KEEP EVOLVING BUSINESS PRACTICE Japan for dry beer and allowing the summarized the science Of firm tO capture more market share. management (which is essentially Similarly, a group 0f Motorola the management Of bu sines s middle managers was lauded for process) intO tWO factors: enablers suc c es sfully developing a new and enterprise capabilities. wireless digital system for a client Enterprise capabilities stem from in under one year (the process senior management, usually takes tWO tO three years). culture, tight governance Sitting between senior leaders mechanisms, and strategic ViSion. and operational staff, middle Enablers, however, are the task 0f managers are the communications middle management. They include conduit through which executives design, infrastructure, process, remain attuned tO day-to-day protocol, responsibilities, and business and personnel issues. performance management. The Middle managers, as the Asahi and enablers turn vision intO reality. MotoroIa example s show, are Often lessons learnt through business at the heart Of corporate inspiration experience. The true science Of and perspiration ー they generate Hammer claimed that while the management iS the conversion Of ideas and they work tO realize ideas aspiration for business growth experience intO repeatable and in practice. Middle management might come out Of the boardroom, reliable process - today's problems is also the driver Of functional it iS a firm's infrastructure ー become tomorrow S processes and efficiency: improvements in COSt, designed and implemented by next year's capabilities. quality, speed, and reliability are middle management ー that makes Process is the "stuff" of delivered by m iddle management growth possible. Vision without management. Business processes and the processes it introduces. infrastructure iS just a dream ー it are essential tO maintaining order; cannot become a reality. Leaders like a country's rail system and the Of growing firms know that, AS a business evolves, SO must the rules that accompany it, processes regardless Of their own aspirations, are the infrastructure around which management processes that enable the building blocks 0f growth are a firm organizes itself. Business it.Whereas initial stages Of growth laid by middle management. practice must evolve as the business rely on individual initiative and At the Japanese brewer Asahi, grows from a single outlet tO a entrepreneurial spirit, evolving for example, it was a team Of chain, from one staff tO many, and ad-hoc practices intO sustainable m iddle managers wh0 develope d from national tO multinational. growth needs t0 be based on Super Dry Beer, starting a craze in English fashion designer, author, she had to buy her stock and entrepreneur Catherine carefully, mixing her own fabric s Kidston was born in 1958. Raised and wallpaper with items from car-boot sales and fabric from with her three siblings near 、 A. ndover in Hampshire, She was eastern Europe. Gingham educated at a number Of English ordered from Europ e arrive d boarding schools, before moving made up intO duvets and t0 London aged 18. pillow ℃ ases, rather than as a After working as a shop fabric blank. Kidston realized assistant, She ran a vintage curtain She would have tO improvise, SO business with a friend on London's decided tO "cut it up and make King's Road for five years. ln 1992 it intO Other things". She kept she sold the business and a year some of the bedlinen, but altered most items intO products later opened a shop selling vintage homeware, wallpaper, and such as washbags. The Cath fabric. With f15 000 in her pocket, Kidston brand was born. MiddIe management as a te chnology enables the organization as we know it. Alfred Chandler US business historian ( 1918 ー 2007 ) ReaIizing the vision G ー 0 i 取 9 the business Cath Kidston

MANAG EMENTIS A PRACTICE W 催 ART SCIENCE, 0 CRAh MEET MINTZBERG'S MANAGEMENT ROLES Managers perform a multitude Of roles which can be divided intO three categories.. ー CONTEXT FOCUS Management roles KEY DATES 1949 French engineer and business theorist Henri FaYOl develops what becomes known as "the clas sical theory Of management ". This claims that managers have five key functions: planning, organizing, co-ordinating, c ommanding, and c ontrolling. 1930S AustraIian psychologist EIton Mayo publishes the Hawthorne Studies, which ushers in an era Of people- oriented management , rather than managing according tO business objectives alone. 1973 ln The Nature Managerial Ⅳ 0 てん Henry Mintzberg dismisses Fayol's claims about the management process as "folklore". lnformational Monitor Disseminator Spokesperson ↓ lnterpersonal Figur ehead Leader Liaison Decisional Entrepreneur Disturbance- handler Resource allocator Negotiator Management is a blend Of these Often conflicting roles, where art, science, and craft meet. he question "What dO managers dO?" has vexed experts, and many front- line staff, since organizations came intO existence. ln his 1975 paper "The Manager's Job", business guru Henry Mintzberg argues that managers are not the reflective, systematic planners that people assume,• instead, "their activities are characterized by brevity, variety, and discontinuity". He finds them tO be strongly oriented tO action, and disliking Of reflection. Mintzberg suggests that there are ten basic management roles, which fall intO three categories: informational roles (managing through the use 0f information); interpersonal (the management 0f people); and decisional (managing decisions and action).

SUCCESSFUL SELLING 251 See a 0 : Managing risk 40 ー 41 ■ Take the second step 43 ・ How fast to grow 44 ー 45 ・ Protect the core business 170 ー 71 ■ The MABA matrix 192 ー 93 ls Ansoff's matrix still relevant? lgor Ansoff ( 1918 ー 2002 ) is remembered as the father of modern marketing strategy. His matrix has generated many variations over the decade S and became one Of the foundation stones Of business strategy, underpinning ideas such as core competence and competitive strategy. ln the 1970S Ansoff recognized the problem Of paralysis by analysis" ー the overthinking Of a problem and subsequent failure tO act. He began tO advocate a more flexible approach, based 0 local conditions and a firm's individual circumstances. Ansoff's matrix has limitations. Because it focuses on market potential and strategies for growth, the matrix is not able tO support Other factors and scenarios, such as the resources available, or if a firm's priority is survival rather than growth. However, us ed with other marketing t001S , it remains valuable and is still used tO gauge actual and expected growth. lncreasing riSk EXISTING PRODUCTS NE ・ W PRODUCTS Ansoff's matrix IS expressed as a square divided into four equal cells, each of which represents different marketing strategies , with d ifferent combinations Of product status and market conditions. Market penetration is clearly the least risky, while the quadrant 0f diversification presents the highest risk. SLIÆ>IHVVN ONILLSIXa HSII fiUISeOIOLIl P ′ od ct development Market penetration SLW>IHVVN MdN Market development Diversification this approach, greater sales might markets. This strategy reduces risk be achieved through competitive in the long term by alleviating a pricing, advertising, loyalty schemes, firm's reliance on core products. or by driving out competitors. However, a firm can riSk a great ・ Market development " enta ils deal, depending on the initial selling the same product intO outlay, and needs t0 have plenty 0f different markets. Additional resources should the strategy fail. spend may be unnecessary unless A risky venture localization is required, but the cost Of setting up distribution channels UK sup ermarket brand Tes c O ' s in the new market poses some riSk. venture intO the USA shows the ln this model, different geographic risks of diversification. After 10 or demographic markets, or years' preparation, Tesco launched alternative sales channels - such as its Fresh & Easy stores in 2007, but online or direct - might be tapped. misread the market. Positioning The product development " itself in the middle, it was neither strategy is the s ale Of new or upscale nor discount, with most Of significantly improved products t0 its outlets in working-class suburbs an existing market. Here the cost Of Where consumers were looking for product development, associated bargains. Critically, Tesco's small- distribution , and marketing support scale, walk-in stores were unsuited poses a risk. Firms adopting this tO the average car-dep endent US strategy might 0ffer variants 0f the shopper. Tesco's investment did not product , or develop related goods. pay 0ff, costing the firm over EI. 2 The final, and riskiest strategy, billion. The outcome may not have is that Of "diversification" ー moving been forecast by Ansoff's matrix, intO nevv product areas and new . AS firms became increasingly skilful strategy formulators, the tran slation Of strategy intO results ... created paralysis by analysis. ー 90 ー Ansoff

間 G 催 MANAG 田 、嶂則田 EVER 種乢田 OM GODS 昨 MANAGEMENT n his influential 1978 book whO have the expertise tO solve G0ds 0fManagement, Charles problems. ln Dionysus s "existential Handy used the allegory 0f the culture", the organization exists tO gods Of ancient Greece tO describe support the individual's needs. the nature Of organizations. Handy Handy's typology provided an proposed that four management entirely new and original method styles could be identified, a for managers tO analyse a firm's combination Of which are likely t0 dynamics, and tO understand be present in every organization. culturally embedded behaviours, Zeus represents the "club culture" biases, and beliefs. However, it in which relationships with the soon became clear that because leader are more important than organizations are vast and diverse formal titles or positions. Ap0110's entities, and are seldom static, "role culture" is defined by organizational behaviour evolves functions, divisions, rules, and over time. Under pressure rationality. ln Athena's "task externally and internally, most culture", power lies within teams firms operate in a constant state IN CONTEXT FOCUS Organizational dynamics KEY DATES 20th century wpologies emerge tO help management thinkers sort organizations intO identifiable clas sific ations , and individuals intO distinct types. What motivates each person is thought t0 be determined by their " typ e" 1978 Charles Handy's Gods ofManagement proposes that underst anding which classification an organization fits into is key tO understanding the type Of people it contains and, thus, the way t0 lead them. 1989 ln The Age eas 〇月 , Handy puts forward the theory of the Shamrock Organization. 21st century Management thinking increasingly acknowledges that stylistic typologies are just one Of many methods 0f understanding and managing firms and staff. Handy's Gods of Management reveal different types Of organizational dynamic but organizations are c omplex at institutional and the individual level. Hence, typologies can still be helpful for understanding organizational and individual c omplexlty. Effective leadership requlres God-like omniscience, but no great leader ever fell frOI れ heaven.

LIGHTING THE FIRE See a 0 : The value of teams 70 ー 71 ・ Gods Of management 76 ー 77 ・ Effective leadership 78-79 ・ Organizing teams and talent 80 ー 85 ・ DeveIop emotional intelligence 110 ー 11 ・ Mintzberg's management roles 112 ー 13 regarded leaders ー such as Jack budgeting, structure, and staffing; Welch of General Electric, Steve tasks that help an organization tO J0bs of Apple, and Jill Abramson keep d0ing what it does. Without of The New York Times ー have management, no matter hOW well been well documented. led, an organization would Leaders have to be brave in the disintegrate intO disorganized face Of uncertainty, standing firmly chaos. However, management iS behind their vlsion for the business. not leadership - it will not lead They need t0 hold staff tO account the firm intO new directions. when things d0 not go t0 plan, and make difficult decisions about who tO hire or fire in order tO develop an organizational culture capable Of achieving their strategic ViSion. Decisive leadership ln 1990 , John Kotter argued that leadership is about coping with change and developing a vision for the organization, Often within turbulent times. Leaders then Truly great leaders know that communicate their vision tO the they will not be around forever, rest Of the firm, and motivate staff and one Of their most important ー especially managers ー tO act tasks iS tO hire, train, and nurture ⅲ ways that will bring about the their successor. They lead well by required change. Leadership is making sure somebody is ready about setting the agenda and and waiting tO take over from them. empowering people tO produce Nine years before hiS retirement, useful change. General Electric CEO Jack WeIch "Leading well" does not always said, "from now on, choosing 1 y mean making people happy, successor iS the most important likability and success rarely go decision l'll make. lt occupies together. The direct, tough, and a considerable amount Of sometimes even rude leadership thought almost every day. styles 0f some 0f the most highly The next generation Jill Abramson was the first woman tO become executive editor Of The New ⅸ Times. She found that unpopularity came "with the territory", as Times' chairman Arthur Sulzberger had warned. lt iS C01 れ 1 on practice in many firms tO privilege leadership over management, but thiS iS unwise. Great organizations value bOth: leaders whO can spot opportunities, and managers WhO can make those opportunities a reality. ■ BIending leadership and management lnspirational leadership skills immediately. When he first tOOk are the hallmark 0f Portuguese over Chelsea Football Club in football coach Jo sé Mourinho. London, England, he called a HiS teams won tV\.TO European team meeting and urged any Cups and 14 trophies in eight naysayers tO speak up, or stay years, elevating him tO sit silent from then on. He learned alongside some Of the greats his management skills from Bobby Robson and Louis van Of football management. Gaal, for whom he worked as an Successful sports teams, assistant coach and translator like great organizations, at Spanish club FC Barce10na. a blend Of good management and good leadership, and Under their guidance he also learned hOW tO study opponents, ou て inhO achieves the rare form strategies, and build feat 0f excelling ⅲ both. As strong, winning teams. a leader, he makes his mark Leadership is lifting a person's vision tO high sights, raising their performance tO a higher standard , building a personality beyond its normal limitations. Peter Drucker US management consultant ( 1909 ー 2005 )

S 訂 SMALL, THINK BIG The development of infrastructure and the strength 0f a new layer 0f middle management were key factors in the evolution Of UK retailer Cath Kidston from a single store in 1993 to more than 120 global branches and concessions by 2013 , with stores throughout Europe and Asia, and plans tO expand intO North America. WideIy renowned for its vintage fabrics, wallpapers, and brightly painted junk furniture, Kidston's initial growth, as is common with many single-founder start-ups, was slow. ln the early days, monthly accounts tOOk six weeks tO prepare and clashes between IT systems caused issues with cash-flow projections and supply-chain management. lt t00k nine years tO open a second branch, and another two before the third. FoIIowing a buy-out in 2010, Cath Kidston became partly owned by a US private-equity group, with Kidston herself retaining around 20 per cent Of stOCk. AS expansion took hold, the firm started to move from ad-hoc processes tO a more planned approach. Specialist managers and consultants were brought in t0 help build capacity for growth. New departments were added, including design, buying, and merchandising, and systems were introduced. MOSt importantly, middle management gained experience Of what it takes tO open and run a new store. The lessons from earlier mistakes were integrated intO procedures and policies; by building on experience, every new store opening became easier than the last. The dangers of processes and of hierarchy ()f it becomes excessive) are that they may begin t0 grip the organization tOO tightly. ProtocoI and bureaucracy can wear people Excess and habit EnabIers are the realm of middle managers, according t0 Michael Hammer's analysis 0f the science Of management. When implemented and maintained efficiently, they foster growth and turn the vision Of senior executives intO reality. 00e & & Design lnfr astructure 、 0 Middle managers down, stifling innovation and (and habits) of RenauIt's managers in 2000 by Renault. The experience venture struggled and was rescued success in the car market, but the same approach would lead t0 CEO Lee Kun-Hee believed that the in electronics, in 1994 Samsung by his business's accomplishment can also lead t0 hubris. Buoyed up convicted Of corporate fraud. Habit his rhetoric ーⅲ 2005 he was reality Of his own behaviour from that he seemed able tO divorce the security firm WCO lnternational, Dennis KozIowski, CEO of Swiss claims Of ethical behaviour from habitual, for example, were the Habit can also twist logic. SO based cell-towers. cheaper, more effective ground- c omp etitors had switched tO throughout the 1990S even after invest in satellite technology example, Motorola continued tO restrict strategic agility. For opportunity, and systems must not process must not blind managers tO technology move ever faster, hindering growth. As markets and have since helped Renault Samsung Motors gain a footing within the South Korean automotive market. Business leaders dismiss the value Of middle management , and the value Of process, at their peril. Without middle managers who are able tO evolve a leader's vision intO reality, many businesses would be stuck like those 0f the pre-railway era, destined tO remain small, local, and family run. lt is the science Of management that enables business evolution and growth. ・ If you can't describe what you are dOing as a process, YOII don't know what you're doing. W Edwards Deming

損 0 C 引 0 ↑ 0 ~ 0 and that they have the skills and a profitable niche ー tO succeed, Ⅱ businesses start from the knowledge t0 turn the original firms need tO dO something same point: an idea. lt is different in order tO stand out in concept intO a successful business. what happens t0 that idea the market. The strategy for most lt follows that the idea must that determines business success. firms is tO differentiate; this means be profitable. Sometimes, an idea According t0 月な e. て e 月 eu て demonstrating tO customers that may 100k great on paper, but turn magazine, nearly half 0f all new they 0ffer something that is not out tO be uncommercial when put start-ups fail within the first three intO practice. Determining whether available from competitors ー years. Beating the Odds at start-up a Unique or Em0tional Selling an idea has potential requires a is tough. First and foremost an idea, Proposition (USP or ESP). study 0f the c omp etition and the no matter hOW good, must be Such attempts tO stand out are relevant market. WhO is competing combined with entrepreneurial everywhere. Every business, and for customers' time and money? spirit, defined as the willingness at every stage Of production, from Are these competitors selling tO take risk. Without entrepreneurial raw-material extraction tO after- directly competitive products or spirit a great idea might never be sales service, tries tO distinguish possible substitutes? HOW are pursued. N0t all ideas are good itS products or services from all competitors perceived in the ones though; it would be a foolish others. WaIk int0 any bookshop, market? HOW big is the market? entrepreneur whO rushed a product for instance, and you Will see MOSt markets are increasingly tO market without careful thought, countless examples Of books, Often global, crowded, and competitive. research, and detailed planning. Few firms are lucky enough t0 find on the same topic, using design, Risk might be inherent in business style, and even size (large or small) enterprise, but successful tO stand out from the competition. entrepreneurs are those WhO are Gaining an edge 0ften depends not only willing tO take risks, but on one Of tWO things: being first are aISO able tO manage risk. intO a new market niche, or being Realistic ー 0 ositio 取 s different from the competition. For example, in 1995 eBay was first Having an idea is the first step ー intO the online auction market, the next hurdle is finance. Some and has dominated it ever since. start-ups require very little capital, Similarly, VOIVO was first t0 identify and a few require none at all. However, many require significant the opportunity for luxury bus sales backing, and most will need t0 seek ⅲ lndia, and has enjoyed healthy sales. ln contrast, Facebook was by funding at some stage in the growth process. An entrepreneur no means the first social network, but it is the most successful; its m11St be able tO convince financial backers that the c oncept is valid edge was having a better product. The only thing worse than starting s omething and failing ... is not starting something. Seth Godin US entrepreneur ( 1960 ー )

WORKING WITH A VISION 169 For as long as products remain the only one 0f their kind available, the firm that is first tO market has a monopoly position; this means it can set the price, establish loyalty, and build a reputation before comp etitors catch up.When competition does arrive, the first-mover still has the advantage, because it has established itself. This is generally the case even When subsequent products are better than the first. lt's all in the mind AI Ries and Jack Trout, authors of The 22 加フ mu 亡 a わノ e Laws 九イ a ⅸ e 亡加 g, , developed a theory of why the first firm tO market can continue tO dominate. They proposed that the customer's perception Of where a product or service SitS in the market iS Of utmost importance, claiming that 'it is better to be first than it is to be better". lt is easier tO get intO the consumers' minds first than tO dislodge a product or service from their minds and convince them that your firm has a better product. Ries and Trout argued that most marketing stems from the assumption that firms are fightmg a product battle rooted in reality. But consumers are not concerned with reality; they make purchases based on perception. "Being first in the mind is everything in marketing. Being first intO the marketplace is important only tO the extent that it allows you tO get intO the mind first," say Ries and Trout. The car in 0 取 t Japanese car manufacturer Toyota aims to be first to market, and imparts this message in the minds of consumers with the slogan: ・ The car in front is a Toyota". Toyota was the first firm to introduce a hybrid car - With an engine drawing p ower from b 0th p etrol a nd electricity - tO market. lts Prius went on sale ⅲ Japan ⅲ 1997. Several manufacturers considering the concept 0f a hybrid car in the 1980S , but combining an internal combustion engine and an electric motor required significant investment. Despite this, Toyota knew that if they could lead the way, there would be a number Of advantages for the firm. First, Toyota would gain early-adopter consumers WhO were looking for 1 The key to success for S ony, and tO everything in business . . IS never to follow the others. lbuka Masaru Japanese co-founder Of Sony ( 1908 ー 99 ) Toyota's first move intO the market developed their own hybrid models, as Ford and Vauxhall, have now AIthough other companies, such closest rival Honda's 12.5 per cent. cent market share, compared tO in 2012 , giving Toyota a 21.1 per was the top-selling car in CaIifornia lead the hybrid market. The Prius ten years later Toyota continued tO worldwide in 2001 , and more than The Prius went on sale firm's innovative capabilities. Toyota's new products and the generating excitement about protection, while at the same time firm's commitment tO environmental because Of its clear message Of the it would enhance Toyota's image, would favour a hybrid car. Third, USA, where emissions legislation and existing markets, such as the car would increase access tO option. Second, creating a hybrid an environmentally friendly driving ever-growing market. ・ continues tO yield benefits in an in return for a market-leading position. tO invest significant development funds market for Toyota. The firm was willing won a sizable share Of the low-emissions The Prius petrol-electric hybrid car has

IFYOUCAN Y 側 C 面 20 昨飾 G THE 側 DS 町 S 頂訂 - IN CONTEXT FOCUS Business start-ups KEY DATES 18th century The term "entrepreneur" iS used tO describe someone WhO iS willing t0 risk buying at certain prices and selling at uncertain prices. 1946 Professor Arthur Cole writes 月 A. 〃盟て〇 ac. 力の E. 月な e 肥月 eu て s. 力の , sparking interest in the phenomenon. 2005 The micro-finance, non-profit site Kiva ℃ om launches tO make small loans tO very small businesses. 2009 Crowdfunding websites , the rules , and got intO trouble. aggres Sive behaviour, broke entrepreneurs exhibited as teenagers, many successful and Yona Rubinstein finds that 2013 A study by Ross Levine for businesses. ind ividuals tO provide funding such as Kickstarter.com/ allow Beating the odds at start-up requires.. he reasons for starting a business are many. Some people dream 0f being their own boss ー 0f turning their hobby intO a profitable enterprise, Of expressing their creativity, or Of being richly rewarded for their hard work. Although Walt Disney's maxim "if you can dream it, you can dO it" holds true for some, pursuing the dream IS risky. Those whO attempt it must have the entrepreneurial spirit t0 fearlessly quit a wel ト paid j0b, go it alone, and face a future filled with uncertainty. Others might need a push; 0ften redundancy (and its associated lump-sum payment) can be a

188 Shrivastava, and Firdaus 1987 lan Mitroff, Paul KEY DATES Business crises FOCUS IN CONTEXT Often tO a firm's detriment. crisis t0 be publicized rapidly, 2010S Social media allows a technology failure. With terrorism and major planning is introduced tO cope 2000s Business continuity change; and monitoring. and actions ; implementation Of Of impending trouble; decision criSiS management: diagnosis C Pratt suggest a model for 1995 A Gonzalez-Herrero and social-political perspectives. te chnological- structural and approach, using psychological, requires an interdis ciplinary say that organizational crisis Danny MiIIer, and Anil MigIani 1988 Shrivastava, Mitroff, "Effective Crisis Management". Udwadia publish the paper THE CHINESE W 佩 0 "CRISIS"IS COMPOSED TWO C 師田 S : “礪冊田” AND "OPPORTUNITY" CRISIS MANAGEMENT ankind has faced crises throughout history, from natural disasters tO man- made calamities. Businesses face similar crises ー internal or external events can pose major threats tO the organization. Unpredictable in nature, they require quick decision- making and action from leaders. GIobaIization has increased the complexity 0f the business world, SO an event in one country can A firm develops a crisis management plan covering "whO, what, when, where, and how" for the first critical hours. The crisis is effectively managed and, if possible, turned intO an opportunity affect businesses across the world. At the same time, digital 24 / 7 communication means that travels far and fast. The result is that crises may seem tO more prevalent than they were during the pre ー digital age. The random nature 0f crises means that they can strike anywhere. wpical crises include technological Responding tO crisis An unpredictable, major crisis hits the firm requiring immediate decisions and actions. Leadership takes control and puts the cr1SiS management plan intO action