Download - The Mind of the Strata Gist
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Book review
Presented By:
Aditya ParabAmit Rathi
Prashant Kumar
Rahul NemaShishir Verma
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Creative Problem Solving
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AUTHOR
Born February 21, 1943 in Japan.
A business and corporate strategist who developed the 3C's
model
BS from Waseda university MS from the Tokyo institute of technology,
Doctorate in nuclear engineering from the Massachusetts
institute of technology.
A senior partner in Mckinsey & company for 23 years, nowlives in Tokyo.
Other books the end of the nation state and the borderless
world.
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Source: Wikipedia 8.11.2010
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PART I
Techniques of strategic thinking and analysis
Strategic thinking is Self Directed Judgment and analysis is to aid
it. (combination of mental elasticity and analytical methods)
Strategies- Relative superiority
Strategic degrees of freedom
Aggressive (ask a lot of Why?)
Prevention of mental paralysis and creative problem solving
(logical thought process)
Losing timidity and taking risks
Changing attitude to What can be done! and not the opposite
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Thinking!
Mechanical System Thinking Thought process may give solutions
dependent on one another
Intuition Based Thinking Gives a localized picture and not a holistic
view
Non-linear thinking
Thinking process involves intellectual elasticity and flexibility
Frame questions to find remedies to symptoms and not to
give solution to problems
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Non-linear thinking5
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Narrowing down the issue
ConcretePhenomena
Increase inaverage age
Seniority system ofpromotion
Low mobility of
personnel amongdivisions
Grouping
PersonnelProblems
Abstraction
Inflexibility inorganization
Determinationof Approach
Plan forreorganization
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Stages of
strategic thinking
Stages
of
strategic
thinking
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Stages of
strategic thinking8
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Issue Diagram
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Issue Diagram
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Issue Diagram
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Profit
Diagrams
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Profit Diagrams
Profit
Diagrams
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Profit Diagrams
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Four Strategic Paths
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PART II
Framework for strategy creation
Strategic triangle: 3Cs (Customers, competitors and
corporation).
Discussed strategies like crucial differentiation in one or more sectors,
segmentation by customer objectives and market
coverage. (customer)
Competitors weakness, possibilities of using differences incost and profit structures.
Functional advantage (corporation)
Shows that an organizations performance is related more
with how it works rather than the business it is in
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The Strategic Triangle
Customers
CompetitorsCorporation
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Multiple
Market
Segments
Product/Service
Differentiation
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Testing the Decision
Key Questions
Are customer needs well defined and understood by the
industry?
Is the market segmented so that differences in those needs aretreated differently?
Is the business unit equipped to respond functionally to the
basic needs of customers in the defined segment?
Do competitors have different sets of operating conditions thatcould give them a relative advantage over the business unit in
consideration?
Case: Mitsubhishi Heavy Industries
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Customer-based Strategies
Segmenting by objectives
Segmenting by customer coverage
Resegmenting the market
Structural Changes
Keeping tabs on trends
Case: Mitsubhishi Electric Companys domestic space
heater
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Corporate-based Strategies
Identifying key functions
Selectivity and sequencing
Functional Strategies
Thorough understanding of customers and competitors
Case: Casio Vs the competitors
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Enter lowend
Expand tomedium and
high ends
Win theworld
Japanese win strategies
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Competitor-based Strategies
Any difference between a company and its competitors must
be related to one or more of the three elements that jointly
determine profit: price, volume and cost.
Power of Image: Case 1: Sony
Case 2: Sakura Film Vs Fuji Film
Exploiting tangible advantages
Case: Toyotas forklift trucks Tactics for flyweights
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PART III
Discusses some major trends and their possible strategic
solutions, like those for:
Continuing low growth
Market maturity and stalemate International complexities
Differential natural allocation of natural resources.
Discusses Japanese business scenario and how it became a
superpower. Criticizes the separation of brain and muscle (the planners
and the doers)
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Economic Trends & Business
Strategies
Habit of Analysis Practice of strategic thinking
Continuing lowgrowth
Push for higher profits.
Invest them in other.Market maturity
Basic versus applied technology Product Development versus production technology. Management systems v/s equipment & Hardware
Uneven distribution ofResources
Careful analysis of Business Environmentprevailing in various nations..
Growing InternationalComplexities
Account for in cash flows Appropriate pricing
Irreversible Inflation
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Japan: Myths & Realities
The concept of corporation is fundamentally different
from that of west.
Organization really means people.
Government acts as the coach, not the captain
The Central notion of Japanese Business Strategy is to
change the battleground
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Foresighted Decision Making
Defining the business domain.
Constructing a strategic scenario
Confronting critical choices.
Pacing progress realistically.
Sticking to the basics
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A strategic success formula
Sensing the limits:
Reality
Ripeness
Resources
Conditions of Creativity
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MESSAGE
27 Successful business strategies result not so much from rigorous analysis but
from a particular state of mind.
Creating framework to stimulate the mind to come out with appropriate
questions and objective line of thinking.
Analysis is very important once the strategy is in place to test it.
The urgency of a marketing manager developing a product marketing
strategy can be compared to that of a military staff officer developing a
battle strategy.
Perception is strong and sight weak. In strategy it is important to see distant
things as if they were close and to take a distanced view of close things.
Miyamoto Musashi, 1584-1645, legendary Japanese swordsman
In real life, strategy is actually very straightforward. You pick a generaldirection and implement like hell.
Jack Welch in Winning, 2005
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THANK YOU
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