Growth and Innovation

Good Essays
Growth and Innovation

Weekend 1

Growth Imperative
Gross Sales - $100 Desk
John gets commission - $20
Net Sales - $80
All anyone cares about in growth is NET – Don’t site gross sales (shark tank! Hates this ) * Evidence that once a company’s core business has matured, new platforms are hard to come by * Roughly 1-in-10 companies are able to sustain growth for shareholder value * Attempt to Growth causes corporation to crash * Equity markets demand that companies grow but it’s hard to know how to grow. * Corporations are under hug pressure to grow * Corporations that used to use monthly financial reports, use quarterly now to spread out issues and have less pressure monthly.
CASE – AT&T * Government controlled telephone system * Once divested they could find ways to grow * Bought NCR for $7.4 billion * Lost $2 billion on aquistion * Sold NCR for $3.4 billion * Enormous pressure to grow * Bought McCaw Cellular for $11.6 billion and spent another $15 billion * Spun off wireless and it was valued at $10.6 billion * Wall street devalued them because they couldn’t figure out which was wireless, which wasn’t * The bought TCI and MediaOne for $112 billion * Integration difficulties were insurmountable * Sold to Comcast for 72 billion * In a little over 10 years, AT&T had wasted $50 billion and destroyed even more in shareholder value * ** no idea how to merge and transition companies after acquisition

CASE: CABOT CORP * Gives tires its black color through carbon * Core market hadn’t grown rapidly * Launches several aggressive growth initiatives in advanced materials by acquiring specialty metals and high-tech businesses * Share price tripled * However, they quickly went from one item to things they didn’t know about * Losses from these businesses had drag on earnings and stock * Board brought in new managers to refocus core * New

You May Also Find These Documents Helpful

  • Best Essays

    Growth Strategies, Innovation, Alliances, and Execution Oscar Gonzales Growth Strategies, Innovation, Alliances, and Execution u10a1, DB8004-01, Spring 2012 Introduction Founded in 1885 in New Brunswick, New Jersey by brothers James and Edward Mead Johnson, Johnson and Johnson began as an antiseptic surgical dressing’s manufacturer. Today, Johnson & Johnson has approximately 117,900 employees throughout the globe, is comprised of three strategic business segments (SBU’s), and has a presence in…

    • 2953 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Innovation Strategy & Growth by Firdaus Khan Assoc. Prof & Trainer at ICBM-SBE 20 December 2012 firdaus@icbm.ac.in 1 “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, … we had everything before us, we had nothing before us” 20 December 2012 firdaus@icbm.ac.in 2 SURPRISE!!! Q: Which is the number one…

    • 1409 Words
    • 6 Pages
    Satisfactory Essays
  • Best Essays

    ECONOMICS INNOVATION AND ECONOMIC GROWTH IN CHINA by Yanrui Wu Business School The University of Western Australia DISCUSSION PAPER 10.10 Innovation and Economic Growth in China Yanrui Wu ( ) Economics UWA Business School University of Western Australia Australia yanrui.wu@uwa.edu.au Abstract China has enjoyed high economic growth for three decades since the initiative of economic reform in 1978. This growth has however been driven mainly by labour-intensive, export-oriented…

    • 6905 Words
    • 28 Pages
    Best Essays
  • Powerful Essays

    consequence less innovation and fewer business start-ups with its consequences on employment and economic growth. In this context, entrepreneurs are needed to organize, manage and assume the risks of business or enterprise which represent processes which are positive for society. The perspectives on entrepreneurship as a phenomena in social, business and economics are varied, and ranging from the processes individuals go through from becoming “motivated to discover” an innovation and converting it…

    • 1278 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    In the ever-changing world, innovation is the only key which can sustain long-run growth of the country. More and more firms are realizing the importance of innovation to gain competitive advantage. Accordingly, they are engaging themselves in various innovative activities, ranging from manufacturing processes, product improvement, and brand building initiatives to customer satisfaction. Today, business environment has become very dynamic with more demanding customers and intense market competition…

    • 1899 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    MICRO, SMALL AND MEDIUM ENTERPRISE NEXT GENERATION ENGINE OF GROWTH A TWELFTH PLAN PERSPECTIVE TRACK: CREATIVITY AND INOVATION AS THE KEY DIFFERENTIATOR FOR FUTURE GROWTH OF MSME SECTOR. AUTHOR: Prof. GULBASH DUGGAL, (Academic Head) ORGANISATION: INTERNATIONAL COLLEGE OF FASHION ADDRESS: M-39, LAJPAT NAGAR- 2 NEW DELHI – 110024 MOBILE: 9811111303, 9711440003 EMAIL: gulbash@hotmail.com , gulbashduggal@icf.edu.in ABSTRACT Many MSMEs in…

    • 3706 Words
    • 106 Pages
    Powerful Essays
  • Powerful Essays

    Innovations

    • 5407 Words
    • 22 Pages

    The importance of innovation Corporations must be able to adapt and evolve if they wish to survive. Businesses operate with the knowledge that their competitors will inevitably come to the market with a product that changes the basis of competition. The ability to change and adapt is essential to survival. Today, the idea of innovation is widely accepted. It has become part of our culture – so much so that it verges on becoming a cliché. For example, in 1994 and 1995, 275 books published…

    • 5407 Words
    • 22 Pages
    Powerful Essays
  • Best Essays

    Innovation

    • 2282 Words
    • 10 Pages

    Innovation: Innovation in Education Maura C. Chaney Grand Canyon University LDR805 March 27, 2012 Innovation In order to maintain any kind of competitive edge, educational organizations in America need to respond rigorously through initiatives in that move towards innovation. These initiatives need to develop a new mental mindset that is more focused on problem solving and moving forward with innovative and custom techniques, products, and services. In order to be successful in today…

    • 2282 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Innovation

    • 1661 Words
    • 7 Pages

    Investigate how innovation can create competitive advantage for Nokia in Great Britain Chapter one: Background of the study: 21st century of the market growth is depends on innovation. There have many marketing tools as we can use for growing up the business, but in this situation, researcher preferred innovation, which is really need to develop and rapidly progress for the business with their existing or new product. Innovation require for thoughtful structure of solid management process and…

    • 1661 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Chapter 2 Types of Innovation LEARNING OBJECTIVES When you have completed this chapter you will be able to: • Distinguish the different forms that innovation can take, such as product, process and service innovation • Differentiate and distinguish between the different types of innovation, such as radical and incremental innovation • • Describe each type of innovation Analyse different types of innovation in terms of their impact on human behaviour, business activity and society…

    • 9713 Words
    • 39 Pages
    Good Essays