1 STRATEGY AND PERFORMANCE Competing through competences John Mills Ken Platts Michael Bourne Huw Richards
2 PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street, Cambridge, United Kingdom CAMBRIDGE UNIVERSITY PRESS The Edinburgh Building, Cambridge CB2 2RU, UK 40 West 20th Street, New York, NY , USA 477 Williamstown Road, Port Melbourne, VIC 3207, Australia Ruiz de Alarcón 13, Madrid, Spain Dock House, The Waterfront, Cape Town 8001, South Africa Cambridge University Press 2002 This book is in copyright. Subject to statuary exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2002 Printed in the United Kingdomat the University Press, Cambridge Typeface Utopia 9.5/13pt. System QuarkXPress A catalogue record for this book is available from the British Library ISBN X paperback ISBN set (with Getting the Measure of your Business and Creating a Winning Business Formula)
3 Contents Preface vii Acknowledgements ix When to use this book 1 How to use this book 7 Chapter 1 Practical competence and resource frameworks 9 Chapter 2 Awareness what does success look like? 29 Chapter 3 Matching problems to analysis methods 41 Chapter 4 Insight what focus and scope is appropriate? 51 Chapter 5 Insight where are these resources? 61 Chapter 6 Insight how important are these resources? 75 Chapter 7 Building a resource and competence base 93 Chapter 8 Measuring competence and resource development 129 Chapter 9 Closing thoughts 157 Index 177 v
4 1 Practical competence and resource frameworks What is a competence? Are there different types? How do competences and resources relate to one another? What makes a resource important? This chapter provides you with a pragmatic background to resource and competence ideas. The structure is as follows: What is a competence? Competence categories Resource and competence architecture What is a resource? What makes a resource important? What makes a competence important? The chapter ends with a summary and a background reading list. 1.1 What is a competence? A competence is an ability to do something, when applied to companies we say: A company has a strength or a high competence activity if it can out-perform most competitors on a competitive factor that customers value. A company has a weakness or a low competence activity if it under-performs most competitors on a competitive factor that customers value. Competence in this sense is a way of describing how well (or not) your firm performs its necessary activities. USX, Chaparral and Nucor USX, a large integrated US steel producer has been saddled with organisational cultures, values and management practices that have prevented it from adopting new technologies in a timely and efficient manner. Its low performance (or competence) in this area put USX at a considerable competitive disadvantage compared to mini-mill producers like Chaparral and Nucor. The highly innovative mini-mill producers used cheap scrap steel to produce low-margin rebar steel and continued to climb inexorably up the metallurgical quality scale to produce high-margin structural and sheet steel from cheap scrap. 9
5 10 Practical competence and resource frameworks However the word competence is also used to replace high competence activity. Thus companies having high competence activities in microprocessor design, optics design and precision mechanical design are said to have competences in microelectronics, optics and precision mechanics. We shall use that short hand frequently. Caterpillar This large construction plant manufacturer, is recognised as having a competence in supporting customers through its worldwide support/maintenance network. Overall, competence is best thought of as a variable, rather than an attribute. It is not something that a company has, or does not have, but it is something that a company has to a certain degree. We judge that degree by comparing it to the performance of its competitors. Thus a company with a high competence in a particular activity is considered equal to its best competitors in that activity. Using this approach we can develop a measurement scale for competence. Table 1.1 shows the terms we use to rate an organisation s competence with respect to its competitors. Table 1.1 Competence with respect to competitors Well below Below Company industry industry Average Level with Indisputable performance average average for industry the best leadership Strength or Significant Weakness Neither Strength Significant weakness weakness strength nor Strength weakness Competence Very Low Low Average High Very High What are these activities? One useful model is that based on business processes. Table 1.2, based on the CIM-OSA 1 list of business processes illustrates the wide variety of activities most firms carry out. The structure given here is suitable for both manufacturing and service-oriented companies. Different markets impose different needs so we can expect that the areas of high performance and thus high competence necessary to be successful will vary with industrial sector. The examples in this section illustrate this. 1 CIM-OSA is the acronym for Computer-Integrated Manufacturing Open-Systems Architecture.
6 What is a competence? Crown, Cork & Seal (CC & S) Whereas most competitors Research and Development (R&D) is independent of specific customer needs, CC&S only does R&D to meet specific customer needs. Much of its financial success (its rates of return have been consistently higher than its competitors) is put down to the firm s intense customer focus. Especially significant is the very high competence of CC&S s sales force in aggressively seeking to satisfy customers, searching for ways to reduce customer inventory, develop custom solutions, etc. Table 1.2 Business process checklist Direction setting Includes all strategic planning activities including the new-product introduction process: market research/product specification and design manufacturing process specification and design acquisition/mergers/divestment performance measurement and objective setting networks with relevant legislators and industry bodies Order flow products Begins with the selling of the product and ends with paying in the customer s cheque: order receipt and scheduling raw material purchase assembly, testing, delivery invoicing and money receipt for custom products contractual matters, project management, commissioning building customer relationships Order flow services Services provided to the customers include: installation, technical support and repair spares and consumables provision warranty management and maintenance contract arrangement customer training Support processes Labour The processes for recruiting, training, remunerating, motivating, appraising and retiring employees. Technology The assessment and development of available technology both within and outside the company. The installation, maintenance and disposal of plant and equipment. Supplier The establishment and development of relationships with suppliers. Choosing new suppliers and terminating those no longer needed. Includes suppliers of knowledge like consultants and academics. Financial Attracting investment to the firm and providing returns to investors.
7 12 Practical competence and resource frameworks Honda Honda s competence in the development of high-performance engines and power trains is well known. Their moves from motor cycles into lawnmowers, outboard motors and eventually into automobiles were founded on this technical competence. Honda are also noted for their high competence at managing their dealer networks. This competence had been of critical importance during the massive growth phase of Honda motor-cycles in the US. At the time the existing motor-cycle distributorships were predominantly hobbyist bikers, who had little respect for the under-powered Hondas. So Honda developed a new kind of motor cycle dealership, complete with showrooms, repair bays, finance options and an audited standard of service. At this point you probably have a few questions in your mind: How does this fit with core competences? What about capabilities? The next section addresses these questions. 1.2 Categories of competence We could write a lengthy chapter on the many categories of competences that consultants and academics have described. These definitions may be of interest to you but you are likely to be much more interested in identifying your firm s important resources and competences. From there you need to know how to care for, manage, develop and obtain value from them. For these reasons this book only distinguishes between the two types shown in Table 1.3. Table 1.3 Simplified competence categories Ordinary resources and competences Important resources and competences Those currently on a par with competitors resources and competences, there is nothing special about them that can be identified right now. Those which are currently a source of actual or potential sustainable competitive advantage or disadvantage to your firm. Table 1.4 gives some definitions of competence categories you will and won t have heard of. The one definition we would advise you to look at carefully is the shaded one Dynamic capability.
8 Categories of competence Table 1.4 Competence categories Competence category Core competence Distinctive competence Organisational or business unit competences Supportive (or meta) competences Dynamic capability Description Usually refers to high competence activities important at a firm s corporate level which are key to the firm s survival and are central to its strategy. Refers to high competence activities that customers recognise as differentiating your firm from competitors and that therefore provide a competitive advantage. The small number of key activities, usually between or three and six, expected from each business unit in a company. An activity that is valuable in supporting a range of other activities. For example, a competence for building and working productively in teams can have a major impact on the speed and quality of many activities in the company. The capability of a firm to adapt its competences over time. Closely related to resources important for change. Until now we have not used the word capability since we consider the words competence and capability to be interchangeable, thus we have just used one competence. Dynamic capability is an exception it is the competence that determines the adaptation of all competences or activities over time and is therefore worthy of a different name. Firms with a well-developed dynamic capability are aware of the need to question and adapt their competences. This is not easy, human beings in general like to relax, to operate in their comfort zone. This is not the destiny of aware managers in fast-moving industries. As Lewis Platt of Hewlett Packard put it: We have to be willing to cannibalize what we re doing today in order to ensure our leadership in the future. It s counter to human nature but you have to kill your business while it s still working. Lewis Platt, Chairman and CEO, Hewlett Packard, 1994 Reading this book is one way of sensitising you to the need for a dynamic capability in your firm, using this book will improve the performance and structure of your firm s dynamic capability. There are more competence notions in the human resources and education literatures where the emphasis is on individual competency and competencies (rather than competence and competences). This book focuses on analysing resources and competences at a more global, organisational level. Clearly, however, improvements to these competences will need improvements to the competencies of individual sales
9 14 Practical competence and resource frameworks staff, engineers, managers and operators in terms of what they do and how they do it both individually and collectively. We provide linkages to this individual resource level throughout the book. Undoubtedly this section has raised more questions in your mind: How are competences and resources related? How do competences emerge? What does the degree of competence depend on? The next section addresses these questions. 1.3 Resource and competence architecture Any activity or competence draws on a set of building blocks called resources. Consider Figure 1.1, the triangle represents the boundary of an activity, within that are the resources on which that activity depends. As indicated by the arrows on the sides of the triangle, these resources are co-ordinated in a particular way. Resource A Resource B Resource C Figure 1.1 A representation of a competence. This representation of the relationship between resources and competences will be used in the following case to develop a basic resource and competence architecture. The analysis of Superlative Delivered Quality Inc. s delivered quality competence shows how resources combine to build a high-performing competence.
10 Resource and competence architecture Superlative Delivered Quality Inc. (SDQ)* SDQ is a supplier to car and truck OEMs (original equipment manufacturers); it has a very good reputation for the delivered quality of its products, in the last three years only one batch has been returned by a customer. Figure 1.2 shows the primary resources that underlie its competence at delivering quality product: A set of beliefs at top management level that delivered quality is a key differentiator in the market A performance measurement and reward system that valued delivered quality highly Statistical process control (SPC) knowledge and expertise built over several years Rigorous ISO 9001-based quality systems, with effective concentration on correcting root causes An increasing customer focus value within the workforce, built over many years and driven by extensive training, visits to customers production lines, and ongoing contact with peers on customer production lines. (Operators know why it is important to pack products in a particular way because they have seen how they need to be loaded onto the customer s production line) A reliable manufacturing system Neglecting those leaving within six months of joining, the average length of service is approximately 12 years, hence another resource was loyal and experienced staff SPC knowledge and skills Performance measurement and reward system Strong belief that quality is key Loyal and experienced staff Competence: delivering quality product Rigorous ISO 9001 procedures Customer focus a strong value Figure 1.2 Primary resources underlying the delivered quality competence.
11 16 Practical competence and resource frameworks Strong belief that quality is key Loyal and SPC experienced knowledge staff and skills Performance measurement and reward system Reliable manufacturing system Competence: delivering quality product Rigorous ISO 9001 procedures Customer focus a strong value Competence: design of product and manufacturing process Design for manufacture procedure Skills in using DFM procedure In-house automation and design knowledge Figure 1.3 The role of the product and process design competence. But that does not explain all of their performance, Figure 1.3 shows that their product and manufacturing process design is also performing at a high-competence level necessary to maintain the reliability of the manufacturing system, and this further underpins the quality performance. Underlying that competence we find another set of resources: A design for manufacture (DFM) procedure optimised for their products Skills and experience built from practicing the DFM procedure (seven or eight new products per year) A large production engineering group with automation design knowledge Is the high-performing quality competence fully explained? Not yet, there is one more step. A further high-performance competence feeds both the quality competence and the design of product and manufacturing process competence. That competence, shown in Figure 1.4, is in building and working productively in teams, the resources that underlie this competence are:
12 Resource and competence architecture SPC knowledge and skills Strong belief that quality is key Performance measurement and reward system Reliable manufacturing system Loyal and experienced staff Competence: delivering quality product Rigorous ISO 9001 procedures Customer focus a strong value Competence: design of product and manufacturing process Competence: forming and operating in teams Design for manufacture procedure Skills in using DFM procedure In-house automation and design knowledge Multi-disciplinary personnel Skills in using problem solving methods Structured problem solving methods Appraisal system values teamwork Figure 1.4 The Architecture of SDQ s competence at delivering quality products. An appraisal system that values an individual s ability to work in teams Structured techniques for problem solving acquired through regular training Problem solving skills developed through application of these techniques Multi-disciplinary personnel. (This depended on a system of job transfer and rotation that meant most engineers and managers had worked in three functions from Quality, Line management, Manufacturing engineering and Logistics.) They could understand one anothers problems. So while a competence will always, in the end, be supported by resource building blocks other supportive competences may be
13 18 Practical competence and resource frameworks Customer perceived competences Resource A Resource B Resource C Technical supportive competence Socially supportive competence Resource X Resource Q Resource Y Resource P Resource R Fig 1.5 Extended competence architecture. involved. This is particularly so for competences that customers recognise, like rapid new product introduction or, in this case, a competence for delivering high-quality products. These competences are often reliant on supportive competences which lie deeper in the organisation and which are much less obvious to customers. We can therefore extend our competence architecture as in Figure 1.5. In general technical supportive competences support the maintenance and/or development of particular technical resources in the SDQ example the design of product and manufacturing process competence supports the Reliable manufacturing system resource. They are therefore drawn with their apex penetrating the triangle immediately under the resource concerned. Socially supportive competences gener-
14 What is a resource? ally assist in the coordination of one or more competences. They are therefore drawn with their apex intersecting the co-ordination triangle of those competences they affect. But what determines the performance of a competence? The degree of competence displayed by the activity depends on at least five aspects: The health of the resources The appropriateness of the resources to the particular activity The way the resources are co-ordinated and managed How often the activity is exercised (practice can make perfect, but not with inappropriate or unhealthy resources) The performance of supportive competences Note also that the resources in our example are not necessarily tied to these competences alone. The workforce is involved with a multitude of activities, from scheduling batches through the factory to disposing of waste material. They have other deep-rooted values as well as customer focus. For instance the wage bargaining in this company is often a highly contentious matter as the workforce attempt to get their share of the results of the firm s competitive advantage. So the performance of a competence can often depend on the attention and priority managers give to it compared to other activities in which the same manpower and perhaps different knowledge and expertise are required. This suggests a sixth factor: The priority given to the activity, particularly where shared resources are involved We shall be dealing in much more detail with these ideas in Chapter 7. The SDQ example also shows a wide range of resources, from top management beliefs to the company appraisal system. It is now time to explain what a resource is and to describe the range of possible resources. 1.4 What is a resource? A resource is something your organisation owns or has access to even if that access is temporary. Resources can be either tangible or intangible. Tangible resources are relatively obvious, examples include buildings, plant, equipment, exclusive licenses, patents, stocks, land, debtors, employees generally tangible resources can be touched or felt, they have a physical shape. Intangible resources are, by definition less easy to recognise. They include skills, experience and knowledge of employees, advisers, suppliers and distributors.
15 20 Practical competence and resource frameworks Skills, knowledge and experience can also be held or embodied in systems, in-house databases, personal and organisational networks, brands and reputation. An organisation s culture and values can be very important resources too, especially, for example, the prevailing attitudes to customers, quality, change and the values and beliefs of influential managers. Although sometimes hard to recognise intangible resources are real and can, to an extent, be valued. One indication of this can be seen in a takeover situation where the market value of a company (its price per share multiplied by the number of issued shares) can be many times the value of the firm s tangible resources or book value. This difference represents the expectation of an income stream via dividends and capital growth. This financial payback can only be achieved through the firm s intangible assets its reputation and market position, its workforce s knowledge and its other less tangible resources and competences. Note that many of these resources lie within a firm s ownership, for example stocks and equipment. Many others are not owned but can be accessed, for example the experience and knowledge of suppliers, customers or advisers. Other, often very important, resources are the skills and knowledge of your employees. They are available to the company today but, they can, of course, leave whenever they wish. We can categorise resources in many ways but one of the most useful is shown in Table 1.5. This categorisation is useful for helping to identify resources and to check that a comprehensive range of resources has been captured. It will be re-visited in Chapter 5. Table 1.5 Categories suitable for resource identification Resource category Tangible resources Description Buildings, plant, equipment, employees, exclusive licenses, geographic position, patents, stocks, land, debtors more or less anything with a physical form. Knowledge resources, An important set of often unwritten, tacit resources whose skills and experience holders may not even know that they possess. System and procedural resources Cultural resources and values A wide range of tangible, documented resources from recruit ment and selection systems to performance measurement and reward systems, order processing systems etc. These documents and the computer resources they run on are tangible. But the efficient running of these systems requires intertwined intangible resources like the knowledge and experience of the operators and users of the system. One type of intangible resource often developed over long periods and often dependent on the attitudes of the founder(s) and past events. This category includes memories of cathartic situations as well as values, beliefs, preferred behaviours etc. The beliefs of powerful individuals can be critically important resources.
16 21 1.5What makes a resource important? Table 1.5 Cont. Network resources Resources important for change Interest groups within the company, networks involving company personnel with suppliers, customers, legislative authorities, or advisers. We include reputation and brand in this category. A key resource area related to recognising when valuable resources have become out-dated and need to be changed or even destroyed. Examples here are the beliefs of influential workers and managers, the existence of resources for implementing change (like cash for investment). Do not make the mistake of thinking that these resource types are separable. That a resource is either tangible or not, or that a resource is knowledge-based or system-based. Resources can be mixtures of knowledge, system and physical hardware that are not easy to separate with neat definitions. Do not ignore yourself here because you, as a manager, are a highly valuable resource that is key to identifying the need for change in your company, assessing the direction of that change and carrying it out. But at the same time you are maintaining the competences on which your competitive position depends through the organisation of your underlying resources. Experienced managers are particularly complex resource bundles. They are typically tangible, part of many networks, are influential holders of cultural resources, have a wide set of knowledge assets and are certainly important for change. 1.5What makes a resource important? Important resources are, or could be, sources of sustainable competitive advantage or disadvantage to a firm. In order to simplify discussion we shall concentrate on the resources that are sources of advantage. Three metrics are used to assess the importance of resources: Value The performance made possible by the resource provides a competitive advantage that is valuable to customers Sustainability This performance advantage must be, to a degree, sustainable or lasting Versatility The resource should be versatile and therefore useful across many product areas and even in new markets These metrics will now be described in more detail.
17 22 Practical competence and resource frameworks Is it valuable? There are almost as many ways a resource can be valuable as there are different resources: An in-house manufacturing process may deliver product specifications more economically than competitors and thus reduce costs. A strong brand name may increase revenues through its ability to provide premium pricing. Long-lived personal contacts and networks with key suppliers, customers and/or legislative authorities are examples of resources which enable access/influence on customer/legislative requirements or specifications. Even if threats cannot be defused, those with superior networks of this kind have most notice of market change. Scarce resources also tend to be valuable. Examples vary from oil fields to prime locations for retail stores to an intensely customer-focused culture which enables superior access to customer requirements. Wal-Mart and K-Mart Much of Wal-Mart s continuing competitive advantage in discount retailing comes from its early entry into rural markets in the southern USA. To make these locations profitable Wal-Mart developed appropriate reporting structure and compensation resources and sophisticated point of sale inventory control systems. The inventory control systems were an important resource, rare amongst its competitors, kept product availability high, inventory costs low and could be used to predict demand. K-mart, a major competitor has been copying these point of sale resources and should overcome their disadvantage in this area. However, it may be more difficult to imitate Wal-Mart s prime store locations based on early entry to the market. These geographic resources may prove to be a more sustainable competitive advantage for Wal-Mart than point of sale systems. Both retail chains have some thinking to do as more and more goods are bought over the internet. It is feasible that these prime locations will become of less and less value to the stores. Remember that out of date or otherwise inappropriate resources and capabilities may produce nil or negative value they are weaknesses or incompetences and produce disadvantages for a firm. Xerox s inability to turn excellent research into products was a case in point. Xerox At their Palo Alto Research Centre (PARC) Xerox spent the 1960s and early 1970s developing a range of valuable, scarce and difficult to imitate technological resources. The personal computer; desktop mouse coupled with an icon-based, easy to use operating system; ethernet and laser printing were all developed at PARC. Unfortunately Xerox failed to exploit these technologies because of other, weaker resources: No structure existed to promote these technologies.
18 23 1.5What makes a resource important? Once discovered an intensely bureaucratic product introduction process stifled many of them; Those finally developed were poorly exploited because management compensation systems were based, almost totally, on maximising current revenue. Market development for future sales was almost irrelevant. The funds generated from the virtual monopoly Xerox enjoyed in the copier business enabled PARC to excel in many technologies yet, ironically, also bred a set of resources that frustrated their exploitation. Is that value sustainable? For a resource to be important its value must also be sustainable. For it to be sustainable: Competitors should have difficulty in copying the resource Competitors should also have difficulty in finding substitute mechanisms for rivalling the advantages it provides The firm itself should not undermine, destroy or otherwise allow resource values to depreciate If the resource is difficult to copy its value may last and there are three reasons why a resource might be difficult to copy: First, it may be difficult because competitors cannot recognise the resource it is invisible to them. Second, the resource may have been generated by unique historical opportunities that will never be repeated. Caterpillar s service network is an example. A third source of problems is a lack of understanding, ambiguity or confusion over how the resources actually work as in Mailbox Inc. Caterpillar re-visited Shortly before the USA entered the Second World War the federal government decided to appoint a single supplier of construction equipment to build and maintain military bases and airfields around the world. Following tenders Caterpillar was chosen and the government agreed to pay equipment prices high enough to enable them to develop a worldwide service and supply network. Unique historical conditions provided the opportunity for Caterpillar to develop this costly and difficult to imitate competence. Caterpillar management took advantage of this opportunity by developing appropriate resources: global reporting structure; global inventory and other control systems; compensation policies to encourage employees to work around the world, etc.
19 24 Practical competence and resource frameworks Mailbox Inc. Mailbox Inc. is a simple business it gathers bulk mail from customers (advertisements, free offers, etc.), sorts it by post-code and then takes it to the post office to be mailed. (The post office charges less for this sort of mailing when it is supplied in delivery rounds and Mailbox Inc. makes money by charging it s customers a rate in between those offered by the post office for sorted and unsorted mail.) It has enjoyed a major market share advantage in the Dallas Fort Worth area over a long period. How does it do this? There is no single advantage it seems that across the company Sales, Operations, Finance and Human resource management Mailbox s success derives from doing the thousands of things required to run a bulk mailing organisation well. Each is easy and cheap to imitate but as a whole their operation is costly and difficult to imitate. Managers in Mailbox find their success difficult to explain, what chance do competitors have of understanding what to imitate? If your competitors can recognise your valuable resources yet face high costs or long time-scales to acquire them they may think twice before trying to copy. If they face high costs and long time-scales your competitors are even less likely to copy, for in the time needed to catch up your performance can improve further and the competitive landscape can always change. However competitors may be able to get round this problem by substitution. Can its advantages be substituted? Some advantages can be undermined by competitors who change the rules of the game. While Caterpillar have promoted their worldwide support competence a significant competitor has still emerged. Caterpillar and Komatsu Komatsu have competed successfully with Caterpillar by substituting some of the advantages of a global network support competence with equipment that breaks down less frequently. One of their competences is to design very reliable mid-size, construction equipment. Finally, a firm can destroy its own resources particularly quickly, especially resources that naturally depreciate quickly. The value of some knowledge resources can decline quickly in fast-moving, high-technology industries. In the communications sector an engineer s knowledge gets out of date as new electronic components and system standards are introduced. This is one example of a host of resources that can decay if left alone unused or unmaintained. The longer a resource can endure without attention the more sustainable it can be. Is it versatile? A versatile resource can be used in a number of places outside its current application. However some resources are not versatile, there are three potential reasons for this:
20 25 1.5What makes a resource important? First, the resource may only be valuable in combination with other resources. For example, a skilled engineer may be much less valuable when divorced from an existing support structure where his/her abilities are allowed to blossom while their weaknesses are compensated by other engineers. This is the idea of complementary resources. If three people each have a third of a safe combination they are truly complementary resources since each alone is next to useless and all three are necessary to rapidly open the safe. In practice it is often the case that the most obvious and valuable resources need to be accompanied by complementary resources if they are to be used outside their current situation. Second, the resource may be tied to its geographic surroundings. For example an expert in a particular technology may not move to your new research laboratory because s/he looks after an aged parent. Natural resources like oil fields or copper mines are similarly tied to particular geographic positions. Third, the resource may take a very long time to replicate or may be virtually impossible to replicate. For example, though you might wish to use a particular Engineering manager for his current role and also in another of your business units our current knowledge of genetics has yet to make that a possibility. If a resource is codified within databases or in-house developed software it is probably well understood. (Note. This may mean it can also be copied or stolen, see above.) Resources embedded in tacit knowledge and skills will be much less understood. The more codified and understood a resource becomes the more versatile it may be. If the resource can be used in new markets its importance is further heightened. Brand image is a good example of a versatile resource. But even a strong brand image can be stretched a little too far. Virgin One of the latest industries to bear a Virgin logo is the UK West Coast rail line joining London and Glasgow. For the first time Richard Branson did not begin a brand new company, he took over ancient rolling stock running on an under-invested, dilapidated rail infrastructure whose improvement depended on another company Railtrack. Trains ran late and ran still later while the rolling stock was cosmetically improved. The logo did not bring success. All may be well in a few years time, new rolling stock has been ordered and the network will be improved - but that very improvement will cause considerable disruption to Virgin rail users. In 1997 Virgin trailed their competitors with almost 30% of the 650,000 complaints received by the privatised rail companies. In 1998 it was the same story, Virgin had more complaints than any of the other privatised rail companies. Branson may rue the day he placed the Virgin logo on trains that broke down and were frequently late. One should be more careful with valuable and versatile resources.
International Examinations IGCSE Accounting Catherine Coucom PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street, Cambridge, United Kingdom CAMBRIDGE UNIVERSITY
International Examinations Professional Development for Teachers Teaching and Assessing Skills in Computer Studies Stewart Wainwright PUBLISHED BY THE PRESS syndicate OF THE UNIVERSITY OF CAMBRIDGE The
Business Explorer 3 Teacher s Book Gareth Knight Mark O Neil PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street, Cambridge, United Kingdom CAMBRIDGE UNIVERSITY
Cambridge IELTS 3 Examination papers from the University of Cambridge Local Examinations Syndicate PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street,
English Phrasal Verbs 70 units of vocabulary reference and practice Self-study and classroom use Michael McCarthy Felicity O'Dell PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt
Malcolm McDonald and Leslie de Chernatony Butterworth Heinemann, September 2003, 496 pages ISBN 0750659807 Theme of the Book A thorough and practical analysis of the essential elements of branding, giving
READING SAMPLE PAPER Market awareness of the mobile telephone has exploded and the retailer who specialises in mobile phones is seeing growth like never before. Admittedly, some customers buy their first
Revisiting Roll-Ups Value Creation through ecommerce Situation The concept of consolidating an industry by acquiring many small companies and rolling them up into a larger firm remains an intriguing path
Workbook First Certificate Direct Mary Spratt Bob Obee PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street, Cambridge, United Kingdom CAMBRIDGE UNIVERSITY
Chapter 13 Personal use only Role of Human Resource Management ISBN 978-0-9775849-7-0 2012 Don Sykes & Kim Crawford - www.redpeg.com.au Strategic role of human resources Strategic management is all about
A DV I C E B O O K L E T product and service delivery PRODUCT / SERVICE DELIVERY Every business sells either a product (a physical item) or a service (something intangible), or both. Many businesses develop
Strategy Toolkit 7 really useful tools to help build winning strategies and drive great results for your business Stuart Cross Stuart Cross is the founder of Morgan Cross Consulting. "Stuart has a first
Developing a Marketing Plan This document is designed to help you: Understand the role marketing plays in your business. Identify your target market. Analyse your competition. Define your product or service
Making business simple... Introduction 2 Contents Every business needs a Marketing Plan. This guide has been created to assist you in putting your Marketing Plan together. This guide will help you to indicate
Resourcing Strategy Published in Managing Partner magazine September 2010 For most law firms, a successful strategy must blend the concept of opportunity-fit with that of resource-stretch. This is because,
Successful Knowledge Management: Does It Exist? Karl M. Wiig Manuscript for the August 1999 Issue of the European American Business Journal Knowledge Research Institute, Inc. email@example.com Introduction
An introduction to marketing for the small business Membership Services Moor Hall, Cookham Maidenhead Berkshire, SL6 9QH, UK Telephone: 01628 427500 www.cim.co.uk/marketingresources The Chartered Institute
Multiple Choice Questions 1. The financial statement summarizing the value of a firm's equity on a particular date is the: a. income statement. B. balance sheet. c. statement of cash flows. d. cash flow
Chapter 6 Transfer Pricing Methods 6.1. Introduction to Transfer Pricing Methods 6.1.1. This part of the Chapter describes several transfer pricing methods that can be used to determine an arm s length
January 2012 Benchmarking of Analytical Laboratories by Dr N.Th.M. Klooster The advantages of benchmarking and the benchmarking process 1 Page 1 of 9 Contents Executive Summary. 3 Introduction. 3 Why should
WHITE PAPER The metrics that matter How actionable analytics can transform field service management performance. www. Introduction The top strategic action for two-thirds of service organisations is to
Aligning CRM rewards with corporate goals By David Hughes New metrics and rewards structures can help the transition from traditional sales management to customer relationship management, aligning sales
Aa Acquisition process by which a company buys another company advertise to announce that a product is for sale or that a service is offered in order to encourage people to buy it or to use it advertiser
Speaking Extra A resource book of multi-level skills activities Mick Gammidge PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street, Cambridge, United Kingdom
The Value Chain From Competitive Advantage, by Michael Porter Every firm is a collection of activities that are performed to design, produce, market, deliver, and support its product. All these activities
www.casece.com firstname.lastname@example.org Tel. +66 2645 8147 CNH INDUSTRIAL SERVICE LTD. 173 South Sathorn Asia Center 23rd floor, Bangkok, Thailand A DEALERSHIP OPPORTUNITY WITH A LEADING COMPANY AWAITS
ASEE 2014 Zone I Conference, April 3-5, 2014, University of Bridgeport, Bridgpeort, CT, USA. Organizational Change: Case Study of General Motors Muhammad Aliuddin Khan Department of Economics, University
by Matthew Simmons part-time Marketing Director Introduction Let's set the scene - you are an entrepreneur who has invented a great idea, or perhaps you are a manager in a larger organisation who is about
Strengths Possible Strengths Response Is it a strength? Tangible Strengths Consider your assets including plant and equipment Do you have long-term rental contracts for your business locations? Are your
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
BT Business Transform the performance of your field workforce. BT Field Force Automation can help transform the way you operate and serve your customers. Your customers service level expectations are higher
A Guide to Efficient MRO Procurement & Management White Paper Brammer 117554 WhitePaper_V5_SP.indd 1 19/04/2010 15:19 Executive summary The purchasing of spares for the daily maintenance, repair and overhaul
Building a career in specification sales A guide to specification sales What is specification selling? Who is the specifier? What stages does the specification decision process go through? What are the
John Deere and you. You ll look good in green. 2 When you work with John Deere, we invest in our relationship with you a bond that is made to grow with you into the future. MORE THAN JUST IRON. Committed
SUPPLY CHAIN FINANCE Extracting value from the supplier tail A Purchasing Insight report in collaboration with Invapay Supply Chain Finance and Working Capital Management are important tools for any business
The Total Loss Survival Guide How To Calculate The Value Of Your Vehicle After A Total Loss TheyWroteOffMyCar.com., 2014 Table of Contents 1. Introduction...3 2. What is a total loss?...3 3. What is "Replace
Take your business to the next level Best in Class Referral Programs Lower cost per sale, Higher Retention, Increased Profits Free Sales and Marketing Audit Call 410-977-7355 Best in Class Customer Referral
the valuation of data as an asset: a consumption-based approach introduction: you need to value it to own it There is a case to argue that if companies managed their finances as badly as they manage their
1 Chapter 11 Building Information Systems and and Managing Projects LEARNING TRACK 1: CAPITAL BUDGETING METHODS FOR INFORMATION SYSTEM INVESTMENTS Traditional Capital Budgeting Models Capital budgeting
Services to industry groups e-business suppliers factsheet 2003 www.scottish-enterprise.com Pricing Pricing needs to be seen in the context of the overall Marketing Mix of your company. This would traditionally
0 Learning Objectives: 11.1 Describe the advantages and disadvantages of the most common forms of business ownership. 11.2 Identify the stakeholders of a business and describe why they are important. 11.3
Operational Level Paper P1 Performance Operations September 2012 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared
The customer experience: have customers been forgotten? In the current economic climate, keeping customers happy ought to be at the top of every company s agenda. But many managers are simply too bogged
Do slow applications affect call centre performance? A white paper examining the impact of slow applications on call centre quality and productivity Summary To be successful in today s competitive markets
Journal of Business Administration and Management Sciences Research Vol. 3(1), pp. 001-005, January, 2014 Available online athttp://www.apexjournal.org ISSN 2315-8727 2014 Apex Journal International Review
IMPROVING YOUR BOTTOM LINE THROUGH CUSTOMER RELATIONSHIP MANAGEMENT INDUSTRIAL BUSINESS SOLUTIONS USING THE LATEST TECHNOLOGY If one-to-one relationships with customers used to be prohibitively expensive,
Volume 9 No. 1 The real value of corporate governance (c) Copyright 2007, The University of Auckland. Permission to make digital or hard copies of all or part of this work for personal or classroom use
All available Global Online MBA routes have a set of core modules required to be completed in order to achieve an MBA. Those modules are: Building High Performance Organisations Management and Organisational
FREQUENTLY ASKED QUESTIONS 1. Do I have what it takes to own/manage a small business? You will be your own most important asset, so an objective appraisal of your strengths and weaknesses is essential.
What's Your Business Worth? What you see isn't usually what you get - or want! "How much is my business worth?" and "How do I know for sure?" and "Why should I care? After all, I have no intention of selling
HOW TO PREPARE A BUSINESS PLAN A Guideline for Entrepreneurs Table of Contents I. Introduction II. III. IV. Summary A. The Company and it Founders B. Market Opportunity C. Products and Technology D. Financial
The High Performer Sales ManagerS AND THEIR Seven Characteristics accela.com.au 1 The High Performer Sales ManagerS AND THEIR Seven Characteristics What characteristics have high performing sales managers
Tools For Sustainable Best-Practice Energy Management Abstract Sustainable development requires long-term resource management coupled with the efficient use of existing assets. To achieve energy sustainability,
article The Supply Chain Management Process D r N e va n W r i g h t, A U T U n i v e r s i t y, N e w Z e a l a n d, e - m a i l : N e va n. w r i g h t @ a u t. a c. n z The primary purpose of this introductory
Aims of the lecture: 1. Introduce the issue of a systems requirements. 2. Discuss problems in establishing requirements of a system. 3. Consider some practical methods of doing this. 4. Relate the material
Competence Certificate in Purchasing & Supply Chain Management Welcome to the Competence Certificate in Purchasing & Supply Chain Management s programme. We hope you find the course interesting and that
Are the fixed ops broken? What happened to our absorption rates? By Brad Fothergill For decades, the New Car Dealership was a family and community affair often with a gas pump out front. Customers could
Moving from Sage 50 Accounts to Sage 200 Standard Online 2 Contents Contents Software that grows with your business...4 Straightforward online accounting...5 Reasons to upgrade...6 Financials - Managing
iii Contents List of figures List of tables OGC s foreword Chief Architect s foreword Preface Acknowledgements v vii viii 1 Introduction 1 1.1 Overview 4 1.2 Context 4 1.3 Purpose 8 1.4 Usage 8 2 Management
Market Structure There are a variety of differing market structures which are separated by the levels of competition that exist within each market and the market conditions in which the businesses operate.
ARTICLE Dance of the giants What leading companies are doing to optimise their end-to-end supply network By Robert Hart, TRACC Publications Editor EXECUTIVE SUMMARY Whether one agrees with the methodology
Promotion Orientation Verus Market Orientation Lawrie Drysdale Senior Lecturer in Educational Administration Centre for Organisational Learning and Leadership University of Melbourne Introduction All schools
The KPI Dictionary 3,200+ Key Performance Indicator definitions Volume 1: Functional Areas 2015 The KPI Institute Ltd. All All Rights Reserved. ISBN 13: 978-1511828758 978-1511655583 ISBN 10: 1511828757
MITIGATING SECURITY RISK IN THE NATIONAL INFRASTRUCTURE SUPPLY CHAIN A GOOD PRACTICE GUIDE FOR EMPLOYERS April 2015 Disclaimer: Reference to any specific commercial product, process or service by trade
: How to build and lead a market-driven organisation Malcolm McDonald, Martin Christopher, Simon Knox & Adrian Payne FT/Prentice Hall, 2001 ISBN: 0273642499, 206 pages Theme of the Book Marketing is too
Customer Relationship Management by Professor Adrian Payne Director Centre for Relationship Marketing, Cranfield University Introduction Customer Relationship Management (CRM) is developing into a major
The three stages of e-commerce Understanding the types of e-commerce avaliable In order to benefit from e-commerce organizations must first understand the types of e-commerce solutions and models available.
THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY Management Marketing - Tourism Ec. Ecaterina Nicoleta Ciurez Ph.D University of Craiova, Faculty of Economics and Business Administration, Craiova,
Winning on G-Cloud & The Digital Marketplace 6 TIPS FROM SUCCESSFUL SUPPLIERS HOW MUCH MONEY HAVE YOU WASTED ON G-CLOUD? As of 2 February, there were a total of 1,852 suppliers registered on the G-Cloud
MODULE 01 Importance of IP for SMEs MODULE 01. Importance of IP for SMEs OUTLINE LEARNING POINT 1: IP is all around us LEARNING POINT 2: Why is IP relevant to your SME? LEARNING POINT 3: IP as a business
I M P R O V I N G T H E P R A C T I C E O F M A N A G E M E NT Best Practices: Customer Relationship Management By Ian Gordon Reprint # 9B02TF08 IVEY MANAGEMENT SERVICES NOVEMBER/DECEMBER 2002 COPYRIGHT
Organizing for CRM implementation 391 Case 7.2 Mercedes-Benz: Implementing a CRM Programme The Company Mercedes-Benz is one of the world s most successful premium brands. Its technical perfection, innovative
Chapter 8 Is this a good business? How to measure company returns In the previous chapter, we learnt that profits and cash received (cash flow) are rarely the same value. We looked at free cash flow conversion
TECHNOLOGY BRIEF Business Benefits from Radio Frequency Identification (RFID) Executive summary Today the largest government and business enterprises in the world are developing plans to deploy electronic
The cross-channel insight imperative Why today s hyper-connected consumer means having a crosschannel consumer classification is more important than ever. An Experian Marketing Services white paper A changing
Dear Participants, Great enthusiasm by some teams. Tentative/cautious/unsure... steps by some others. Who created serious wealth is the question... We've done 13 practice rounds now brace for the competition
Progress Test 2 Advanced Financial Management P4AFM-PT2-Z14-A Answers & Marking Scheme 2014 DeVry/Becker Educational Development Corp. Tutorial note: the answers below are more comprehensive than would
All available Global Online MBA routes have a set of core modules required to be completed in order to achieve an MBA. Those modules are: Management and Organizational Change (P.4) Leading Strategic Decision
White Paper Explode Six Direct Marketing Myths Maximize Campaign Effectiveness with Analytic Technology Table of contents Introduction: Achieve high-precision marketing with analytics... 2 Myth #1: Simple
Cambridge IELTS 2 Examination papers from the University of Cambridge Local Examinations Syndicate PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE The Pitt Building, Trumpington Street,
Knowing Your Options & How to Access Them Funding Choices in Edinburgh & Scotland Type of Finance Investment Grants Loans Type of Finance Invoice Financing Owners Capital Cash From Profits Asset Finance
Intellectual Property Policy Policy - CP029 Prepared Reviewed Approved Date Council Minute No. Manager Corporate Administration Corporate Management Team Council June 2014 2014/0126 Trim File: 18/02/01