Book description
What keeps great companies winning, year after year, even as yesterday's most hyped businesses fall by the wayside? It's not what you think -- or what you've read. To find the real answers, strategic management expert Alfred Marcus systematically reviewed detailed performance metrics for the 1,000 largest U.S. corporations, identifying 3% who've consistently outperform their industry's averages for a full decade. Many of these firms get little publicity: firms like Amphenol, Ball, Family Dollar, Brown and Brown, Activision, Dreyer's, Forest Labs, and Fiserv. But their success is no accident: they've discovered patterns of success that have largely gone unnoticed elsewhere. Marcus also identified patterns associated with consistently inferior performance: patterns reflected in many of the world's most well-known companies. Drawing on this unprecedented research, Big Winners and Big Losers shows you what really matters most. You'll learn how consistent winners build the strategies that drive their success; how they move towards market spaces offering superior opportunity; and how they successfully manage the tensions between agility, discipline, and focus. You'll learn how to identify the right patterns of success for your company, build on the strengths you already have, realistically assess your weaknesses, and build sustainable advantage one step at a time, in a planned and logical way.
Table of contents
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Big Winners and Big Losers
- Preface
- About the Author
- 1. Persistent Winning and Losing
- 2. Companies That Hit and Missed The Mark
- 3. Companies That Keep Winning
- 4. Sweet Spots
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5. Agility
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- Respond Swiftly to Threats and Opportunities
- Don't Get Too Big—With Smaller Size Comes Greater Flexibility
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Grow Your Business in Accord with Your Customers' Changing Needs
- Work Closely with Customers on Product Design and Delivery
- Collaborate Closely with Customers on Special Projects
- Develop Intimacy with Customers Through Joint Ventures and Long-Term Contracts
- Grow Your Business with Innovative Products
- Grow with Customized Products and Services
- Grow Via Alliances
- Grow by Means of Integration with Your Customers' Infrastructure
- Grow by Controlling Distribution
- Move Toward New and Promising Markets Where Customers Have Specialized Needs Only You Can Meet
- Be an Aggressive Acquirer, Taking Advantage of the Opportunities to Broaden and Enhance Your Product Offerings
- Be Sufficiently Diversified So That You Can Compensate for a Decline in One Segment with Strengths in Another Segment
- In Summary
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6. Discipline
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Maintain Ongoing, Effective Programs That Reduce Costs and Raise Quality
- Use Systems Such as Advanced Computer-Aided Design and Manufacturing, Statistical Process Control, and Just-in-Time Inventory
- Rely on a Value Improvement Process (VIP), with the Goal Being to Increase EVA (Economic Value Added)
- Install Process Controls, Share Best Practices, and Prune Inefficient Operations
- Design with Customers and Elicit Competitive Bids from Vendors
- Institute a Formal Project Review Process
- Develop Best-in-Class Service Paired with Volume-Driven Efficiency
- Create a Direct Store Delivery (DSD) System
- Rely on No-Frills Stores, Innovative Store Designs, and Neighborhood Locations
- Control Distribution
- Make for Smooth Transitions in Managing Your Acquisitions
- Create a Special Culture to Get Your Employees Involved
- Monitor and Influence Regulatory Changes, and Promptly Comply with Policies That Affect the Firm
- In Summary
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Maintain Ongoing, Effective Programs That Reduce Costs and Raise Quality
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7. Focus
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Focus on Core Strengths—Stick to Your Mission
- Streamline by Spinning Off Noncore Businesses That Detract from Your Mission
- Focus Away from Activities That Have High Risk of Failure
- Gain Flexibility by Selling Products While Other Companies Take on the Risks of Development
- Exploit Brands Through Sequels and Related Products
- Have a Plan to Reach Out Through New Channels
- Totally Dedicate Yourself to a Single Customer
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Develop High-Growth, Application-Specific Products for Markets with Growth Potential
- Extend Collaborative Solution Providing Activities to New Domains
- Derive Advantage from Solutions, Not Patented Technology
- Identify and Satisfy Critical Customer Needs
- Limit Selling to Products with Large Demand
- Use Service to Be on the Cutting Edge of Customers' Needs
- Carefully Target Special Niches
- Extend Your Global Reach
- In Summary
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Focus on Core Strengths—Stick to Your Mission
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- 8. Companies That Keep Losing
- 9. Sour Spots
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10. Rigidity
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- Do Not Rely Exclusively on Expansion of Your Core Products for Growth
- Avoid Over-Reliance on Hard-to-Differentiate Commodity Products Sold on the Basis of Price
- Do Not Accumulate Additional Capacity at High Prices When Demand Is Insufficient
- Respond Vigorously When Experiencing a Decline in Your Core Business Area
- Don't Lag in Recognition and Reaction to Changes in Your Customers' Tastes
- Bigger Is Not Necessarily Better
- Move to Profitable Niches
- In Summary
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11. Ineptness
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Develop Capabilities to Provide Best-in-Class Service and Customizable Offerings at Low Cost
- Deal Effectively with Productivity Challenges
- Do Not Provide Less Service and Support When Losses Mount
- Do Not Allow Cost Savings to Erode Levels of Service
- Turnarounds Need to Improve Service, Lower Costs, and Define Unique Niches
- Do Not Underprice Products
- Do Not Allow Cost-Cutting to Result in a Neglect of R&D and Innovation
- Make Sure That Repeated Restructuring Works
- Gain Mastery Over the Supply Chain
- Be Proactive in Managing Your Acquisitions
- Make Sure Your Employees Are Motivated
- Maintain High Ethical Standards and Develop Capabilities to Manage Regulation
- In Summary
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Develop Capabilities to Provide Best-in-Class Service and Customizable Offerings at Low Cost
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12. Diffuseness
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Maintain a Clear Strategic Direction—Do Not Spread Yourself Too Thin
- Maintain Connections Among Your Main Businesses
- Create Synergy
- Have Related Holdings
- Establish a Long-Term Plan for Acquisitions and Divestitures and Stick to It
- Avoid Involvement at Too Many Different Ends of the Value Chain
- Simplify Instead of Expanding What You Do
- Ensure That Your Divisions Have Common Goals
- Focus on Markets That Have Future Promise
- Do Not Rely on a Global Focus to Fix Domestic Problems
- In Summary
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Maintain a Clear Strategic Direction—Do Not Spread Yourself Too Thin
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- 13. Winning and Losing Practices
- 14. Turnarounds
- A. Best Sellers Compared
- B. Using the Stock Market as an Indicator of Performance
- C. Additional Data on the Companies
- D. Patterns of Winning and Losing Companies
- Acknowledgments
- Sources
- Endnotes
Product information
- Title: Big Winners and Big Losers: The 4 Secrets of Long-Term Business Success and Failure
- Author(s):
- Release date: October 2005
- Publisher(s): Pearson
- ISBN: 9780131451322
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