By Burkhard Schwenker, Mario Müller-Dofel, Christian Krys
Change or die! With this stark declare starts the adventure in the course of the company lifecycle. Why achieve this many businesses fail? Why do managers fight to acknowledge switch early or hesitate to take lively motion? Why – and the way – needs to the conventional lifecycle idea be modernized whether it is nonetheless to supply legitimate orientation?
In this essay, Roland Berger CEO Burkhard Schwenker analyzes the demanding situations dealing with managers this day and explores their implications for strong administration. company administration, he argues, needs to once more turn into extra direct, extra own, extra entrepreneurial. His skilled and considerate research is complemented through insightful, candid interviews with well known marketers and company leaders, performed by means of journalist Mario Müller-Dofel. ultimately, Schwenker outlines an schedule calling for motion in six particular areas.
Read Online or Download On Good Management: The Corporate Lifecycle: An essay and interviews with Franz Fehrenbach, Jürgen Hambrecht, Wolfgang Reitzle and Alexander Rittweger PDF
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Additional info for On Good Management: The Corporate Lifecycle: An essay and interviews with Franz Fehrenbach, Jürgen Hambrecht, Wolfgang Reitzle and Alexander Rittweger
In the maturity (or saturation) phase, companies must learn to succeed with slower or low growth rates. The focus of the transformation phase is to realign the company and gather fresh momentum. Here again, however, entrepreneurial reality refuses to play ball. The advance of globalization, the emergence of new competitors in Asia, constant shifts in factor cost advantages, new technology, demographic change and, by no means least, the fact that stable economic trends – let alone entire cycles – are scarcely to be found these days28 all mean that companies are constantly having to adjust and renew or transform themselves.
This new concept consists of two basic or core phases (Phases 1 and 3) and two transitional or decision phases (Phases 2 and 4). I have given these phases the following names (see figure): Phase 1: Occupying a position. This phase is all about getting started, coming up with the right business ideas, developing products and launching them on the market. Above all, however, it is about rapid growth, about going flat out until you have staked your claim and occupied a position that you can defend against competitors.
The logic still applies today, but new technologies now enable transaction costs to increase more slowly. Let me give you a few examples. 00005% of what it was in 1977. The cost of a transatlantic telephone call has declined by 99% since 1977. 5 billion today, opening up entirely new forms of communication and networking. Now, if transaction costs increase ever more slowly, this shifts the optimal company size to the right, making it bigger. And this simply means that companies must grow if they do not want to see their competitive cost position eroded.
On Good Management: The Corporate Lifecycle: An essay and interviews with Franz Fehrenbach, Jürgen Hambrecht, Wolfgang Reitzle and Alexander Rittweger by Burkhard Schwenker, Mario Müller-Dofel, Christian Krys