CategoryBusiness

Company Health Not Shareholder Wealth

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A company’s health—not its shareholders’ wealth—should be the primary concern of those who manage corporations. That may sound like a small change, but it could make companies less vulnerable to damaging forms of activist investing—and make it easier for managers to focus on the long term.

Joseph L Bower in HBR May-June 2017. 

Strategy

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The essence of strategy is choosing to perform activities differently than rivals do. If you have a same set of strategy with your rival do, you would not be able to significantly outperform them.

What Matter Most to Strategy Execution?

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When a company fails to execute its strategy, the first thing managers often thinks to do is restructure. But research shows that the fundamentals of good execution start with clarifying decision rights and making sure information flows where it needs to go. If you get those right, the correct structure and motivators often become obvious.

Like Button

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Contrary to what marketer believe, Facebook page wouldn’t help you if you don’t have the customer first. People come to the page not because the page in facebook exist, but because they already like your product. The mere act of liking a brand does not affect a customer’s behavior or increase purchasing. Nor does it spur purchasing by friend.

So how to know when you start to advertise then?

Get a metric across the whole product and validate your assumption by experimenting in 9-10 different content type in 2-3 months. If something seems like a good hit, you can start advertise, and then validate the result against the metric again.

 

 

atmawarin

Someone from Yogyakarta. Love trees, Mario Kart and letter G. Blurry eyes, five foot six, black hair. A husband, father, managing director, day by day – in that particular order.

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