Strategy Dynamics Briefing 30: When resources bring access to others

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One specially useful case where resource attributes arise is when one resource brings access to other potential resources, most often customers…

One specially useful case where resource attributes arise is when one resource brings access to other potential resources, most often customers – a new product makes it possible to sell to a certain number of previously unavailable customers, and adding a new distributor makes it possible gives access for our products to their end-customers, for example. We describe the first ...

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Limits to growth

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I see that icon of ‘not even the sky is the limit’, Ryanair, is finding gravity still exists. In a curious ‘threat’ to curtail growth, lively CEO O’Leary says it’s not as easy to pick up dirt-cheap aircraft as he did in 2002. He’s not quite so open about the company’s experience of opening hundreds of routes between city-pairs. I’ve tried reconciling their statements of routes opened, operated and closed, and it’s not easy – lots of hype about huge ...

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Aims – growth, survival …

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I made a strong case in a previous post that strategy research should have been asking how strong firms grow cash flows, not deliver profit ratios. I had two main push-backs – 1. is growth relevant in present conditions? – 2. survival is really all that matters. 

The first is easily dealt with – stronger cash flow ‘growth’ than rivals can of course imply less decline when everyone is going backwards .. would you rather cash-flows fell by ...

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More on growth vs. ROIC

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One challenge I got from the academics on the issue of strategy tools’ usefulness was whether growth is still a relevant question in these recessionary times.

Perhaps my original post to them was not clear enough.  I meant to say that, as I understand it, investors are interested in the present value of future cash-flows – not growth per se. There is no point in simply growing market share or revenues if it does not ultimately improve future cash flows ...

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Open up to investors

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McKinsey quarterly urges executives to embrace transparency if they want to help investors make investment decisions – presumably to invest in their firms. There’s a problem though …

This is a great principle, since investors are of course a critical constituency – along with customers and staff – whose loyalty is valuable. And as for any ‘product’ loyalty to a firm more likely if investors know and understand that product. Public companies have been obliged for some time to ...

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