W E L C O M E TO OUR

PRESENTATION

Managing Differences The Central Challenge Of Global Strategy

(Part 1)

Presented By:M Saiful Islam - 063 182 030

Summary

In this article there are two wrong assumption about the global strategy challenges. According the article the biggest challenge is “Managing differences that arises at border”. To solve out this problem a concept is given in the article called “AAA Triangle”. This AAA model “Adaptation, Aggregation & Arbitrage” discussed Adaptation & Aggregation, Aggregation & Arbitrage, Arbitrage & Adaptation and at last all the AAA at the same time.

Why need of AAA aroused?

Two wrong assumptions about global strategies: • Managing differences that arise at borders.• Balance economies of scale and responsiveness to

local conditions.

To solve the above problems - AAA triangle.

AAA TriangleAdaptation Adjusted to local conditions or relevance. Remodel firm DNA. Become local. Country- centric structure or strategies. Expensive when covering many countries.

Aggregation Find commonalities among countries. Standardization of product. Product divisions and regional structure. Horizontal relationship for cross border economic of scale.

Arbitrage Exploits economics differences between markets. Exploit Geographic differences. Vertical relationships. Willingness & ability to change.

Adap

tatio

n

Aggregation

Arbitrage

AAA Global Strategies.

• Adaptation.

• Aggregation.

• Arbitrage.

From A to AA combination…..

Three combinations as AA strategy:• Adaptation & Aggregation.• Aggregation & Arbitrage.• Arbitrage & Adaptation.

Adaptation & Aggregation.

“P&G”

Aggregation & Arbitrage.

“TCS”

Arbitrage & Adaptation.

“Cognizant”

Managing Differences The Central Challenge Of Global Strategy

(Part 2)

Presented By:Shahzada M Afwan - 062 636 030

THE ELUSIVE TRIFECTA

The question is “Is it possible to Implement AAA simultaneously & in which order”.

There are some barriers:

•The Complexity of doing so collides with limited Managerial Bandwidth.

• People think that an organization should have only one Culture.

• Capable Competitors can force a company to choose which dimension it is going to try to beat them.

Medical diagnostic industries

30 % 25%20%

75 %The Global Medical Diagnostic-imaging Industry are in the hands of

three firms which hold 75% global share as

Among these, GEH is Successful because it uses a right fit of AAA.

AAA Competitive Map for Diagnostic Imaging

GEH…& AAA

Economy of scale - Higher total R&D spending than PMS/SMS, greater total sales and larger service force

Acquisition capabilities - very capable in acquisition(100 acquisitions)

Economies of scope - integrate its Biochemistry skills with its traditional base of physics and engineering skills.

Arbitrage – •Pitcher-catcher concept•50% raw material & 60% manufacturing in low cost countries

Adaptation - country focused MDOBundle offering goods + services

Aggregation

Broader lessons

• Focus on one or two A’s – It is possible to make progress on all three A’s, companies usually

have to focus on one or at the most two A’s in trying to build competitive advantage

• Make sure the new elements of a strategy are a good fit organizationally -

The new elements should be brought in accordance with already present elements of the strategic grid, otherwise the result will be a big failure

• Employ multiple integrations mechanisms- Progress of more than one of the A’s requires creativity and

breadth in thinking about integration mechanisms

Broader lessons (continued…)

• Think about externalizing integration - – Not all the integration required to add value need to occur within a

single organization– IMB see some externalization is the key part of global strategy

a) Joint ventures in advanced semiconductor research b) Relationship with Lenovo in PC’s

• Know when not to integrate – – All the time integration is not a very good idea. Because:

a) Very tightly coupled system are not particularly flexibleb) Knowing what not to do as well as what to doc) Proper matrix of all the activities

Conclusion

• Globalization is concerned not only with just availing of Production Opportunities across the borders.

• Only 1% of managers think about globalization strategically.

• The AAA framework provides a basis for considering global strategies that cover all the three effective responses to the large differences that arises at national borders. Clear thinking should broader the perceived opportunities, sharpen strategic choices & enhance global performance.

LEADING CLEVER PEOPLE

How do you manage people who don’t want to be led and may be smarter than you?

Presented By:M Fuad Bin Sajjad - 071 075 030

Brief Introduction

• Clever People are those who poses the ideas and knowledge and skills that gives company the edge.

• Difficulties faced by the bosses to maintain and manage these clever people.

• There few characteristics that differentiates them from the pack.

• Expert’s views on the clever people of the company and how they should be managed.

Understanding Clever people

They know their worth and expects leaders to understand it

They are organizationally savvy They ignore corporate hierarchy They expect Instant access They are very well connected They have a low boredom threshold They won’t Thank You

Managing Organizational “RAIN”

• Organizational “RAIN”- the rules and politics associated with any big budget activity

Clever people must be protected from it by the leaders. If maintained, it brings productive relationship with them.

Leaders should create “ Representative Rules”, in which Clever people respond to best.

Representative rules- Norms and rules are simple and universally accepted

EXPERT’S VIEWS AND SUGGESTIONS

• According to FRANZ HUMER, CEO and Chairman of ROCHE (pharmaceutical Giants)

“ Leaders should create and environment in which the clever people can thrive”

They give the Edge to the company in the market which may bankroll them for decades.

EXPERT’S VIEWS AND SUGGESTIONS

Continued…He also mentions,“ In company, one must maintain diversity in terms of Culture,

Origin, Behavior and View” Failures of the clever people ultimately brings out the success that

overcomes it.Best ideas don’t always come from projects, private efforts from Clever

people brings the real output.

Example: The GOOGLE affiliated Social Networking site “ORKUT”, evolving from the start-up idea session Googlette.

EXPERT’S VIEWS AND SUGGESTIONS

• According to head of a Global Accounting Firm,“ Clever People can be a great source of ideas, but

unless they have systems and disciplines they may have very little”

Resources without clever people is of no worth. Only they can make proper use of them.

EXPERT’S VIEWS AND SUGGESTIONS

• According to Laura Tyson, Dean of London Business School says,

“Clever should realize their cleverness doesn’t

mean they can other things”It must be showed to them they are expert in their

own rights, not on other employees.

EXPERT’S VIEWS AND SUGGESTIONS

• According to Martin Sorrell of WPP,“ Use reverse Psychology to lead your clever

people. If you want them to turn Right, tell them to turn Left”

Don’t try to push your clever people, you will end up driving them away.

You must be a benevolent guardian to them by creating a safe environment for them where they can experiment.

Recommendations

• Clever People are the heart of the company.• They must be given proper atmosphere to work and

experiment.• They must be managed tactfully and effectively• They should be given the freedom to work.

Maximizing Your Return On People

Presented By:Aysha Siddika Rimi - 043 345 530

Introduction

• New tools

• Employees are the assets

• HCM (Human Capital Management)

– Leadership development

– Job design

– Knowledge sharing

Measuring Performance

• HR metric

• HCM(Human Capital Management) best practice

• HCMs driver catagories

– Leadership practice

– Employee engagement

– Knowledge accessibility

– Work force optimization

– Organization learning capacity

Continued…

• HCM benchmark

• HCM strong & weakness

• Maturity

• Six sigma

• HR Department

Proof in the performance

• American standard

• South Carolina’s Beaufort County School District (BCSD)

• A Finanacial Firm

Conclusion

• Perform analysis

• Analysis proceeds in steps

• HCM central to the organizational culture

PUTTING LEADERSHIP BACK INTO STRATEGY

Presented By:Waresh Bin Aziz - 082 400 030

Strategy

What is it in….. Theoretical view Traditional wisdom

So, what it should be?

Strategy

• It is a dynamic tool for guiding a company through out life

• It is a continuous process, not periodic• It is the way of life for a company• It is the great opportunity of CEO’s

Exchange of value

Purpose & Strategy

• Purpose….. The heart of strategy.• Distinctive and Clear purpose

Strategy and Strategist

• No end of strategy!• Mystery with strategy and responsibility of CEO• CEO as the chief strategist

Why strategist are apart from other individuals of a company?

The Missing Dimension

Strategy as a set of solution• A long term sustainable

competitive advantage• The CEO and the

consultants• Unchanging plan• Defending an established

strategy through time.

Strategy as a dynamic process• Creation of value• CEO as the chief strategist,

job can’t be outsourced• Adaptive, flexible, open

ended• Fastening competitive

advantages and developing the company through time.

Summary……………………..

Writer’s View

QUESTIONS?

Thank You…