Generic Strategic

Introduction....

Michael Porter is a professor at Harvard Business School who introduced the generic strategic. Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation.

He suggested by applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus.

For this entry i choose McDonald's as my subject to relate to generic strategic by Michael Porter (I have no idea when my friend ask me 'Is he had any relation with Harry Porter?')

McDonald's Corporation definitely traced using differentiation strategy. A differentiation strategy calls for development of a product or service that offers unique attributes that are valued by customers. Customers perceive the product to be different and better than that of rivals. The value added by the uniqueness of the product may allow the firm to charge a premium price for it. Differentiation can be based on product image or durability, after-sales, quality, additional features. It requires flair, research capability and strong marketing.

McDonald's

This is the several fact I collect from others sources that make McDonald's align with this strategy.

• McDonald's customer are of all classes, but largely working and middle classes, and people of all ages.
• McDonald's strove to meet a customer wait time at no more than one minute in line and 30 seconds at the counter.
• McDonald's understood that the parent was making the purchasing decision, most likely based solely on price. What McDonald's marketing executives did was ingenious. They put toy in with hamburger, french fries, and coke. Then they gave it a special name, calling it a Happy Meal. Then they marketed it to the kids.
• McDonald's(Malaysia) they had many special menu for each celebration in this country.
• McDonald's knows that some customers go to its stores to take a quick break from their day's activities, then their provide drive thru, McDelivery, McCafe, and other supporter services.

If you wanted to change this country, Lead it.
- Iron Lady

Strategies For Competing In International Markets

Many of the reason why companies want to enter in international market or foreign market. One of the reasons is to gain access to new customer. If we choose to compete foreign market, the company can find and get new customer from any other country around the world. It can make the company become popular.

   

The other reason is to achieve lower costs through economic scale, experience and increased purchasing power because when produce large amount it can achieve lower costs. Moreover, the reason why companies want to enter in international market is to further exploit its core competencies, to gain access to resources and capabilities located in foreign market and to spread its business risks across a wider market base.

Moreover, the effect of exchange rate shift that occur when the exchange rate falls, demand for goods will increases and when the exchange rate rises, demand for goods is decreases.

How to enter the international market?

1. Maintain a national (one-country) production base and export goods to foreign markets. License foreign firms to produce and distribute the firm’s products abroad. Give license other distributor who want to produce their product such as textile and Microsoft.  
2. Employ an overseas franchising strategy such as KFC
3. Establish a wholly-owned subsidiary by either acquiring a foreign company or through a “Greenfield” venture. Greenfield venture is do a newly project that particular country.
4. Rely on strategic alliances or joint ventures with foreign companies. 

 

  

“Be the change that you wish to see in the world.”
― Mahatma Gandhi

O-SHIMA RESTAURANT- halal Japanese food restaurant

 

On 12th November 2013, a sharing session was held at DKF 1.2 at Faculty Economy and Muamalat, USIM. The sharing was given by madam Asnidar Hanim Yusuf, who are the founder of the japanese restaurant with the registration name O-SHIMA RESTAURANT.

 O-SHIMA started commence on the year 2009 and until now still active operate at SHAH ALAM. She said O-SHIMA is name of big island in Japan. As usual,when started the business, Pn Asnidar had faces many challenges and obstacle. She always be strong  and never give up.

I noticed the story of O-SHIMA RESTAURANT seems similar with the theory written in text book. The strategy regarding strength,weakness,opportunity and threat(SWAT) that was applied 100% works. The causes of weakness like lack of knowledge and customer satisfaction is truly occurred.

Let we take a look a few dish served as a temptation test.. LOL

"She is an owner of her restaurant but still her dressed resembled an engineer style, respect for her for being to exit from her comfort zone to be an entrepreneur!"
- Arraharatnasari K Maarof

Oppa Google Style...

Curious?? What I'm gonna to say ha??
Actually we have been asked in the class session if i am not mistaken la..What we want to do as a top management to our organization?Which value will I apply?Which approach will I use?

My answer easy..
I wish to practice 'Oppa Google Style'...
Which mean i will use Google Inc. approach entertain their employee. Basically before you set up the goals and strategy, you have to fulfill your employee's need and it will drive you to employee's motivation. If your employee was motivated enough the value of teamwork, leadership, creativity and others will applied automatically. Don't you believe it?

The question is how Google did it?

Beyond the incredible perks and the compensation is simple: work process. These are the intrinsic rewards Google offers: no real hierarchy, tiny work groups, and purpose. Google, Inc. does not create monolithic groups or hierarchy. Their structure is flat to maximize creativity. There are no official channels, so ideas can flow within groups. Instead, they focus on multiple smaller work-groups that may have a project manager overseen by committees. They are very independent. The basic concept inspired by the founders is to maintain an entrepreneurial culture. Google, Inc. views small teams as individual start-ups. Google consists of many start-ups within a start-up. They implement what they know works and use the founder’s success as a template to promote an entrepreneur spirit that promotes innovation. One example is that if a Googler wants to work with another team, he or she can switch teams anytime they want without asking permission or having to go through any human resource channels. Another unusual perk is the allowance of time. Google, Inc. allows employees to spend twenty percent of their time to work on their own project, independent of their work-group. Google, Inc. believes that no one should leave in order to pursue their personal passions. Letting employees do this results in over twenty percent of product launches stemming from these personal projects.

In other words, please make your employee feel perceived and don't make them tired/bored with work. Let i share to you Google's office around  the world. It's seems to relaxing and enjoying to do the work.

 

 

 

Blue-Ocean Strategy - A special Kind of Offensive

A blue-ocean strategy seeks to gain a dramatic and durable competitive advantage by abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or distinctive market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand. In other words a blue-ocean strategy offers growth in revenues and profits by discovering or inventing new industry segment that create altogether new demand.

Always remember even in the calmly blue ocean, we are never knew what are waiting us inside.....
Be prepared before you jump in, make sure you are fully equipped and fully capable. Recheck your oxygen and swimming suit because it will be your last hope. Stay calm and believe on your effort. Never forget to Tawakal.

“Allah Pe Jab Tawakal Hota Hai Na, Tou Mushkil Kaam Bhi Ahsaan Ho Jata Hai.”

― Umera Ahmed, Shehr E Zaat

The Story of Derek Redmond

The world today is too challenging to us. Too much tense can make our soul suffer. Sometime the life let you fly high then let you fall into the deepest side. You will suffer like live without hope. But not for people who has burning desire, fight back and bounce again. No matter how many times you fall, how many times you bend, nothing can stop you. The story of Derek Redmond was opened my eyes and sparking me. Once he decided to not gave up he was created a new hope and spread it to the world.....

Enjoy discovering The Story of Derek Redmond.

At the 1992 Olympic Games in Barcelona, In the middle of the semi-final race the dreams of one of the sprinters – Derek Redmond for  an Olympic medal got crushed by a debilitating hamstring injury, but while most athletes would just give up and submit to defeat, bend over and cry, Derek was determined to cross the finish line, to finish what he started. So he picked himself up off the ground and started hobbling towards the finish lane. Then, just when it seems he might not be able to continue because of the pain, Redmond’s dad forces his way onto the track and puts his arm around his son, who cries on his shoulder as the two finish the race together.

For greater impact, here’s the clip of this touching moment on youtube.

 

 “It does not matter how slowly you go so long as you do not stop.”

Value chain

Honestly, when I read about value chain or competitive advantage its seems to be the hardest word. I have to read it again to understand, memorize and analyze the content. Maybe because of my IQ ability is low or my brain's storage does not works well. Anyway this video is great and good to share it. 

“You only live once, but if you do it right, once is enough.”
― Mae West

Porter's Five Forces

When you jump into the field competition always be there waiting for you to be defeated. You have to be super excellent because only the best person can survive the competition. How to be the best? You need a tools. Porter's Five Forces is the one of the tools. Masters in it you will become invincible. HaHaHa

“Do it again. Play it again. Sing it again. Read it again. Write it again. Sketch it again. Rehearse it again. Run it again. Try it again. Because again is practice, and practice is improvement, and improvement only leads to perfection.”
― Richelle E. Goodrich, Smile Anyway

Vision/Mission + Objective + Strategy = Strategic Plan

Vision – portrays a company’s aspiration for its future.

Mission – Describes its purpose and its present business.

Objectives – Organization’s performance target which the specific results management want to achieve.

Strategy – Setting task drive to organization’s goal.

Developing a strategic vision and mission, setting objectives, and crafting a strategy are basic direction – setting tasks. They map out where a company is headed, its purpose, the targeted strategic and financial outcomes, the basic business model, and the competitive moves and internal action approaches to be used in achieving the desired business result.

 

 “In preparing for battle I have always found that plans are useless, but planning is indispensable.”
― Dwight D. Eisenhower

Why Crafting and Executing Strategy are Important Tasks?

A clear and reasoned strategy is management’s prescription for doing business, its road map to competitive advantage, its game plan for pleasing customers, and its formula for improving performance. Companies don’t get to the top of the industry with illogical strategies, copy-cat strategies, or timid attempts to try to do better. Only a handful of companies can boast of hitting home runs in the marketplace due to lucky breaks or the good fortune of having stumbled into the right market at the right time with the right product. 

 “A goal without a plan is just a wish.”