Handouts_Final Handouts

Handouts_Final Handouts - o o o Strtegic...

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Unformatted text preview: o o o . Strtegic ProceSS;~-Man4gement Product lnnovationfExcelleuce - Nike -Merek -Sony Latest Products ® MOmROLA Activity Based Management Customer Intimacy Operational Excellence - FedEx - Wal-Mart - Costco Operational Excellence Personal Touch and Feel .. - .. , . ..’_ I . 'u i. i. _ \— 1 | i _ \ . | Balanced Scorecard Measures Measures Sales Growth Financial Customer Complaint Response Time Percent How do we How do our Order Rate EVA look to customers armless Delivery Operating Margin shareholders? see us? Warranty Claims Product Defects Internal Innovatlon New Ideas Implemented Cycle Time 8* mammg Percent of Sales From Labor Productivity At what must HOW can we New Products Product Cost we excel? improve artd Number of Patents create value? Bela V. Balachandran ,. J.L. Kellogg Graduate School ' . ABfl TECHNOl OGIES 11th ANNUAL INTERNATIONAL CONFERENCE of Management The Four Sides of Electronic Value Addition with e-Commerce Nove|ty -New Architectural Configurations -New Components and Options -New Customer Value *CRM Efficiency ' -Search costs I' -Selection Range a -Symmetric information i' °Simplicity fix; it Lock-In u as! -Speed I -Switching costs -Scale Economies. etc. .Bundling i 'SRM -Loyalty Programs Customization, etc. -Positive Network Externalities - 'Direct Complementarities -|ndirect -Complementary Products and 'ReVenUe Drivers Services for Customers -Leveraging Excess Capacity Bala V- Balachandran J.L. Kellogg Graduate School ABC TECHNOLOGIES 111h ANNUAL INTERNATIONAL CONFERENCE 18 of Management Building Blocks of the e—Corporation Direct Material MRO Suppliers I cusmmersl R9591 ers Bala V. Balachandran J.L. Keilogg Graduate School ABC TECHNOLOGIES 11th ANNUAL. INTERNATIONAL CONFERENCE of Management TIE THE SALESMEN'S BONUS TO THEIR FORECAST ILLUSTRATION B. V. Balachandran BONUS BASED ON PERFORMANCE, STILL LIKE A COMMISSION BUT W] I H PROFITABILITY IN MIND: Let NC = NORMAL COMMISSION PER UNIT = $1.00 - 10 PERCENT ON A $10!UN1T AVERAGE PRICE OA = COMMISSION IF THEY OVER ACHIEVE THAN WHAT THEY FORECASTED: - (NC - A PFNALTY SHARE FOR RUSH ORDER PRODUCTION, LOST SALE etc.) $0.95 (NC - 005) II COMMISSION IF THEY UNDER ACHIEVE LESS THAN WHAT THEY FORECASTED. UA (NC - A PENALTY SHARE FOR EXCESS INVENTORY CARRYING, COST OF OBSOLESCENCE) MO = $0.00 (NC + 0.10) BONUSON _ (NC*F) +OA(A-F)IFFSA PERFORMANCE (NC*F) ~UA(F-A)IFF>A CONSIDER SALESMAN KNOWS A; PLAYS POLITICS WITH F F = 1,000,000 A = 1,000,000 F= 900,000 A = 1,000,000 F= 1,100,000 A= 1,000,000 ...
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Handouts_Final Handouts - o o o Strtegic...

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