analogy of corporate lifecycles and a population pyramid

Thoughts on the Lifecycle of Corporations

Presumably, a description of all existing companies by age would look similar to a typical population pyramid (without latest effects of excessive aging of populations in some economies). Experience shows that the time span of successful corporate activity is not endless in most cases. Of course, there are many corporations with a history of 50 years and longer. Nevertheless, the number of companies – no matter what size – that have been existing for 100 years or even longer is much smaller.

Is it possible that corporations have a lifecycle, just as products and markets?

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The Eternal Principles for Creating Luxury Brands

Attracting wealthy customers is potentially very profitable. In order to be successful, it requires different approaches than the regular marketing strategy. Dr. Dan Herman, our guest author, states that this …

… involves a deep understanding of their psychological need, of their lifestyle, of the role of brands in their world and in their relationships as well as of their purchasing behavior and spending patterns. Some of these are truly counter-intuitive and surprising.

In this article, he writes about the time proven principles for creating luxury brands. [Read More…]

Excel spreadsheet used as a template for strategic planning

Excel spreadsheets for strategic planning – use with care!

Are you one of those strategic planners who rely on Excel spreadsheets? Don’t worry, you are not alone. Excel is and remains fairly popular in strategic planning. However, there is no denying – Excel is not the perfect solution for this purpose. There are some significant risks and downsides.

In this article, I discuss the pros and cons as well as the alternatives, and share my experience with Excel spreadsheets in strategic and financial planning. [Read More…]

The Boston Box or Growth-Share-Matrix: Four boxes according to relative market share and market growth

The Boston Box, also known as Growth-Share-Matrix

The Boston Box is a well-known tool for corporate portfolio management. It is striking for its simplicity. All information needed is easily obtainable and the conclusions are straightforward. However, it is exactly this simplicity that makes the Boston Box – or Growth-Share-Matrix – a false friend.
This article explains the theory, discusses strategies to be derived, and gives advice on practical application, problems and the models relevance today [Read More…]

Management By Simplicity

Sometimes, management and strategy seem to be fairly complicated issues: everything is complex, interdependent, dynamic … Popular writers as well as business schools keep telling us how difficult it is to get all these things right. Everything else will lead to failure.

Our guest author Praveen Kumar. S shares some stories about businesses with very simple management systems – who are actually very successful! [Read More…]

Internal Communication of Change

In this paper I will discuss one specific reason for failure of effective internal communication of change. My hypothesis is that change is communicated by the wrong people. It is not that these people are unwilling or not experienced enough. But that they are too deeply into the issue. Hence, they simply don’t know how to explain it in an understandable way. [Read More…]

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Leading strategic initiatives under uncertainty

At first glance, this seems to be an article about uncertainty and how to handle it in the context of strategy. However, it actually is about governing strategic initiatives. The key question is:

What is the best way to move from a company strategy to … a stream of initiatives that will deliver it?

The secondary objective would be to improve the success rate of strategic initiatives, which often have a high failure rate. Uncertainty is just the one and most important condition under which such initiatives are carried out. [Read More…]

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