Professional Documents
Culture Documents
What motivates a professional manager may not motivate the owner of the firm.
Economists have always insisted on goal alignment between owners and
professional managers under principal-agent theory. There is considerable
debate on whether shareholder wealth maximization or stakeholder value
generation should be the key objective functions of an enterprise.
Further, managers and employees may get motivated differently. Even in the
same group, individuals may stand at different levels on the Missionary-
Mercenary Orientation Continuum.
Off-course, there is need for an overarching objective that collectively reflects
the aspirations of all stakeholders. But, for the message to engage, it should be
able to connect to individual level legitimate aspirations as well.
Implications
ANSOFF MATRIX
Existing Products New Products
Competitive Diversification
Marketing (Conglomerates)
Exis
Mar
ting
kets
Implications
The real world with limited physical storage and shelf space focuses around
maximizing returns by offering standard services that appeal to majority of
customers. Those serving special needs of small population, adopting niche strategy
faced limitations to achievable scale of business.
However. the rise of digital technologies has led to a decrease in inventory costs
to almost zero in some segments, making possible serving the exclusive and varied
preferences of ignored 20% consumer set in highly profitable manner.
Implications
Serving unique and diverse needs of a large customer base is big and
profitable business, with few competitors, provided the right business model
and delivery mechanism in place. Explore this choice!
Consider this: Structure of the Industry influences the firm’s conduct and
hence performance, and at the same time firm’s performance may redefine the
industry structure.
While it is widely believed that behavior reflects internal attitude, it is
also quite well established that consistent change in the behavior (under duress/
intent) ends up changing the attitude itself.
Similarly, means may define the ends that can be achieved, as much as
the ability of right ends influencing the level of means that can be garnered.
Implications
Implications
Get into an entrepreneur’s shoes and see what other goals / targets/ future is
possible with given set of resources and allowable downsides.
6. Data Analysis and Instincts – Both have their place in decision making:
In today's digital age, a great degree of focus is laid on information driven decision
making. Data Analytics is the new buzzword, and business executives are
increasingly relying on significant amount of data to back up their decisions. But, it
does take time for data to get generated enough to define a trend which a
sophisticated tool can help pick faster and better.
However, in the book "Blink", Malcolm Gladwell explains the principle of "thin
slicing" which points to the fact that effective decisions can also be made by
intuitive thinking based on experience of individuals, rather than being driven by
data only.
In management, unlike engineering, application may precede theorizing. Thus,
effectiveness of decision making might not be directly proportional to the level of
data analysis.
Implications
Implications
Implications
CONCLUSION
..Happy Experimenting!!!
(Tushar Khosla with special inputs from Param P Singh)
20%
ANSOFF MATRIX