Siirry pääsisältöön

PBL Trigger 2

In Trigger 2 we read an article about Kodak and Fujifilm, and how Fujifilm succeeded in the digital age but Kodak didn't. After the brainstorming, we defined the problem which is:

How to succeed in fast changing markets?

We categorised the concepts in internal and external factors affecting the company success and defined our learning objectives:

  • Internal: What factors influence in company’s successful strategy?
  • External: How to foresee changes in markets?

1. What factors influence in company’s success?

International business success is determined by the degree to which a firm achieves three skills: efficiency, flexibility and learning. Requisite dimensions of the successful international firm are: visionary leadership, strong organisational culture, superior organisational processes, appropriate organisational structure and strategies that optimise international operations. (Cavusgil, Knight, Riesenberg, Rammal & Rose 2015, 335-336.)

Visionary leadership

Visionary leadership is a quality of senior management that provides superior strategic guidance for managing efficiency, flexibility and learning. Leadership is more complex in international firms than in domestic ones, because valuable organisational assets may be employed in many different countries and diverse business environments. In companies with complex international operations, visionary leadership is vital.

Visionary leaders are characterised by four main traits:
  • ·      International mindset and cosmopolitan values.
  • ·      Willingness to commit resources.
  • ·      Strategic vision.
  • ·      Willingness to invest in human assets. (Ibid., 336-338.)
Organisational culture

Organisational culture is the pattern of shared values, behavioural norms, systems, policies and procedures that employees learn and adopt. Organisational culture usually derives from the influence of founders and visionary leaders of some unique history of the firm. (Ibid., 338.)

Strategy

Fujifilm has most probably a global strategy. With global strategy, headquarters seek substantial control over its country operations to minimise redundancy and achieve maximum efficiency, learning and integration worldwide. (Ibid., 344.)

Fujifilms philosophy and vision are:
’We will use leading-edge, proprietary technologies to provide top-quality products and services that contribute to the advancement of culture, science, technology and industry, as well as improved health and environmental protection in society. Our overarching aim is to help enhance the quality of life of people worldwide.’
‘Anchored by an open, fair and clear corporate culture and with leading-edge, proprietary technologies, Fujifilm is determined to remain a leading company by boldly taking up the challenge of developing new products and creating new value.’

According to Leaderonomics.com, what Fujifilm succeeded in doing, that Kodak did not, was its execution. Fujifilm’s efforts to sustain its film business at the beginning, the investments later on in digital technologies and technical upskilling and business diversifications, would not have been well executed if not for a strong management with a clear vision/purpose. Fujifilm is a clear example of how well-established brands can continue to sustain their business by adapting their purpose, and translating that into well-executed strategies, and well-developed products and services.

According to Economist, Fujifilm became a much more diversified company than Kodak. Having a longer-term vision, it invested a lot. This was "damaging" to the firm's short-term profitability, in the words of CEO Shigetaka Komori, but the bet paid off. "We have more 'pockets' and 'drawers' in our company," he explains—a metaphor for different technical areas that bring in revenue.


2. How to foresee changes in markets?

A good starting point is to have a clear understanding of your organisation’s vision, strategy, strengths and weaknesses, says Dean van Leeuwen, futurist, keynote speaker and co-founder of TomorrowToday Global, an international consultancy that helps businesses effectively plan for the future.

Get your whole business involved

There is real value in getting the entire organisation to participate in future planning because today’s workforce is very tuned in to some of the big changes, particularly technology-related, that are taking place.

Look at trends that affect your business in the near, medium and long term

It’s impossible to cover everything, however. Businesses need to be pragmatic and focus on what’s really relevant to them. At a practical level, Ruth Stuart, a lead consultant of strategic projects in CIPD, advises companies to consider how relevant trends will affect them in the near, medium and long term, and identify the actions needed to capitalise on the trends but also to mitigate their risks.

Balancing operating today with planning for tomorrow

The challenge for most business leaders is striking the right balance between time spent operating today and planning for tomorrow, and ensuring they have the right skills to be future-focused. Stuart and Dean Van Leeuwen, futurist and co-founder of TomorrowToday Global, say leaders who are effective at planning for the future have a natural curiosity for the wider external environment. As a result, they are good at asking meaningful, intelligent questions that help to shift people’s perspectives.
(http://strategiesforgrowth.com/anticipate/how-businesses-can-predict-and-plan-for-the-future/.)

Sources:
Cavusgil, S., Knight, G., Riesenberger, J., Rammal, H. & Rose, E. 2015. International Business. The new realities. Pearson. Australia.
https://www.economist.com/blogs/schumpeter/2012/01/how-fujifilm-survived. Accessed 11.9.2017
http://strategiesforgrowth.com/anticipate/how-businesses-can-predict-and-plan-for-the-future/. Accessed 11.9.2017

Kommentit

Lähetä kommentti