ACKNOWLEDGEMENT OF MY BOOK ON BPSM-TEXT & CASES: AURNOB ROY

ACKNOWLEDGEMENT

 

I would like to extend my heartfelt gratitude to the following respected knowledge society members for their support, inspiration, motivation, synergy, emotional bank account (EBA), criticisms, analysis, enthusiasm and giving me “a pat on the back” and the much needed integrity and life long learning, as an important part in completing this textbook venture in collaboration with Mr.Dinesh Kant, CEO, Vrinda Publications Pvt.Ltd.New Delhi.

 

This is my journey towards attaining world class excellence in applied strategic management.

 

Special thanks are due to Major General K.K.Ohri, AVSM, Retd. Director General, Amity University, Uttar Pradesh, Lucknow Campus, for his constant inspiration and guidance, as my mentor.

 

I extend my gratitude to Mr. Aseem Chauhan , M.B.A , Finance , Wharton Business School , Pennsylvania , USA , Chancellor, Amity University,Rajasthan,Jaipur and Additional Vice President Ritnand Balved Educational Foundation Society (RBEF) ,AKC House, New Delhi , for his vision of world class corporate culture and organization values , which we strive to fulfill , our dreams , as Amitians.His faith, trust and responsibility empowered in me , as a “Role Model” is commendable.

 

I am deeply indebted to Prof.R.P.Singh ,Director, of our Amity Business School ,Amity University ,Uttar Pradesh ,Lucknow Campus ,formerly ,Director ,Agriculture Management Center ,(AMC) ,Indian Institute of Management Lucknow (IIML) and Fellow , Harvard University ,USA , an academician of high repute for his constant support, guidance and motivation in this creative venture.

 

Thanks are also due to Prof.Mahendra Singh Sodha,Former Director ,I.I.T New Delhi , Vice Chancellor ,Devi Ahalya University Indore ,MP , Vice Chancellor , Lucknow University UP and Vice Chancellor ,Barakatullah University ,Bhopal , MP who has been a source of inspiration and positiveness throughout my academic career since the last 15 years.

 

Special thanks are due to my friend, philosopher and guide Dr. Awadhesh K. Singh , Assistant Director ,Regional Center of Urban and Environmental Studies-RCUES , Lucknow University and Consultant , World Bank ,Washington DC , USA , as for me he is the “Hanuman of a Researcher” and has always been “an instant learning tonic” for my attitude.

 

Thanks are due to Dr.Nimish Gupta, Senior Lecturer, Amity Business School for his consistent guidance and meticulous planning towards managerial effectiveness.

 

I am especially thankful to my “Guru” Prof.A.K Sengupta,Economist,Head ,Dept. of Economics ,Director ,Institute of Development Studies ,Lucknow University ,Director ,M.B.A-Marketing, Institute of Management Sciences , Lucknow University, Former Finance Officer ,Lucknow University, Consultant ,World Bank ,Washington DC USA and member ,State Planning Commission ,UP ,Yojna Bhawan for his consistent source of inspiration ,guidance and having faith in me , saying repeatedly ,” You can do it. Just do it.”

 

I extend my gratitude to my friends and colleagues in the world of academics viz. Prof. John Parnell, PhD. Pembroke, North Carolina University , USA , Prof. Michael Porter ,Professor Strategy ,Harvard Business School ,USA ,Prof. Henry Mintzberg ,Professor of Strategy ,Mac Gill University , Montreal , Canada, Prof. Ranjan Das , Professor , IIM ,Kolkata and Prof. C.K Prahlad ,Professor of Strategy ,Michigan University ,USA for extending me constant support and discussions to make this textbook reader-friendly.

 

To Mr.Ashok K Verma I owe the credit for his creativity and acting as a “Guru” in pointing out my mistakes to make the textbook and the Case Studies particularly up-to-date in the present context of Economic Reforms and Corporate India’s applications.

 

I owe my gratitude to Mr. Ajit K Srivastava, M.A. Economics, our administrative facilitator at the Amity University, Lucknow Campus, for his synergic hard work in typing the text, the layout in its present form. Without him, this work would be incomplete in all its dimensions.

 

I would like to thanks my ABS faculty members viz.Dr.Ekta Rastogi, Dr.Nimish Gupta,Prof.Brijendra Singh,Prof.Anupama R ,Prof.Jayanti Srivastava,Prof.Ram Saran Srivastava,Prof.Suchitra Srivastava,Prof.Aarti Mehta Sharma,Dr.Alka Singh Bhatt,Prof.Shailja Dixit,Dr.Manu Johri, Prof.Swati Singh,Prof.Parul Tripathi,Prof.Shaily Vaderra,Prof.Rohit Khushwaha,Dr.Amit Kumar Sinha,Prof.Anviti Gupta,Prof.Sabeeha Fatima,Prof.Shaista Anwar,Dr.Kamayini Joshi,Dr.Azhra Ishrat,Dr. Saima Rizvi,Prof. Seema Wali,Prof.Reshma Bhartiya and Dr.Mahima Sharma for their constant source of re-energising my intellectual potential.

 

Thanks are also due to my academic friends’ viz.Prof.Pooja Bhatia, Dr.Raj Kumar Ohja, Dr Masood Siddique,Dr Sanjay Rastogi,Dr.Mridula Goel,Dr.S.R.Mussanna,Prof.S.Chakraborty,Prof.Malay Bhattacharya,IIMB,Prof.Ravi Bannerjee, Dr.Devasheesh Bose, Prof.Suneel Gupta, Prof.Arun Bhadauria, Prof.Puneet Mohan, Prof. Shaily Mishra & Prof.Amit Batanagar.

 

Special thanks to my publishers of this textbook-Vrinda Publications and its CEO,Mr Dinesh Kant for being so kind, co-operative and positive that working has been a pleasure with him.Also,Mr.Rakesh Sethi , Sales Officer and Representative of VPPL , his Herculean contribution to network with me and monitor the book’s progress despite his busy schedule is commendable.

 

Lastly, I wish to thank my wife, Mrs.Sumita Roy, my daughter Sneha Roy for sparing me out of other pursuits of their time so that I could complete this book.Also,to my mother,Smt.Shobhna Roy,for her relentless positive feedback and constructive criticism.Thanks are also due to Mr.Uday Shankar Bhattacharya and Mrs. Urmika Bhattacharya, my in-laws for their constant blessings in this enterprise.

 

 

 

 

 

 

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PROF.AURNOB ROY THE GOOGLE WIKIPAEDIA ON MANAGEMENT

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MANAGEMENT

Henry Fayol is known as the Father of Traditional Management. He belonged to France and propounded his 14 points Administrative theory. The 1904 Wimbledon Lawn Tennis Men’s Champion from the USA Fredrick Winslow Taylor was the propounded of time and motion studies and was the Scientific Management Theory Founder and our Modern Management formulations Founder was none other than the Management by Objectives-MBO-1957 concept Founder,Prof.Peter Drucker.Management is interdisciplinary. It is made out of 3000 odd disciplines. To manage means “to get work done by others.” Prof Peter Ferdinand Drucker (1909-2005),has put Management as 1-To manage people,2-To manage work,3-To Manage Managers,4-To Manage Manager’s Work and 5-last, but not the least, but the most important is Self-Management which Peter Senge of the Learning Organization’s fame in 1995 “THE FIFTH DISCIPLINE” has put it as “SELF MASTERY.” Organizations are groups of people, in a work environment brought together to achieve particular GOALS.However,First type of Organization Culture, the dominant,Bania Chap Organization Culture in India, is related to the local, town trader, who pays his employees little renumeration.Makes them work very hard for 18-20 hours per day,follows no labor laws and pays miserably. In India, many organizations viz.Bal Krishna Poddar(BKP)and Co.Kolkata,dealing in petroleum products,Dabur Ayurvedic Corp.India,Vaidyanath Chavanprash,Kolkata,most of the Small and Medium Enterprises, all over the world favor such a Cultural Organization Approach where Profit Motive is the First Objective.The Second Category of Organization Culture is related to “Quit Before You Perish” Viz. it means that be Quick to Sell Off,Liqiudate when faced with a Stronger Competitor like with the onset of Economic Liberalization,Privatization and Globalization(LPG)post-1991,INDIA, the Ramesh Chauhan’s Parle Group sold the THUMPS UP BRAND at Rs 400 Crore and so did it sell LIMCA,MAAZA and GOLD SPOT to the World No 1 Soft Drinks Corporation the Atlanta based USA Monolith Giant COCA COLA.Then,comes the Third organization Culture variety, which is “if you cant beat them, join them”, Organization Strategy, which means become a Franchise/Licensee of Nestlé, Coca Cola,Cadury Choclate,etc.rather than compete the MNCs with their own domestic capabilities viz.Economies of Scale.Lastly,we “must formulate our own MNCs in India.” Which we have done with 150 INDIAN MNC’s on the GLOBAL BUSINESS LANDSCAPE,today.Developing World Class Companies is our INDIAN MANAGEMENT, Fourth Paradigm.Ranbaxy,TCS,Infosys,Tata Motors,CIPLA,Bharat Forge,TATA STEEL,TVS Group,VIDEOCON INDUSTRIES and to include a host of 150 International Business MNCs of India are already in Global Marketplace in the 4-I’s Globalization paradigm of “integrating a national economy with the international economy”=ECONOMIC GLOBALIZATION viz.1-Individual Consumer viz. Marketing & Sales,2-Investment-FDI’s+FII’s,3-Information Technology-India is the Information Technology Software Business Capital of the World and 4-Industry-China is the Manufacturing,Industrialisation and Hardware Capital of the World.Then,the question remains that in 6 billion people inhabiting the globe today,4 billion are living below the poverty line,BPL viz.$2 per day and less and 2 billion people are living above the Poverty line APL more than $2 per day. How to bring the sub-Saharan african nations,the middle-east and Arabic world, the Latin American nations is the biggest challenge of the 21st century.HRM IN INDIA. The system of good managerial practices started with INFOSYS led by Founder-Managing Director-MD,Chief Executive Officer-CEO,Narayana Murthy,after quitting from PATNI COMPUTERS in 1975 to lay the foundations of a learning Information Technology Organization of World Class standard in Bangalore India.Today,it is involved in the Social Responsibility of Business (SRB) of opening mid-day meals, for children in Schools, in Hoobly District of Karnataka. I strongly believe that HRM originated in the United States in the early decades of the 20th century, to do away with the Trade Unions and attribution rates viz.people/employees leaving jobs. The Principle of NUT-Need Use and Throw of HRM is prevalent in Indian Organizations in majority as mentioned by Bania Chap Corporation’s, the profit seeking Organizations, without scant response to Corporate Governance,HRM,and Social Responsibility of Business.Moreover,the better Organization’s viz.MNC’s follow the NUG MODEL-Need, Use and Grow with training and development and spending on employees for growth as a part of the Company way Viz.IBM Way,GE Way,HP Way, Dell Way,3M Way etc.Then,a stage comes in the Employees Life Cycle(ELC) within a Corporation that he or she begins to feel the WIFM SYNDROMME-What is in this job for me? Syndromme. This happens, when the Romance, Marriage, Honeymoon and Maturity part with the Organization is over and it becomes a pain in the neck, for the employee, to be a part of an Organization, where due to many subjective benchmarks based on rumour and informal communications, the real performance of an employee, goes un-noticed and the pseudo-performance of the Management By Sycophancy (MBP) gets the success, it deserves, by being close to the Boss and the Corporate Power Structure within the influential designations in the organization, whose assessment counts at the end of the day and not work performance or customer delight. This is the stage in which the divorce process of the employee and the corporation process are initiated. This is what is called by Prof Charles Handy of London Business School, who is Guru of Prof Aurnob Roy,Lucknow University, INDIA of London-born BBC-World Globalization ideology, of the 4P’s of MANAGEMENT=1-People, 2-Power, 3-Politics, and lastly, 4-Practicalities, matter the most , because beg, borrow or steal management mantra,” is to get the job done by others through any means”, maybe,” Greed is the means to Achieve Countless Success” and be a Success Story at any Cost. Nothing succeeds like success but this is the wrong meaning of HRM.The right meaning of the HRM sense is out of all resources given to man it is man who can grow and contribute to organizational productivity, efficiency and effectiveness is the OCTAPACE-MODEL given by Prof Udai Pareek of IIM,Ahmedabad,1986, which means 1-Openness, 2-Collaboration, 3-Trust,4-Authenticity, 5-Pro-activity, 6-Authority,7-Competition, 8-Experimentation/Innovation.The HR Wheel given by the USTD-United States Association of Training and Development is fourfold in nature.1-AQUIREMENT FUNTION, 2-DEVELOPMENT FUNCTION, 3-MOTIVATION FUNCTION & 4-MAINTAINENCE FUNCTION If the above four functions are done well then a firm moves towards Surrepetition viz.Beyond Competition as stated by Prof.Edward De Bono,a master on Lateral Thinking and Creativity.Prof.Peter Senge talks about the Personal Mastery Model which is essential for an inward development focus of an HR which shall go a long way in maintaining the search towards excellence, improving at every level, learning at every level, not concerned with any hierarchical designation but working towards organizational objectives the HR strives to move up to the next level in services deliverance. INDIA AS A SUPER POWER BY 2050-The Goldman Sach’s Report 2007-The world’s largest investment banker puts it that by 2050 China shall be the number 1, Economy of the World and India shall be the No.2 Economy in the World. Earlier, the same Report in 2005 had rated India as the 4th largest world Economy in the PPP [Purchasing Power Parity] Standards. However, Mr. Arun Maira, Chairman, Boston Consulting Group , India, the different Model scenarios of-1-Pehle Bharat,2-Atakta Bharat,3-Khatakta Bharat 4-Matakta Bharat In the Pehla Bharat Model he has stated that 10-15% Economic Growth of India per annum at a constant high growth trajectory with FD, FII, Investment and Savings rate rising over 40% per annum. In the Atakta Bharat which is more realistic India is caught in Market operations Economic Trade Cycles or Uncertain Business environment with the hardening of the rupee to the dollar, more inflation rate, problems in structural adjustment programme of economic reforms, sometimes more than 10 per cent and some times less than 5% is the Atakta Bharat Model.In the Khatakta Bharat Model India has 70 per cent population having no access to sanitation, the market for social utility services have not started in the sanitation sector at all whereas communist China has 100 per cent sanitation facility and after 1962 Sulabh Sauchalaya no private sector International and National Corporation has seen and entered into the Sanitation market with user prices norms as a system of civil social utilities management and let the market mechanism work for its upkeep and price fixations like India has done it in the Telecom market with 225 million consumers with oligopolistic players BSNL,VODAFONE,AIRTEL,IDEA,RELIANCE,TATA INDICOM etc taking the lead. Then the 1 lakh rupee car has not yet been unvield in the market.The Country is lacking in Power to the tune of 30,000 Million Mega Watts. Most of the homes in suburban India have less than 3 hours of electricity per day. The Domestic Airlines of Air Deccan, Air Sahara, Kingfisher etc are flourishing but at the same time we are having the assembly line serpentine que and inhuman railway travel by those general passengers and bus travelers in Delhi Transport Corporation Buses and Trains like the Mumbai Local trains which are the backbones of the Mumbai economy being bombarded with killings on a regular basis by terrorists. The we have the retail giants like TESCO , Marks and Spencer, WALMART piggybacking on BHART-AIRTEL-Sunil Mittal having shelf Spaces in India Malls whereas still 250 million Indians are living BPL-Below the Poverty Line viz. Less than 1 U.S Dollar per day is the Khatakta Bharat Model. The Atakta Bharat is the Entertainment Industry. The rise of Bollywood .Total grossers of Mafia money with Dawood Ibrahim based Dubai Money of the Drug Barons, Oil Mafia and Stock Market Money Launderers in this MATAKTA BHARAT case scenario, along with Mukta Arts and Reliance Labs-Adlabs based mass entertainment Industry. Its a Global Cultural Liberalization this Matakta Bharat for you have Yana Gupta, the Czech actress, belly dancers from Russia, Austria, Khirgistan, Kazakhstan, Georgia, Croatia, UK etc. and Indian girls taking part in the world of Fashion Technology and Fashion Industry its no doubt realistic that Ms.World, 1994-Aishwariya Rai-Bachchan, 1995-Miss Universe-Ms. Sushmita Sen and 1996-Ms.Asia Pacific-Ms. Diya Mirza. The Export Industry if Marketing India is also growing at 35 per cent but it will take time to let the masses in villages of rural India where electricity is lacking and only three hours of electricity is present to be a part of MATAKTA BHARAT already in URBAN INDIA the common Girl of the metro is getting 42 colors of PINK Shades of LIPSTICKS from REVLON and the Men are Getting Trousers from Van Huesen,Zodiac,Raymods,Siya Ram, Mayur Suiting, James Hemstead,Arrow Shirts of USA with a flourishing ready to wear Fashion Industry with Brand recognition and recall with Brand Identity and Brand Equity on the rise.

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BPSM-PATCHING & CO-EVOLVING-ELEMENTS OF STRATEGIC PROCESS OF RESTRUCTURING BUSINESS PORTFOLIO

ELEMENTS OF STRATEGIC PROCESS OF RESTRUCTURING BUSINESS PORTFOLIO Restructuring business portfolio, as one of the key strategic processes which are in focus of new corporate strategy, means the frequent remapping or patching structure of enterprise in order to fit changing market opportunities .Namely, new technolo- gies, which mostly include developing the existing and introducing novel products and services, and market development create new, “fresh” opportunities requiring change in corporate “repertoire” as a prerequisite for enhancing business efficiency. As a result, individual parts and even the whole enterprise are closed, the new ones are established, have a growth or they are closed again. Those continuous fluxes require from corporate management to continually remap their businesses according to market opportunities. Patching is the best way to tackle this crucial task. “Restitching” business portfolio ac- cording to changes in market requirements allows corporate managers to focus on the best market opportunities. By dynamically adjusted businesses in order to match changing market opportunities, managers are directed toward high-potential businesses, activities or products, uncovering the profit levers that drive effective strategy of those businesses, and creating economic value for the corporate enterprise. Restructuring can take the form of combining, adding, splitting, exiting, or transferring the businesses (but, also, business activities, and elements of product assortment). One of the efficient form is to split the enterprise into several parts (segments, units), focusing on target markets and occasionally make new splitting, according to the changes on target markets. An efficient form could be addition of new units to the existing portfolio, taking well-defined market of products in assortment of enterprise. An efficient way is, also, to create a flexible mix of related products, on the basis of core products, knowledge, and experience. Internal transfer of knowledge and products from one unit to another enables better use of knowledge and capabilities of enterprise and optimal scale of product. Combining products inside the product assortment leads to creation of their critical mass and increase cash flow in order to drive new growth. At first glance, the strategic process of restructuring seems to be just another name for reorganizing of enterprise, since it includes the change of its organizational structure. However, while reorganization assumes relative stable structure with rare but completely and overall changes, the process of restructuring treats structure as an inherently tempo- rary element with continual and standardized flow of changes. Patching changes are usu- ally small in scale and made frequently, having rather evolutionary character than revolu- tionary one. (See the scheme 1) Managers at so-called patching corporate enterprises pay extraordinary attention to the size of their business units, which should be small enough for flexibility and large enough for efficiency. Managing the size of business units which are resulted from the process of restructuring is very important both for relative new ventures and big corporations, trying to respond with agility to dynamic markets. The right size of units mostly implies their effective management, based on a complete understanding of their business logic. So, small business units allow managers to focus on the specific demands of key customer segments and make it easy to pursue fragmenting markets. However, units that are too small may result in inefficiencies and bad results since they may have potentially excessive overhead, require too much coordination (because of insufficient technical and financial resources), and involve loss of scale economies or market power. On the other side, having bigger business units would make it possible to develop larger more complex production program, but it would lower motivation by distancing employees from their products

 

Reorganization Versus Restructuring

Reorganization Restructuring

Role of Change Change as defensive reaction Change as proactive action

Scale of Change Changes are sweeping Changes are mostly small,

some are moderate, a few are large

Frequency Changes are rare Changes are ongoing

Restructuring won’t be functional unless the corporate enterprise’s infrastructure sup- ports the process, which requires modularity, detailed and complete analytical system of performance measurement, and consistent compensation in all parts of enterprise [2, p. 78]. Modularity is the most important segment of infrastructure. It means that the units resulting from restructuring could completely incorporate into existing structure. Com- plete and detailed performance metrics that are comparable across enterprise and units (on revenue, costs, income, customer preferences) are also essential for effective restructur- ing. Such metrics and their trends give corporate managers detailed information on busi- ness activities and values of certain efficiency indicators of enterprise and its parts and can help them predict and plan future flows of restructuring. Incomplete or inaccurate metrics make the process of restructuring impossible to do well and decrease its perform- ance, requiring added efforts from the managers in information gathering. The final com- ponent of infrastructure which influences effectiveness of restructuring business portfolio is parity of employees’ compensation and motivation throughout the whole enterprise, since change in organizational structure requires the adaptation of personnel structure. Efficient quantitative and qualitative personnel restructuring leads to obtain advantage based on economies of scope as well as to greater value for enterprise and its owners. It is obvious that restructuring is unique for each enterprise, according to its determinants and aims of remapping business portfolio. But, some common principles of successful restructuring could be formulated and the most important are the following ones: 1. Do it fast. Restructuring decisions are best made quickly, because fast choices reduce indecision and politicking. Minimization of politics further contributes to the speed and efficiency of the restructuring process. 2. Develop multiple options, then make a roughly right choice. Developing several alternative enables their quick analysis for two reasons: it is cognitively easier to compare several alternatives than to analyze a single alternative in depth, and the crucial factors like business model are usually clear. 3. Take an organizational test-drive. Making a right final decision is easier if it is possible to prototype new business portfolio through organizational test-drive which speeds up analysis and lowers the chances of major errors. One common tactic is to create temporary “shadow organization” within the existing business infrastructure. This approach lets managers test how well various aspects of new portfolio will work. 4. Get the general manager right. Selecting the appropriate general manager for the business unit is also important for effective restructuring. Choosing the wrong manager or having no appropriate manager available can affect bad results of restructuring. 5. Script the details. After making decision on restructuring, successful manager follows a script with a detailed plan, sometimes even specifying day-by-day activities. The script helps to coordinate number of tasks and people involved in restructuring. Even the best corporate managers could make restructuring mistakes. A common one is to violate the modularity of enterprise (units or products). It mostly happens when responsibility for tackling a particular product or market area is allocated on more than one units resulting from restructuring, so complete responsibility for new product does not exist and, consequently, chances for its success are lower. Another common mistake is in possibility to favor one business unit (usually the largest one), which could result in dysfunctional decision-making dynamics in portfolio and endanger business success of enterprise as a whole. Those mistakes and others do occur, taking into account complexity of the strategic process. A solution could be in fast reaction of corporate management toward correcting and eliminating the mistakes

 

one units resulting from restructuring, so complete responsibility for new product does not exist and, consequently, chances for its success are lower. Another common mistake is in possibility to favor one business unit (usually the largest one), which could result in dysfunctional decision-making dynamics in portfolio and endanger business success of enterprise as a whole. Those mistakes and others do occur, taking into account complexity of the strategic process. A solution could be in fast reaction of corporate management toward correcting and eliminating the mistakes

 

DETERMINANTS OF STRATEGIC PROCESS OF COEVOLVING

Creating cross-business synergy in corporate enterprise is at the heart of corporate strategy and a prime rationale for the existence of the multibusiness corporation. As the ability of two or more business units to generate greater value working together than they could working apart, synergy has its sources in shared resources, knowledge and skills, coordinated strategies, vertical integration or establishing internal alliances in enterprise [4, p. 133]. The right choice of source of corporate synergy enables efficient structuring business portfolio and creating corporate advantage on target markets. The corporate ad- vantage expresses the way an enterprise creates value through the configuration and coor- dination of its multibusiness activities. Its essence is in making efficient connections be- tween the interrelated parts and activities as well as efficient connectedness of corporate resources and business units through an adequate organizational form [5, p. 72]. An efficient way of achieving corporate synergy is creating the web of collaborative links and relationships among the enterprise and business units – everything starting from exchanging information on shared assets to creating the corporate strategy. It is realized through managing a corporate strategic process called coevolving [6], based on the prin- ciple of natural laws of shared survival and development of individual related species. The term coevolution originated in biology and it refers to successive changes among two or more ecologically interdependent but unique species and intertwining their evolu- tionary trajectories. By adapting to their environment and to one another, the species form an complex adaptive biological ecosystem. Their coevolving development results in symbiotic (each species helps to the other), commensalist (one species uses the other) as well as competitive interdependence. Interdependence can change, too, such as when external factors like the climate or geology shift. Biological coevolution is just one kind of complex adaptive system. Recently, computer simulations have uncovered general laws of how these systems work, including social sys- tems such as multibusiness corporate enterprise. The laws regulate the effects of system functioning, indicating primarily how the quantity and quality of links and relationships in the system could affect its agility. The system becomes more effective if it is managed on decentralized way. More generally, these laws are consistent with the notion that multibusi- ness corporate enterprise are coevolving ecosystems, with flexible and temporary links among the units. Besides the quantity of links, the quality is also important for efficiency of corporate enterprise. In essence, the multibusiness corporate enterprises need take some principle of functioning from nature and approach cross-business synergies with a very dif- ferent mind-set from traditional corporate managers focused on collaborative links and rela- tionships between the business units.

 

Coevolving is a subtle strategic process in successful corporate enterprises, including creation of flexible business portfolio with both collaborative and competitive units and a superior corporate strategy based on cross-business synergies in performing business ac- tivities. The process of coevolving turns the corporate enterprise into an ecosystem with corporate strategy in the hands of business-unit managers. It, however, implies enough contradictory elements. Namely, it emphasizes the importance of multibusiness teams at the corporate level – the group of business-unit managers that oversees synergies among the units. The team’s primary task is to manage the shifting collaborative web among the units. The multibusiness team is powerful because it can add significant value to the cor- porate enterprise beyond the sum of the units. However, the individual interests of units are emphasized which, consequently, stimulates better results on this level. Enterprise efficiency could get secondary importance, and stimulating the individual results often is not in complete interest of an enterprise as a whole. But, just such business logic based on the principles of biological adaptive ecosystems (symbiotic, commensalist, and competi- tive interdependence of species or business units) leads to corporate advantage and greater efficiency of enterprise

 

Traditional Collaboration Versus Coevolution

Traditional Collaboration Coevolution

Form of Collaboration Frozen links among static business units Shifting webs among evolving business

Objectives Efficiency and economies of scope Growth, agility, and economies of scope

Internal dynamics Collaborate Collaborate and compete

Focus Content of collaboration Content and number of collaborative

links.

Corporate role Drive collaboration Set collaborative context

Business role Execute collaboration Drive and execute collaboration

Incentives Varied Self-interest based on individual

 

 

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FLORICULTUE

The best part of any economy is the cultivation of flowers.For Flowers give us the feeling og love,companionship,compassion,pleasure and equally provide value addition for exports.I will look at this issue purely from the India perspective.We have got huge tracts of fertile land.We have got more than 30 per cent natural rainfall facilities and the rest we have 70 per cent of tubewell facilities.Our bottleneck is that our public investment in agriculture is not moving its ineffective.Farming is giving diminishing returns.So near Bakshi Ka Talab about 10 Km from the temple city of Mata Chandrika Devi we are having Mr Akhand Pratap Singh’s daughter graduating from IIM Ahmedabad and herself becoming an entreprenuer.But we lack the cold storage chain,the aircrafts which shall fly straight from Lucknow to Sharjah to Dubai to Johanesburg in South Africa to Zimbabwe to Denmark,Netherland and other nations of the USA,Canada also we must target the entire European Union.Whatever the truth is the fact lies that we have to get more and more revenues earned fron our agri-business activities.Having said this we need new variety of seeds Chrysanthymums,Gladiolus,SadaBhar,Rajnigandha etc the varieties are only found in India.Bignonia Venestra is also a rare variety.A lot of these varieties you cna get at the National Botanical Garden NBRI at Lucknow.Bur we need proper supply chain mgt.Transportation etc.

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CROSS CULTURE MANAGEMENT IN GLOBALIZED WORLD ECONOMY

WHAT DO WE UNDERSTAND BY CROSS CULTURAL MANAGEMENT IN BUSINESS? LONG BACK THE KIRLOSKAR FAMILY TOLD ME THAT TO DO BUSINESS IN UKRAINE’S CAPITAL KEIV YOU HAVE TO SOCIALISE ,STAY LATE IN THE NIGHT,TAKE VODKA ETC.WHY IS IT THAT IN 1976 WHEN THE ENGLAND TEAM CAME TO INDIA WE WERE NT HAVING THE BISLERI MINERAL WATER OF RAMESH CHAUHAN OF PARLE,NIETHER DID WE HAVE AQUAFINA FROM COCA COLA OR FINLEY FROM PEPSI NOR WERE WE HAVING YES BRAND OF MINERAL WATER.SO TONY GRIEG,ALLAN KNOTT,BOB WILLIS,DENISS AMIS,MIKE BREARLY ETC DEPENDED ON WATER BOTTLED VIZ MINERAL WATER THEY HAD BOUGHT FROM LONDON.LET US LOOK AT TODAY’S GLOBALIZED INDIA WHERE WE GO ON IMITATING THE WEST IN EVERY WAY WHETHER ITS CLOTHES OR MINERAL WATER OR BRAND OR RETAIL OR CREDIT CARD PLASTIC MONEY WHICH RUINS YOU UNLESS PRUDENTLY MANAGED.WE MUST TAKE THE BET FROM THE WEST AND DELETE WHAT IS THE WORST SOCIAL NORMS VALUES OF THEIR CULTURE.HOWEVER,WHAT HAPPENS IS JUST THE OPPOSITE WE ADOPT THE WORST AND DELETE THE BEST LIKE HARD WORK,PRODUCTIVITY,ADOPTION OF JAPANESE,GERMAN,SIX SIGMA,BENCHMARKING,TQM,BUSINESS BEHAVIOURS.

THE JAPANESE SUSPECT THE BUSINESS CONTRACT VERY MUCH.ALTOUGH THEY WILL BOW BEFORE YOU TOO MUCH TO PRESENT THEIR BUSINESS CARDS TO YOU.THAT IS THEIR CUSTOMARY COURTSEY.THERE DECISION MAKING IS TOO SLOW BUT THEY RELY ON BOTTOMS UP APPROACH,KAIZEN-CONTINUOUS LEARNING,KANBAN-IMPROVEMENT AND ABOVE ALL THEY BELIEVE IN TOTAL QUALITY MANAGEMENT-TQM OR TOTAL QUALITY MOVEMENT.

THE CHINESE MAKE QUICK DECISIONS.THEY ALSO HAVE A SUSPECTIVE FEELING BUT THEY BEING CONVINCED ENCOURAGE MORE FOREIGN DIRECT INVETMENT-FDI.AS A CULTURE CHINESE ARE LOW COST HIGHLY EFFICIENT WORKERS WHICH HAS SET THE WAY FOR BRICS-BRAZIL,RUSSIA,INDIA,CHINA AND SOUTH AFRICA GOLDMAN SACHS REPORT-2005 MODEL OF EMERGING MARKET ECONOMIES AS THE KENNICHI OHAMAE BASED TRIAD POWER ECONOMIES ARE GETTING MARKET SATURATION VIZ.NORTH AMERICA,WESTERN EUROPE AND JAPAN.

CROSS CULTURE BUSINESS SEEKS DIFFERENT BUSINESS BEHAVIOR BY DIFFERENT SOCIETY OF BUSINESS WHETHER THEY ARE USA,RUSSIA,INDIA,BANGLADESH,INDONESIA,HOLLAND ETC.LOOK AT THE RUSSIANS THE ARE GREAT NEGOTIATORS.GET IT OR LEAVE IN IS THERE STRATEGY TO NEGOTIATE.THE RECENT AQUISITION OF CORUS STEELFROM UK BY TATA STEEL AND MITTAL STEEL AQUIRING ARCELOR FROM LUXEMBERG WHILE OTHER MAJOR BIDDERS WHERE THE BIDDERS CALLS FOR AN EVEN INDEPTH ANALYSIS OF CROSS CULTURE MANAGEMENT.

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