The Business Book

INDEX 349 organizational culture (cont) production (cont) R risk management see risk planned obsolescence 324–25 management process simplification 296–99 R&D Shamrock Organization theory product quality and customer applying and testing ideas 310–11 77 loyalty 265–67 big data analysis 316–17 tolerant 74–75 product superiority and and differentiation strategy 181–82, visual aspects 108 technological change 36, 183 see also equity and performance; 37–38 and market research 310–11 leadership; management; quality products and design multidisciplinary aspect 311 shareholders 320–23 reinvesting profits 301 simultaneous engineering see also innovation P 326–27 time-based management 326–27 Ratners 238 Paccar 215 see also waste reduction Reeves, Rosser 29, 31 Page, Larry 174 risk management 40–41, 157 Pears soap 273 profit levels performance, and equity see equity and business ethics 122–23 bankruptcy, protection against 141–42 multinationals and profit shifting black swan events and future and performance 222 Peters, Tom 55, 221, 298, 307, price-fixing and competitiveness forecasting 198 222–23, 239 capability maturity model 218–19 338 pushing to highest feasible point contingency planning 210 Pixar 83 121 diversification 257 Ponzi schemes 153 quality and premium prices employees, and firm failures 142–43 Porter, Michael 180–82, 184, 197, 266–67 equity and performance 142–43, reinvesting profits 301 212–15, 218–19 shareholders and profit 156–57 Post-it Notes 42, 165 maximization 124–25, 237–38 executives and CEOs 143–44 Prahalad, C. K. 171, 256, 338 stock management 294–95 feedback, relevance of 109 price-fixing, and competitiveness versus cash flow 152–53 and financial crises 151, 154 see also financial strategy financial risk and other people’s 222–23, 239 Primark 136–37 Progressive Corp. 316–17 money 140–45 Procter and Gamble 38–39, 72–73, and income inequality 145 Q and learning organization 207 89, 233, 260, 273 leverage and debt levels 150–51 production quality micropreneurism 63 circles and teamwork 305–06, off-balance-sheet risk 154 Business Process Reengineering 308 organizational culture see (BPR) programs 308–09 and premium prices 266–67 product quality and customer loyalty organizational culture cash cow and product assessment 265–67 pre-pack administration 141–42 252–55 product superiority and technological return on equity (ROE), maximizing change 36, 37–38 custom production 298 products and design 320–23 155 direct-selling 298–99 products and value analysis 323 sales forecasting 278–79 distribution system 239 provision and customer service scenario planning 211 growth-share matrix and product 322–23 shareholders 140–41, 144, 145 Total Quality Management 56 start-ups 20–21, 41 portfolio 253–55 taxpayer bailouts and too-big-to-fail improvement and innovation firms 144–45 296–99 unconsolidated subsidiaries 154 lean production 290–93, see also complacency avoidance; 307–08 strategic management mass production 297–98 new features, promotion of 325

350 Rockefeller, J. D. 164–65, 222 social media (cont) strategic planning (cont) Roddick, Anita 262, 263 websites 54, 57 secondary interests, selling off 171 Rover 307–08 word-of-mouth marketing 274–75 statements and actions, differences Royal Bank of Scotland 74, 127, 144 see also Internet business; between 198–99 Royal Dutch Shell 211 technological change strategic inflection point 196–97, Rumelt, Richard 184, 185 200–01 Ryan, Arthur 137 Sony 168, 307, 311, 337 substitutes, threat of 214 Ryanair 182–83 Speedo 27 supplier power 214 Spotify 61 takeover bids 148 S Starbucks 262 see also business adaptation and start-ups growth; competitive advantage; Samsung 31, 38, 51, 56–57, 321–22, complacency avoidance; financial 325 bureaucracy and red tape 60 strategy; risk management business expansion 43–45 Selfridges 265–66, 267 business plan 21 Superdry 30, 45, 122 Semco 137 commitment of time and effort 62–63 sustainability 31, 45, 50–51, 57 Senge, Peter 204–05, 206, 207 competitive advantage see Shamrock Organization theory 77 see also business adaptation and competitive advantage growth see also organizational culture crisis of control 60 shareholders focus strategy 182 Swiss Pocket Knife 200 growth crises and Greiner Curve SWOT analysis 25–27, 184 boom and bust markets 146–47 bull market 121, 146–47 58–59 T and corporate accountability 130–31 Long Tail benefits 209 customer priority, importance of 238 micropreneurism 63 T-systems International 125 dividends 126–27 new entrants, strategic planning Tata Group 108, 131, 308 herd instinct, ignoring 146–49 Taylor, Frederick Winslow 159 pressure and partnership threat to 214–15 teamwork opportunism, and luck 42 development, start-ups 60–61 risk management 20–21, 41 and anomie 70, 71 private limited companies 125 self-financeable growth rate (SFG) Belbin Team Inventory 82, 84 and profit maximization 124–25, benefits 82 44–45 collaboration and creativity, 237–38 shareholder pressure and partnership public limited companies 191 encouragement of 71, 206–07 risk management 140–41, 144, 145 development 60–61 collective work products 85 share buybacks 155 see also entrepreneurship effectiveness factors 83–84 share certificates, first 127 Stevens, Brooks 339 group dynamics (groupthink) 114, see also equity and performance; strategic planning 184–85 Ansoff’s matrix 256–57 115 financial strategy; organizational buyer power 214 groups and sense of belonging culture chaos theory 220–21 Shingo, Shigeo 291–92 and consumer choice 180, 181 70–71 Siemens 62, 95–96 core business protection 170–71 and learning organization 205 Singapore Airlines (SIA) 183 cost-leadership strategy 180–83 quality circles 305–06, 308 Slim Helú, Carlos 338–39 crisis management 188–89 storming and norming 82–83 Sloan, Alfred 339 critical path analysis 328–29 talent management 84–85 Smith, Adam 124, 180, 218, 219 differentiation strategy 181–82, 183 time-based management 326–27 Snapple 23 Five Strategic Forces model 212–15 see also leadership; management social media focus strategy 180, 182 technological change and crisis management 188 industry positioning 215 Apple see Apple crowdsourcing 313 MABA (market attractiveness/ business adaptation, importance of business attractiveness) framework 54–55 192–93 new entrants, threat to 214–15 outsourcing 171

351 technological change (cont) UN, Brundtland Report 269 W information technology (IT) Unique Selling Proposition (USP) 29, 314–17 Wal-Mart 265, 279 marketing and technological 31 Wang, Cher 339 advantage 167–68 US waste reduction and product superiority 36, 37–38 see also Internet business; social family spending pattern 135–36 and competitiveness 301 media Generally Accepted Accounting Juran’s production ideal 300–01, 336 lean production 290–93, 307–08 Ted Baker 227 Principles (GAAP) 122, 123 see also production terrorism, impact of 200 Wedgwood 308 Tesco 165, 181, 257 V Welch, Jack 69, 75, 190, 191, 206, 216 TiVo 317 Wikipedia 313 Toffler, Alvin 54, 339 value analysis Wonga.com and payday loans 123 Total Quality Management 56 kaizen and efficiency improvement Toyota 44, 108, 135, 155, 169, 189, 304–06 XYZ and lean production 290–93, 307–08 199, 290–93, 304–06 and quality products 323 Xerox 331 Toys R Us 37, 147–48 value chain and competitive Yang Yuanqing 339 Tune Hotels 21, 29, 293 advantage 216–19 Zappos 267 TWG Tea 27 Zara 283 Twitter 22, 54 Victorinox 200 Zhang Xin 339 vision Zhang Yin 47 U Zurich Insurance Group 322–23 brand creation 261–62 UK broadening and realization 43, 50 bank bailouts 122 crisis management 188–89 pre-pack administration 141–42 and leadership see leadership shared, and learning organization 204–05 Volkswagen 301, 324

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