the mind of the strata gist

8/7/2019 The Mind of the Strata Gist

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Book review

Presented By:

Aditya ParabAmit Rathi

Prashant Kumar

Rahul NemaShishir Verma

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Creative Problem Solving


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AUTHOR

Born February 21, 1943 in Japan.

A business and corporate strategist who developed the 3C's

model

BS from Waseda university MS from the Tokyo institute of technology,

Doctorate in nuclear engineering from the Massachusetts

institute of technology.

A senior partner in Mckinsey & company for 23 years, nowlives in Tokyo.

Other books the end of the nation state and the borderless

world.

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Source: Wikipedia 8.11.2010


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PART I

Techniques of strategic thinking and analysis

Strategic thinking is Self Directed Judgment and analysis is to aid

it. (combination of mental elasticity and analytical methods)

Strategies- Relative superiority

Strategic degrees of freedom

Aggressive (ask a lot of Why?)

Prevention of mental paralysis and creative problem solving

(logical thought process)

Losing timidity and taking risks

Changing attitude to What can be done! and not the opposite

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Thinking!

Mechanical System Thinking Thought process may give solutions

dependent on one another

Intuition Based Thinking Gives a localized picture and not a holistic

view

Non-linear thinking

Thinking process involves intellectual elasticity and flexibility

Frame questions to find remedies to symptoms and not to

give solution to problems

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Non-linear thinking5


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Narrowing down the issue

ConcretePhenomena

Increase inaverage age

Seniority system ofpromotion

Low mobility of

personnel amongdivisions

Grouping

PersonnelProblems

Abstraction

Inflexibility inorganization

Determinationof Approach

Plan forreorganization

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Stages of

strategic thinking

Stages

of

strategic

thinking

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Stages of

strategic thinking8


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Issue Diagram

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Issue Diagram

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Issue Diagram

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Profit

Diagrams

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Profit Diagrams

Profit

Diagrams

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Profit Diagrams

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Four Strategic Paths

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PART II

Framework for strategy creation

Strategic triangle: 3Cs (Customers, competitors and

corporation).

Discussed strategies like crucial differentiation in one or more sectors,

segmentation by customer objectives and market

coverage. (customer)

Competitors weakness, possibilities of using differences incost and profit structures.

Functional advantage (corporation)

Shows that an organizations performance is related more

with how it works rather than the business it is in

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The Strategic Triangle

Customers

CompetitorsCorporation

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Multiple

Market

Segments

Product/Service

Differentiation


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Testing the Decision

Key Questions

Are customer needs well defined and understood by the

industry?

Is the market segmented so that differences in those needs aretreated differently?

Is the business unit equipped to respond functionally to the

basic needs of customers in the defined segment?

Do competitors have different sets of operating conditions thatcould give them a relative advantage over the business unit in

consideration?

Case: Mitsubhishi Heavy Industries

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Customer-based Strategies

Segmenting by objectives

Segmenting by customer coverage

Resegmenting the market

Structural Changes

Keeping tabs on trends

Case: Mitsubhishi Electric Companys domestic space

heater

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Corporate-based Strategies

Identifying key functions

Selectivity and sequencing

Functional Strategies

Thorough understanding of customers and competitors

Case: Casio Vs the competitors

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Enter lowend

Expand tomedium and

high ends

Win theworld

Japanese win strategies


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Competitor-based Strategies

Any difference between a company and its competitors must

be related to one or more of the three elements that jointly

determine profit: price, volume and cost.

Power of Image: Case 1: Sony

Case 2: Sakura Film Vs Fuji Film

Exploiting tangible advantages

Case: Toyotas forklift trucks Tactics for flyweights

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PART III

Discusses some major trends and their possible strategic

solutions, like those for:

Continuing low growth

Market maturity and stalemate International complexities

Differential natural allocation of natural resources.

Discusses Japanese business scenario and how it became a

superpower. Criticizes the separation of brain and muscle (the planners

and the doers)

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Economic Trends & Business

Strategies

Habit of Analysis Practice of strategic thinking

Continuing lowgrowth

Push for higher profits.

Invest them in other.Market maturity

Basic versus applied technology Product Development versus production technology. Management systems v/s equipment & Hardware

Uneven distribution ofResources

Careful analysis of Business Environmentprevailing in various nations..

Growing InternationalComplexities

Account for in cash flows Appropriate pricing

Irreversible Inflation

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Japan: Myths & Realities

The concept of corporation is fundamentally different

from that of west.

Organization really means people.

Government acts as the coach, not the captain

The Central notion of Japanese Business Strategy is to

change the battleground

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Foresighted Decision Making

Defining the business domain.

Constructing a strategic scenario

Confronting critical choices.

Pacing progress realistically.

Sticking to the basics

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A strategic success formula

Sensing the limits:

Reality

Ripeness

Resources

Conditions of Creativity

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MESSAGE

27 Successful business strategies result not so much from rigorous analysis but

from a particular state of mind.

Creating framework to stimulate the mind to come out with appropriate

questions and objective line of thinking.

Analysis is very important once the strategy is in place to test it.

The urgency of a marketing manager developing a product marketing

strategy can be compared to that of a military staff officer developing a

battle strategy.

Perception is strong and sight weak. In strategy it is important to see distant

things as if they were close and to take a distanced view of close things.

Miyamoto Musashi, 1584-1645, legendary Japanese swordsman

In real life, strategy is actually very straightforward. You pick a generaldirection and implement like hell.

Jack Welch in Winning, 2005


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THANK YOU

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