Understand yourself and Build a Successful Business
Dr. Jamie Hsu
許俊宸
Former Executive Director GM Global Technology Management Professor, College of Management Lawrence Technological University
4/18/2012
Dr. Jamie C. Hsu, LTU
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Focus of This Workshop Do the right things & Do things right Scope the big picture & Sweat the details Business Concept & Business Plan
中学为体,西学为用 Western Methodology
Win
Eastern Philosophy
Different Small Businesses East: Family Business Create business with family members West Business Family Create family with business associates
5-4
“Inside-Out” to Start Your Business C M T S S Self
B
Family Career Business Corporation Industry 許俊宸
“Outside-In” to Improve Your Competitiveness
Understand Yourself and Others Extrovert
Introvert
Intuitive
Sensing
Thinking
Feeling
Judging
Perceiving
Maslow’s Hierarchy of Human Needs and Motivation -- power of our thoughts, choices, and behaviors
Self Actualization “I am ME” Self-Esteem “I am known” Affiliation “I am part of a group” Safety “I feel secure enough” Physiological Needs “I feel comfortable”
‘Friendliness’ vs. ‘Relationship’ Friendliness Caring Sharing
Eastern Culture
Western Culture
Family Elders
Immediate Family
Relatives Friends
Acquaintants
Strangers
Relationship Jamie Hsu, LTU
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Know the Big Rocks in your Life
Rock = Be Pebble = Achieve Sand = Do
Jamie Hsu, LTU
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Align Your Personal & Business Vision and Mission A vision concerns a
firm’s future business path - “where we are going”
Viewed more by employees and shareholders
A company’s mission
typically focuses on its present business purpose - “who we are and what we do”
Viewed more by customers and community
2-11
Business Model The way to make money . . . Concerns whether revenues and costs flowing from the business concept demonstrate a business can be profitable and viable •Google model •Apple model •E-Bay model •What is for your business ?
1-12
Business Model & Value Creation Value Creation
Model I
Technology
Model M
Engineering Design
Model D
Assembly Manufacturing Sale
Service
The Changing World ¾ Diverse markets and cultures ¾ Free-flowing capital, information, and knowledge worker ¾ Reverse generation gap ¾ Catered generation with helicopter parents ¾ Shifting power to consumers & to emerging market ¾ Accelerating business and technology speed ¾ Uncertainty and complexity ¾ Scarce natural resources ¾ Power of networks & miniaturization ¾ Entrepreneur, venture capital, IPO, Private equity
Demographics
Source: U.S. Census Bureau International Data Base
Aging and reducing workforce in G8 countries Percent change in working age (20-64) population 30% 20%
Know Yourself and The Environment SWOT Analysis Current Strength
Future Opportunity
Current Weakness
Future Threat
4/18/2012
Dr. Jamie C. Hsu, LTU
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Strength: 1 2 3
Weakness: 1 2 3
Opportunity: 1 2 3
SO strategies: ? ? ?
WO strategies ? ? ?
Threat: 1 2 3
ST strategies: ? ? ?
WT strategies ? ? ?
How Competitive Is Your Business Concept? Assessing whether a firm’s structure and
costs are competitive with rivals Value chain analysis Benchmarking
4-20
Value Chain Analysis Which internal activities are a
source of Value creation for the customers Which internal activities are a
source of Cost advantage or disadvantage Where to put Resources and Talents How to Organize the company 4-21
Business Plan: “What is in there for me”
Owners/shareholders –return on their investment Employees –interest, benefits, career, growth Customers –reliable, safe, and valuable product or service Suppliers – equitable relationship with firms and be treated fairly Community –businesses to be good citizens in their community 1-22
Success for Entrepreneurs Understand yourself Scope the big picture Sweat the details Align Personal and business vision Manage Show starters & Show stoppers Compete with Distinctive competence and Blue Ocean strategies 7. Rigorous SWOT Analysis &TOWS strategies 8. Value creation & Risk mitigation 9. Clear value proposition for all stakeholders 10. Leverage Eastern and Western cultures 1. 2. 3. 4. 5. 6.