Business Model – Business Model Development – Business Model Analysis – Business Model of a company involves a number of characteristics. The business model development consists of the following stages and answers the following fundamental business questions: how will I make money, how will I sell products, how will I manufacture the product or how will I deliver the service, where in the supply chain will I be, is my business disruptive to the existing players, am I creating a new way of conducting business, how do I plan to engage the market?
Answering these basic business questions will help you develop your company’s business model.
business modelBusiness Model diagram
Strategy Matrix – Strategy Matrix Analysis – Strategy Framework – Many strategy analysis frameworks have been developed over the years. The strategy matrix tries to define the outcome of the various strategies by identifying whether the activities facing the firm are core vs. critical vs. commodity and whether a firm wants to produce, partner or purchase the good from another supplier.
If a firm defines something as its core, i.e. the ultimate strategic value, then it should not purchase this service from another supplier, otherwise it is risking to lose the competency. The matrix effectively tells you whether the strategy is a good one depending on the type of activity and purchasing strategy.
strategy matrixStrategy Matrix diagram
Value Net – Value Net Analysis – Value Net is a business framework that recognizes relationships between a company, its competitors, customers, suppliers and complementors (i.e., complementing products). This methodology focuses on competitive analysis and is somewhat similar to Porters Five Forces. Value net framework emphasizes linkage between the key competitive forces and firm’s complements.
The framework helps identify rivals, partners, suppliers, customers and connections between them, including competitive dynamics and power relative to the key players in the industry. Overall, Value Net model is a good approach to solving business problems in relation to company’s competitive position.
value netValue Net diagram
Growth Strategy Matrix – Growth Strategy Matrix Analysis – Growth Strategy Matrix Framework – Growth Strategy Matrix Business Methodology – Growth strategy model prescribes a type of strategy depending on whether the markets are existing or new and whether the product is existing or new.
The four growth strategies are: market penetration, market development, product development and diversification. When market is fully penetrated, it is advised for businesses to either proceed with the market development for existing product or product development for existing market. Diversification is usually difficult to achieve. Below matrix identifies various growth strategies and gives examples of real businesses.
growth strategy matrixGrowth Strategy Matrix diagram
Sales Strategy – Sales Strategy Analysis – Sales Strategy Framework – Sales Strategy Business Methodology – Sales Growth Strategy model helps a business to grow its revenues. There are a number of strategies that can be used to achieve sales growth; these include: increasing sales per customer, stealing customers from competition, expanding to new markets and developing new products.
Each of the above strategies has its own implementation plan. For example for increasing sales per customer this includes offering bulk discounts and expanding loyalty programs. Below diagram outlines various sales growth strategies.
sales strategySales Strategy diagram
Motivation, defined in relation to employees in the workplace, is the extent to which persistent effort is directed towards a goal. The different factors motivating employees at work can be further subdivided into two broad categories – extrinsic and intrinsic. Extrinsic motivation stems from the work environment external to the task and it is usually applied by others (e.g. regular salary, fringe benefits, cash awards for excellent performance, etc.). Alternatively, intrinsic motivation, is thought to result from the direct relationship between the worker and the task and to come from within (e.g. one’s interest in the task, feeling competent, recognition, etc.).
While certain motivational factors fall clearly within these categories, there is some degree of overlap. For example, receiving a compliment or a promotion from a boss are both examples of extrinsic motivation. At the same time both are targeted at eliciting a positive feeling of competence and/or recognition of one’s achievement, both of which fall under the intrinsic motivation category.Thus, a given motivational event can be part-intrinsic and part-extrinsic.
It is also true that most of the employees are motivated by a variety of factors which are likely to come from both categories. Managers need to be aware of the diversity in the workplace and realize that the same conditions will not motivate everyone. Flexibility to employees’ needs is especially important given the increasing productivity demands placed on modern organizations. To stay globally competitive organizations need to replace rigid systems of rules, regulations and procedures by higher levels of initiative among its employees, which would help deliver greater levels of attention to customer needs. This, of course, requires that employees be motivated to add value by looking for ways to improve their performance as opposed to doing a base-line or even sub-par job.
How does a manager, then, determine what kind of motivation would work best for his or her employees? A few conclusions supported by a review of motivational research may help guide the search for optimal motivators.
First, employees motivated by intrinsic factors feel more in control of their motivation, as opposed to those motivated by extrinsic rewards. This results in more effective performance, especially on complex tasks. Therefore, if a manager’s goal is to solicit a performance improvement that may require the employee to identify and analyze possible deficiencies in their current job, the manager would need to ensure that the employee is intrinsically motivated.
This conclusion relates to the second fact discovered by a review of motivational research. It has been shown, that availability of extrinsic motivation may reduce the intrinsic motivation stemming from the task itself. In other words, when employees believe that they perform well as a result of external rewards, it makes them feel less in control of their own behaviour diminishing the power of the intrinsic motivation.
However, such negative effects of extrinsic rewards occur only under limited conditions and are avoidable. Moreover, in line with the idea of the blurred line between extrinsic and intrinsic motivation categories, when extrinsic rewards are seen as symbols of achievement they increase task performance. Thus, both reward types are important and should be combined to achieve greatest employee motivation in the workplace.Motivation in the Workplace diagram
Change Management – Change Management Analysis – Change Management Framework – Change Management Business Methodology – Change management is a step-by-step process that enables an organization to achieve transformation.
Change is painful for the organization, its employees and culture. While in transition, many employees are unhappy, and communication and motivation become key in making sure everyone is aligned with the change and its impact (e.g. technological or process change). Below is an examples of a change management process.
change managementChange Management diagram
Sustainable Competitive Advantage – Sustainable Competitive Advantage Analysis – Sustainable Competitive Advantage Framework – Sustainable Competitive Advantage Business Methodology – Competitive Advantage is a favorable relevant position of a company in a market place above its competitors. This may include possession of a superior product, better supply chain, talented workforce, etc.
The sustainable competitive advantage is essentially a recurring or continuous favorable position in regards to competitors. Some argue that this is the holy grail of business, something everybody dreams of but no one is really able to achieve unless one is a monopoly in the market and is protected from other market participants. However, this does not mean one should give up trying and if location, operational, product and customer excellence are achieved, at least temporary, the customer value is created and the competitive advantage is achieved.
sustainable competitive advantageSustainable Competitive Advantage diagram
Project Management – Project Management Analysis – Project Management Stages – Project Management Framework – Project Management Business Methodology – Project Management model is one of the top business frameworks used for managing and leading projects and other kind of engagements. The model brings some structure to the project phases and makes it more organized.
The project stages include initiation, planning and design, executing or implementation, monitoring and controlling, closing. There may be other stages depending on the nature of the work. Work planning varies depending on the resources assigned, project timelines, etc. Below sample images are examples of Project Management stages.
project managementProject Management diagram
Time Cost Quality – Time Cost Quality Analysis – Time vs. Cost vs. Quality Trade-offs – Time Cost Quality Framework – Time Cost Quality Business Methodology – Time Cost Quality model is one of the business strategy frameworks that states that you can provide a product which is either of low cost, high quality or delivered quickly or a combination of any of the two components. However, because of the trade-offs, you cannot have all three.
This has been disputed somewhat in recent history and many companies are trying to achieve all three. Think of an Apple’s Iphone when it first came out, it was so revolutionary that you could argue that it met all three criteria. New inventions and blue ocean ideas can sometimes break the tradeoffs associated with time, cost and quality and allow for all three to be present as part of one’s product. Below sample images are examples of Time vs. Cost vs. Quality frameworks used in business management.
time cost qualityTime Cost Quality diagram
Customer Lifecycle – Customer Life Cycle – Customer Lifecycle Analysis – Customer Lifecycle Framework – Customer Lifecycle Business Methodology – Client Lifecycle model is a key business strategy tool that shows the customer loop from the very initiation through purchase to advocacy. The importance of this framework is in the fact that the client goes through a number of stages and a business needs to be aware of these lifecycle stages and travel with the customer at each phase. There should be a tactic or a strategy for each of the customer phases that a company needs to think of.
Below sample Customer Life cycle chart is a useful business management tool. The stages include: awareness, knowledge, consideration, selection, buying, satisfaction, loyalty and advocacy.
customer lifecycleCustomer Lifecycle diagram
Porters Value Chain – Porter’s Value Chain Analysis – Porters Value Chain Framework – Porters Value Chain Business Methodology – Porters Value Chain model is an approach developed by Michael Porter to complete an internal analysis of a company focusing on its value chain: its primary and secondary activities. Primary activities include logistics, operations, marketing and sales. Secondary activities include infrastructure, human resources, technology and procurement.
Understanding all of these business processes helps develop a business strategy for the company and improve its operations. Below sample images are examples of Porters Value Chain used in business management.
porter value chainPorters Value Chain diagram
Priority Matrix – Priority Matrix Analysis – Priority Matrix Framework – Priority Matrix Business Methodology – Priority Matrix model is one of the frameworks that is useful for setting business priorities by categorizing them by their importance and time to completion.
This is very useful not only for one’s business but also personal life. How do you identify the right priorities in life and make sound decisions? How do you make sure that whatever that you spend your time is actually important? Below sample images are examples of Priority Matrix used in business management.
priority matrixPriority Matrix diagram
Roadmap – Roadmap Analysis – Roadmap Framework – Action Plan – Action Plan Chart. Roadmap is a company’s action plan to realizing a certain business strategy consisting of concrete steps to be undertaken for realization of business goals and priorities.
Roadmap includes a timeline and intiatives categorized by a certain work stream. Below sample images are examples of roadmaps used in business management.