Estrategias innovadoras de Crecimiento e Internacionalizacin De Negocio Un enfoque estratgico y de accin efectiva

Noviembre 2011
Dr. Jaime Alonso Gmez Distinguished Professor of Strategy and International Management EGADE Business School, and Univ. of San Diego Business School jagomez@itesm.mx, jagomez@sandiego.edu Dr. Jaime Alonso GOMEZ

NAME & COUNTRY EDUCATION BACKGROUND WORK EXPERIENCE INTERNATIONAL EXPERIENCE LANGUAGES HOBBIES WHEN I FINISH MY DEGREE, I WANT TO

Dr. Jaime Alonso GOMEZ

Los objetivos. 1. Examinar con los participantes los retos y oportunidades que la globalizacin y los nuevos esquemas de competitividad significan para los tomadores de decisiones en las instituciones de gobierno, organizaciones no gubernamentales y empresas privadas. Se hace especial nfasis para el caso de las economias emergentes. 2. Adquirir los conocimientos, habilidades, actitudes y valores requeridos para administrar, dirigir y transformar organizaciones en el contexto de la nueva economa. Especial nfasis en Innovacin y Diseo para la competitividad 3. Desarrollar el pensamiento estratgico y la visin de negocio requeridos para dirigir (cambio) a la organizacin hacia posiciones de competitividad en entornos internacionales.

Dr. Jaime Alonso GOMEZ

Seminar Approach

Teaching Subject centered Directed by professor

Learning Participant centered Directed by learners interests, objectives and expertise Includes knowledge and experience from learners Holistic and systemic Multi-modal learning dynamics

Assumes lack of knowledge on the participant Linear and sequential Lectures

Dr. Jaime Alonso GOMEZ

Seminar Approach
Student Reads textbook and articles Participates in class as an informed executive/consultant Engages in team work activity Professor Prepares for strategy and execution discussions Selects cases, examples and stories to foster learning Provides feedback on conclusions and recommendations from the teams

Writes executive reports as an international consultant

Prepares to start a business

Questions recommendations (and provides feedback)

Advises on business planning and implementations

Dr. Jaime Alonso GOMEZ

 Dr. Jaime Alonso GOMEZ

Competition is Tough

John Reed, CITI K&S J Ch T&T P

Dr. Jaime Alonso GOMEZ

Seminar Approach: A view from top management, the company owner Functions of Leadership
Competencies of Leadership
Establish Direction Vision, mission, meaning, values Knowldege Skills Prepare for change Muddling through Assure Critical Processes Value

Judgement Appraisal Decision Making Character Determination Consequences

Dr. Jaime Alonso GOMEZ

GROWTH IN TURBULENT AND UNCERTAIN TIMES POSTURES AND COURSES OF ACTION

LEVEL OF UNCERTAINTY

SHAPE THE FUTURE

ADAPT TO THE FUTURE

RESERVE THE RIGHT TO PLAY

DO NOTHING

CLEAR ENOUGH FUTURE ALTERNATE FUTURES RANGE OF FUTURES TRUE AMBIGUITY

Portfolio of actions No regrets moves: reduce cost, improve customer service, training and development Options: study scenarios that are probable and define/implement actions to be competitive in each of them Small but strategic investment to respond to Markets evolve (e-banking, pharmacies + small clinics, retailers plus cafeterias Big and strategic bets: create blue oceans
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Dr. Jaime Alonso GOMEZ

GROWTH IN TURBULENT AND UNCERTAIN TIMES POSTURES AND COURSES OF ACTION

COMPANY

SHAPE THE FUTURE

ADAPT TO THE FUTURE

RESERVE THE RIGHT TO PLAY

DO NOTHING

SONY APPLE PANASONIC WAL MART SOUTH WEST KODAK XEROX HP EBAY GOOGLE OTHER?

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Dr. Jaime Alonso GOMEZ

UN Millennium Development Goals In 2000, the international community agreed on a set of development targets to be achieved by 2015. They have been agreed by all countries and the leading development institutions. The financial assistance and advice the IMF offers to its poorest members are geared partly to helping them achieve these goals.
1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women Dr. Jaime Alonso GOMEZ

Two Examples

Cancer detection prototype

Avocado
Repellent Food preserver Cosmetics

Dr. Jaime Alonso GOMEZ

 Dr. Jaime Alonso GOMEZ

The new economy Geo graphic Geo political Geo technological Geo energetical Geo demographic Geo economic Geo psychological Geo biological
INVESTMENT PHYSICAL EFFORT LOCAL EMPLOYMENT COST MADE BY

NEW
Increase in Globalization Complexity Inter-dependence Opportunities Challenges

Knowledge

Skills/competences
rules of competition NEW-NEW-NEW

INNOVATION TALENT AND KNOWLEDGE GLOBAL/REGIONAL ENTREPRENEURSHIP VALUE ADDED CREATED BY

Dr. Jaime Alonso GOMEZ

Mini Exercise individual and in groups

I need to have an expertise (skills/knowledge/attitude) on: (In order to be an effective International business executive)
1. 2. 3. 4. 5. 6. 7

P1
SKA1 SKA2 SAK3 . SKAn

P2

SKA1 SKA2

Pts

SKAN

100

100

Skills/knowldege
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Dr. Jaime Alonso GOMEZ

What Top Executives Have to Do in Leading, strategizing and designing competitive organizations

Cases and Practices of Successful MNEs

Understand the role of business strategies in moving a company in the intended direction, growing its business, and improving its financial and market performance.

Learn that business strategies evolve over time because of changing circumstances and ongoing management efforts to improve the companys strategy.

Dr. Jaime Alonso GOMEZ

Jack Welch

"...when the rate of change outside an organization is greater than the change inside, the end is near...."

Dr. Jaime Alonso GOMEZ

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Groupwork - In your groups Discuss how strategy is being designed and conducted at Dell
1. What triggered the strategy change? Or why is Dell Changing? 2. Is this a real change or a cosmetic change? 3. How does the change affect the business model? 4. What are the lessons learned from the case? 5. What is the role of Mr. Dell as the company founder? 6. How would you (and Why) evaluate Mr. Dells performance in leading strategic change? 7. How would you describe his leadership style up to now (2011)? http://www.mckinseyquarterly.com/Leading_change_An_interview_with_the_managing_director_of_Tata_ 8. Do you think Mr. Dell needs to enrich/enhance his Motors_1908 Dr. Jaime Alonso GOMEZ

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DELL NEW BUSINESS INITIATIVES NEW TALENT IN THE COMPANY NEW BUSINESS MODEL NEW BUSINESS PHILOSOPHY

NEW LEARNINGS NEW ORGANIZATIONAL STRUCTURE NEW STRATEGIC BETS

Dr. Jaime Alonso GOMEZ

Summary

What has captured your attention so far?

What did you like the most? What did you find new or different? What did you disagree with? What changed your way of viewing or perceiving? What would you like to tell your friends and family about? What did you take away and can apply to your career?

Dr. Jaime Alonso GOMEZ

HP NEW APPLICATIONS (software) NEW TALENT NEW MARKETS NEW BUSINESS PORTFOLIO NEW CYCLE NEW MOSAIC OF CULTURES NEW STRATEGIC DECISIONS TO MAKE

Zacks Equity Research, On Friday August 19, 2011, 1:35 pm EDT Hewlett-Packard Co. (NYSE: HPQ - News) is planning an extensive restructuring, as announced by its chief executive officer (CEO) Leo Apotheker. In order to focus more on the high-growth and high-margin business, the CEO now wants to spin off or sell H-Ps lower-margin PC business, wash its hands of the webOS business (still looking for a take-off) and buy out business software maker Autonomy Corp. The focus shift would help H-P evolve as a software and services company, without any reliance on the hardware businesses.

A Win-Win for Peers If H-Ps PC business sell-out plan works out, it will create a huge opportunity for not only another tech giant Dell Inc. (NasdaqGS: DELL - News), but also for Asian manufacturers ASUSTeK Computer Inc. and Acer Inc. Though Dell now holds the second position in worldwide PC shipments, it too is suffering from soft consumer demand.
Dr. Jaime Alonso GOMEZ

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APPLES Numbers

2010 Total Revenue 65,225

2009 42,905

2008 37,491

2007 24,578

2006 19.315

Net Income

14,013 21.5%

8,235 19%

6,119 16%

3,495 12.5%

1,989 10.1%

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Dr. Jaime Alonso GOMEZ

Strategy, Innovation & Learning

LOW

Unknown Lack of order Management of Ambiguity, Complexity Uncertainty Methods, Systems Procedures, ISOs Ind. Engr. Org. Comfort
HIGH

Anarchy

Consensus

HIGH

Certainty
Risk Management Dilemas, Paradox, Predicting
Leadership & Management ?

LOW

Conservative thinking and Performance, Low Cost, High Efficiency

Traditional Knowledge and Skills

?
VL
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Dr. Jaime Alonso GOMEZ

Change focus
Education, consensus Based change

Large-scale change

HP: M&A Dell: New business Lines Org. Surgery Org. transfusion

Level: The organization Focus: Culture

Level: The organization Focus: Structures & processes

Slow change
Level: Individual/group Focus: Attitudes/behavior Quality service attitude Entrepreneurial initiatives

Rapid change
Level: Individual/group Focus: Tasks & procedures

New training and development New IT System bring in consultants Small-scale change bring in new recruits
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Dr. Jaime Alonso Gmez

Burnes 2004 25

CEMEX
NEW BUSINESS MODEL NEW MARKETS NEW PRACTICES NEW BUSINESS PORTFOLIO NEW CYCLE

Dr. Jaime Alonso GOMEZ

SEPTEMBER 30, 2011 FOCUS ON HIGH GROWTH MARKETS REDUCE COSTS SELL NON PRODUCTIVE ASSETS (1 Billion) Assets whose ROI is less than 10% EXPEDITE NEW BUSINESS MODEL TRANSFORMATION CONCENTRATION ON MARKET SHARE GROWTH WHERE CEMEX PARTICIPATES Nordic European countries, France, Germany, Poland, Egypt, Philippines, OK USA, Spain, NOT OK
Dr. Jaime Alonso GOMEZ

 Design a strategy for Cemex to remain competitive in the next 5 years. Please include (list not exhaustive) 1. Main strategies and explain why you are suggesting them 2. Will Cemex be offering new value propositions? If affirmative, For whom? What will the new VP offer? 3. Leadership style needed to conduct the strategy 4. Please describe the kind of organizational culture that will be produced as a result of implementing your (suggested) strategy 5. What are short wins that will be needed to keep the interest of the investors? 6. How is the business model going to change and why? 7. How would you prepare the organization to Lorenzos potential succession? You are to present your strategy to Mr. Zambrano and the board of directors. Use your imagination, be creative, it is time to think of strategic bets. Write your (exam) report in an executive manner (less than 8 pages)
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Dr. Jaime Alonso GOMEZ

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STRATEGIC LEADERSHIP AND MANAGEMENT IN A GLOBAL ECONOMY

PLEASE READ CASE; TROUBLE IN PARADISE YOU ARE A CONSULTING AGENCY AND WERE HIRED BY BILL, THE COMPANY OWNER TO PROVIDE ADVISE AND WAYS TO KEEP THE OPERATION OF THE US SUBSIDIARY RUNNING

AND RUNNING WELL

1.

RECOMMENDATIONS FOR MIKE (expatriate) 1. Operations, 2. Life style, 3 Relationships with Chinese counterparts, 4. Other

2.

RECOMMENDATIONS FOR QIN LIN (Chinese representative) 1. Operations, 2. Assurance/sustainability of the whole operation, loyalty, 3. Relationship with 1. Mike and Bill, 4. Other

3.

RECOMMENDATIONS FOR BILL (Owner of the company)

1. Strategy (Financial, Market), 2. Relationships with Chinese officers, 3. Relationships with Mike/Qin Lin, 4. Other
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Dr. Jaime Alonso GOMEZ

Management of Growth
1.Vision and a strategic posture
1. 2. 3. 4. 5. 6. 7. 8. Organic like Dell Acquisitions like HP, CEMEX, Wal Mart Innovation and Design like Apple and EMYCO New regions and markets like Dell and Cemex 1. Green field, distributor, JV, Blue oceans and strategic bets Adaptation to local culture (cultures of commerce plus conq, col, occ) P/S to solutions and experiences Diagnosis of company strategy

1. Increases our Cognitive Repertoire and behavioral Know How 2. Gives us an enriched Judgment on best Practices to Grow
3. Enhances our Strategic Thinking and Business Vision 4. Better understanding of New Rules of Competition And how to connect Growth with Strategy 5. Triggers for executive Action to become entrepreneurs
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2.Leadership
1. 2. 3. 4. 5. 6. Charismatic, visionary, institutional Human talent revitalization Developing trust View from the top Bold/strategic bet initiatives Creating blue oceans

Dr. Jaime Alonso GOMEZ

Jack Welch

"...when the rate of change outside an organization/person is greater than the change inside, the end is near...."

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Dr. Jaime Alonso GOMEZ

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Strategy, Innovation & Learning

LOW

MY

STRATEGIC
Management of Ambiguity, Complexity Uncertainty Methods, Systems Procedures, ISOs Ind. Engr. Org. Comfort
HIGH

BET

Consensus

NOW

HIGH

Certainty
Risk Management Dilemas, Paradox, Predicting
Leadership & Management ?

LOW

Conservative thinking and Performance, Low Cost, High Efficiency

Traditional Knowledge and Skills

?
VL
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Dr. Jaime Alonso GOMEZ

thanks/gracias/merci/arigato/grazie

jagomez@sandiego.edu jagomez@itesm.mx

Dr. Jaime Alonso Gmez

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