(Wall Street Journal, 7 May 2012) In Brief: Lenovo Group Ltd, the world’s second-largest PC maker, plans to invest $800 million in smartphones, tablets, and other mobile devices, expanding into new businesses because sales of desktop computers continue to decline. Our View: New growth ventures are inherently risky, particularly as you step away from the [...]
Read more(Forbes, 4 May 2012) In Brief: When companies begin their planning process, they must consider the “change in relative price” of their supplies, this writer says. In other words, don’t just look at the expense of one item; check out the cost of alternatives (one example: the price of diesel fuel vs. the price of [...]
Read more(Knowledge@Wharton, 25 April 2012) In Brief: The crisis in Europe is forcing US multinationals with deep-rooted investments there to rethink their operations, including financial maneuvers and manufacturing strategies, according to this article. They’re preparing for a euro zone breakdown. Our View: We encourage our members to use scenario planning over the next five years to [...]
Read more(BusinessWeek, 20 April 2012) In Brief: Cisco created an in-house startup, Insieme, to respond to rapid scaling of data centers and is acquiring companies to improve its expertise in software-defined networks. Our View: The number one cause of growth stalls is what we call Premium Position Captivity – the inability to adapt the firm’s offerings [...]
Read more(Bloomberg, 18 April 2012) In Brief: Pfizer Inc. is close to selecting a buyer for its infant-nutrition business, Bloomberg News reports. The pharmaceutical manufacturer wants to divest that unit and its and animal-health business to shrink the company and concentrate on developing new drugs. Our View: Progressive strategists continuously review the portfolio in light of [...]
Read more(Bloomberg, 12 April 2012) In Brief: Sony Corp., the world’s third largest television manufacturer, announced plans to revitalize its electronics business by shifting emphasis to mobile devices, games, and digital imaging. The company, a trendsetter in the 1980s with its Walkman music player, will cut costs in the TV unit after eight years of losses [...]
Read more(Financial Post: Executive, 11 April 2012) In Brief: Companies must focus on three things when evaluating potential alliance partners, according to these writers: establishing a set of measurable criteria, developing a process to apply those criteria, and designing a low-risk, pilot project to learn lessons about working towards a shared objective. Our View: That’s all [...]
Read more(Reuters, 5 April 2012) In Brief: With a 5.3-inch screen and a stylus included, the Galaxy Note was ridiculed as a throwback by the technology elite. And yet its maker, Samsung Electronics, has sold 5 million units. Why? The phone’s capability for handwritten annotation is particularly popular in Asia and the maturing smartphone market may [...]
Read more(SmartPlanet, 1 April 2012) In Brief: Starbucks is spending millions of dollars in Europe to remodel hundreds of stores and tweak drink recipes for local palates. Our View: Companies regularly underestimate the degree of change required to adapt their business strategies to new markets. Leading organizations explore their new environment as if they were launching [...]
Read more(Forbes, 2 April 2012) In Brief: To successfully revamp their business models, the CEOs of Comcast Cable, Meritor, IBM, and R.R. Donnelley each focused on developing a culture of innovation. IBM holds regular “jams” for open conversations between employees, business partners, and suppliers. Meritor emphasizes communication and diversification between employees. Our View: We advise companies [...]
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