17.changing challenges
TRANSCRIPT
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 1/37
Chapter 1: Entrepreneurship 1Copyright 2002 Prentice Hall Publishing Company
Speaker Speaker : Dr. Nay: Dr. Nay Zin Zin Latt Latt
(Chairman)(Chairman)
Business Group Business Group
Hotel Group Hotel Group
VenueVenue : India: India
Date Date : Oct:2010: Oct:2010
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 2/37
Chapter 1: Entrepreneurship 2Copyright 2002 Prentice Hall Publishing Company
The General EnvironmentThe General Environment ± Economic F orces
± Technological F orces
± Sociological F orces
± Demographic F orces
± Political and legal F orces
± Global F orces
± etc««.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 3/37
Chapter 1: Entrepreneurship 3Copyright 2002 Prentice Hall Publishing Company
Small Businesses...Small Businesses...
make upmake up 90%90% of all the businesses in the U.S.of all the businesses in the U.S.
employemploy 53%53% of the nation's private sectorof the nation's private sectorworkforce.workforce.
create more jobs than big businessescreate more jobs than big businesses.. produceproduce 51%51% of the nation¶s private GDPof the nation¶s private GDP
account foraccount for 47%47% of business salesof business sales
createcreate 4X4X more innovations per R&D
dollarmore innovations per R&D
dollarspent than medium size firms andspent than medium size firms and 24X24X asas
many as large companiesmany as large companies
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 4/37
Chapter 1: Entrepreneurship 4Copyright 2002 Prentice Hall Publishing Company
The Small BusinessThe Small Business
Failure RecordFailure Record
24%24% of new businesses fail after two years.of new businesses fail after two years.
51%51% fail within four years.fail within four years.
63%63% fail within six years.fail within six years.
For everyFor every ³3,000´³3,000´ new product ideas:new product ideas:
³4´ make it to the development stage.³4´ make it to the development stage.
³2´ are actually launched.³2´ are actually launched.
³1´³1´ becomes a success in the market.becomes a success in the market.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 5/37
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 6/37
Chapter 1: Entrepreneurship 6Copyright 2002 Prentice Hall Publishing Company
Avoiding the PitfallsAvoiding the Pitfalls
K nowK now youryour business in depthbusiness in depth
DevelopDevelop a solid business plana solid business plan ManageManage financial resourcesfinancial resources
UnderstandUnderstand financial statementsfinancial statements
LearnLearn to manage people effectivelyto manage people effectively K eep in tune withK eep in tune with yourself yourself
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 7/37
Chapter 1: Entrepreneurship 7Copyright 2002 Prentice Hall Publishing Company
Responding ChallengesResponding Challenges
-- Changing World OrderChanging World Order
-- Overcoming Resistance to change.Overcoming Resistance to change.
-- Managing the change.Managing the change.
-- Change ASEAN Mindset to Global MindsetChange ASEAN Mindset to Global Mindset
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 8/37
Chapter 1: Entrepreneurship 8Copyright 2002 Prentice Hall Publishing Company
World is constantly changing.World is constantly changing. Resisting the Change is challenging.Resisting the Change is challenging.
Adapting Change will be your opportunity.Adapting Change will be your opportunity.
You learn to change rather than becoming aYou learn to change rather than becoming a
victim of change.´victim of change.´
Be as Change Agent.Be as Change Agent.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 9/37
Chapter 1: Entrepreneurship 9Copyright 2002 Prentice Hall Publishing Company
Why People Resist ChangeWhy People Resist Change
HabitsHabits
Threats to jobs and incomeThreats to jobs and income Fear of the unknownFear of the unknown
Selective perceptionSelective perception
Threat to expertiseThreat to expertise Threat to established power relationshipsThreat to established power relationships
Threat to interpersonal relationshipsThreat to interpersonal relationships
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 10/37
Chapter 1: Entrepreneurship 10Copyright 2002 Prentice Hall Publishing Company
Overcoming Resistance to ChangeOvercoming Resistance to Change
Build trustBuild trust
Open channels of communicationOpen channels of communication
Involve your employeesInvolve your employees Provide incentivesProvide incentives
Deal with employees feelingsDeal with employees feelings
AttitudesAttitudes ± ± evaluative statements orevaluative statements or judgments concerning objects, people, or judgments concerning objects, people, oreventsevents ± ± (how people feel about things)(how people feel about things)
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 11/37
Chapter 1: Entrepreneurship 11Copyright 2002 Prentice Hall Publishing Company
Managing ChangeManaging Change
WhatD
o We Change?WhatD
o We Change?
Strategic changeStrategic change ± ± a company¶s strategy, mission anda company¶s strategy, mission and
visionvision
Cultural changeCultural change ± ± a company¶s shared values and aimsa company¶s shared values and aims
Structural changeStructural change ± ± reorganizationreorganization
Developmental changeDevelopmental change ± ± people¶s attitudes and skillspeople¶s attitudes and skills
Technological changeTechnological change ± ± work methodswork methods
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 12/37
Chapter 1: Entrepreneurship 12Copyright 2002 Prentice Hall Publishing Company
Leadership :Leadership :
-- Leadership Effectiveness.Leadership Effectiveness.
-- Creativity.Creativity.
-- Leaders & Strategies.Leaders & Strategies.
-- Gaining Power & Influence.Gaining Power & Influence.-- Conflict Resolution.Conflict Resolution.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 13/37
Chapter 1: Entrepreneurship 13Copyright 2002 Prentice Hall Publishing Company
The World of the EntrepreneurThe World of the Entrepreneur
A new business is born everyA new business is born every 11 seconds11 seconds in the U.S.in the U.S.
Study of influential AmericansStudy of influential Americans ± ± thethe defining issue of thedefining issue of the
2121stst
Century: Entrepreneurship!Century: Entrepreneurship! One of 12One of 12 Americans is actively involved in trying toAmericans is actively involved in trying to
start a new business.start a new business.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 14/37
Chapter 1: Entrepreneurship 14Copyright 2002 Prentice Hall Publishing Company
Characteristics of EntrepreneursCharacteristics of Entrepreneurs
Desire for responsibilityDesire for responsibility
Preference for moderate risk Preference for moderate risk
Confidence in their ability to succeedConfidence in their ability to succeed
Desire for immediate feedback Desire for immediate feedback High level of energyHigh level of energy
Future orientationFuture orientation
Skilled at organizingSkilled at organizing
Value achievement over moneyValue achievement over money
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 15/37
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 16/37
Chapter 1: Entrepreneurship 16Copyright 2002 Prentice Hall Publishing Company
Leadership EffectivenessLeadership Effectiveness
³Objectivity´³Objectivity´ VsVs ³Perception´³Perception´
³Acceptance´³Acceptance´ VsVs ³Rejection´³Rejection´
³Individual´³Individual´ VsVs ³Group Performance´³Group Performance´
³Productivity´³Productivity´ VsVs ³Satisfaction´³Satisfaction´
High Level of analysisHigh Level of analysis
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 17/37
Chapter 1: Entrepreneurship 17Copyright 2002 Prentice Hall Publishing Company
Deadly MistakesDeadly Mistakes
Management incompetenceManagement incompetence
Lack of experienceLack of experience
Poor financial controlPoor financial control
Failure to develop a strategic planFailure to develop a strategic plan
Uncontrolled growthUncontrolled growth
Conventional mindConventional mind--setset
Inability to make the ³entrepreneurial transition´Inability to make the ³entrepreneurial transition´
Resistant to Change.Resistant to Change.
One way, One answer, One solution is µGreat threat¶One way, One answer, One solution is µGreat threat¶
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 18/37
Chapter 1: Entrepreneurship 18Copyright 2002 Prentice Hall Publishing Company
is one of your weapons changing ..is one of your weapons changing ..
ChallengesChallenges intointo Opportunities.Opportunities.
-- Leaders should be creativeLeaders should be creative
that leads to overcoming ..that leads to overcoming ..
³ in the box thinking´.³ in the box thinking´.
Creation
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 19/37
Chapter 1: Entrepreneurship 19Copyright 2002 Prentice Hall Publishing Company
Barriers to CreativityBarriers to Creativity
Searching for the one ³right´ answerSearching for the one ³right´ answer
Focusing on ³being logical´Focusing on ³being logical´
Blindly following the rulesBlindly following the rules
Constantly being practicalConstantly being practical
Viewing play as frivolousViewing play as frivolous
Becoming overly specializedBecoming overly specialized
Avoiding ambiguityAvoiding ambiguity
Fearing mistakes and failureFearing mistakes and failure Believing that ³I¶m not creative´Believing that ³I¶m not creative´
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 20/37
Chapter 1: Entrepreneurship 20Copyright 2002 Prentice Hall Publishing Company
The Creative ProcessThe Creative Process
PreparationPreparation InvestigationInvestigation TransformationTransformation
IncubationIncubation IlluminationIllumination VerificationVerification
ImplementationImplementation
1 + 1 = 2
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 21/37
Chapter 1: Entrepreneurship 21Copyright 2002 Prentice Hall Publishing Company
Four Vital Tasks of a LeaderFour Vital Tasks of a Leader
11. Hire the right employees and constantly. Hire the right employees and constantly
improve their skillsimprove their skills
2. Build an organizational culture and structure2. Build an organizational culture and structurethat enable the company to reach its potentialthat enable the company to reach its potential
3. Motivate workers to higher levels of 3. Motivate workers to higher levels of
performanceperformance
4. Plan for ³passing the torch´ to the next4. Plan for ³passing the torch´ to the nextgeneration of leadership.generation of leadership.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 22/37
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 23/37
Chapter 1: Entrepreneurship 23Copyright 2002 Prentice Hall Publishing Company
The Strategic Management ProcessThe Strategic Management Process
External
Analysis
Internal
Analysis
SWOT
Current
Objectives
Current
Strategies
Key
Issues
Strategic
Options
Strategy
Implementation
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 24/37
Chapter 1: Entrepreneurship 24Copyright 2002 Prentice Hall Publishing Company
Power ConceptsPower Concepts
The ability of a person or group toThe ability of a person or group to
change the attitudes or behavior of change the attitudes or behavior of
others.others.Power is not powerPower is not power OVER othersOVER others
Power is the ability toPower is the ability to GET THINGS DONEGET THINGS DONE
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 25/37
Chapter 1: Entrepreneurship 25Copyright 2002 Prentice Hall Publishing Company
Things that will destroy usThings that will destroy us
Wealth without work Wealth without work
Pleasure without consciencePleasure without conscience
K nowledge without characterK nowledge without character
Commerce without moralityCommerce without morality
Science without humanityScience without humanity
Worship without sacrificeWorship without sacrifice
Politics without principlePolitics without principle
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 26/37
Chapter 1: Entrepreneurship 26Copyright 2002 Prentice Hall Publishing Company
ResultsResults--ChainChain
³³ Effici en
cy
isnot
Eff e
ct
ivene
ss´ Effici en
cy
isnot
Eff e
ct
ivene
ss´
OUTPUTSACTIVITIESINPUTS
AREAOF CONTROL
Internal to the organization
AREAOF
INFLUENCE
Internal to
the organization
OUTCOME IMPACT
External Factors
e ffici ency e ff ect iveness
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 27/37
Chapter 1: Entrepreneurship 27Copyright 2002 Prentice Hall Publishing Company
Road to Great LeadershipRoad to Great Leadership
Challenge the processChallenge the process ± ± Find a process you need to beFind a process you need to beimproved mostimproved most
Inspire a shared visionInspire a shared vision ± ± share the vision in wordsshare the vision in words
which can be easily understoodwhich can be easily understood Enable others to actEnable others to act ± ± Provide tools and methodsProvide tools and methods
Model the wayModel the way ± ± Get your hands dirty; A bossGet your hands dirty; A bosstells others what to do, atells others what to do, aleader shows how it is doneleader shows how it is done
Encourage the heartEncourage the heart -- share the glory with yourshare the glory with yourfollowers, while keeping thefollowers, while keeping thepains with yourself pains with yourself
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 28/37
Chapter 1: Entrepreneurship 28Copyright 2002 Prentice Hall Publishing Company
An Effective LeaderAn Effective Leader
0 2000 4000 6000 8000 10000 12000 14000 16000
Integrity
Communicator
People Focused
Visionary
Caring
Decision Maker
Other
Dedicated
Model
Motivator
Expert
Courageous
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 29/37
Chapter 1: Entrepreneurship 29Copyright 2002 Prentice Hall Publishing Company
Six Traits of Effective LeadersSix Traits of Effective Leaders
Drive
Intelligence
Self-confidence
Desire to influence
others
RelevantK nowledge
Honesty and
Moral Character
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 30/37
Chapter 1: Entrepreneurship 30Copyright 2002 Prentice Hall Publishing Company
The Positive Role of ConflictThe Positive Role of Conflict
Conflict SurvivalAdaptationChange
Conflict may keep your unit responsive and innovative
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 31/37
Chapter 1: Entrepreneurship 31Copyright 2002 Prentice Hall Publishing Company
Road to Great LeadershipRoad to Great Leadership
Challenge the processChallenge the process ± ± Find a process you need to beFind a process you need to beimproved most.improved most.
Inspire a shared visionInspire a shared vision ± ± share the vision in wordsshare the vision in wordswhich can be easily understood.which can be easily understood.
Enable others to actEnable others to act ± ± Provide tools and methods .Provide tools and methods .
Model the wayModel the way ± ± Get your hands dirty; A boss tellsGet your hands dirty; A boss tellsothers what to do, a leader shows how it is done.others what to do, a leader shows how it is done.
Encourage the heartEncourage the heart -- share the glory with yourshare the glory with yourfollowers, while keeping the pains with yourself followers, while keeping the pains with yourself
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 32/37
Chapter 1: Entrepreneurship 32Copyright 2002 Prentice Hall Publishing Company
The Age of Competitive Advantage.The Age of Competitive Advantage.
-- What advantages you acquired ?.What advantages you acquired ?.
-- What is ³K nowledge´ ?What is ³K nowledge´ ?
-- Good is enemy of Great.Good is enemy of Great.
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 33/37
Chapter 1: Entrepreneurship 33Copyright 2002 Prentice Hall Publishing Company
What advantages you acquired ?What advantages you acquired ?
Natural advantageNatural advantage ² f ,
, b f
b f
Absolute advantageAbsolute advantage ² ff
ff
Acquired advantageAcquired advantage ² b
.
Comparative advantageComparative advantage --
Competitive AdvantageCompetitive Advantage -
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 34/37
Chapter 1: Entrepreneurship 34Copyright 2002 Prentice Hall Publishing Company
Today is from theToday is from the ComparativeComparative toto CompetitiveCompetitive
advantage era.advantage era.
What needs for Competitiveness ?What needs for Competitiveness ?
³³K
nowledgeK
nowledge produces Competitiveness ´produces Competitiveness ´
How we understand on ³K nowledge´How we understand on ³K nowledge´
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 35/37
Chapter 1: Entrepreneurship 35Copyright 2002 Prentice Hall Publishing Company
VisionVision
Vision is the art of seeing things invisible.Vision is the art of seeing things invisible.
³ The very essence of leadership is that you have to havevision. You can¶t blow an uncertain trumpet ´
© 1995 Corel Corp.
Every Effective Leaders have one great gift, this is«Every Effective Leaders have one great gift, this is«
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 36/37
Chapter 1: Entrepreneurship 36Copyright 2002 Prentice Hall Publishing Company
From Effectiveness toFrom Effectiveness to
GreatnessGreatness
³90 % of all leadership failures are
character failures´
8/8/2019 17.Changing Challenges
http://slidepdf.com/reader/full/17changing-challenges 37/37
Chapter 1: Entrepreneurship 37Copyright 2002 Prentice Hall Publishing Company
Dr. NayDr. Nay ZinZin LattLatt