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SABRE Newsletter
Strategy
February 2004: Where do great ideas come from?
When it comes to generating new product ideas, rarely do they come from senior executives - nor should they. Senior managements' job isn't to create new product and service ideas but rather to create an environment where new ideas can bubble to the surface and then catch them.
January 2004: Trim the Fat
Electrolux had a big problem. Operating in multiple countries with decentralized operations was giving this food services division a stomach ache. In Western Europe Electrolux was competing with 15 - 25 rivals in each country in the professional food services market. The company had 15 product brand...
December 2003: Get it Right
When it comes to developing next generation products only a small percentage of companies seem to get it right. A study followed 28 projects - derivatives of existing successful products on which the future business success depended. Of these next generation products only four successfully met expectations (14%).
November 2003: Balance the Books and Slay a Giant
It was 1982 and Scott Cook was sitting at his kitchen table when his wife started complaining about balancing her check book. Personal computers were still somewhat of a novelty and people were looking for other applications besides word processing and spread sheets. It occurred to Scott that a software package that would assist people with their check writing and account balancing might fly.
October 2003: Find the Rhythm
New product development is a dance between marketing and R&D. In 1957 Earl Bakken patented the first heart pacemaker and in so doing improved and lengthened the lives of hundreds of thousands of people worldwide. The pacemaker was declared one of the ten most outstanding achievements over the last 50 years along with the digital computer and the Apollo 11 Moon landing.
September 2003: Stop Hoping and Start Planning
"Failures are divided into two classes - those who thought and never did, and those who did and never thought" John Salak
August 2003: Taste It First
Strategy is about creating value - value for Shareholders, for Customers, for Employees and yes for Society. A good strategy executed well is relentless - it accomplishes a central set of objectives through a continuously changing set of circumstances.
July 2003: The Value of being Indispensable
Profit is the payment you get when you take advantage of change - J Schumpeter In the retailing world shelf space and shelf location are everything and Proctor and Gamble (P&G) had organized themselves to maximize their share. P&G had traditionally been organized into thirteen business units with thirteen different sales forces. Even though the P&G product lines didn't compete directly against each other the thirteen sale forces did......
June 2003: What Were They Thinking Of?
Lafarge, the large French building products manufacturer had a winner on its hands. In the mid 1980's the company thought it had developed a new method of producing gypsum used in the making of paint and paper. The R&D group thought it could replace expensive ground up minerals with crystals. Adding crystals as paper filler would not only be cheaper but would also improve the texture and appearance of the paper.
May 2003: Differentiating a Commodity
Next to oil it is the second most traded commodity in the world. It's been used as a health drink and at other times been labeled a health risk. It's been around for centuries and yet today it is one of the hottest market opportunities - coffee.
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