It seems like this week¿s theme is slightly contradicting of last weeks. Week 4 was all about making firm decisions without stressing too much about the planning process, whereas this week it seems that the emphasis is placed more heavily on the planning process and making a strong business models and strategies. In Mondays lecture we discussed Porter¿s Generic Strategies and how they might affect the decisions and overall well being of our firms in the long run. Peter seems to speak riddles sometimes and he did a great job at confusing us on whether or not the best option in Mike¿s Bikes is to differentiate our market segmentation or focus in and specialise on one area. This was a point in which our team debated much on before agreeing on a strategy I can not reveal in this journal.
This week¿s readings were mainly reemphasising the theme of Mondays lecture, and elaborated further into the idea of business strategy and how valuable a sound business model can be to an organisation. Kim and Mauborgne (2002), discuss the importance of using a strategy canvas to understand your industries strategy profile by gaining better awareness of which factors affect your competition. This is a tool I know my group will find useful as we will eventually end up tailoring our strategy to deal with how our competition is behaving. I found the example of Cirque du Soleil in Kim and Mauborgne¿s article (2004) about blue ocean strategies to be quite compelling. It makes sense that by creating your own industry and demand outside or within a current industry you can become more successful. This is a concept our group will have to explore greatly and hopefully learn how to potentially create our own blue ocean strategy in Mike¿s Bikes. The final reading by Magretta (2002) further insisted on the importance of crafting a business model, because it tells a story about your organisation and also assists in strategic planning. An effective business model is something my team has yet to draw up, however, after reading this article It will now appear on the top of our priority list.
My Mike¿s Bikes team is becoming more and more efficient at working with each other, and the main thing I have learnt from the team this week is the value of knowing our particular roles. We have a very communal way of discussing and making decisions, however sometimes it would be more beneficial if we all stuck to our roles so we could provide more specific advise relating to those areas.
Kim, W. C. & Mauborgne, R. (2002). Charting your company¿s future. Harvard Business Review, 80(6), 76--83
Kim, W. C. & Mauborgne, R. (2004). Blue ocean strategy. Harvard Business Review, 82(10), 75--84
Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86--92