ADDING PRINCIPLE

In a global perspective, any organisation which is operating in a multnational environment must take care of the ADDING FRAMEWORK

A- Add volume (if you are going across geographies, you should be able to expand the volume of business

D- Decrease cost

D- Differentiate

I- Improving industry attractiveness

N- Normalise risk

G- Generating and upgrading knowledge

Product Diffusion Process

What is the purpose of strategy?

Stategy helps a business attain competitive advantage.. PERIOD. That is everything that a business does to gain competitive advantage in the market over its competition, in terms of all its components

components of strategy are marketing, cost, value, price, customers, production, manufacturing or any other elements in the value chain like

inbound logistics
operations
outbound logistics
marketing and sales
customer service

Business Strategy

excellent information

WACC

NOPAT

ROI

Economies of Scope

Economies of Scale

porter's five forces

The most widely used, perhaps the only one, industry analysis framework

Silicon Valley's Success Secrets

Tolerance of Failure (It's a badge of honor)

Tolerance of Treachery (No such thing as loyalty)

Pursuit of Risk (of 20 funded start ups, 4 go bankrupt, 6 lose money, 6 do okay, three do well, one hits the jackpot)

Willingness to re-invest (Cash Flows into the valley)

Enthusiasm for Change ("Obsolete ourselves or the competition will")

Promotion on Merit (Politics counts for little. Performace counts for all)

Obsession with product (Find the "cool" ideA)

Openness to collaboration (Generations last months..borrow and get going)

Variety, Variety, Variety (Mix fleeting with permanent)

Anybody can play (I can be rich)

Mistakes are not the "spice of Life". Mistakes are life

Mistakes are not to be tolerated. They are encouraged

And, the bigger, the better

Porter's Generic Strategies

Low Cost and Differentiation Strategies

Maslow Need hierarchy

DUPONT ROE

Product Life Cycle

Covey's Seven Habits

P/E

Free Cash Flow

EPS

Porter's Value chain