Management Essentials Revisited (Ch2,4,6).pptx

This document talk about fundamentals of Business Management

1. Management Essentials Revisited

2. Chapter 2 The Power of Anticipation

3. Entrepreneurship and Anticipation in Business Predict the future, no perfect mechanism exist Hire management grads, invest time and energy in building better anticipatory mechanisms. This helps with better planning It is unreasonable for managers to expect turnkey solutions to complex planning problems from outside advisors and consultants True power of anticipation is developed over a period of time: Scientific : Logic Pseudo -scientific : non rational sensibilities

4. Some important steps Scientific : patterns from historical and current market Observing independent trend from other domains Assessing hunches and feelings based on ground realities of environment Disciplining employees at enterprise level to collate info from all these sources to create multiple scenarios of future Taking vote amongst the experts and visionaries on which scenarios best depict the likely development in future

5. Methods of creating process Historical Data Analysis: Sometimes when systematic and quantifiable data available, there is tendency to overemphasize the importance of it Future is dynamic and therefore may not mirror the past Expert advice : Someone who is grounded in the environment and has significant exposure to the vagaries of it and has pronounced instincts. Delphi Techniques : take votes/surveys from multiple experts Market Experiments: When history is unhelpful, best method can be “test the water” Typically used for new and radical proposals

6. 3 prerequisites for building good process of anticipation Discipline of considering multiple sources of information that projects the future Projecting the future with the help of multiple methods and independent sources of information Evolving a specialist forecasting function with multiple expertise

7. Chapter 4 Some Crucial inputs for running the organization

8. Fundamental inputs Money - easiest Debt : Typically not a problem for enterprises if environment is stable Capital : Divide the net income, ownership of enterprise gets diluted. More owners, more complications in managing diverse expectations Labor Unlike money (which is science) this is Art People management requires capable leader. Succession planning Should be given more weightage compared to money Information Contribute significantly to health of business provided management is equipped to use them effectively Few good men, family business With increasing competition required to have high precision decision making and risky to rely on in tuition or individual acumen Takes time important to invest early

9. Chapter 6 Branding

10. Brand Identity Awareness Differentiation Benefit to customer, Relevance Delivery