9/7/2010 12:15:12 PM - 2 Comments
David Oetken, Director of Business Advising for GLI’s ENTERPRISECORP, shares
his insights on corporate strategies below. As one Harvard Business Review article notes, “A brilliant strategy, blockbuster product or breakthrough
technology can put you on the competitive map, but only solid execution can
keep you there.”
As market conditions quickly change, any company that can
rapidly “triage” its strategy and adapt to new conditions will have a huge
competitive advantage. Worldwide, strategic planning has become the business
norm. However, in a recent survey, chief executives of corporations identified
excellence in execution as their top challenge (55.4%), as well as the
alignment between strategy and execution (47.0%), and speed, flexibility and
adaptability to change (46.6%). Clearly, CEO’s are recognizing that developing a good
strategy is far easier than executing that strategy.
8/9/2010 12:50:50 PM - 0 Comments
Dave Oetken, Director of Business Advising for GLI’s ENTERPRISECORP, delivers detailed, personalized guidance to local businesses who want to generate new growth. Below, Dave examines the “80/20” rule of business, and offers insights on how your company can successfully enlarge its customer base beyond that 20 percent:
Recently, experiences with clients have caused me to rethink the old 80/20 rule. This rule states that 80 percent of a company’s revenue comes from 20 percent of its customers. As a result, smart business leaders focus most of their time and company resources toward this segment. And, while it can be a good business practice, it can also become a dangerous habit.
Case in point: a local company did increasing business with a large manufacturer to the extent that 90 percent of its revenues came from that one customer. As you can guess, when the customer decided it could buy cheaper elsewhere, it put the local company out of business, costing the community 67 jobs.
In today’s competitive environment, the 80/20 rule can sometimes be cause for alarm, especially if most of the 80 percent is coming from a small number of customers.
8/6/2010 09:22:00 AM - 0 Comments
The Federal Reserve Bank's St. Louis District, which includes Louisville, is reporting that economic conditions are improving throughout the region. In a report released last week, the Fed showed activity has increased in the manufacturing and service sectors. However, the report also showed that commercial and industrial real estate markets remain weak, and overall bank lending activity decreased from early April to late June.
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