MSOE EM 800 Strategic Management

Shift Happens

2007-02-14T18:18:00.000-05:00

Last night we discussed a presentation which presented lots of facts about things changing.

DID YOU KNOW? SHIFT HAPPENS

What did you think? Comment here or register and comment on the other blog.

Gene A. Wright

GOOGLE and Chaos -- Part of their Strategy?

2007-02-08T22:42:00.000-05:00

In the article "Chaos by Design" Fortune, October 2, 2006 is interesting because it talks about the culture at GOOGLE and why "chaos" is all part of the plan. The eight year old company is the "ultimate petri dish" according to the Chief Chaos Officer Shona Brown (who wrote the book "Competing on the Edge" has tons of experiments going on all of the time.

The article talks about unique spaces, unique policies, unique benefits and the unique ability it has to make money. Innovation is the key to everything. The amount and level of talent is unbelievable.

What makes this company tick?
What makes it so special? We know it is different?
What is their strategy?
What do you think is their most unique characteristic?
Can they come up with a "second act" as the article asks? What will it be?

Gene A. Wright

Disney and Pixar

2007-02-08T22:04:00.000-05:00

One of Disney's Core Competencies is animation. In fact, Bob Iger said that animation is the "heart, soul, and engine that drives the train called Disney". However, Disney spent $7.4 Billion on Pixar. Pixar is responsible for animated blockbusters such as Finding Nemo, The Incredibles Cars and Toy Story. Disney's cartoons are classics and consistently do well at the box office and on DVD and now on iTunes.

The article "Pixar's Magic Man" discusses the deal between Disney's Bob Iger and Apple's Steve Jobs.

In another article, John Lasseter, now the head of animation for Pixar and Disney, once fired by Disney said that "Every film that I've made is a tribute to Walt".

Why did they make this deal?
What will this do for Disney? Pixar? Apple?

Gene A. Wright

GOOGLE and YAHOO! Compete for Mobile Market

2007-01-21T14:47:00.000-05:00

The Consumer Electronics Show (CES) often is the platform for a number of announcements.

It is not too surprising that YAHOO! and GOOGLE will be battling it out for the Mobile Market. What is interesting from a strategic management standpoint is the way that the alliances are shaking out.

Samsung working with both companies. Motorola with Yahoo!.

Why is it that we are seing so much of this partnering and alliance activity in all businesses?

Gene A. Wright

2007-01-13T17:13:00.000-05:00

"How to Succeed in 2007" is the title of a feature article in Business 2.0.

The article has brief snipettes from a number of leaders and managers with their ideas of what it will take.

Here are a few:
Howard Schultz - Starbuck's "Dare to Be a Social Entrepreneur"

Sergey Brin and Eric Schmidt - GOOGLE "Simplicity"

Michael Dell - Dell "Think Big"

Stephan Covey - FranklinCovey "Strive for Moral Authority" Character and Contribution

Rachael Ray - Chef and Author "Turn your Passion into an Empire"

Richard Branson - Virgin Group "Learn How to say No"

And many More.....

Which one did you like the best? Why?

Gene A. Wright

2007-01-06T10:32:00.000-05:00

An important and popular topic in our class is of course, globalization. Another is discussing the "value chain" as well as the supply chain. Can we get enough insight into the process of building a competitive value creation process; I think not.

I recently listened to a webcast presented by Industrial Distribution Magazine entitled "Five Critical Strategies for Building a Competitive Supply Chain"

The webcast is a little over an hour long, and you will need to register to attend the archived event, but it is interesting. It is a panel discussion with an introduction by the editor of Industrial Distribution.

The comments about the actions of distributors, standards, globalization, forecasting, competition etc., are very interesting and informative.

What do you think are some of the salient comments by the presenters?

Gene A. Wright

2006-12-05T20:13:00.000-05:00

The World is Flat Posting

http://em801.blogspot.com/2006/06/world-is-flat.html

2006-10-17T12:09:00.000-04:00

Gordon Bell,, a reseracher at Microsoft is working on a "digital diary, a searchable database that contains digitized versions of nearly everything in his life." The diary will be stored on a blackberry like device that he carries with him at all times and will help him recall everything from events to conversations that he's experienced.

The article Digital age may bring total recall in future is from the tech section of CNN.com.

2006-09-26T19:54:00.000-04:00

The article New technology could end DVD format war was posted on Cnet this afternoon.

The article talks about how the British company New Medium Enterprises has figured out a way to produce a multiple-layer DVD containing both the Blue-Ray and HD-DVD version of a movie. There are two primary advantages to this:
1. Cost. It currently costs $.06 to produce a single layer DVD. Using NME's technology, the cost to produce a multiple layer DVD (they've successfully tested 10 layers thus far) is only $.09.
2. Compatibility. Consumers can purchase one copy of a movie that contains both formats, meaning that their movie library will not be obsolete depending on which format wins out.

2006-05-22T13:18:00.000-04:00

Starbucks is expanding into different markets...

http://www.usatoday.com/money/industries/food/2006-05-18-starbucks-usat_x.htm

2006-05-09T17:38:00.000-04:00

Mergers are in fashion.

http://www.usatoday.com/money/companies/2006-05-09-merger-usat_x.htm

Interested in how many U.S. searches Google has per day? See link below.

http://searchenginewatch.com/reports/article.php/34701_2156461

2006-05-09T13:36:00.000-04:00

I'm sorry to be away from class tonight, so here is my snippette.

Given our discussion of the ethics around protecting identity and dealing with confidential information, I thought this joint project announcement was interesting. Further, the optimization of the US healthcare system via electronic data is a movement that I think we will hear a lot more about in the coming years. The article is from the Small Business Times.

Tosa company launches joint project with Sun Microsystems

Wauwatosa-based TeraMedica today announced it has formed a joint solution with Santa Clara, Calif.-based Sun Microsystems Inc. to create a system that enables health caregivers to securely share patient-centric digital content, including medical images, electronically over a network.TeraMedica's Evercore solution, running on the Sun Java Composite Application Platform Suite, allows physicians to attach medical images such as X-rays and MRI scans, as well as other clinical digital content, to a patient's existing electronic health record (EHR) and then easily access them from the desktop. By providing caregivers with timely access to relevant patient information, the joint solution can ultimately help improve patient safety and care, increase efficiency and reduce costs.Customers currently using or testing the Evercore on Sun solution include the Mayo Clinic, ProHealth Care in Waukesha and the Froedtert & Medical College of Wisconsin."A picture is worth a thousand words, and TeraMedica puts the picture into the patient view, creating a single point of access for all electronic health information, both data and images," said Wayne Owens, vice president of healthcare integration platforms at Sun Microsystems."TeraMedica's Evercore technology complements Sun's healthcare solutions by enabling access to medical images and other clinical digital content via a patient's existing electronic health record," said Jim Prekop, president and chief executive officer of TeraMedica, which is based at 10400 Innovation Drive. "By allowing caregivers to easily view and share medical data, together Sun and TeraMedica can help raise the standard of medical care."

2006-05-08T22:22:00.000-04:00

AOL to launch two-pronged attack. First, they will offer free internet phone service tied to its AOL Instant Messenger (AIM) software. Second, they will offer web-hosting to challenge MySpace, called AIMPages. Full story here:

http://money.cnn.com/2006/05/05/technology/aol/index.htm

2006-05-08T22:18:00.000-04:00

Yahoo! upgrades its ad search tools to try to challenge Google. New algorithm helps advertisers target customers easier. Read full story here:

http://money.cnn.com/2006/05/08/technology/yahoo_advertising.reut/index.htm

2006-05-02T17:13:00.000-04:00

"....Chance favors only the prepared mind" -Louis Pasteur

This is an interesting article that discusses options to the annual strategic planning session which is typically found to be less valuable than planned. The authors suggest a real-time approach to strategy making. One of the keys is encouraging creative minds. Companies like Capital One do this by allowing executives to create strategy by experimentation.

http://www.mckinseyquarterly.com/article_page.aspx?ar=1191&L2=21&L3=37

2006-05-01T10:44:00.000-04:00

We've talked about Google competing with a number of companies in several areas.

This article: http://www.nytimes.com/2006/05/01/technology/01google.html?_r=1&th&emc=th&oref=slogin

focuses on Microsoft's new browser, Windows Vista, and the way this browser directs people to MSN's search tool. Google asserts that it positions Microsoft to unfairly divert web traffic (and advertising dollars) from other competitors.

Two things in this article were of interest to me:

1. Google is increasing their lobbying efforts. They are no longer a "thorn-in-the-flesh," of the larger companies, but a significant contender in their own right.

2. It talks about the alliances built in this competitive marketplace (e.g., Google and Firefox) and the dynamic between software and hardware companies; particularly, the choice of software to load on their computers.

2006-04-25T18:19:00.000-04:00

Microsoft evalutating their strategy. Time for a makeover?

http://money.cnn.com/magazines/fortune/fortune_archive/2006/05/01/8375454/index.htm

2006-04-25T13:25:00.000-04:00

Breaking the rules on pizza delivery. Will Papa John's 10-minute pizza bring them to number one?

http://www.usatoday.com/money/industries/food/2006-04-24-fast-pizza-usat_x.htm

Question: If you order pizza when you are camping, is it really camping?

-Adam

2006-04-25T12:52:00.000-04:00

Snippet from CNN Money about how large media firms are acquiring video game companies and gaming websites in an effort to attract new customers and as a potential new channel for advertising.

Big media: Time to play games

2006-04-25T01:04:00.000-04:00

Interesting article about CEO of Sun, Scott McNealy, stepping down. We talked in class about Sun potentially being the biggest threat to IBM, but now this is the fourth Sun executive to either resign or retire in the past two months.

The article, McNealy steps down at Sun, is from cnet.com

2006-04-14T12:54:00.000-04:00

Here's a snippette on Honda and their Civic that runs on natural gas...

http://reviews.cnet.com/4531-10921_7-6490981.html?tag=blog

2006-04-14T11:47:00.000-04:00

Here is another Apple snippette... Apple has release a new version of their remote desktop manages networked MAC OS X systems. The new version is designed to work with Intel based MACs.

http://www.forbes.com/business/businesstech/2006/04/11/apple-remote-desktop-0411markets15.html

2006-04-13T13:40:00.000-04:00

"Google Calendar"

Here is another Google snippet.

http://www.usatoday.com/money/industries/technology/2006-04-12-google-calendar_x.htm

2006-04-11T17:25:00.000-04:00

Sorry, the link in my last post didn't work. Here's a working link.
Protective parents: Gold for cellular services?

2006-04-11T17:22:00.000-04:00

Disney to offer new cell phone service for kids, but with features aimed at protective parents, such as GPS to follow child's location and the ability to monitor voice and text messages.
Protective parents: Gold for cellular services?

2006-04-11T16:58:00.000-04:00

Wal-Mart to get into banking. Love it or hate it, Wal-Mart may be entering the world of financial institutions. God save us. Linky here:

http://money.cnn.com/2006/04/07/news/companies/walmart.reut/index.htm

2006-04-11T16:55:00.000-04:00

Disney's going to offer some of its most popular shows on the internet for free, starting soon for a two-month trial. The shows will have embedded adds that can't be fast-forwarded through. Linky here:

http://money.cnn.com/2006/04/10/news/companies/disney.reut/index.htm

2006-04-11T08:12:00.000-04:00

The following link discusses a new possible strategy for Google and how you search for information.

http://money.cnn.com/2006/04/11/technology/google_search/index.htm

2006-04-10T22:19:00.000-04:00

"The Forgotten Strategy"

If you are interested in global strategy you might want to check out the article " The Forgotten Strategy" by Pankaj Ghemawat. See link below. I came across this when I was doing research on the strategies used by CEMEX. They place a very high value on information technology and international knowledge workers. Based on their stock chart, NYSE: CX, I would say their strategy is a success.

http://scholar.google.com/scholar?hl=en&lr=&q=cache:0SPakRWfYLwJ:www.farrell-associates.com.au/Ops%2520Mgmt/Forgotten%2520Strategy.pdf+cemex+strategy

2006-04-09T21:38:00.000-04:00

Here is an article that I found on the Financial Times website about HD-DVD and Blu-ray technologies. The articles describes the strategies used by proponents of each format.

http://news.ft.com/cms/s/07d6e264-c273-11da-ac03-0000779e2340.html

2006-04-04T11:33:00.000-04:00

Hello Class.

I started a new blog for my posts. I thought it would be a good way to get rid of the piles of magazines I have at home.

Feel free to visit and comment as well as to this Blog.

The URL is www.geneawright.com

Gene A. Wright

2006-04-03T23:10:00.000-04:00

Interesting article on e-waste from businessweek.com - HP Wants Your Old PCs Back. I found the section towards the bottom, which discusses Apple's pushback to such recycling programs and the impact it's had on the company's "progressive" image.

2006-04-03T23:00:00.000-04:00

Found and article on CNet.com discussing the future of WiFi and cellular networks. The article is titled The skinny on CTIA Wireless 2006.

There's a section of the story that I found particularly relevant after last weeks class titled "A WiMax Combination," which discusses how some larger companies (ie. Intel and Motorola) are working together to lead in the push of these new technologies.

2006-04-03T13:45:00.000-04:00

I had to check out Gary Hamel's company Strategos on the web, and while doing so came across an interesting article on Whilpool. See links below.

http://www.strategos.com/

http://yahoo.businessweek.com/innovate/content/mar2006/id20060306_287425.htm

Hamel has definitely left his mark on Whilpool. They now have thousands of people involved with innovation, whereas before it was just Engineering and Marketing. I like that they have a knowledge management system that can be used as an avenue for the (hidden) innovators. They also have "I-mentors" (like Six Sigma black belts) that help facilitate innovation projects.

2006-03-31T14:53:00.000-04:00

Never before have I read or thought about Google as much as I have this quarter.

David Pogue, Technology Editor of the New York Times has a weekly e-column called "Circuits."

This week he covered Google's latest unveiling: free, easy to use websites.

See
http://www.nytimes.com/circuitsemail for more information.

Brian

2006-03-27T22:46:00.000-04:00

One of the key things we do in class is discuss the importance of innovating strategy. There is an excellent article in FORTUNE Magazine, April 3, 2006 issue. Entitled "Best Buy's Giant Gamble".

In the article, the author, Matthew Boyle, presents the position of Brad Anderson, CEO of Best Buy that the retail giant must innovate or become a member of the "retail hospital" where companies go when their strategies get sick.

The article makes a number of great points about the need for strategic innovation and describes a few experiements that they are conducting around "customer-centricity". Best Buy, according to the article, is going to be shifting from "pushing gadgets" to "catering to customers".

Very Interesting.

Gene A. Wright

2006-03-08T14:21:00.000-04:00

Product Development Management Association

2006-02-15T03:26:00.000-04:00

Here's an article KM systems. There are a lot of sources in this article to retreive information setting up KM systems. I thought some people may benefit from it.

http://www.line56.com/articles/default.asp?articleID=7317&TopicID=10

2006-02-14T22:49:00.000-04:00

MSOE Strategic Management
hear is an article that shows alot of strategic focus by milliken, their meeting a huge need with this product.
http://www.businessweek.com/innovate/content/feb2006/id20060210_209422.htm

2006-02-14T16:44:00.000-04:00

Interesting article on time management re: meetings

From the February 10, 2006 print edition Business Journal Milwaukee The People Pro Runaway meetings are the top time-waster at work Barbara Bartlein

A new nationwide survey finds that "runaway" meetings are the biggest time waster in the workplace. More than 27 percent of workers polled said meetings are the largest culprit for inefficiency and lack of productivity.

With today's lean staffing levels, there is increasing pressure for employees to manage their time effectively. Yet, many employers actually sabotage time management with runaway meetings and interruptions. Industry Week calls meetings "the Great White Collar Crime," estimating they waste $37 billion a year.

Some "red flags" that can indicate a mismanaged meeting:

No one in charge -- If the leadership of the meeting isn't clear, there is a tendency for attendees to waste time, pontificate their points and not draw any conclusions.
Not starting on time -- This practice "trains" employees to come late and expect additional time for socializing.

Lack of objectives or agenda -- With no clear purpose or agenda to follow, it is easy for the meeting to get off track. Participants may not be clear as to what needs to be discussed or for how long.

Lengthy guest list -- As a general rule, the more people at a meeting, the less work accomplished. When the list of attendees is extensive, it is often because there is a focus on not excluding anyone, not because each member's participation is necessary.

Just part of the routine -- Regularly scheduled meetings can lose value as circumstances and staff change. All routine meetings should be periodically evaluated to determine whether they should be held at all.

Effective meetings
To learn how to make meetings more productive, I contacted Chris Clarke-Epstein, who wrote the book, "I Can't Take Your Call Right Now, I'm In a Meeting." The former president of the National Speakers Association, she works with clients to help employees learn faster and work better. She offers concrete ideas to make your meetings more effective.

Not every meeting should take place. The right times to schedule a meeting are when conflicts need to be resolved, groups of people need to start working together or information needs to be shared at the same time. Meetings are a group activity so they can be effective when a group needs to reach consensus or rally around an idea or plan.

The person who calls the meeting has more to do than reserve the room. They need to also consider other logistical issues, including time, equipment needed, and food/beverage. They need to take ownership of the content, including preparation of an agenda and distribution of review materials. It is important to have a system to follow up on assignments and monitor the results of the meeting.

Meetings are no better than the people attending them. According to the Wharton Center for Applied Research, the primary cause of unproductive meetings is not having the right people in attendance. The most effective participants at any meeting are people who have the information you need, people who can make decisions, and people who will implement the decisions.

What gets recorded at a meeting has a chance of getting done. All meetings need some form of collective, agreed-upon memory. Without documentation, consensus can quickly evaporate. Meeting notes need to summarize the decisions made, itemize the actions agreed upon, fix accountability and document the deadlines for all actions.

Meetings that end without assignments are doomed to be repeated. Groups are often very good at decision-making and unbelievably poor at implementation. There needs to be an identified person to implement each decision within a specific time frame. Watch to make certain that everyone is getting some of the responsibilities.

Teams that evaluate their meetings have better meetings. Take two or three minutes at the end of each meeting to evaluate the process. Use index cards and answer the following questions: Were the meeting's objectives met? Was the meeting's format effective? Was the meeting of value?
The true value of any meeting is what actually happens after the meeting takes place.

Make sure individuals are held accountable for meeting results. And remember, if you don't measure it, it won't happen.

Barbara Bartlein is president of Great Lakes Consulting Group, Milwaukee. She can be reached at 888-747-9953, barb@ThePeoplePro.com or www.ThePeoplePro.com.

2006-02-13T19:42:00.000-04:00

A snippette regarding podcasting.

By Jay Conrad Levinson
Author, "Guerrilla Marketing" series of books
Over 14 million sold; now in 41 languages
The best-selling marketing series in history

The Guerrilla Marketing Association gives you live access
to Jay Conrad Levinson and comes with a free one-month trial.
Click Here

The 7 Deadly Sins of Commercial Podcasting

By Errol Smith

The podcasting phenomenon is just over a year old, but there are some lessons that have already surfaced from the experiences of early Internet radio entrepreneurs, the first wave of commercial podcasters, mass media scholars and experienced media professionals. These insights can help those with commercial podcasting ambitions avoid becoming another corpse in the podcasting graveyard. We've defined them as "The 7 Deadly Sins of Commercial Podcasting" and they have just been published in Media Savvy 2.0, the journal of the International Nanocasting Alliance.

The 7 Deadly Sins of Commercial Podcasting

1. Podcasting Without a Plan - Variations of this sin include podcasting because you can, podcasting because everybody else is doing it, and podcasting because it's a cool new way to get your message out. But podcasting without being clear about why you're creating the "show", what the business plan is for the program, and what value you can reasonably expect to get from the venture is cardinal sin number one.

2. Podcasting Without Providing Unique Value - The media landscape is exploding with new content bringing consumers a mind-numbing number of media options. To reach consumers overwhelmed by choices, the most important question you'll need to be able to answer is, "Give me one really good reason why I should tune into your program." Your chances of significant commercial success without a creating a program that offers unique value is slim to slimmer.

3. Podcasting Like a Broadcaster - Broadcasting is what old school "mass media" networks do. It's communicating to the largest possible audience while hoping to reach a subset of people who are interested in the content and offerings. Nanocasting is the polar opposite of broadcasting. It's hyper-targeted media content, aimed at an audience that is narrower, tremendously smaller, but collectively very interested in the programming and the offerings. From Mommycast, to Autoblog, some of the most promising commercial applications of podcasting we're seeing on the landscape are using the "Nanocasting" model. The first commandment of Nanocasting is to clearly define your audience. Commandment number two is to "hyper-target" them.

4. Underestimating the Commitment - You can already record and distribute a podcast without even buying any equipment, and new offerings are promising to make podcasting even easier. But commercial podcasters are finding that the venture neither begins nor ends with capturing audio and creating an RSS feed. On the front end there is considerable planning and preparation. On the back end there is promotion, testing and business development followed by more planning, more promotion, more testing and business development. Webpronews reported recently that "nearly half of the blogosphere is dead--that is, inactive." If the millions of abandoned blogs are any harbinger of the podcasting road ahead, it is likely that the leading cause of commercial podcast failures will be expecting commercial podcasting to be easy. Creating a podcast is one thing. Creating and sustaining a commercial media venture is another. The latter requires a commitment to consistently develop new content that subscribers find valuable.

5. Believing That Talent and Expertise Don't Matter - The resounding message driving the podcasting revolution is that anybody can do it. If by "do it" you mean speak into a microphone from your basement, and then record and post an audio feed online, this is true. But once "vanity podcasting" is distinguished from commercial podcasting by the necessity to attract and keep an audience, talent and expertise become factors. It just takes one stroll down iTunes boulevard to confirm that not every, staff writer, professional speaker, CEO, maven, author, entrepreneur, blogger, homemaker, hobbyist, enthusiast, or average man on the street has the talent to move from the silent Internet to the "talkies." The technology gives everyone a soapbox, but getting people to listen and keep listening requires talent and expertise.

6. Being Seduced by the Age of Amateurism - Though "citizen journalism" has risen to prominence, consumer generated media is the rage and many people have come to trust the amateur and distrust professionals; bet on professionalism to win out in commercial podcasting. Podcasting by the seat of your pants, picking up a microphone with no knowledge of the media business, or the art and science of creating compelling programming may be fine for vanity radio, but for commercial podcasters it can be a deadly sin. As a commercial podcaster, you'll be investing a lot of time and at least some money in your media venture. Bottom line: You're either building a portfolio of valuable programming that lots of people will want to hear, or you're building the web-based equivalent of a library of home movies.

7. Believing That the Playing Field Is Level - The egalitarian veneer of iTunes is potentially misleading and deceptive. Seeing programming by ABC, FOX and The New York Times displayed in equal pixels next to programs like Ask a Ninja, Diggnation and French Maids TV gives the impression that the new media playing field is fairly level. But the most savvy commercial podcasters are playing to dominate their field of competitors, and they are moving early to stack the odds in their favor. Understanding that commercial podcasting is a team sport, savvy media entrepreneurs are accessing the best players they can afford to bring a critical combination of media expertise, marketing expertise, e-commerce expertise, and technical expertise to the game. As commercial podcasting matures (which could be tomorrow) expect to see the gap and the commercial value between the "A list" programs and "B" movies widen dramatically.

Plus: The Three Unpardonable Sins

8. Relying Primarily on RSS to Build an Audience - Real Simple Syndication (RSS) may be an easy way to build an audience for vanity podcasters, but commercial podcasters are already discovering that RSS is no substitute for proactive audience building and what Nanocasters call Really Targeted Syndication(RTS). The high response and conversion rates required to achieve and sustain commercial viability demands a mix of approaches, including behavioral targeting, co-marketing and brand building. So paraphrasing another axiom, commercial podcasters can not live by RSS alone.

9. Believing That Format Doesn't Matter - Many early podcasters argued that free expression was the cornerstone of the podcasting revolution. They believed that podcasting should be free from anything that might standardize, homogenize or in any way cause podcasting to resemble the predictability of terrestrial radio. But a page from radio's history suggests that commercial podcasters may want to reconsider. International Nanocasting Alliance founding member, Dr. Joseph Dominick, professor of mass communication, writes that radio "formats" emerged in the 1950's in response to the growing number of competitors on the radio dial (3343 stations). The format became a tool to define a station's image and attract advertisers. As a result of formats, radio revenues went from 227 Million in 1955 to over one billion in 1965.

10. Overestimating Podcasting / Underestimating Podcasting - If Roy Amara's first rule of technology holds true, most commercial podcasters will overestimate the value of podcasting in the short term and underestimate the value of a well-developed podcasting program in the long term. It is likely that many early commercial podcasters will lose their first mover advantage by abandoning a podcast program, because it failed to generate a return on investment overnight…big mistake, and one of the deadliest sins. At the end of the day it's likely that success in commercial podcasting will be more like a marathon than a sprint.

Jay Conrad Levinson
The Father of Guerrilla Marketing

2006-02-08T19:03:00.000-04:00

MSOE Strategic Management
I found an interesting article that happened to focus on strategic leadership. It touches on som eof the key ideas such as having vision, remaining dynamic in your management procedures, and working to create and find more strategic leaders in your organization. http://www.businessweek.com/innovate/content/jan2006/id20060130_353096.htm

2006-02-08T14:19:00.000-04:00

For those of you interested in innovation, there is an excellent article in this months copy of the Harvard Business Review. The article is titled "The why, what, and how of management Innovation," by Gary Hamel.

This article describes the reasons why managers need to be innovative, list a few small cases studies of management innovation, defines management innovation, discusses how to become an innovative manger, describes the elements of management innovation, and lists 12 innovations that shaped modern management.

It's a great article and from my paper research, Management Innovation (MI) is a new buzz word for all of us to know.

Andy Donovan

2006-02-08T14:07:00.000-04:00

There is a new airline carrier attempting to start up. It's called VirginAmerica. An article titled "A British Invasion" from CNNMoney.com, talks about the investment team. Currently the company is waiting for approval from the US Dept. of Transportation. They are headquartered in San Francisco. Their strategy appears to be similar to Southwest and Jetblue. Flying long-haul routes, cutting edge technology on reservations, simple fares, flying one type of airplane (Airbus 320) and they plan to outsource assets like hangars, instead of owning them. Also in the works is a tv in each seat. Their website, virginamerica.com says the company is busy building a new kind or airline.
http://money.cnn.com/magazines/fortune/fortune_archive/2006/02/20/8369117/index.htm
http://www.VirginAmerica.com

2006-02-08T11:59:00.000-04:00

Interesting idea: The President is listening to CEO's regarding the development of a competitive advantage for the US. Article from CEO magazine online. February 2006.

Issue Date: March 2006, Posted On: 2/6/2006

Is Washington Listening?
President Bush’s New Policy on Competitiveness
by William J. Holstein

It was pretty stunning to hear President George W. Bush come out so forcefully on the subject of U.S. competitiveness in his State of the Union address. That was the theme of our CEO Leadership Summit described at some length in our January-February issue, and also the theme of my most recent Editor’s Note. I’m not under any illusion that the leader of the free world is reacting to Chief Executive magazine. Rather, I think we have captured the zeitgest of U.S. corporate leaders, and that’s what the president was responding to.

So what’s my reaction? It would be easy to be cynical about this pronounced shift in Bush’s focus some six years into his presidency, as he faces important mid-term elections. The fact that Exxon reported $36 billion in profits in 2005 may have forced the Bush camp to put down a marker on the U.S. “addiction” to imported oil, lest they be accused of being in Big Oil’s hip pocket. And he may have soft-pedaled on his push for democracy in the Mideast because, guess what, we had democracy in the Palestinian territories and they elected Hamas. Democracy in the Mideast, even if it’s ever possible, also isn’t going to address the concerns that Americans have about their own lives.

But let’s look at the glass being half full for a moment. As best I can tell, this is the first time that the Bush Administration has really listened to CEOs about shaping the national agenda. Virtually all of his town hall sessions with CEOs had been devoted to him telling CEOs what his vision was and why they should support it.

This feels different. It was in response to executives such as Craig Barrett of Intel, John Chambers of Cisco and Norman Augustine, formerly of Lockheed Martin, that Bush said he would accelerate spending on basic scientific research. Augustine helped lead a blue ribbon group that produced the report entitled “Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future.” (If you haven’t read this report, you should. It’s available at www.nap.edu.) Very interesting new report.

So, granted, Washington is corrupt and debased, and it’s entirely possible that political leaders will be distracted by some new scandal or foreign misadventure. But there appears to be an opening. Legislation has even been introduced called the Protect America’s Competitive Edge Act. It may be possible that we’re seeing a shift in the national political consensus, one that will be reflected not only in midterm elections but also in the presidential election in 2008. CEOs should maintain the pressure on leaders of both the Republicans and Democrats to keep moving in the right direction. That’s doesn’t mean just lobbying. It requires genuine intellectual leadership.

2006-02-07T21:59:00.000-04:00

The Journal Sentinal had this article about President Bush's plan to reduce our dependence on foreign crude oil by developing biofuel technology. According to the President "America is addicted to oil". The president's plan is to have competing technologies in six years. As the article states this requires companies to make engines and fuel systems that can handle higher Ethanol content. Since I work for a company that makes its own engines and fuel systems, I know that we would need to start working towards this now if we expect to be ready for new fuels in 6 years. Another interesting point made in the article is that the rise in oil prices has made ethanol based fuels competitive even without their $0.51 per gallon subsidy.

2006-02-06T20:44:00.000-04:00

Here's another move by the Walt Disney Company. Although this move doesn't seem as monumental as the Pixar purchase, it is notable. Today Disney announced that it will be merging ABC Radio with Citadel Broadcasting and plans to spin it off by the end of 2006. CEO Robert Iger explains this was done in order to "maximize the value of our assets for our share holders, while focusing our capital and management resources toward our core businesses." Sounds as though Iger is reading directly out of textbook's description of downscoping (p. 220-221).

2006-02-06T13:51:00.000-04:00

Another blog on governance and fiscal responsibility. Taken from The NonProfit Times, February 6, 2006.

Finance

Budget questions you need to be asking

Any organization’s annual operating budget should include estimates of revenue and expenses for an upcoming year, and it is of course an essential part of nonprofit operations.

In their essay “Understanding Financial Statements” in the book “The Art of Governance,” Patricia Egan and Nancy Sasser offered a list of questions that trustees might ask as part of their review of the budget than an organization’s staff presents to them.

The questions include but are not limited to:

* Is the operating budget balanced? If not, why not?

* Does it provide a small contingency to handle unforeseen events?

* Does the budget include only current-year revenue that is unrestricted and available to be spent on operations?

* What are the riskiest parts of the budget?

* Is there a fallback position to prevent the organization from these risks?

* How do the major budget categories compare to this years budget and year-end projections?

* What new initiatives are included in the budget?

* Are any existing programs terminated?

* If the budget includes significant increases in earned or contributed revenue, does the staff have a realistic plan for activities to generate the growth, and is the development or marketing budget increased to reflect the new activities?

* Does the budget include depreciation as an operating expense?

2006-02-06T12:34:00.000-04:00

The Home Depot is starting to think ahead of their competition and involving self-check out services and Kiosks. Home Depot is trying to limit human services and still provide great customer service.

http://www.line56.com/articles/default.asp?articleID=7292&TopicID=3

2006-02-06T12:21:00.000-04:00

This article is about GM outsourcing their BPO to HP. This decision to outsource to HP is way for GM to reinvent itself and aquire new strategies.

http://www.line56.com/articles/default.asp?articleID=7300&TopicID=2

2006-02-01T14:41:00.000-04:00

Since the topic tonight is Starbucks, I found an interesting article on cnn.money.com. The title is "The Starbucks of Cell Phone." A new retail store called IMO is offering an upscale alternative way to shop for dell phones. The store will carry various cell phone brands by offering choices on features and price. The offerings are on a digital display and a "live" IMO person will be available to offer advise. IMO references Starbucks in the store environment by offering "the solutions boutique" and intends to compete on service, not price. They want to offer the whole package (phones, service, accessories) to the consumer.
http://money.cnn.com/2006/01/30/technology/launchpad0130/index.htm

2006-01-30T15:39:00.000-04:00

Since we discussed Board Governance last week I read this article on Not for Profit Boards and reimbursements. It is from a listserve: The NonProfit Times, January 30, 2006 edition.

Tips of the Week

Boards...Procedures for expense reimbursement

As with all members of organizations, the directors of boards have the right to reimbursement for expenses that have been incurred on behalf of the organization. Reimbursed expenses can include travel, lodging, telephone and postage.

Recouping out-of-pocket expenses can be a smooth transaction if handled in the proper manner, according to Calvin K. Clemons, author of the book The Perfect Board.

· The board should have a published statement explaining its reimbursement policy. The policy should be specific and detail exactly what expenses are covered. For example, airfare may be restricted to coach fare with advance purchase or there may be a set rate for mileage reimbursement. Some organizations replicate the rate set by the Internal Revenue Service while others set their own rate.

· Directors should sign a statement acknowledging that they have reviewed and understand the policy.

· The policy should provide instructions on how and when reimbursements are distributed. Receipts should be required for all expenses. Copies of vouchers, bills and statements should be avoided.

· Depending on the size of the organization, it is good to obtain an approval from some other person that is not on the board. It can include an assistant treasurer, staff accountant or controller.

· Have a standard organizational form that is easy to complete. Forms are available at most office supply stores and numerous Internet sources.

2006-01-25T14:35:00.000-04:00

Here is a article from FORBES titled "Tapping Into The Blogosphere." The article talks about the importance of blogs as a marketing tool. The next step is determining how to make money on blogs. Right now blogs are an excellent tool to reach customers and receive feedback on products or services. Advertising on blogs will most likely be next. http://www.forbes.com/home/entrepreneurs/2006/01/24/google-apple-microsoft-cx_tt_0125straightup.html

2006-01-24T22:32:00.000-04:00

Since we've been covering mergers and acquisitions through the text in Chapter 7, I thought I'd mention Disney's acquisition of Pixar. I was rather suprised to see that this acquisition occurred, based on the documented falling out between Disney and Pixar. With Pixar flourishing and Disney floundering in the production of animated movies over the past couple years, this move appears to be one to make up for Disney's recent decline of innovation.

Another angle to take when looking at this merger is that Steve Jobs, who is also the CEO of Apple, will be appointed to Disney's board of directors. Several weeks back, I recall reading an article that Apple made a deal with Disney that would allow Apple to distribute television shows of ABC through its IPod service. This acquisition further strengthens this partnership between the two organizations and possibly opens the doors for even more content release through this medium. However, it makes me wonder whether this move was self-serving of Steve Jobs moreso than for the benefit of Pixar. With the contract between Pixar and Disney nearly up, which would have been completed with the release of Cars early this year, would Pixar been better off to go off on its own or to even work with other studios such as Warner Brothers or Twentieth Century Fox? I think its something to think about.

2006-01-24T13:40:00.000-04:00

It's the little things in a competitive environment that can provide the competitive advantage. Here's a short blog illustrating that notion. Posted January 24, 2006

ON-HOLD MARKETING WORKS

A typical business receives as many as 100 calls a day and puts callers on hold for over 17 hours each month. A whopping 70 percent of those calls are placed on hold for an average of 90 seconds. A depressingly large 90% of callers hang up within 40 second if "on hold" means dead silence. And 34 percent of those never call back.

On-hold marketing reduces hang-ups by 77 percent because instead of silence, callers hear marketing messages. It increases telephone on-hold time as much as 230 percent. A full 88 percent of callers say they prefer an on-hold message to music or silence. Best of all, 19 percent of callers buy something when they hear a powerful marketing message while on hold.

Jay Levinson and Amy Levinson

2006-01-17T23:01:00.000-04:00

http://search.epnet.com/login.aspx?direct=true&db=bsh&an=19117740

The article "Stop Making Plans Start making Decisions" is similar to the LLR #2 article. The emphasis on this article is how strategic planning fails because it is usually an annual process that ties in with budget planning. http://search.epnet.com/login.aspx?direct=true&db=bsh&an=19117740In many companies strategic planning isn't about making decisions but is more of an annual process. Current processes are a barrier to truly strategic innovations. 66% of companies researched identifies planning as a periodic event. Not enough time is allocated to strategic decision making. Companies have incorporated continuous issues-focused decision making to improve the strategic process. Executives are receiving more input from stakeholders. Companies are using a strategy development process to drive decision making. The article also states that once a year planning averages 9 weeks which is not sufficient for strategic innovation.

2006-01-16T17:39:00.000-04:00

A recent article on a listserve I belong to regarding direct mail.

20 STEPS TO BOOST DIRECT MAIL PROFITS

1. Decide exactly to whom you will be mailing. This is the first step and the most important step. Do this one wrong and nothing else will go right.

2. Decide which specific action you want your reader to take.

3. Create an outer envelope or other packaging for your mailing. Its primary goal is to get people to open it and study the contents.

4. Come up with an offer that your prospects can't possibly ignore.

5. Write a headline and P.S. that compel your prospect to read your letter.

6. Describe your offer in the most enticing terms possible.

7. Explain the results your offer will deliver, the main benefit it provides.

8. Explain why your offer makes so much sense to your prospect.

9. Give your prospect other key benefits of your offer.

10. Show that you know who your prospect is.

11. Describe the key features of what you are offering.

12. Make it irresistible to take action right now.

13. Tell your prospect the exact steps to take.

14. Set measurable goals.

15. Make a plan for your follow-up -- either mailing or phoning.

16. Track your results.

17. Improve results by increasing what's working, eliminating what's not.

18. Consider bolstering your direct mail with e-mail, fax, or Fedex.

19. Identify new markets you can tap.

20. Increase your sales and profits with better copywriting throughout.

Jay Levinson and Amy Levinson
Guerilla Marketing Weekly Intelligence listserve.

2006-01-16T14:33:00.000-04:00

The article "Hoteliers search for ways to stand out from rivals" by Paritosh Bansal discusses how several big hotel chains plan to differentiate themselves from their competitors, as the title indicates. Instead of focusing on the amenities, Marriot, Hilton, and Sheraton all are launching new initiatives.

This article was thought to be interesting in that it shows the competitive rivalry occurring between these chains within the same market segment, which caters toward the upper quality/price hotel for the business traveler. In fear of being left behind, each hotel chain mentioned is taking action. It was also noted that they are all taking a different approach to accomplish the same objective - gain more market share and create brand loyalty amongst business travelers.

2006-01-11T15:10:00.000-04:00

This article, in InformationWeek, talks about the shifting of advertising dollars being spent on search engine marketing, a 44% increase in 2005, making it a 5.75 Billion dollar segment.

It would seem that the ever-increasing mediums to get to customers are something that must be continually explored. How long until there is a software available to limit the display of this type of advertising? Could the government step in and allow people to register IP's to a do not-advertise list, to limit this type of "spam" advertising? These are all market forces that must be identified and addressed for the advertising industry.

2005-12-28T13:55:00.000-04:00

New web site technology - will be a definite strategic competitive advantage for many. Taken from biz times daily.

www.daily@biztimes.com

Prepare for the next generation of Web sites

Originally published 2005-12-28 00:00:00

Progressive businesses staying ahead of the curve are preparing to adopt new Rich Internet Applications for their Web sites, according to a new "Best Practice Report" by the University of Wisconsin E-Business Institute (UWEBI). "Using a browser, end users can book airline tickets, bid on auctions, check e-mail, buy and sell stocks, submit tax forms, or listen to music from any networked computer. If this was the first wave of Web applications, the second big wave is yet to come in the form of Rich Internet Applications (RIAs)," the report states. "The Internet was originally designed for simply transporting documents and information. The technology it was built upon lacked the interactivity of desktop applications. That's changed in the past decade as innovators have developed a richer user experience, despite huge challenges … Thanks to this breakthrough discovery, we can now deliver very sophisticated, responsive, interactive and graphically rich applications over the Web. RIA technologies are not only enriching user experiences, but also empowering businesses to reduce development time and costs, taking web development to a whole new level. The second wave of Web applications is now starting to roll in. The questions companies need to ask internally is when to get on board, and how best to ride the tide." As a case study, the report cites the interactive and experiential differences between Yahoo! Maps and Google Maps. Yahoo! Maps is a two dimensional, traditional, plotted mapping system. Using RIA technologies, Google Maps enables users to navigate global satellite images of locations. Some of the emerging RIA programs include the AJAX, Macromedia Flash and Java platforms. The UWEBI is Wisconsin's leading center for multidisciplinary research collaboration, technology innovation and industry outreach on e-business. The full report about the impact of RIA technologies is available at www.uwebi.org.

2005-12-22T12:57:00.000-04:00

It would appear that Google has taken sides, and the "Switzerland of Search" is no longer an unbiased player.
What does this do for Google? Have they backed themselves into a corner, or are they making associations that can grow their business? I think it is an interesting strategic move that is worth watching the outcome.

2005-12-21T14:50:00.000-04:00

The textbook, in Chapter 4, covers the segmentation of markets into "increasingly specialized niches of customers with unique needs and interests." (p.109) The article that I found, The Business of Life: Cell Phone Niche by Bruce Meyerson, discusses the increase segmentation occurring in the cell phone market by virtual cell phone companies. Cell phone companies such as Mobile ESPN and TuYo Mobile have been launched to cater to a very specific market segment, such as sports fanatics or Spanish-speaking individuals.

2005-12-21T12:51:00.000-04:00

Interesting article regarding competitive advantage.

THE GUERRILLA WITH THE 100% CLOSE RATE

My wife had a birthday coming up and I was thinking about a topaz ring for her when I met Wink Jones, an Idaho jeweler who runs Winfield's in Boise at 800-524-7904. His email is wink@primenet.com and his website at www.diamondsandgems.com. I tell you this because Wink said he was a guerrilla deep inside, then proceeded to prove it. I'm so delighted with my experience I hope you can have the same kind of pleasurable transaction and get to know truly customized guerrilla marketing. After speaking with me in person and with my wife by phone, Wink sent us a selection of unset topazes so my wife could make her selection. That he trusted total strangers with such beautiful stones was a revelation to me.

Next, he made a few rough designs and emailed them to us. We were impressed but still not enough to make a decision to purchase. Wink said he'd send something else to make our decision a lot easier. A week later, Fedex delivered a package. Inside was a videotape and a package of microwave popcorn, along with a suggestion to enjoy the popcorn as we viewed the tape. The tape began with music and my wife's name in the opening title. It continued with dramatic footage of three settings of the stone selected, each one shot from all sides, above, and below -- so she could inspect the designs from all angles.

She found one she loved and we ordered it, commenting that we deeply appreciated the videotape just for us. Wink told us he does that for all his customers and has closed 100% of the sales he has made using a video. Hardly a surprise, but definitely a great example of customized guerrilla marketing.

Jay Levinson and Amy Levinson

2005-12-20T00:03:00.000-04:00

I found this interesting article at BusinessWeek online.
"How 3form is Bending the Rules of Design." by Andrew Blum.
http://www.businessweek.com/print/innovate/content/dec2005/id20051219_540958.htm

This company is utilizing plastics in a new creative building material. While their product has almost unlimited potential, they have been having a difficult time getting architects to invision the possibilities.

Also, in referencing back to EM 670 last quarter, I remembered a classmate noting how difficult and expensive is has been to get plastic, new and recycled, at his company. It seems like while the resultant product is innovative and eco-friendly, it seems it may have too many prohibitive factors to make it a staple in the construction industry.

2005-12-16T00:01:00.000-04:00

This article discusses ford motor Companys' efforts to become innovative, and some of the strategies they are using to open new markets in the automobile industry. It seems that the company has learned a valuable lesson form the competition. Pushing new products off the showroom floor might be the new focus.
http://www.fastcompany.com/magazine/87/ford.html

2005-12-15T23:53:00.000-04:00

There was an interesting article on Ford motor Co. and their efforts to become an innovative automobile maker, some of their strategies and the investment they are making in their R&D at the company.

2005-12-15T10:33:00.000-04:00

In reference to understanding the external environment, I thought this was interesting. It talks about the Baby-boomers and their retirement plans.

2005-12-14T19:41:00.000-04:00

Since Google was a discussion topic, I found this article about Google's Big Brother image.
USA today Dec 7th article: www.usatoday.com/tech/news/2005-12-07-google-phobia_x.htm

Apple, iPod, and the Music Business

2005-12-13T23:24:00.000-04:00

In article in Business Week, December 19, 2005, titled "Apple May Be Holding Back the Music Biz"
the authors, Lowry and Grover, talk about how Apple may be withholding the capability for its music players to work with other music services (other than iTunes) because of the way it sells rights versus renting through subscriptions.

From a business model standpoint, and a business strategy, what could this mean fro Apple?

"The concept of a jukebox in the sky is not something consumers intuititively get." said an executive from REAL.

"iTunes is still the most margin-rich source of sales for record labels."

Downloads. Music. TV, Movies?

Think about it.

Gene A. Wright

2005-12-13T23:19:00.000-04:00

I came across this article on Bloomberg.com that discusses 3M's hiring of Brunswick's George Buckley as its Chairman and CEO. I thought it strengthened the books discussion on the importance in selecting strategic leaders and how it carries over to a firm's success (reference Chapter 1, pg. 27).

Unfortunately, it does not give any insight as to why 3M choose to bring someone from the outside as it did for its previous chairman and CEO, James McNerney. Before McNerney, 3M always had someone from within running its operations. Is this an attempt to shake up the company in terms of production and profitability, or has hiring outside the organization to fill the high ranking positions become a trend?

Analog Thinking in a Digital World

2005-12-13T23:15:00.000-04:00

Joe Mandese, Editor-in-Chief of Media Magazine
writing in his column in the November Issue made the statement, "Business Models are breaking down because we're faking them. We're still using analog thinking in a digital media world." I think this a statement worth thinking about. He uses the example of a VCR tape and how we fast-forward to get to a point we want to see. A DVR manufacturer used a "fast-forward" feature because we think in analog terms. In a digital world, we simply "go to" the point in time we want.

Interesting that he makes this illustration as it relates to business models. How many of us "think" about strategy in an analog mode? How many actually are able to think about business models in a digital mode?

Gene A. Wright

2005-12-13T17:08:00.000-04:00

Here's an article on blogging from University Business magazine. Hope you find it interesting.

http://www.universitybusiness.com/page.cfm?p=1084

2005-12-12T20:04:00.000-04:00

This article is cool. The company discussed was formed and run by Martin Puris who created the tagline for BMW 30 years ago, The Ultimate Driving Machine. This new company is looking at the most unique approaches to market any and all products with any form of media.

http://www.forbes.com/home_europe/free_forbes/2005/0919/077.html

2005-12-12T20:02:00.000-04:00

This is an article from Forbes that explains a rush to build distribution centers in China. Companies like FedEX, DHL, etc are building DC's in China because of the low costs that are involved. It shines a new light for myself on how they distribute across the world.

http://www.forbes.com/logistics/2005/11/28/china-distribution-centers-cx_rm_1129china.html

2005-12-11T20:58:00.000-04:00

I found a article explaining Sprint Nextel's release of a video phone similar to a video ipod. LINK In a class last term we discussed how Sprint's commercials seemed to more focused at business customers. This product should be well suited to the business traveler, as long as they don't already have a video ipod.

2005-12-11T15:29:00.000-04:00

An interesting and well written short description of the Web 2.0, the "next" generation of the internet, appears as part of a Harvard Business School Newsletter, Working Knowledge.

The article, What Is Web 2.0: Design Patterns and Business Models for the Next Generation of Software which is a review and description of a website page introduces Web 2.0 and invites a click-thru.

A worthwhile read.

Gene A. Wright

2005-12-11T15:10:00.000-04:00

Here we are Blogging as a class, and HBR publishes an article entitled "Does Your Company in the Blogosphere?" I think it does.

The Working Knowledge Newsletter article discusses How Bloggers Connect, How to Take the Lead in a Conversation, How to Boost Credibility and Get Closer to Your Customers. The article gives links to a couple "corporate" Blogs and offers suggestions on how to get the most from your blog. One specially interesting case mentioned discusses how a company is using Blogs related to Product Development.

Gene A. Wright

2005-12-08T23:24:00.000-04:00

Here is the Wal-Mart site for the Garth Brooks box set. There is a "news and appearances" section that is interesting.

This article shows that Garth and Wal-Mart are suceeding with over 1 million units sold.

Here is an article on the Wal-Mart box set at Billboard.com.

2005-12-08T14:10:00.000-04:00

Interesting site: follows our discussion of "outsourcing" services last night (12/7/05). This HR consulting firm has created a "blog site" for exchange of information, and likely a potential source of new clients.

see: http://thehsgroup.blogspot.com/

2005-12-07T18:52:00.000-04:00

Article by Norman Augustine - he received an Honorary Doctorate from MSOE. He has written several articles and books on various industry topics. Here's an article he wrote recently.

Learning to Lose?
Our Education System Isn't Ready for a World of Competition

By Norman R. Augustine
Tuesday, December 6, 2005; A29

In the five decades since I began working in the aerospace industry, I have never seen American business and academic leaders as concerned about this nation's future prosperity as they are today.

On the surface, these concerns may seem unwarranted. Two million jobs were created in the United States in the past year. Citizens of other nations continue to invest their savings in this country at a remarkable rate. Our nation still has the strongest scientific and technological enterprise -- and the best research universities -- in the world.

But deeper trends in this country and abroad are signs of a gathering storm. After the Cold War, nearly 3 billion potential new capitalists entered the job market. A substantial portion of our workforce now finds itself in direct competition for jobs with highly motivated and often well-educated people from around the world. Workers in virtually every economic sector now face competitors who live just a mouse click away in Ireland, Finland, India, China, Australia and dozens of other nations.

Soon the only jobs that will not be open to worldwide competition are those that require near physical contact between the parties to a transaction. Visitors to an office not far from the White House are greeted by a receptionist on a flat-screen display that controls access to the building and arranges contacts; she is in Pakistan. U.S. companies each morning receive software that was written in India overnight in time to be tested in the United States and returned to India for further refinement that same evening. Drawings for American architectural firms are produced in Brazil. Call-center employees in India are being taught to speak with a Midwestern accent.

This movement of U.S. jobs to other countries has few natural limits. Manufacturing jobs were the first to go, but jobs developing software and conducting various design activities soon followed. Administrative and support jobs are starting to move overseas, and even "high-end" jobs such as professional services, research and management are threatened.

Other nations will continue to have the advantage of lower wages, so the United States must compete on the basis of its strengths. Throughout the 20th century, one of these strengths was our knowledge-based resources -- particularly science and technology. But the scientific and technological foundations of our economic leadership are eroding at a time when many other nations are building their innovative capacity.

This nation's trade balance in high-technology goods swung from a positive flow of $33 billion in 1990 to a negative flow of $24 billion in 2003. Two years from now, for the first time ever, the most capable high-energy particle accelerator in the world will be outside the United States. Low-wage employers in this country, such as McDonald's and Wal-Mart, create many more jobs than do high-wage employers. In 2001 U.S. industry spent more on tort litigation and related costs than on research and development.

Today, high-technology firms have to be on the leading edge of scientific and technological progress to survive. Intel Corp. Chairman Craig Barrett has said that 90 percent of the products his company delivers on the final day of each year did not exist on the first day of the same year. To succeed in that kind of marketplace, U.S. firms need employees who are flexible, knowledgeable, and scientifically and mathematically literate.

But the U.S. educational system is failing in precisely those areas that underpin our competitiveness: science, engineering and mathematics. In a recent international test involving mathematical understanding, U.S. students finished 27th among the participating nations. In China and Japan, 59 percent and 66 percent, respectively, of undergraduates receive their degrees in science and engineering, compared with 32 percent in the United States.

I've recently had an opportunity to review these trends as chairman of a 20-member committee created by the National Academy of Sciences, the National Academy of Engineering and the Institute of Medicine. Congress asked the committee to examine the threats to America's future prosperity. The panel was a diverse group that included university presidents, Nobel laureates, heads of companies and former government officials. We agreed unanimously that the United States faces a serious and intensifying economic challenge from abroad -- and that we appear to be on a losing path.

Our committee emphasized that the United States needs to focus on fundamentals. We recommended the recruitment of 10,000 new science and math teachers each year through the awarding of competitive scholarships. The skills of a quarter-million current teachers should be improved through enhanced training and education. We recommended establishing 25,000 competitive science, mathematics, engineering and technology undergraduate scholarships and 5,000 graduate fellowships.

To boost scientific and technological innovation, we recommended that the U.S. government increase research funding by 10 percent annually over the next several years, with primary attention devoted to the physical sciences, engineering, mathematics and information sciences. We urged the federal government to create an Advanced Research Projects Agency-Energy (ARPA-E), modeled after the Defense Advanced Research Projects Agency, which would support out-of-the-box, transformative research aimed at ending our crippling dependence on foreign sources of energy. We asked the government to provide permanent tax incentives for U.S.-based innovation.

The United States wants other nations to do well economically. Broadly based prosperity can make the world more stable and safer for all. What worries business leaders is that the United States could easily fall behind as the rest of the world prospers.

The writer is the retired chairman and chief executive of Lockheed Martin Corp.

2005-12-07T18:22:00.000-04:00

Interesting article about "start-up" businesses in college towns.
frank

http://abcnews.go.com/Business/print?id=1373820

2005-12-07T14:56:00.000-04:00

I found an interesting article in Fortune, December edition. A company called Intuit (software firm) emphasizes that innovation is the acceptance of failure. The company from top down expects to hear the stupidst ideas and discusses them to determine if there is potential for innovation.

http://www.fortune.com/fortune/ceo/articles/0,15114,1135320-1,00.html

2005-12-03T11:49:00.000-04:00

Continuing on the GOOGLE theme......

In November, 2005, Business 2.0 published an article called "Building the Next GOOGLE" that talked about a number of things an entrepreneur might do to create a GOOGLE-like business.

Among them,

1. Start Small
2. Use off-the-shelf equipment
3. Launch early, Launch often
4. Embrace Open-Source.

There a number additional tips, each with a short description.

Gene A. Wright

2005-12-03T11:32:00.000-04:00

GOOGLE represents a great study in strategy with the question being "what is GOOGLE's business strategy?".

Certianly, they dominate the search market. However, their additional products and services, many offered at no cost to the user represents a unique apporach to the market and their growth.

An article in Business Week, December 5, Googling for Gold
talks about GOOGLE, with its market cap and its storehouse of cash, and its long awaited "spending spree". Who will they buy? Why will they buy them? What is their long term acquisition strategy?

Thought provoking isn't it?

Gene A. Wright

2005-12-03T11:21:00.000-04:00

Looking at strategy, an excellent company to follow is APPLE. Their stream of products in the iPod family are a study in innovation, design, and business and market strategy.

An article in Business Week, talked about the Video iPod. The article, Video iPod I Love You, talks about the product as well as the deal with Disney that could "mark a new era for digital media".

Following the link will also bring the reader to another link for a Podcast interview with the author.

Gene A. Wright

2005-11-30T01:33:00.000-04:00

Dell makes a great company to study because of their fantastic performance, their constant innovation and re-invention and their often written about business strategy.

An interesting article recently appeared in FORTUNE Magazine called "Dell's Midlife Crisis".

2005-11-30T01:22:00.000-04:00

Hello Class.

Each week we will share some ideas about strategic management using this blog.

Each of you will become "bloggers". To do this, you must send me an email with your preferred Email address it it. I will send you an invitation to this Email address which will give you instructions on how to begin blogging. Only class members may post to this blog.

Snipettes can be anything that you have read somewhere that you think is related to Strategic Management as is worthy of discussion. Remember, this is a blog that is available to anyone on the web. You should honor copyright laws and post only YOUR ideas. If you would like class members to be able to review the article or site you are discussing ADD a LINK to the blog post.

We will most likely develop a pattern of companies and subjects we discuss.

If you have questions, submit via WebCT, call me or lets discuss in class.

Best Regards,

Gene A. Wright