Dynamic Management of Growing Firms–Part 2

After revisiting the research results on over 200 small and medium size companies I  thought it useful to provide a presentation of the central focus of the research.—the Dynamic System Model (DSM)—and how the model and the research results relate to other work in strategic management and entrepreneurship.

This presentation, due to its length, will be published in 4 Parts in two week intervals each.

This is the 2nd part of a 4 part article on Dynamic Management of Growing Firms.

The Seven DSM Issues are a Direct Result of the Previously Stated Open Systems Theory Assumptions

 

Let us recap our presentation to this point.  View your company as a powerful tool, to realize your vision and objectives. But realize that it is also bound by certain natural laws. To overcome entropy, you must develop a reliable and effective input-transformation-output (I-T-O) cycle for your company. Also, you must recognize that your company is part of a dynamic network, affected by multiple layers of  people, groups, organizations, societies and global forces, all interacting dynamically, and at times, unpredictably with one another.

These three assumptions help us to define the core challenges you face as the leader of a dynamic enterprise.   First, you must have a vision for your company. Just as every tool has a purpose, you must always keep clearly in mind why your organization exists. You may have personal objectives, such as making money or gaining a sense of accomplishment. But to grow, the organization needs its own reason for being.  Sometimes the vision in a new enterprise is inseparable from the products or services offered  (e.g. to develop a profitable web site). But growing companies often benefit from a broader vision.  For example, from the start, the mission at Apple Computer was not just to make and sell computers—it was also to produce an affordable, user-friendly computer.  Steven Wozniak’s personal dream, carried into the fledging company, was to make personal computer ownership affordable at a time when most computers cost as much as a new car, or even a house.  Steven Jobs’ added inspiration, guided by visits to Xerox Research Park in Palo Alto, California, was to make a computer simple enough for a child to use. In addition to their own contributions, Wozniak and Jobs adopted and modified existing technologies from other Silicon Valley inventors to realize that vision. Continue reading Dynamic Management of Growing Firms–Part 2

Political reboot–Greece

Publisher’s note: This editorial is recommended for reading to those that are considering investing in Greece.

Alexis Papachelas is a guest editorial writer to The Business Thinker. He is currently the Executive Editor of the long standing and highly respected daily Greek newspaper “Kathimerini”.

 

George Papandreou is left with little room for maneuver and Greece is going downhill. What we really need is a political reboot. But first, we need consensus, a consensus based on a social contract regarding the basic objectives.

That said, the premier cannot expect to achieve consensus without first making some concessions of his own. That will take a great deal of political courage and a significant degree of liberation from the old PASOK mentality that is deeply rooted in his DNA.

Papandreou, for example, cannot ask other parties to cooperate before first admitting to his own mistakes as opposition leader — like his refusal to back education reforms and the overhaul of public utilities.

Continue reading Political reboot–Greece

Dynamic Management of Growing Firms-Part 1

After revisiting the research results on over 200 small and medium size companies I  thought it useful to provide a presentation of the central focus of the research.—the Dynamic System Model (DSM)—and how the model and the research results relate to other work in strategic management and entrepreneurship.

This presentation, due to its length, will be published in 4 Parts in two week intervals each.

 

This first part deals with Strategic Actions and Organization Theory, etc.

Which Strategic Actions Determine Continued Growth and Profitability in the Small-to-Medium-Sized Firm?

Once a company is in operation, which factors determine its growth and profitability? Entrepreneurship researchers have taken four main directions in answering this question. Some adopt a Population Ecology approach—a Social Darwinian view seeking to identify  external environmental factors influencing the birth and growth of a cluster of organizations—either sharing common industry or geographic characteristics.1 Others seek to identify owner-founder characteristics to predict the birth or success of enterprises. A third cluster of researchers employ a corporate life cycle approach—a developmental view suggesting that firms go through inevitable stages from birth to maturity and eventual death, analogous to the human being. A fourth group, taking a strategic adaptation perspective,  focuses primarily on internal actions taken by the founder and other managers after a company has been established. This last group attempts to identify which strategies might be associated with growth and profitability  (strategic adaptation perspective).2

Continue reading Dynamic Management of Growing Firms-Part 1