" INNOVATIVE BUSINESS PRINCIPLES

AND MANAGEMENT

MARLON B. SIM

Manager at PJ Lhuillier Group of Companies

Topics:Definition of terms:

Management Basic Functions of a Manager Business Strategy Business Principles By Steve

Jobs

MANAGEMENT

- in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively.

Management comprises planning, organizing, staffing, directing, and controlling and organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.

Manager

Manager may refer to:Anyone who uses management skills or holds the organizational title of "manager" .• A manager of a department in an

organization • A manager of a division (business)• General manager, for managing both

the revenue and cost elements of an organization

• Project manager, for individual projects• Manager (baseball), head coach of a

professional baseball team• Manager (association football), for

association football• Coach (sport), in other sports• Manager (professional wrestling), a

fictional character• Talent manager, for musicians, actors

and other artists• Bank manager

What is a manager?

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

Basic Functions of a Manager

Planning: This step involves mapping out exactly how to achieve a particular goal.

Organizing: After a plan is in place, a manager needs to organize her team and materials according to her plan.

Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees.

Basic Functions of a Manager

Leading/directing: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead.

Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track.

Planning“Well plan is half done”

- means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action.

“Planning is deciding in advance what to do, how to do and who is to do it. Planning bridges the gap between where we are to where we want to go. It makes possible things to occur which would not otherwise occur”.

Planning

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

Organizing

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

Organizing

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

Staffing

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

Leading/ Directing

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

Leading/Directing

If a manager neglects his responsibility to lead his team, the team will be less productive and motivated. They might lose track of what is important and what is expected of them. This might result in high staff turnover and loss of internal knowledge, but also in unsuccessful campaigns and projects.

Without a good team, a manager will find it hard to achieve business success. And without being a good manager and leading the team, a manager will find it hard to have a good team.

Controlling

Control in management means setting standards, measuring actual performance and taking corrective action.

 Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.

 Controlling helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.

Controlling

Without consistent controlling a manager won't know if their budget is spent in the most profitable way and a manager might not notice the signs when changes should be implemented. It will reduce the return of investment and therefore limit the success a manager can achieve within his department.

Without measuring and controlling, the team won't know if what they do is best for the company and cannot learn from previous mistakes. Therefore business success will only be limited.

What Do We Mean By “Strategy”?

Consists of competitive moves and business approaches used by managers to run the company

Management’s “action plan” to Grow the business

Attract and please customers

Compete successfully

Conduct operations

Achieve target levels oforganizational performance

Key Elements of a Successful Strategy

Developing a successful strategy hinges on making competitive moves aimed at Appealing to buyers in ways to set the enterprise

apart from rivals and Carving out its own market position

Involves developing a distinctive “aha”element to Attract customers and Produce a competitive edgeCopying competitive moves of

other successful companies rarely works!

A Powerful Strategy Leads to Sustainable Competitive Advantage

A company achieves sustainable competitive advantage when an attractive number or buyers prefer its products/services over those of rivals and when the basis for this preference can be maintained over time

Its nice when a strategy produces a temporary competitive edge but a durable edge over rivals greatly enhances a company’s prospects for winning in the marketplace and realizing above-average profits

What separates a powerful strategy from an ordinary

strategy is management’s ability to forge a series ofmoves, both in the marketplace and internally, that

produces sustainable competitive advantage!

Four “Best” Strategic Approaches toBuilding Sustainable Competitive Advantage

Being the industry’s low-cost provider (a cost-based competitive advantage)

Incorporate differentiating features (a “superior product” type of competitive advantage keyed to higher quality, better performance, wider selection, value-added services, or some other attribute)

Focusing on a narrow market niche (winning a competitive edge by doing a better job than rivals of serving the needs and preferences of buyers comprising the niche)

Developing expertise and resource strengths not easily imitated or matched by rivals (a capabilities-based competitive advantage)

Competitive Advantage Examples Strive to be the industry’s low-cost provider

Wal-Mart Southwest Airlines

Outcompete rivals on a key differentiating feature Johnson & Johnson – Reliability in baby products Harley-Davidson – King-of-the-road styling Rolex – Top-of-the-line prestige Mercedes-Benz – Engineering design and

performance L.L. Bean – Good value Amazon.com – Wide selection and convenience

Competitive Advantage Examples (cont)

Focus on a narrow market niche eBay – Online auctions Jiffy Lube International – Quick oil changes McAfee – Virus protection auctions Starbucks – Premium coffees and coffee drinks The Weather Channel – Cable TV

Develop expertise, resource strengths, andcapabilities not easily imitated by rivals FedEx – Next-day delivery of small packages Walt Disney – Theme park management and family

entertainment Toyota – Sophisticated production system Ritz-Carlton – Personalized customer service

What Is a Business Model?

A business model addresses “How do we make money in this business?” Is the strategy capable of delivering

good bottom-line results? Do the revenue-cost-profit economics

of the strategy make good business sense? Look at revenue streams the strategy is expected to

produce Look at associated cost structure and potential profit

margins Do resulting earnings streams and ROI indicate the

strategy makes sense and the company has a viable business model for making money?

Relationship Between Strategy and Business Model

Strategy . . . Deals with a company’s competitive initiatives and

business approaches

Business Model . . . Concerns whether revenues and costs flowing from the strategy

demonstrate a business can be amply profitable and viable

Strate

gy

Business

Model

Why Is Strategy Important? A compelling need exists for

managersto proactively shape how a firm’sbusiness will be conducted

A strategy-focused firm is more likelyto be a strong bottom-line performerthan one that views strategy as secondary

Good Strategy + Good Strategy Execution = Good Management

Crafting and executing strategy are core management functions

Among all things managers do, nothing affects a company’s ultimate success or failure more fundamentally than how well its management team

Charts a company’s direction, Develops competitively effective strategic moves

and business approaches, and Pursues what needs to be done internally to

produce good day-in/day-out strategy executionExcellent execution of an excellent strategy is

thebest test of managerial excellence – and the

most reliable recipe for winning in the marketplace!

Tips for Innovative Business Success

1. Do what you love. "People with passion can change the world for the better."

2. Put a dent in the universe. “Believe in the power of vision”.

3. Kick start your brain. “Creativity is connecting things”.

4. Say no to 1,000 things. “Proud of what Apple chose not to do as he was of what Apple did”.

Tips for Innovative Business Success

5. Create insanely different experiences. “Innovation in the customer-service experience”.

6. Master the message. “You can have the greatest idea in the world, but if you can't communicate your ideas, it doesn't matter”.

7. Sell dreams, not products. “captured our imagination because he really understood his customer”.

THANK YOU.

“God Bless the work of your hands”