MODULE-1
How to rethink your business during uncertainty
Recessions are a good time to disengage from businesses and practices that are weak and under pressure — but the volatile environment demands that managers let go of old approaches such as :-
* one with higher barriers to entry,
* greater transaction costs,
* fewer capable competitors,
* growing and increasingly affluent markets, and
* Far less information.
The result is that many of the core business are facing higher ratio of ”uncertainty to knowledge” due to making decisions based on old assumptions. Thus the ways of tackling the challenges are as follows:-
* Initiating the renewal process
* Define an attractive future:-
no one ask “Is the market big enough for my aspirations?” in order to address the denial syndrome.
* Determine which programs and projects are most likely to get you there:-
In order to determine which projects, initiatives and other activities can drive the company’s growth. This often leads to decisions to invest less in enhancing the core business and more in new, rapid-growth segments. The more specific a company can be about which kinds of initiatives will support its future strategy, the more momentum it can create.
* Document and test your fundamental assumptions:-
As the overall business environment changes and the stability of core businesses becomes less certain, managers need to be willing to take a few steps back and reassess.
* Create enabling structures:-
The move toward new growth businesses was driven by a reorganization of the traditional businesses into new growth platforms that superseded the old product centered units.
* Evaluating change options using financial models
* Attach financial assumptions to each phase of your business’s lifespan
* Compare competing alternatives and speeding decisions
An interesting aspect of weighing the advantages of one strategy versus another is...