China,

China is growing at the rate of 11.1%
China has the biggest number of mobile phone users
82% of the software running on PCs in China are counterfeited, down from 93% in 2003.

Biz Strategies Note 3:SWOT

Strength, Weakness, Opportunities, Threats

Situation Analysis
/	\
Internal Analysis	External Analysis
/ \	/ \
Strengths Weaknesses	Opportunities Threats
|
SWOT Profile

the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation.
The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues.

Internal Analysis

• Company culture
• Company image
• Organizational structure
• Key staff
• Access to natural resources
• Position on the experience curve
• Operational efficiency
• Operational capacity
• Brand awareness
• Market share
• Financial resources
• Exclusive contracts
• Patents and trade secrets

External Analysis

• Customers
• Competitors
• Market trends
• Suppliers
• Partners
• Social changes
• New technology
• Economic environment
• Political and regulatory environment

The last four items in the above list are macro-environmental variables, and are addressed in a PEST analysis.

Multiple Perspectives Needed

The quality of the analysis will be improved greatly if interviews are held with a spectrum of stakeholders such as employees, suppliers, customers, strategic partners, etc.

Limitations

the SWOT framework has a tendency to oversimplify the situation by classifying the firm's environmental factors into categories in which they may not always fit.
Perhaps what is more important than the superficial classification of these factors is the firm's awareness of them and its development of a strategic plan to use them to its advantage.

Biz Strategies Note 2:PEST

Political Analysis

• Political stability
• Risk of military invasion
• Legal framework for contract enforcement
• Intellectual property protection
• Trade regulations & tariffs
• Favored trading partners
• Anti-trust laws
• Pricing regulations
• Taxation - tax rates and incentives
• Wage legislation - minimum wage and overtime
• Work week
• Mandatory employee benefits
• Industrial safety regulations
• Product labeling requirements

Economic Analysis

• Type of economic system in countries of operation
• Government intervention in the free market
• Comparative advantages of host country
• Exchange rates & stability of host country currency
• Efficiency of financial markets
• Infrastructure quality
• Skill level of workforce
• Labor costs
• Business cycle stage (e.g. prosperity, recession, recovery)
• Economic growth rate
• Discretionary income
• Unemployment rate
• Inflation rate
• Interest rates

Social Analysis

• Demographics
• Class structure
• Education
• Culture (gender roles, etc.)
• Entrepreneurial spirit
• Attitudes (health, environmental consciousness, etc.)
• Leisure interests

Technological Analysis

• Recent technological developments
• Technology's impact on product offering
• Impact on cost structure
• Impact on value chain structure
• Rate of technological diffusion

In order to deal with highly dynamic external environment, a firm may turn to Scenario Planning for help.

Biz Strategies Note 1:The Strategic Planning Process

Mission

A company's mission is its reason for being. The mission often is expressed in the form of a mission statement, which conveys a sense of purpose to employees and projects a company image to customers. In the strategy formulation process, the mission statement sets the mood of where the company should go.

Objectives

Objectives are concrete goals that the organization seeks to reach, for example, an earnings growth target. The objectives should be challenging but achievable. They also should be measurable so that the company can monitor its progress and make corrections as needed.

Situation Analysis

Once the firm has specified its objectives, it begins with its current situation to devise a strategic plan to reach those objectives. Changes in the external environment often present new opportunities and new ways to reach the objectives. An environmental scan is performed to identify the available opportunities. The firm also must know its own capabilities and limitations in order to select the opportunities that it can pursue with a higher probability of success. The situation analysis therefore involves an analysis of both the external and internal environment.

The external environment has two aspects: the macro-environment that affects all firms and a micro-environment that affects only the firms in a particular industry.

The macro-environmental analysis includes political, economic, social, and technological factors and sometimes is referred to as a PEST analysis.

An important aspect of the micro-environmental analysis is the industry in which the firm operates or is considering operating. Michael Porter devised a five forces framework that is useful for industry analysis. Porter's 5 forces include barriers to entry, customers, suppliers, substitute products, and rivalry among competing firms.

The internal analysis considers the situation within the firm itself, such as:

• Company culture
• Company image
• Organizational structure
• Key staff
• Access to natural resources
• Position on the experience curve
• Operational efficiency
• Operational capacity
• Brand awareness
• Market share
• Financial resources
• Exclusive contracts
• Patents and trade secrets

A situation analysis can generate a large amount of information, much of which is not particularly relevant to strategy formulation. To make the information more manageable, it sometimes is useful to categorize the internal factors of the firm as strengths and weaknesses, and the external environmental factors as opportunities and threats. Such an analysis often is referred to as a SWOT analysis.

Strategy Formulation

Once a clear picture of the firm and its environment is in hand, specific strategic alternatives can be developed. While different firms have different alternatives depending on their situation, there also exist generic strategies that can be applied across a wide range of firms. Michael Porter identified cost leadership, differentiation, and focus as three generic strategies that may be considered when defining strategic alternatives. Porter advised against implementing a combination of these strategies for a given product; rather, he argued that only one of the generic strategy alternatives should be pursued.

Implementation

Must be turned into detailed policies for functional areas:

• Marketing
• Research and development
• Procurement
• Production
• Human resources
• Information systems

In addition to developing functional policies, the implementation phase involves identifying the required resources and putting into place the necessary organizational changes.

Control

Once implemented, the results of the strategy need to be measured and evaluated, with changes made as required to keep the plan on track. Control systems should be developed and implemented to facilitate this monitoring. Standards of performance are set, the actual performance measured, and appropriate action taken to ensure success.

Dynamic and Continuous Process

The strategic management process is dynamic and continuous. A change in one component can necessitate a change in the entire strategy. As such, the process must be repeated frequently in order to adapt the strategy to environmental changes. Throughout the process the firm may need to cycle back to a previous stage and make adjustments.

Drawbacks of this Process

best suited for stable environments.

A drawback of this top-down approach is that it may not be responsive enough for rapidly changing competitive environments.

Another drawback is that this strategic planning model assumes fairly accurate forecasting and does not take into account unexpected events. In an uncertain world, long-term forecasts cannot be relied upon with a high level of confidence. In this respect, many firms have turned to scenario planning as a tool for dealing with multiple contingencies.

Management L2: ERG Theory

The letters ERG stand for three levels of needs: Existence, Relatedness, and Growth.

The ERG needs can be mapped to those of Maslow's theory as follows:

• Existence: Physiological and safety needs
• Relatedness: Social and external esteem needs
• Growth: Self-actualization and internal esteem needs

Like Maslow's model, the ERG theory is hierarchical - existence needs have priority over relatedness needs, which have priority over growth.

Differences from Maslow's Hierarchy

In addition to the reduction in the number of levels, the ERG theory differs from Maslow's in the following three ways:

• Unlike Maslow's hierarchy, the ERG theory allows for different levels of needs to be pursued simultaneously.

• The ERG theory allows the order of the needs be different for different people.

• The ERG theory acknowledges that if a higher level need remains unfulfilled, the person may regress to lower level needs that appear easier to satisfy. This is known as the frustration-regression principle.

Thus, while the ERG theory presents a model of progressive needs, the hierarchical aspect is not rigid. This flexibility allows the ERG theory to account for a wider range of observed behaviors. For example, it can explain the "starving artist" who may place growth needs above existence ones.

Implications for Management

If the ERG theory holds, then unlike with Maslow's theory, managers must recognize that an employee has multiple needs to satisfy simultaneously. Furthermore, if growth opportunities are not provided to employees, they may regress to relatedness needs. If the manager is able to recognize this situation, then steps can be taken to concentrate on relatedness needs until the subordinate is able to pursue growth again.

Management L1: Maslow's Hierarchy of Needs

Implications for Management

If Maslow's theory holds, there are some important implications for management. There are opportunities to motivate employees through management style, job design, company events, and compensation packages, some examples of which follow:

• Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life.

• Safety Needs: Provide a safe working environment, retirement benefits, and job security.

• Social Needs: Create a sense of community via team-based projects and social events.

• Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position.

• Self-Actualization: Provide employees a challenge and the opportunity to reach their full career potential.

However, not all people are driven by the same needs - at any time different people may be motivated by entirely different factors. It is important to understand the needs being pursued by each employee. To motivate an employee, the manager must be able to recognize the needs level at which the employee is operating, and use those needs as levers of motivation.

Limitations of Maslow's Hierarchy

While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence to support its hierarchical aspect. In fact, there is evidence that contradicts the order of needs specified by the model. For example, some cultures appear to place social needs before any others. Maslow's hierarchy also has difficulty explaining cases such as the "starving artist" in which a person neglects lower needs in pursuit of higher ones. Finally, there is little evidence to suggest that people are motivated to satisfy only one need level at a time, except in situations where there is a conflict between needs.

Even though Maslow's hierarchy lacks scientific support, it is quite well-known and is the first theory of motivation to which many people they are exposed. To address some of the issues of Maslow's theory, Clayton Alderfer developed the ERG theory, a needs-based model that is more consistent with empirical findings.

Top 10 Best and Worst Company Practice

Came across this during the noon break.

http://images.businessweek.com/ss/07/04/0409_best_mngt/index_01.htm?chan=home+page+slideshows

http://images.businessweek.com/ss/07/04/0409_worst_mgt/index_01.htm

Think it would be fun to Rank Fuji Xerox and Intel against the benchmark

It's only something seen from the angle of an intern.

Let's start with the bad stuff.

Top 10 worst practices

1. Forced Ranking Systems

These are a pox on corporate leadership ideals. They're arbitrary and work against efforts to encourage teamwork and build morale.

Fuji Xerox: 2 reviews in a year, however the different between rasie of salary is slight

Intel: Focal at fiscal year end. Everybody's striving for a good review. HR handles tons of issues and cases during this period of the year.

None of these two companies seem to have a forced ranking system.

2. Stealing Miles

If my tush is in an airline seat 30,000 feet above the ground (or even worse, sitting on a runway for 11 hours), I deserve every frequent-flier mile those trips earn. Companies who steal their employees' frequent-flier miles do not deserve us as employees or as customers. Shame on them!

None of the two has this practice. I've heard some story that happend the other way around in Intel.

3. Love Contracts

Because they couldn't come up with a more intelligent way to combat sexual-harassment charges, a few bone-headed companies have established "love contracts," which they expect employees involved in romantic relationships with one another to sign. That's just goofy! We should be talking with employees and managers about appropriate boundaries and making it easy to report inappropriate behavior—not shoving contracts in their faces.

Haven't heard about this kind of contracts in neither companies.

But heard some rumors about sexual-harassment in Intel. And saw something REALLY disgesting there too.

4. Anti-Moonlighting Policies

I believe that we shouldn't compete with our employers. If I design kids' clothing for you, I shouldn't have my own kids-clothing design company on the side. But anti-moonlighting policies go further, preventing office employees from tending bar for a few bucks on Friday night or singing Ave Maria at a wedding for a fee. That's an outrage. Companies should manage the work we perform for them, not our free time.

BPX of Intel forbidden employees to take any kind of moonlight that may potentially undermind the company's business. I can't remember if it's possible to do something out of the company's biz scope. But I know people start small biz like cafes & bars in their spare time.

The contract I signed with FX states very clear that I can NOT serve any third party during my stay in Japan. And regular employees can do anything as moonlight enless the company approves.

5. Salary Verification Requirements

Let me get this straight: You expect me to trust that you will provide a great work environment and the training I need and generally live up to what you promised me at the interview, but you don't trust me to faithfully report what I earned last year? Employees who demand proof of past earnings (in the form of last year's W-2) should hire the second-rate employees they deserve, not folks like you.

I heard that Intel has this in China. But it seems like most of the companies there have this practice. However, people don't seem to care about this that much.

In FX, I haven't heard about this.

6."Stitch-level" Dress Code Policies

Every employee should be made aware that your company expects professional attire in the workplace. No argument there. But overly detailed dress-code policies that delve into fashion terms (peplums and flounces) are an insult to intelligent adults. HR people should stay out of our closets and hire only people who wouldn't dream of dressing inappropriately for work.

No. Not this kinda strict in neither two places.

But in FX, whenever you make a biz trip to the headquater, no matter what kind of job you do, you have to wear suit. Maybe this is the Japanese biz practice. And other Japanese companies have the same practice.

7.Outsourced Employee Relations

Outsourcing saves money, so I can't get too worked up when a company outsources dental plan administration, for example. But too many employers have outsourced employee relations so that when you have a problem with your manager, you have to call 1-800-I-Have-A-Problem-With-My-Manager. Employee relations is an on-site function, whether it's a part-time assignment of the boss's assistant (properly trained) or the responsibility of a roving HR rep. Nothing good can come of doing otherwise.

For every biz group in Intel there's a seasoned HR biz partner working on the on-site HR issues.

At FX, this is not outsourced neither. Though people here are so friendly to each other. There are rarely HR issues. I don't know if this is good for the growth of the company. Anyway, corporate culture here.

8. Radio Silent Recruiting

I've written about the cold shoulder that many employers give job seekers. Do companies think that these folks don't buy products and services, too? One of the most obnoxious developments of the past 10 years is the horrendous way employers treat those looking for work. One hopes that the wheel of karma will turn quickly enough to set these companies straight.

I don't know. Since I got both offers.

However, with more than half of the market share in Computer chip and High End printing biz, it's really hard to turn away from these even if you got a cold shoulder.

9.Internet Snooping Programs

In today's work environment, online activity is what personal phone calls were 20 years ago: a fact of life. Everyone indulges a little bit, and companies act like they're horrified (even though managers do the same thing). Internet snooping programs that track an employee's every keystroke and visit to eBay send the message: "We managers can't manage your results, so we'll manage your activities instead." If a great employee spends 20 minutes a day recharging his batteries browsing blogs, good for him or her. Maybe that's what makes that employee a star.

One thing really weired at Intel is that it blocks Google while leaving other sites like personal blogs wild open.

At FX, there are strict Internet snooping regulations. Besides porn sites and other generally banned websites, it also blocks forums, blogs.

10. Golden Parachutes for Nonperformance

I don't mind if my CEO earns 400 times as much as I do if he does his job! Shareholders should push back against parachutes that generously reward the failures of departing leaders.

I'm not sure about this. But my feeling is that Intel is tougher on this than FX.

At FX maybe it's easier to plod away.

Now comes the good stories

1. Employee-Referral Bonuses

The company gets a new employee with no recruiting fee, your friend gets a new job, and you get a check and the gratitude of both your friend and employer. What's not to like?

Intel: Yes

FX: not sure

2. Employee-Driven Transfer Policies

I'm all in favor of policies that let you apply for jobs posted internally without your manager's approval. After all, different folks do better or worse work for different managers. And smart companies would rather have people stay in the organization than move to another employer because a self-interested manager blocked a requested transfer.

Intel: Not clear policies made

FX: Don't know

3.Van Pools and Subsidized Transportation to Work

Being green is where it's at, and companies that help underwrite employees' public transportation costs or provide van pools are way ahead of the curve.

Intel: Flexible Working Hours and Work From Home Policy

FX: Core Time and Flexible Working Hours

4. Town Hall Meetings

Companies that value employee input make a point of sharing news with their team members, virtually or face-to-face. Town hall meetings with leadership are a terrific way to generate ideas and get employee buy-in on new initiatives.

Intel: Bi-weekly BUM

FX: There are Biz Update. But since it's all in Japanese, I can't quite understand.

5.Ethics Hotline

All employers talk about ethics, but the ones who provide a way to report misdeeds are the ones most likely to catch problems. Confidential ethics hotlines allow employees to anonymously report bad actors without taking their chances on the dreaded "chain of command."

Don't know for neither places

6.Distance Learning

We've got the Internet, let's use it! Distance-learning programs let employees gain new skills, right at their desktops.

Intel: You can access a uncountable learning resources through Intel Library, Books 24/7 and a wide range of online and classroom training courses at Intel University.

FX: Limited and somehow boring training programs and no online resources. There is a small library on the 3rd floor of the research center, paper materials are not up to date.

7.Company-Sponsored Alumni Groups

Back in the day, a bunch of former Data General employees started an alumni group called the Grey Eagles, and the idea has caught on. Now, smart companies like McKinsey sponsor their own alumni groups, sending the message: "If you worked for us in the past, we would love to keep in touch in the future." More than a source of job leads and connections, alumni groups help their sponsor organizations hire and retain talented folks.

Neither has.

8. Corporate Social Responsibility Programs

Big companies have done a lot of damage over the years, but some of them are doing great things for the world today through CSR programs. Whether banding their employees together to build houses or providing education for their vendors' employees in developing nations, socially aware employers are making a tremendous difference around the world.

Intel has more.

9. Matching Contributions

Some employers match their employees' personal donations to the arts and to charitable organizations. Others match their employees' 401(k) contributions. Matching donations aren't giveaways. They say to employees: "If you're in, we're in."

Neither has

10. Intranets

Want to know how the company's stock is faring or how the company softball team is doing? Check the company intranet. These sites promote benefits, share job openings, and generally keep employees informed, even when they're working from home or on the road.

Intel is really making use of the intranet with it's ubiquitous use of Sharepoint site, internal blogs, Circuit. And you can access the company network from outside via VPN.

FX has really strict regulations on the intranet and emphasis the data sercurity alot. It's overreaching! And the internal homepage DocuSqure does not seem to be appealing.

Firing the right way

By Jack & Suzy

What Mgrs should do?

1. Preventing the surprising goodbye

Rigorous and candid performance evaluations, twice a year at minimum to let the employees know where are they standing, especially if they are standing close to the exit.

Once you're sitting arocess the table from your own Richard, do not sugarcoat hard messages. You're helping no one least of all the employee who's being lulled into a false sense of security.

2. Help make the exit as devoid of humiliation as possible.

Give the fired employee more time to find a new job where his/her skills are a better match.

Spend more time with the fired employee. Take the employee for periodic lunches and check in with him more often than that.

BootStrapped!

I was reading the preview sections of the book "Founders at work" recently.

The book was made of interviews of 32 founders in the IT field.

You need to have some way to let your customer know about you.

Joel used his blog to gather a huge number of "Joel Fans". And some of them became his first clients at the early days of fog creek.

Quit your job to bootstrap your own business, if you think that you can just spend 1 or 2 hours a day after work to take care of you bootstrap then that's not very likely to happen.

Don't care about your competitors, listen to your customer!

Got yourself a team.

Divide your task force horizontally instead of vertically. It's really hard to find someone who can handle the whole thing, from marketing to engineering.

To get work efficiency, let your team members work separately.

Don't care about what your competitors are doing, listen to your customers

..

Starting Business in Japan

Registering a new company requires that various documents be filed with different government offices and payment of a fee of about ￥200,000. There are English-speaking Japanese lawyers who specialize in navigating the bureaucratic maze for you. Expect to pay ￥250,000 for the lawyer, which means setting up a company costs in total approximately ￥450,000.

It is possible to register a company with capital of just ￥1, but most businesses will need at least several million yen to get started.

Make sure you do your homework. You may find out things are a lot more complicated than you think.

And ask yourself are you really prepared to work 20 hours a day to make it happen? If that feels like a sacrifice, maybe it itsn't for you.