transition from Start-Up to Growth stage get larger. Due to this situation, it gets increasingly easy for the company to scale at rapid rates as the law of larger numbers takes over. True False

False

Product Development

Find new markets for existing products

Human Resource Issues - Differences between domestic and international HRM

Expatriate training: language, culture - consider local hiring, translators, bilingual staff - Avoiding culture shock - Achieving a balance between the need for control and coordination of foreign subsidiaries, and the need to adapt to local environments - Adapting management style Taxation, relocation, schooling, bureaucracy, transportation - more involvement in employees personal lives HR staff dealing with TCNs and HCNs - Higher level of risk - insurance and security issues Impact of national/local regulations - Government, employment issues, religious factors, holidays, etc. - Risk of underperformance of expatriates

Please match the presented characteristic to the Corporate Life Cycle Stages (Start-Up, Growth, Maturity, Decline/Turnaround).

Firm uses mainly Price Cuts & Pseudo-Innovation: Decline/Turnaround Firm need to consider aspirations by a variety of internal and external stakeholders. - Maturity Firms operate in shrinking markets with high competition.- Decline/Turnaround Limited geographical scope & Distributed in limited number of channels - Start-Up Limited number of employees - Start-Up Firm grows at the same rate as the overall economy.- Maturity Focus on R&D - Start-Up Although the firms face rapidly growing markets, they aim at harnessing new potential. - Growth

Resource- based view

Firm-specific resources and capabilities (that suggests that firm performance is, at least in part, determined by its internal resources and capabilities)

Main Management tasks of the "Decline/Turn Around Stage":

Focus on leveraging internal growth, be flexible to improve the situation.

Build the Value preposition

For whom your product was design Why actual solutions does not work What your product solution is about Which problems is going to solve Why is it different from others

Learn how to develop a Value Proposition

For whom your product was design Why actual solutions does not work What your product solution is about Which problems is going to solve Why is it different from others

Institution-based view

Formal (Laws and regulations) and informal (cultures, ethics and norms that are not established by laws and norms) rules of the game. (That suggests that firm performance is, at least in part, determined by the institutional frameworks governing firms behavior around the world.)

Basic Economic measure

GDP (meager the level of the economy in a certain period of time and its important because is strongly related to people's income and level of employment in a certain period. Production potential (the value of economic output that the economy can produce if production capacity is fully used)

Measure potential customer adoption

Gain and pain ration: It measure the wheit of what you gain with what the customer suffers to adapt to your solution Gain: Revenue, Cost saving, Time, People, Competitive advantage and reputation and etc. Pain: find (see), try, buy, implement, deploy and own-eg TCO. Inertia: Switching costs, default (do nothing), Alternatives, good enough, risk on start-up.

Takeaways (BC)

General empirical studies point to a large variety of strategies and firms' characteristics that can lead to successful performance in a recession. v Performance of pro- and anticyclical strategies depends on a complex set of external circumstances and internal firm characteristics. There is no single strategy that guarantees success. v Successful firms often use a combination of efficiency-oriented cost-cutting and strategic investment while protecting their core assets.

Individual vs Group-oriented cultures

Individualism People think on an 'I' basis. People take care of themselves first. Everyone has individual rights and a private life. Individuals are praised. Developed by Hofstede Group (Collectivism) People think on a 'we' basis. Family and other groups come first. Individuals depend on groups (institutions, governments etc). Praise is given to the group.

Focus on Western Europe, which 3 industries hold most of The World's Most Innovative Companies? In which industries do companies from Western Europe represent more than 50% of the total number of innovative corporations.

Hermes (52%) IHL Markit Anheuser-Busch InBev

(marketing)Stages from moving from the startup stage to the growth stage:

Hidden Gems: identify your hidden gems and find ways to leverage their talent as much as possible. Find what you best employee , capture that and use this skill to train the team. Another way is to keep the best worker focus on what they do best. Find your flywheel: cultivate your nurture resources. Make relationship with another company in order to growth. Stay focused: focus on the core business and do any plan to growth without go too far from the core business. Professionalize your process: Invest in professionalizing the process of running the company. Perhaps most important here, you need to develop of set of metrics that really helps you assess the long term health of the business. Devise these metrics to give you early indicators, or warning signs, of what's coming up ahead for the business.

Be able to characterize companies within the Growth-Stage

Higher transaction volumes & sales/turnover Exponentially growing profits Rapidly developing markets Harnessing new potential

To master a transition from Start-Up to the Growth Stage , Glenn Solomon gives the following advise within the article "Transitioning from a startup to growth-stage company": A) Identify hidden gems, cultivate and nurture sources of potential rapid growth, diversify your business and enter new markets (segments) & professionalize internal processes B) Identify hidden gems, perform stakeholder management, focus on core business & professionalize internal processes C) Identify hidden gems, cultivate and nurture sources of potential rapid growth, focus on core business & professionalize your external communication D) Identify hidden gems, cultivate and nurture sources of potential rapid growth, focus on core business & professionalize internal processes

Identify hidden gems, cultivate and nurture sources of potential rapid growth, focus on core business & professionalize internal processes

Main Risks of the "Start Up Stage":

If the company in its early stages are not able to provide a competitive product or service, with a motivated team and also a leadership that is flexible and ready to adapt the company has high risk to just be eaten by the competition.

What axes are used in the portfolio model developed by McKinsey & Company? Industry attractiveness and competitive position (strength of a product) Relative market share and market growth rate Sales and profits

Industry attractiveness and competitive position (strength of a product)

What are industries?

Industry is a group of productive enterprises or organizations that produce or supply goods, services, or sources of income.

Effects on a Recession on demand for investment goods

Investment is likely to be particularly sensitive to a recession!

Why can a firm's strategy which is only focused on cutting cost in a recession be problematic?

It can create a bad image and quality to the company once the recession is gone.

Low Context vs High Context

Low Context Good communication is precise, simple and clear. Things are repeated and written down. Messages are explicit to avoid confusion. Lots of rules to provide clarity. Task-based and individual. High Context Good communication is sophisticated. Little or no repetition is needed. Relationshipbased. Shared knowledge, similar backgrounds. Facial expressions and gestures often carry meaning.

Working with low and high context cultures

Low context cultures: Be transparent and clear in your message and what you want. Summarize often. Check people have understood. In presentations "Tell them what you're going to say, then tell them, and then tell them what you have just said." High-context cultures: Listen carefully to what is actually meant. When is a "yes" a "no"? Avoid yes or now questions, use open-ended questions. If you don't understand the message, ask for clarification.

Turn around strategy:

Mainly external causes Recession (the impact depends on how long it lasts) - Decline in revenue and profits - Cut back on hiring new employees - Cut back on marketing expenditures - Ceases research and development/stop new product rollouts

What is the term used in Ansoff's matrix for increasing market share with existing products in existing markets? Market development Diversification Product development Market penetration

Market penetration

(marketing) Growth strategies by Ansoff

Market penetration means to increase the market share within a existing market. This can be achieved by selling more products to stable customers or finding new customers within a existing market. Typically marketer would diversify their market mix to achieved their market further. Examples of this would be to change prices in large distribution or increase advertising. Product development involves developing new products for existing markets, it involves thinking how new products can meet customers needs more closely and outperform the products of competitors. Market development tries to find new markets for existing products. Hereby, new markets would include international markets as well as new market segments or target groups within national borders. In diversification the company will launch new products in new markets. There are several diversification strategies: 1-horizontal diversification: when the company develops new product that is capable to satisfy the same customers, even if the new products are technological independent of the existing ones, like offering toothbrushes along side with tooth paste. 2- vertical diversification: when the company starts to do the walk of the supplier or customer. An example of this would be to produce the actual ingredients of the tooth paste. 3- Diversification by conglomerates: when the company has different products for different markets. Therefore setting in a market that has nor previous experience but it will attracts new groups of customers. For example a company would sell insurance as well as tooth paste.

How to do market in time of recession?

Markets needs to know the market better than before Research the customer & double down your current customer Ask customer what they need Spend smart (not cut ads, it can improve market share) Adjust your product portfolio (weak products should be eliminated) Adjust pricing (offer financing) Support your dealers Outsmart your competitors Focus on family values

Be able to describe companies within the decline & turnaround stage

Mature companies which did not master signs of aging Strong focus on the past and internal issues Operating in shrinking markets with high competition Poor earnings Main marketing tactics: price cut &Pseudo-innovation Too less focus on retaining product quality & customer satisfaction Companies can go though this period for a long time

Effects on the Demand for consumers:

Need to buy cheaper items Cut another unnecessary expanses Mandatory things will keep on budget.

Be able to explain marketing-related tasks for mature companies

Organic and inorganic growth

Main aspects of a start-up:

Small business by size Limited number of employees Limited product range Focus on R&D Many are less knowledgeable in marketing & sales Limited geographical scope& Distributed in limited number of channels Low demand for their products & low number of business transactions

Principles First vs Applications First

Principles First - theory Why do you need to do something? Need to know about the concept, the principles, the theories, the structure first before moving on to actually doing something. Applications First - Practical Focus on How you do something, the why is not so important. Get to the point quickly, no faffing around. You do not need to take apart a watch to understand how to use it.

Pro-cyclical

Shed labour Cut in production Reduce purchases Cut back in investment Cut ads Keep prices or decrease

Name the Top 5 industries holding most of The World's Most Innovative Companies.

Service now Workday Salesforce.com Tesla Amazon

According to the "World's Most Innovative Companies (ranked by Forbes)" these 5 industries hold most of The World's Most Innovative Companies (Multiple Response): Automobiles & Components Capital Goods Commercial & Professional Services Consumer Durables & Apparel Customer Services Food & Staples Retailing Food, Beverages & Tobacco Health Care & Equipment Household and personal products Materials Media Pharmaceuticals, Bio Tech & Life Science Retailing Semiconductors & Semiconductors Equipment Software & Services Technology Hardware & Equipment Telecommunication Services

Software & Services Retailing Pharmaceuticals, Bio Tech & Life Science Household and personal Automobiles & Components

Why are there business cycles?

Starting point: Fluctuation in demand for consumption and investment Technological innovation/ product life cycle? Financial market conditions and cost of credit? Psychological factor/ self-fulfilling expectations?

Pre - conditions for anti-cyclical strategy (Generally risk):

The company needs to be flexible and sustain competitive advantage Financial capacity Managerial skills and technical expertise Entrepreneur mindset

Main risks of the "Decline/Turn Around Stage":

The company not succeed in reboring and get out of market.

Declining markets

Steadily declining industry revenues Saturation of the market Decrease in the market size Introduction of a product or a technology that serves as a replacement EX: music shops Ways to analyze can be the Boston consulting group

Strategies & Mainly Internal causes

Strategies: Invest/ grow Selectivity/earnings Divest/Harvest Mainly Internal causes Weak brands

Know about the basic elements of a Go-to-Market Concept for Start-Up Companies

Strategy Target segment Brand Positioning Tactics Buying proforma A buying proforma includes: Setting a customer profile Buying center Key customers values

Working with task-based and relationshipbased cultures

Task-based Work to the deadlines set and set fixed deadlines Come prepared - brochures, good PowerPoint slides, progress updates etc Focus on the task in hand. Relationship-based Show interest in the people you meet Be authentic Socialize - dinner, drinks, lunch etc Consider using the phone or even visiting when communicating Don't buy a return ticket!

Task-Based vs Relationship-Based Cultures

Task-based: Trust is built by focussing on the task itself, performing, and working well. Work relationships can be picked up and dropped depending on the practicality of the situation. I know that you can do a good job - I trust you: Cognitive Trust Relationship-based: Trust is built by slowly over time by social interaction, spending time together, meals, drinks, visits, building up a relationship. I know who you are, we have spent time together and I feel affection or empathy for you - I trust you: Affective Trust

Types of Start-ups:

Technology-driven: Focus on the creation of advanced technological-based products. Target existing or new market segments in dependency of their innovation Example: Teflon Market-driven Focus on unsatisfied customer need or market-niches Develop product solutions that fit and satisfy the need of their target group Examples: most of consumer products, Rama cremfine, Cillit Bang.

Direct vs Indirect Communication II

When working with a direct culture, be careful not to be too direct! It might be best to get someone from the same culture to give the neagtive feedback. If someone gives you negative feedback, take it positively a it is probably not meant as an insult! When working with an indirect culture, try not to be too brutal in giving your negative feedback. Honesty is appreciated and don't try to hide the negative feedback by 'sandwiching' it between praise.

Highlights (CLC)

The biological life cycle is used to explain the development of products, organizations, industries and technologies. Scientists have developed several corporate lifecycles over the years. Within the context of this course, we use a rather simple cycle which has 4 distinct phases: Startup, Growth, Maturity and Decline & Rebirth or Death. These stages have great impact on survival of any business: In each step they will adopt different policies

Main risks of the "Decline Stage":

The company is not able to succeed implement the best strategies and go out of the market.

Business cycles denote a- the long-run growth of an economy's production potential. b- longer run fluctuations of economic output due to cycles of technological innovation. c- the fact that recessions last as long as economic booms. d- shorter-run fluctuations of economic output around a longer-run trend.

d- shorter-run fluctuations of economic output around a longer-run trend.

Main management tasks:

The management should be able to sustain organic and inorganic growth

Evidences and cases

There are not so many studies that shows that effects of resection on firms. Approaches to researches: Look at the large population of firms and relate the differences in performances to certain organizational characteristics such as firms size Conduct qualitied case studies of single or relatively small groups of firms Many companies tend to follow Pro-cyclical strategies but there are no guarantee that will work There are no clear relationship on the size of the firm and success during the recession If the company cant adapt fast may have trouble during recession.

Which of the following answers is wrong? a) Firms that do not change their business models during recessions are very unlikely to survive. b) Strategic re-orientation can make a big difference for the success of a firm's cost-cutting strategy. c) Readiness of a firm's management to change its business model can make a difference for the firm's competitiveness in a recession. d) Strategically re-orienting a firm during a recession can be important but often difficult because some groups within a firm may be negatively affected whereas benefits are only of a longer-run nature.

c) Readiness of a firm's management to change its business model can make a difference for the firm's competitiveness in a recession.

Obtain an overview of how firms react to recessions according to existing Understand the main strategic approaches of firms to manage a business cycle, in particular, a recession

They can react in a Pro- cyclical way (decreasing investment, buying cheap raw materials, shed employees..) or they can opt for seeing an advantage in this period and act Anti-cyclic ( Hiring high qualified employees in law wages, increasing production efficiency, making use of low cost ads...)

Which (one) of the following answers is wrong? A recession is ... a) sooner or later followed by an economic recovery, and eventually, a boom. b) a phase of weakening economic growth. c) a phase which regularly turns into a depression. d) a phase of under-utilization of production capacity.

c) a phase which regularly turns into a depression.

Which (one) of the following answers is wrong? A pro-cyclical strategy tends to have a shorter time perspective than an anti-cyclical strategy because a) it is more defensive, and less focused on exploiting future business opportunities. b) it is more focused on immediate survival in a worsening environment. c) business cycles are generally of a short-run nature. d) it does not presuppose that the firm has strong capacities to survive a recession in terms of financial means and human expertise.

c) business cycles are generally of a short-run nature.

Choose which of the following answers is correct. According to the evidence presented in the lecture, the following holds true with respect to successful strategies to overcome a recession: a) a recession is generally easy to predict and managers normally have enough time to prepare for it. b) keeping employees during a recession can contribute to their loyalty vis-à-vis the firm and pay off in terms of wage restraint. c) carefully timed measures can anticipate recessions, e.g. by driving down inventories and reducing purchases during the late stage of a boom. d) cutting cost as quickly as possible is generally more important than placing these cuts within a larger strategy. e) an expansion of expenditure on R&D and advertising should generally be avoided because these activities will become more expensive during a recession.

c) carefully timed measures can anticipate recessions, e.g. by driving down inventories and reducing purchases during the late stage of a boom.

Following the Harvard lab 4 steps - Define the problem you are about to solve

Those can be undeserved, unworkable, urgent and unavoidable. Unworkable may fix business broken process from another company: E.g. a company receive a order in and shipping, building and customer services are neither linked or matched. As a consequence, customers are unsatisfied, because they received their invoice days or weeks before the purchase. If those consequences are costly or damaging into the company it would really touch a unworkable problem. Unavoidable problems are defined by a fundamental require which potential customers cannot get around, sometimes they are naturally based, like death or getting old or based on laws and regulations, like paying taxes. Targeting Urgent problem is very important, as this problem is highly ranked by potential customers. Solving such problems will have start-up to have their first sales and building up customers base. We speak of underserved problems when are no visible valid solution for the problem and unsatisfied client needs. In this case start-ups are about to hit the white space in the market or market segment. The problem solving idea in a start up may not always fulfill all the 4 types of problem, but the more criteria is fulfill is more likely that the product will become successful.

Main risks of the "Growth Stage":

Trying to expand rather than keeping the company small and profitable. Try to expand into markets that are too small to sustain competitiveness.

According to Forbes, Companies within the industry, that holds most of "The World's Most Innovative Companies" come from... South Korea Europe USA China South America India

USA

Know about marketing-related challenges & tasks with regard to the Start-Up Stage

Understand and create a right value proposition.

Considering the industry holding most of The World's Most Innovative Companies, where do these companies come from?

United States Brazil holds the place 74 with Cielo.

According to the Case Study on Procter & Gamble, it's core Open Source network consists of the following most useful sources: Virtual R&D networks & suppliers Technology entrepreneurs, suppliers & business unit leaders Virtual R&D networks; suppliers; technology entrepreneurs & business unit leaders Technology entrepreneurs, suppliers, retailers, business unit leaders & employees

Virtual R&D networks; suppliers; technology entrepreneurs & business unit leaders

Be able to describe companies within the maturity stage

Well-established firm in their industry, with a well-known product and loyal customer following with average growth. Firm has passed the stage of rapid growth and tend now to grow at the same rate as the overall economy Missed to identify and pursue innovations Intensive competition & limited demand Need to consider aspirations by internal and external stakeholders. High cash flow Increasing demand because of the more expending on ads

Please read the article "Transitioning from a startup to growth-stage company"

What advices does Glenn Solomon (Partner with GGV Capital) give to entrepreneurs? Of being successful in the growth stage of the company.

Choose the correct answer. a) Smaller firms generally perform better in recessions because their decision-making procedures are more flexible. b) Larger firms generally perform better in recessions because their financial resources are larger. c) Medium-sized forms perform best in recessions because they can combine the advantages of a) and b). d) There is no definitive relationship between firm size and the firm's performance in recessions.

d) There is no definitive relationship between firm size and the firm's performance in recessions.

Which (one) of the following answers is wrong? The process of creative destruction is usually sped up in a recession because ... a) entrepreneurial behavior becomes generally more important and not all managers are good entrepreneurs. b)consumers are readier to shift suppliers and brand loyalty in a recession. c) as a consequence of falling demand, competitive pressure on firms increases. d) transport cost decreases and trading between firms becomes easier.

d) transport cost decreases and trading between firms becomes easier.

Gross Domestic Product and its fluctuations is an important indicator of people's well-being because a- it measures the amount of consumption goods produced in a certain period, and therefore determines people's buying possibilities. b- it measures the possibilities of an economy to export, and therefore its potential to survive in a global environment. c- it measures the capital assets of an economy at a certain point in time, which determines the economy's production possibilities. d- it measures economic output produced in a certain period. This requires paid employment which in turn determines people's consumption possibilities.

d- it measures economic output produced in a certain period. This requires paid employment which in turn determines people's consumption possibilities.

Choose which of the following answers is correct. In order to find out how different firms react to recessions, and how their strategies perform, a researcher can ... a) look at different organizational characteristics in a population of firms, such as size, and relate them to certain criteria of performance, such as profits. b) conduct qualitative case studies of single or small groups of firms. c) look at the relation of economic growth and interest rates in different countries over time. d) check how quickly firms are able to cut cost and shed employees in recessions.

a) look at different organisational characteristics in a population of firms, such as size, and relate them to certain criteria of performance, such as profits.

„Downtrading" in a recession means that a- consumers switch to cheaper stores or brands, or to substitutes. b- consumers increase their trading of used products. c- money is replaced by barter as a means of exchange. d- businesses do less trade with partners abroad.

a- consumers switch to cheaper stores or brands, or to substitutes.

„Creative destruction" means that a- less competitive companies are replaced by stronger and more competitive firms. b- smaller firms replace larger firms because they can adapt more easily to a changing environment. c- consumers shift their demand to more innovative products and therefore destroy old buying habits. d- managers in existing firms shift to innovative new models of firm organisation.

a- less competitive companies are replaced by stronger and more competitive firms.

Which of the following answers is wrong? An entrepreneurial mindset can contribute positively to a firm's success in a recession because ... a) acting anti-cyclically often implies a need for innovative and unconventional decisions. b) entrepreneurs are generally better in predicting the future economic environment. c) entrepreneurs are normally relatively pro-active decision makers. d) increased uncertainty implies the need for a management that is ready to take risks.

b) entrepreneurs are generally better in predicting the future economic environment.

Which of the following answers is wrong? Having a contingency plan how to react to a recession is important because ... a) it supports the adequate timing of the firm's measures. b) it makes the firm's strategy more independent of the business cycle, which it should in fact be. c) managers should avoid to be caught by a recession by surprise and draw decisions that fail to be based on a clear strategy.

b) it makes the firm's strategy more independent of the business cycle, which it should in fact be.

According to the empirical evidence presented in the lecture, in a recession, a firm's strategy should primarily focus on ... a) disposing of assets that are not commonly traded on markets because those can be sold more expensively. b) keeping assets and workers that are not easily replaceable on markets, such as high qualified workers with a long employment history in the firm. c) selling assets that can be sold most profitably and as quickly as possible. d) keeping as many of its assets as possible to be better prepared for the next economic recovery.

b) keeping assets and workers that are not easily replaceable on markets, such as high qualified workers with a long employment history in the firm.

Choose which of the following answers is correct. Strategies of the Australian retail sector to overcome the 2008/09 recession included ... a) asking the government for subsidies. b)the reinforcement of environmentally sustainable business practices. c)large-scale releases of employees. d) a systematic investigation of consumer data.

b)the reinforcement of environmentally sustainable business practices.

Please choose the right answers. Economic demand for consumption and investment goods plays a key role for the explanation of recessions because less demand ... a- for investment goods decreases the long-run growth potential of an economy. b- improves the business environment for surviving firms. c- implies that prices fall. d- means less production, which is equivalent to saying that GDP growth rates decrease. e- can turn into a self-fulfilling prophecy, for example if pessimistic managers invest less and fire workers, who in turn consume less and thereby confirm managers' expectations.

e- can turn into a self-fulfilling prophecy, for example if pessimistic managers invest less and fire workers, who in turn consume less and thereby confirm managers' expectations.

Peach cultures

friendly, welcoming, asking questions, invitations - but a hard centre protects their private lives - friendly but not friends

Economies of scale within a slow growth industry sector is likely to be most easily achieved by which form of growth? structured growth growth by diversification growth by acquisition organic

growth by acquisition

(Marketing) Decline/turnaround stage

haracteristics: Mature companies which did not master signs of aging Strong focus on the past and internal issues Operating in shrinking markets with high competition Poor earnings Main marketing tactics: price cut &Pseudo-innovation Too less focus on retaining product quality & customer satisfaction Companies can go though this period for a long time

During a recession, real GDP [...] and unemployment [...] and government borrowing [...] increases; decreases; increasing increases; decreases; decreasing decreases; increases; increasing decreases; increases; decreasing increases; increases; increasing decreases; decreases; decreasing

increases; decreases; decreasing

Coconut cultures

not very smiley, quite cold and distant, don't ask personal questions - takes a long time to get through the hard outer shell to make friends for life.

Within the article "Transitioning from a startup to growth-stage company", Glenn Solomon to identify hidden gems. They are: a) valuable financial resources b) valuable human resources c) valuable products or brands, which contribute highly to the overall success of the company. d) all of the above.

valuable human resources

Common ways to expand abroad:

• Mergers: when two companies become one on an equal footing - London Stock Exchange and Deutsche Boerse proposed merger •Acquisitions/Takeovers: • friendly - US Pharmaceutical and health care company Johnson & Johnson and Dutch vaccine maker Crucell • hostile - Vodafone and Mannesmann 1999 • Franchising: McDonalds, Starbucks, Walmart... • Joint ventures: partnership for a specific amount of time - Google and NASA developing Google Earth • Licensing: an agreement where one company can sell goods of another company - Cornelsen and Oxford University Press have licensing agreements for titles from both publishers • Distribution contracts: A contract where one company grants a distribution contract to another company to sell its goods on its behalf - Cornelsen and Oxford University Press used to have a distribution contract for English Language Teaching titles • Offshoring: relocation of a business process from one country to another, typically an operational process, such as manufacturing, or supporting processes, such as accounting - Texas Instruments has an R&D centre in India, saved costs and taps into a rich talent pool • Subsidiaries: opening up offices, shops etc abroad - IKEA, ALDI, LIDL et

Key aspects of HRM

• Motivation • Making HRM integral to whole company - each manager is also an HR manager • Employer Branding • Corporate Social Responsibility • Corporate Culture

Employee Types in Multinational Organizations

• Parent country nationals (PCNs) expatriate employees who come from the parent firm's home country • Third country nationals (TCNs) expatriate workers who come from neither the host nor home country • Host country nationals (HCNs) local workers

Main Functions of HRM

• Recruitment and on-boarding (integration process into the company) • Training and staff development - planning for the future • Personnel administration (keeping records, organizing processes such as performance appraisals, etc) • Compensation and benefits (performance appraisals, wages, and salaries) • Employer/Employee relations • Health and safety