The Chapter 11

                                                      The Chapter 11:

           MANAGING INTERNAL OPERATING

This chapter relate with the previous chapter, the chapter 10.his chapter is discussing about what the managerial actions that advances the cause of good strategy execution.The company will have a good strategy execution if the companies have policies and facilities good strategy execution.

this just what i'm get and know with attended lecture sessions last week, but it not last lecture. thank for all.. keep reading and always make smile face...n___n

The Chapter 10

                               

                                                      The Chapter 10 :

Building An Organization Capable Of Good                     Strategy Execution..

this week, our lecture discuss about strategy execution.  come to explore a little bit about the good strategy execution.. a grand strategy can lead the way to small business success, but companies must be structured in such a way to encourage good strategy execution to achieve real results.. to accomplish this, a company culture must be instilled with adaptability and innovation, and work processes structured to accommodate operational changes or shifts in focus.

THE 10 BASIC TASKS OF THE STRATEGY EXECUTION PROCESS.

The Chapter 9

                             
                                                                  The Chapter 9:

ETHICS, CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY AND STRATEGY.

This week i'm learned something new. Ethics, corporate social responsibility, environmental sustainability and strategy. refer to ethics, it similar with me, because i'm also study subject for this semester.? Where do ethical standards come from? Are they universal or dependent on local norms? The school of ethical universalism holds that the most fundamental conceptions of right and wrong are universal and apply to members of all societies, all companies, and all business people. The strength of this is that it draws on the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical and unethical business behavior, regardless of the country or culture in which a company’s personnel are conducting activities.

                The school of ethical relativism holds that differing religious beliefs, customs and behavioral norms across countries and cultures give rise to multiple sets of standards concerning what is ethically right or wrong. These differing standards mean that whether business related actions are right or wrong depends on the prevailing local ethical standards

Why should company strategies be ethical? There are 2 reasons why a company’s strategy should be ethical. First, because a strategy that is unethical is morally wrong and reflects badly on the character of the company personnel and second, because unethical bring a bad name for shareholder and cannot attract the customer (to buy), supplier and shareholder (to invest).

While the Corporate social responsibility means a company’s duty to operate in an honorable manner, provide good working conditions for employee, encourage workforce diversity, be a good steward of the environment and actively work better the quality of life in the local communities where it operates and in society at large.

The Chapter 8

                                                               The Chapter 8 :

                  

                           CORPORATE STRATEGY:

       DIVERSIFICATION AND THE MULTIBUSINESS                                            COMPANY

This week we learn about corporate strategy. What is definition of corporate strategy?From business dictionary corporate strategy means is The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.


        In this topic i want to focus about how to diversification the company or business. There have a three strategy alternatives for pursuing diversification:

1) diversify into related business

2) diversify into unrelated business. (KHAZANAH NATIONAL BERHAD)

3) diversify into  both related and unrelated business.











                   tutorial class

 I just want to share my lesson in tutorial class with madam Hawa :)This week, we just finishing the case study of Piping Hot Dogs 

cases study..

In this case study, we know the success of the company after facing a lot of challenge. It is very interesting case study :) Madam Huda explain to us every inch of the case study. Madam Huda also introduced to us how to understand the case study and make it easy to read. She teach us to read the case study by used the colourful of sticky note. Wowww it is so interesting and we all like it very much ! Tq madam 

The Chapter ( O-SHIMA)

            

           O-SHIMA JAPANESE RESTAURANT

In this week there is no lecture but it replaced by a sharing moment with owner O-SHIMA restaurants, Mrs. Asnidar Hanim yusuf.

Mrs. Asnidar had degree and master in engineering. she very successful businesswomen even she lack of knowledge in business. she started from the big restaurants but it is the mistakes or failure that brought her to be a good entrepreneur. she a really brave to tried something different from what she learn. they have many challenging especially to get HALAL certification. I got a lot of information about the reality of business is extremely and in every success there is always 'SACRIFICE' and 'FAILURE'

the word of 'OSHIMA' is taken from the name of a big island in Japan. this restaurant was set up on 2009 which this restaurant provides HALAL JAPANESE FOOD. being positive and never give up make her keep sustain in the business field. i want to share here what i got from the sharing moment last day. the strategies that applied by the owner of the restaurant are very impressed me like; as a entrepreneur we should  have our own niche but in understand needs, have a good location of the business, increase brand awareness, full use of social media and website, retain current customer and increase the new one and last but not least is promotion.she also highlighted that the most important in business is our customer satisfaction. The phrase "customer always right" is not totally accepted in her business. she said that customer also has to respect towards the product or service provider. As Muslim, she remind us to do the business as the part of ibadah and not only focusing on profit.

The talk took an hour and a half. The last session is questions and answers. Some students are asking question.I think in this sharing moment. We have get many information and also motivate us for be a good person in business field.

The Chapter 7

                                                   The Chapter Seven:

STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS 

why companies decide to enter the foreign markets. some of the reasons are:

1. to gain access to new customers.
2. to further exploit core competencies.
3. to spread business risk across a wider market base.
4. to achieve lower costs through economies of scale, experience and increased purchasing power.
5. to gain access to resources and capabilities located in foreign markets.

   There are five primary strategic options for doing so:

1-Maintain a national (one-country) production base and export goods to foreign markets.

2-License foreign firms to produce and distribute the company’s products abroad.

3-Employ a franchising strategy.

4-Establish a subsidiary in a foreign market via acquisition or internal development.

5-Rely on strategic alliances or joint ventures with foreign companies.

The Chapter 6

                                                           The Chapter 6:

STRENGTHENING A COMPANY’S COMPETITIVE POSITION

From this chapter, what i understand, it explain about what strategy can we do strengthening a company's competitive position.. there are many ways we can do to achieve that mission.. one of it is blue ocean strategy.. it offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand..

OFFENSIVE

STRATEGIC OFFENSIVE PRINCIPLES

• focus on relentlessly building competitive advantage and then converting it into sustainable advantage.
• apply resources where rivals are least able to defend themselves.
• employ the element of surprise as opposed to doing what rivals expect and are prepared for.
• display the strong bias for swift, decisive and overwhelming actions to overpower rivals.

The best offensives use a company's most powerful resources and capabilities to ATTACK RIVALS in the areas where they are weakest. The best targets for OFFENSIVE ATTACK

• market leaders that are in vulnerable competitive positions.
• runner-up firms with weaknesses in areas where the challenger is strong.
• struggling enterprises on the verge or going under.
• small local and regional firms with limited capabilities.

 Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute at INSEAD. The book illustrates what the authors believe is the best organizational strategy to generate growth and profits. Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space or a "Blue Ocean", rather than compete head-to-head with other suppliers in an existing industry.

A BLUE OCEAN market space, where the industry has not yet taken shape, with no rivals and wide-open long-term growth and profit potential for a firm that can create demand for new types ofproducts.It offers growth in revenue and profits by discovering or inventing new industry segments that create altogether new demand.
 example: im4u, starbucks, ebay, FedEx,etc.

HORIZONTAL and VERTICAL

This is also explain about  horizontal and vertical scope.. horizontal scope is the range of products and services segment that a firm serves within it's focal market while the vertical scope is the industry's entire value chain system, ranging from raw-material production to final sales and service activities..

The advantage & disadvantage of horizontal integration:

ADVANTAGE

DISADVANTAGE

·         Lower costs. The result of HI is one larger company, which produces more services and products. The higher output leads to greater economies of scale and higher efficiency. ·         Increased differentiation. The combined company can offer more product or service features. ·         Increased market power. The larger company has more power over its suppliers and distributors/customers. ·         Reduced competition. The result of industry consolidation is fewer companies operating in the industry and less intense competition. ·         Access to new markets. New markets and distribution channels can be accessed by integrating with a company that produces the same goods but operates in a different region or serves different market segment.

·         Destroyed value. M&A rarely add value to the companies. More often M&A fail and destroy the value of the companies involved in it because expected synergies never materialize. ·         Legal repercussions. HI can lead to a monopoly, which is highly discouraged by many governments due to lack of competition. Therefore, governments usually have to approve any larger M&A before they can happen. ·         Reduced flexibility. Large organizations are harder to manage and they are less flexible in introducing innovations to the market.

The advantage & disadvantage of vertical integration:

ADVANTAGE

DISADVANTAGE

Lower costs due to eliminated market transaction costs Improved quality of supplies Critical resources can be acquired through VI Improved coordination in supply chain Greater market share Secured distribution channels Facilitates investment in specialized assets (site, physical-assets and human-assets) New competencie

Higher costs if the company is incapable to manage new activities efficiently The ownership of supply and distribution channels may lead to lower quality products and reduced efficiency because of the lack of competition Increased bureaucracy and higher investments leads to reduced flexibility Higher potential for legal repercussion due to size (An organization may become a monopoly) New competencies may clash with old ones and lead to competitive disadvantage

                                FORWARD and BACKWARD 

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BACKWARD INTEGRATION involves entry into activities previously performed by suppliers or other enterprises positioned along earlier stages of the industry value chain system.

FORWARD INTEGRATION involves entry into value chain system activities closer to the end user

                                      STRATEGIC ALLIANCES

 The strategy alliances is a formal agreement between two or more separate companies in which they agree  to work cooperatively toward some common objective.

                                              JOINT VENTURE

And the last strategy is joint venture.. is a partnership involving the establishment of an independent corporate entity that the  partners own and control jointly, sharing in its revenues and expenses.

That all from me.. keep reading.. and i also will keep writing..n____n