Читать книгу Business Decision Making - Dr. Eduardo A. Morato Jr. - Страница 6

The first generic form has four varieties. The first variety deals with exploiting opportunities which an enterprise is already familiar with, thus making it easy and attractive to pursue.

The first variety includes: (a) expansion of existing product lines to serve customers in geographic areas that have not yet been tapped; (b) extending the product offerings to new product lines that would cater to different segments of the bigger market; (c) introducing product variants (with additional or different features) that specifically cater to the other subsegments of the existing customer base.

A second variety of opportunities that could be exploited encompasses both vertical and horizontal integration. Vertical means going forward to the downstream market (e.g. from manufacturing to distribution to retailing) or going backward to the upstream supply chain (e.g. from processing, to semi-processing to raw materials production). Horizontal integration exploits opportunities in related and ancillary businesses such as after-sales services, financing of customers, complementary products (e.g. accessories to fashion wear) and piggy-back offerings (e.g. promotional toys in fastfood stores).

A third variety of opportunities seeks to improve the Quality, Delivery and Price (QDP) value proposition to customers. Different customers have different QDP expectations. This suggests that a “one-size-fits-all” strategy would not be able to delight all of the customers.

Quality improvements include measurable, palpable and experientiable attributes such as durability (lasts longer and does not break down), serviceability (easy to maintain and operate), taste (sweeter, spicier, saltier, more sour, more bitter, crunchier, softer, etc.), elegance (looks sleek and classy, opulent and indulgent, modernistic and aesthetic) and feels good (comfortable, soft, right fit, flattering).

Delivery improvements mean (a) consistently being more on-schedule at the precise time expectation, (b) being at the right place, (c) having acceptable terms and conditions, (d) being supported by accurate documentation, and, (e) using the most appropriate delivery mode, etc.

Price improvements can be one of three things: (a) reduced price offering at the same quality and delivery; (b) same price offering but with improved quality and/or delivery; and (c) higher price but with higher perception and actualization of quality and delivery value proposition. On one end, price improvements can come from greater cost efficiencies and economies of scale that allow the enterprise to lower its prices. On the other end, price improvements can come from product enhancements or logistical and market channel enlargements that enable the enterprise to charge a premium price vis-a-vis competitors.

QDP improvements may be obtained through better technologies, better product formulations, better work and operating systems, better supply services, better management and better market distribution. Any of these can be the subject of a Business Case decision.

A fourth variety of opportunities to be exploited is composed of entirely new venture opportunities. They are unrelated to the existing products and markets of the enterprise but are, nevertheless, very attractive to the owners and managers of the enterprise. While these opportunities are supposed to “spread the risk” by betting on several industries (not just one), they also present greater risks because management is less familiar with the opportunities. In fact, the opportunities may even be out of line with the company’s expertise. However, if these risks can be controlled and managed well, then the opportunities should enable the enterprise to widen its business horizons.