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Market and organizational changes can require you to shift your strategic focus. Market and organizational changes can require you to shift your focus. Remember that your team’s time and energy is a fixedasset. Remember that your team’s time and energy is a fixedasset.
Too many business leaders are preoccupied with the next answer to growth and find themselves stretched thin – trying to play in too many disparate markets and pursuing multiple strategies and directions that undermine rather than reinforce each other. As a result, they forgo the right to win in any market. .
In The Essential Advantage : How to Win with a Capabilities-Driven Strategy , Booz & Company’s Paul Leinwand and Cesare Mainardi maintain that success in any market accrues to firms with a coherence premium – a tight match between their strategic direction and the capabilities that make them unique. Let’s go after it.”
At many companies the total cash investment in acquisitions, R&D, and fixedassets has not earned back its cost of capital after adjusting for the time lag in realizing incremental benefits. It was the first time a vice chair would be based in an emerging market. Decision making Leadership'
Questions like this involving issues like politics, human rights, or equality often present themselves sooner or later for any business operating in global markets. Over the course of the last few decades, multinationals have entered and left “frontier markets” like Venezuela, Cuba, Iran, Vietnam, Myanmar, and others.
For the former, we examined the presence and market penetration of disruptor companies; we also considered incumbents’ financial performance. Multinational beer companies have responded by investing in or acquiring large craft brewers such as Lagunitas, Craft Brew Alliance, and Goose Island to gain an immediate foothold in the market.
But as we accept that leadership comes in many forms, from managing crises to coaching employees, we need to do the same when it comes to innovation. It’s the continuous technological innovations that will exploit your fixedasset base. And your business needs all of it.
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