Chapter 10

Assalamualaikum w.b.t

Last week, we have learned about the new chapter which is chapter 10, Building an organization capable of good strategy execution; people, capabilities and structure.

Miss Ummi was explained the detail about the action of agenda for executing strategy. There are:

1. Allocate sufficient resources to the strategy execution effort
2. Establish a strategy-supportive organizational structure
3. Staff the organization with the right people for executing the strategy
4. Exercise strong leadership to proper strategy executive forward
5. Tie rewards and incentives directly to the achievement of strategic and financial targets

Miss Ummi also explained about the several approaches to build building and strengthening capabilities.

• developing capabilities internally
• acquiring capabilities through mergers and acquisition
• try to accessing capabilities through collaborative with partnership. 

Chapter 8 and 9

Assalamualaikum w.b.t

In that week, miss Ummi informed that the corporate agency should diversify their strategy when:

• technologies and product complement it's present business
• resources and capabilities can be used as valueable competitive assets
• cost reduce b cross-business sharing or transfer of resources and capabilities
• transfer a strong brand name to the product of other business help to increse sales and profit 

The corporate agency also need to testing the strategy whether diversification  add value for shareholders.

1. The attractiveness test = investment as good or better than presnt business?
2. The cost of entry test = cost of overcoming entry barries so great as long as delay
3. The better-off test= 1+1=3 synergy

Synergy is 1+1=3. It is not 1+1=2. The advantages and disadvantages of synergy are:

Advantages (+)

• quick entry into an industry
• barries to entry avoided
• access to complementary resources and capabilities

Disadvantages (-)

• pay a premium for a successful firm
• overestimating the acquisition's potential to deliver added shareholder value
• underestimating cost for integrating firm

And corporate venturing is process of developing new business as an outgrowth of a firm's established business operations.

 

Oshima Food Japan sharing session

Assalamualaikumw.b.t

On 12 November, Tuesday. The owner of Oshima Food Japan, Madam Asnidar Hanim Yusuf came to our class and we have the sharing session of her experiences in business field. She was listed the important things and highlighted that as the boarder to the up and down the business.

Madam Asnidar said that businees is form of ibadah. People need your product/services and it is a kind of fardhu kifayah to correspond to people's need. Imagine your life if there is no barber shop, no nasi lemak stall, no baby nursery, maybe yo have to make your own apam balik when you want to eat it? Customer satisfaction is important, but customer's respect towards product/services provider is equally important.

She also shared her common strategy to succeed in doing business:

• have your niche but understand needs
• have a good location 
• increase brand awareness
• retain current customer and increse new one
• make a full use of social media, website or blog (tips: be genuine)
• promotion, promotion and promotion. (coca-cola the best brand in the world never fail to advertise everyday)
• have a passion in your own business don't just copy
• do not use your profit, take salary instead
• your friends and families also pay, if they don't you do
• learn
• do not ask for money, "ikhlas for Allah" money will come

Here, madam Asnidar also explained about the common reason for business failure:

• have no knowledge about business
• do not intend to study about business
• do not separate private private with business account
• have no sense of customer satisfaction
• premises existenceare unknown
• have a little or no budget for promotion
• do not take advantageous af social media, internet etc
• have a little or no budget for HRD, training
• do not have niche in theirproducts or services

All and all, even they hard to get the halal certificate and did not get yet but they not give up in order to get it and keep searching for halal raw material and always motivate our self to move forward.