The readings for this week and Monday¿s lecture revolved around the topic of strategies. Personally I think it would have been more beneficial to have covered this topic two weeks ago or even last week. The only reason that I say this is that now we are unable to go offline and practice and Solo Mike is very different to NetMike therefore, it makes us slightly hesitant in the deciding and implementation of new strategies as it is a big risk and if it goes badly does not just affect the individual, but there entire team. Although in saying this I also see the positive of having the lecture topics ordered the way that they were. In the real world, in real organisations it is extremely unlikely that you will ever get to practice the decisions you would like to make or the organisational strategy – in the real world these are risks that you will have to take based on research and useful information gathered.
I think that all the readings this week were very relevant to the topic. Magretta (2002) discussed the importance of having a business model as it was described as the ¿story of an organisation¿. I agree with that statement completely as without a business model in place the entire team has no idea what they are doing. Discuss, plan and develop and effective business model and you will already be putting yourself ahead of the majority of your competition as you and your team will know exactly what the organisation is hoping to achieve and how it will be achieved.
This then leads me to the Kim & Mauborgne (2002) reading where they discuss the ¿strategy canvas¿ which basically just tells how that you have to take a step back and look the big picture. In order to achieve the greatest outcome you have to know and understand the market and the organisation¿s competitors. For your company to succeed it doesn¿t just have to perform well, it needs to out-perform its competitors and in order for something like this to be achieved, an understanding of the market, the opportunities, and the competitors is required as well as a humble approach. Never assume that you know everything that is happening, think you know enough and always be aware and cautious of what is going on and decisions that are being made.
The final reading Kim & Mauborgne (2004) approached the idea of strategy from the angle of creating your OWN market or demand either inside or outside of the existing market. While this is a very good idea, it is risky and difficult to implement. Regardless of whether the organisation is going to develop its market internally or externally, a point of differentiation is required that the consumers are going to require. Trying to be innovative and uncover this idea could be something very simple or the most complex process; either way it will need to be well researched and tested thoroughly. If an organisation is effective in creating its own demand the success that the organisation would receive would be great due to the venture into an untapped market of consumers.
If I was to the look at all three readings conjunctively and how they relate to my position as CEO and my team in NetMike; I would still agree with the messages from all three readings however, I am not sure if I would follow them all. Magretta (2002) and Kim & Mauborgne (2002) most definitely, I fully agree that a good business model is required for a team to work effectively and achieve organisational goals, as a business model is basically a step-by-step guide or map to success for an organisation. I think that without a business model, members of team will go astray; a business model is the guide or map that keeps them on the correct path – the path to success. Understanding the market and organisational competitors is also a big factor, in NetMike I am continuously checking what the market is looking like and what my competition is doing; organisations market share as well as other information as well as trying to predict, but never assuming to fully comprehend what your competitors are doing is very important to try and stay ahead of the game per se. Kim & Mauborgne (2004) is slightly more risky and NetMike is not something that I would personally refer to as an area of expertise therefore I wouldn¿t take any risks without the rest of the team agreeing unanimously.
Overall I thought it was a good week in regards to the lecture, the readings and NetMike. The lecture was fairly informative and the readings were enjoyable with some good ideas incorporated into the discussions; and as for NetMike I believe that my team is in a strong position, but it is still early and only time will tell how strong we really are.
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