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Sunday 18 July 2010

I do not believe Business is all about money!


By Patrick Mayoh

I was privileged last week to be a guest speaker at a local school of my area. The school administration had organized a careers’ week to familiarize pupils with the professional job. And having just completed my MBA I was asked to talk about my understanding of business and why this is important in the society we find ourselves in.
I think the talk went very well. The questions especially from 8 to 10 year olds were really relevant and pertinent; to be honest I sometimes during the QA time felt I was answering to reporters as some of the issues raised were quite difficult to explain and clarify for those children. All in all I must confess I had the time of my life talking to those kids about the relevance of business in our world. I could have spoken and discussed about the same subject matter the whole day, because I was so preoccupied with making sure those children choose to become better business people in the future.
However I must say I was a bit taken aback by the fact that many of the questions after my talk—I held those talks in 3 classrooms—revolved around the issue of money and salaries. Many of the kids were so eager to know if I was earning a big salary and having a very good time being a business man.
On my way home I felt many of those kids dreamt of being business people just to earn big wages and bonuses. This was a bit distressing for me, because I did not choose to become a businessman or study an MBA for the money. I do expect to work in a rewarding job, in an environment where I can fully express my full potential and of course in an organization offering me financial conditions enough to meet my needs and those of my closed ones.
Ultimately I would like to be a businessman because I believe business people can create a better world, a better society. I would like to be part of an organization whose primary concern is to create products or services that will usher a happy and fulfilled society. I am afraid the media and the recent financial scandals (huge bonuses) have conveyed the feeling that being a businessman is all about earning a lot of money.
I think businesses exist in conjunction with governments to make people happy. Money is just secondary to customers’ satisfaction, happiness and fulfilment as a result of using a particular product or service. I think we need to tell our children that being a professional business person is not about money but just about making a major difference in the society. I want to believe David Zuckenberg, Steve Job, Bill Gates and Graham Bell never thought about money when they invented those gadgets we all enjoy today. Although the financial reward in all those cases might be colossal, to me they have created a better world through their products.
In conclusion, I believe we need to tell our children to dream about business people to create better products and better services and not to earn a lot of money or enjoy extravagant financial incentives; they come second to all those items mentioned above. To conclude my talk about business in that school I referred to one of my all time favourites business coaches; Stephen Covey and his legendary principle on seven habits of Highly effective people. I do believe highly effective businessmen or individuals in general think “win-win” because happiness goes both ways, high profit margins should go hand in hand with highly satisfied customers.

Monday 5 July 2010

Swot: asking the right questions

By Patrick Mayoh

The term SWOT (strenghts, weaknesses, opportunities and threats) is probably one of the most used acronym in management circles. This framework was introduced between the late 1960s and the early 1970s by a management consultancy from the Stanford Research Institute ;Albert S Humpfrey.

When properly used and implemented by managers Swot has the potential of providing focus and a clear sense of purpose about the strategy an organization should pursue in a given market or industry. It provides clear indications on all the factors likely to affect an organization both from the inside-out and outside-in perspectives.

The SWOT model will help an organization match its internal capabilities and resources with the needs and factors inherent to a specific business environment at a particular period in time.

Of importance though, is the fact that the SWOT model will only deliver the expected results when the objectives have been clearly defined prior to embarking on the exercise. As such an organization in the beauty industry could deliberately choose to attract middle age female customers and as such the purpose of the SWOT in this sense will be to identify those internal factors which when matched to external forces allow the organization to critically assess the validity and pertinence of its strategy. According to Van Assen et al (2009) "the model can be used as an instrument for devising and selecting strategy and is equally applicable in any decision making situation, provided the desired objective has been clearly defined".

It goes without saying that the model has been widely discussed and used in numerous business settings and personal situations. Therefore this article attempts to provide a framework centered around some of the most important questions business managers and their team have to reflect on during the SWOT exercise. Although the questions pertaining to SWOT depends on the specific objectives, therefore the questions listed down are just meant to provide an overview of those elements managers have to take into consideration when devising a strategy.

Strengths:

What do customers like about our products, services and processes?

Why do competitors envy us?

What technological advantage(s) do we possess?

Why are we proud of our staff?

Which areas in our system best deliver efficiency to the organization?

Do we have enough resources (financial, human) to meet our objectives?

What can we best use our organizational architecture?

Weaknesses

Why do customers complain about us?

In what areas are we outsmarted by competitors?

What technological advantage(s) should we acquire?

In what areas should we offer training to staff?

What resources do we need?
Which areas of our system should be optimized in our system?
What are areas of improvement in our architecture?

Opportunities

What recent or upcoming economic, cultural, political, technological trend can we take advantage

of?

Are our competitors experiencing difficulties we could take advantage of?

What can the future offer?

Threats

Are we experiencing problems our competitors are taking advantage of?

Does the future appear dim for us?

What recent or upcoming economic, cultural, political, technological should we be wary of?


References


Van Assen Marcel, Van Der Berg Gerben and Pietersma Paul (2009) Key Managements Models: the 60+ models every manager needs to know 2nd Ed Financial Times/Prentice Hall UK


TAM UK profile (2010) Albert S Humpfrey http://www.tamplc.com/Humphsprofile.htm Accessed on the 5th July 2010