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When Kevin Ozan took over as the CFO and Steve Easterbrook as the CEO of McDonald’s in 2015, the global fast- food giant was in a state of crisis. Its once- loyal customers were fleeing to direct competitors, sales were slagging and stores were being shut down, amidst fears of food health and hygiene. Now, more than three years on from their appointment, the company is doing way better, under this leadership team. The first step that Ozan took on being appointed as the CFO, was to revive the talent management practices that had once worked so well for the company. Not just with employees, but the idea was to retain, regain and convert customers, via a three- stage process. Thorough marketing research was conducted in the ten markets to reveal the key pain points, and they were quite diverse but also had common points in disparate areas such as Japan, Germany and the USA. Global trends also favored people moving away from the QSR (Quick Service Restaurants) format to fast- casual or fine dining options. So, a campaign titled Experience of the Future (EOTF) was launched to prise away the customers switching and to even convert those non- loyal fans. This proved to be a grand success.

Source:https://www.mckinsey.com/industries/retail/our-insights/fast-action-in-fast-food-mcdonalds-cfo-on-why-the-company-is-growing-again?cid=other-eml-alt-mip-mck&hlkid=b1ea3c6f030445598f962c0b803e4618&hctky=2657824&hdpid=9379b137-9f46-49a3-809f-e63c0aa30e48

Uploaded Date:22 January 2019

 

A lot of business strategists make one crucial mistake while planning out their corporate strategy. They must plan according to their strengths, rather than constantly fighting to set back their weaknesses. This will also help in spelling out what the brand needs to compete for and shape its future accordingly. To do this, first of all, the brand has to accept its inherent weaknesses. Only then, must the specific strengths be clearly spelt out. This will help leverage these super- skills. The corporate training programmes then arranged, need to further build on these strengths to design for the future. Instead of trying to solve everything at once, the right problem needs to be identified before rectifying.

Source:https://www.strategy-business.com/article/Design-for-Your-Strengths?gko=6fc72

Uploaded Date:10 January 2019

There are some crucial questions that C- suite members need to probe themselves on, when trying to get above- average returns from the market. First of all, they need to assess where is this growth going to emanate from. For this, they need to capture authentic business intelligence. Granular bits of data need to be collected post the proper customer segmentation. Next up, the executive needs to plan for the present as well as future growth streams. This has a three- stage journey, beginning with investing on the right resources. This would not alone be enough, as it has to be backed up by the right performance. Only then can customer- centric design be curated by the firm. To actually implement this growth machine, the entire strategy needs to be well aligned. This must start with the right talent recruitment, so that all key positions get filled up. The communication used also needs to emphasize growth instead of mere productivity.

Source:https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/growing-faster-than-the-market

Uploaded Date:10 January 2019

A study conducted by the CIO magazine in 2017 confirmed that about a third of all CRM (Customer Relationship Management) projects fail. A number of reasons have been cited for the same. The common ones being data integrity issues, technology adaption or being over- budget. Today CRM tools are being used to muster a number of fronts such as progress reporting, improve business intelligence, predict the project completion dates and much more. The demands on the software tools are too much. Instead, marketers need to rethink the role of the CRM tools as a revenue source. The right corporate training need also be provided by the managers for their subordinates to improve process, not for inspection of work. Finally, the marketing and sales efforts need to be aligned on the same page.

Source:https://hbr.org/2018/12/why-crm-projects-fail-and-how-to-make-them-more-successful?utm_campaign=hbr&utm_source=twitter&utm_medium=social

Uploaded Date:10 January 2019

Design has now become an essential part of business. The aesthetic appeal of several brands has enabled the same to rise above their competitors. The McKinsey Design Institute (MDI) has thus been curated to cater to the design thinking needs of various businesses. Four major values have been identified which business need while finalizing their design strategies. They must understand that the talent recruitment to be done for this, must be from a diverse professional background. The leadership behind this initiative hasto have an analytical bent of understanding. The iteration or testing has to be continuous a process. Ultimately, it all boils down to the user experience. It has to be easy to use and implement. A strong correlation has been found between the business performance and the scores attested by the MDI. This is true across the industries surveyed which are- retail banking, medical technology and for consumer goods.

Source:https://www.mckinsey.com/business-functions/mckinsey-design/our-insights/the-business-value-of-design

Uploaded Date:07 January 2018

There is much debate on the role of the board in setting the corporate strategy. Some say that the board must do the entire thing, others say that it must be those in the management as they handle the business on a regular basis. Yet others feel that the CEO must put in the proposal, merely to be given final approval by the board. The best method though would be somewhere in between. It needs to be a three- step process. At the first stage, the CEO must look out for the board’s suggestions before proposing one himself/herself. Next, the CEO must address the board on strategic possibilities. These need to be scrutinized in detail by the board. Once this is done, the CEO must put in the final strategic choice to the board, for approval. This strategy setting may also be a litmus test for the CEO, as failure to set the right one, would simply mean, a new one would be required.

Source:https://hbr.org/2018/12/the-boards-role-in-strategy

Uploaded Date:07 January 2019

2018 was a tough year for several diversified companies, witnessing several breakups. Examples of large companies witnessing breakups or spinoffs include the likes of Kraft, Alcoa, HP, AP Moller- Maersk and Siemens. This is a trend long foreseen by experts in the fields of finance and corporate strategy. They predicted the doom of ultra- diversified companies. They have argued for divestiture whenever the businesses within a portfolio do no correspond with one another. However, before jumping into the bandwagon and calling the concept of conglomerates as dead, one has to look at several of them, still thriving. The Mahindra Group and Alphabet are such examples.

Source:https://sloanreview.mit.edu/article/a-new-playbook-for-diversified-companies/

Uploaded Date:31st December 2018

For today’s industry incumbents, a word of caution would be suggested. The time period for staying on top in almost in any industry is shrinking by the day. Companies need to have the right organization structure and strategy to ensure they can sustain their leadership position. There are some that have gone down, and then bounced back up such as the likes of – Owens Corning, Delta Airline and General Motors. The rapid churn in technology is changing everything quicker than ever before. Data warehousing is now more essential than ever before as the information captured can then be processed to get the meaningful insights. There are three factors that all such futuristic companies need to be working one. One is to have a set company identity, by which it can be recognized. It must include a set of social connections and values. Capabilities too need to be honed accordingly. For this, the leadership model needs to be reworked and the management training programmes personalized. A sense of agility needs to be unleashed to this decision making. Speed and emergent strategy must be a part of this new outlook towards urgency.

Source:https://www.mckinsey.com/business-functions/organization/our-insights/organizing-for-the-age-of-urgency

Uploaded Date:31st December 2018

There exist several metrics nowadays to measure the performance of any startup, but one metric above all in terms of importance has to be the NPS (Net Promoter Score). This is because startups are unlikely to have large marketing budgets, but a positive NPS creates a marketing pipeline by generating a positive word-of-mouth. Business intelligence supplied post a study done by Small Business Trends and Verizon, reaffirms that for 85% of small business owners, a positive word-of-mouth becomes the main source for driving sales. NPS calculation is simple as it simply minuses the percentage of detractors from the percentage of promoters. A score of between zero and six is considered poor, seven and eight average, while nine and ten are positive scores. Amazon and Netflix, unsurprisingly lead their respective industries, as per inputs provided by Retently. Companies with higher NPS, tend to be better at customer retention as confirmed through the loyalty shown towards the iPhone. NPS scoring is often done on the basis of some survey questions. These may be fraught with self-selection biases, so it must never be considered the perfect method, as there isn’t any such. To curate the best practices in scoring NPSs, the right vendor or platform has to be identified first. During the research done, the sample size taken must be large enough to support or reject any hypothesis. The structure must be consistent throughout the business research being done. The NPS must also be able to track the changes wrought in between.

Source:https://knowledge.insead.edu/blog/insead-blog/why-meeting-customers-expectations-isnt-enough-9611

Uploaded Date:03 December 2018

Chan Kim and Renee Mauborgne were the original creators of the blue ocean strategy, so have now penned down a book titled Blue Ocean Shift. This book has already been dubbed by the Apple i-Books as the best in the month within the business book section. Here they talk about the importance of nondisruptive creation being as much as the disruptive types. For this kind of non-disruptive business innovation two things are needed, starting with a proper roadmap. This needs to underline that instead of competing, one wants to shift to creation. Next, up the right people are needed, so talent recruitment has to be undergone likewise. An example has been mentioned in the book of a hotel chain which shifted towards a healthier lifestyle by using very less oil, but still managing to conjure up some French fries. Non- disruptive creation also refers to a kind of innovation where no existing businesses went out of work, but simply newer ones were created. Life coaching is one such prudent example, being the second fastest growing profession in the USA.

Source:https://knowledge.insead.edu/strategy/what-it-takes-to-shift-from-competing-to-creating-7246

Uploaded Date:03 December 2018

Amazon is on the verge of becoming the world’s first trillion-dollar company. It’s incredible success boils down to five key factors. The first is that innovation at Amazon is driven form the very top, mentioned as a key tenet at the corporate strategy itself. Instead of viewing merely physical products as assets, at Amazon it is ideas that are seen as such. Since business innovation is prided so much here, so risk-taking is encouraged and failure is accepted as long as one moves ahead with the next innovation. These innovations are driven by -data-backed and customer-centric ideas. Muddled thinking is a complete no here as idea have to be clear, risks taken and the learning incorporated into the next initiative.

https://www.innovationexcellence.com/blog/2018/11/16/how-does-amazon-do-it-five-critical-factors-that-explain-amazons-incredible-success/

Uploaded Date:27 November 2018

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