Famous Business Strategies

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Famous Business Strategies

By: Laura Ciocan

Either simply a looker-on or a player in the world of business, you see millions piling into the accounts of world's most famous businessmen and naturally the question pops "How?", wondering what is the alchemy they've discovered? Yet, there is no magic here - it's mostly pure strategy. And what it takes to spot it and make it real.

Strategy

Identifying the best strategy for your business is the key to all success.

It should give you the lift that makes a difference. The art for your strategy success is planning.

  • settling a vision for your business
  • defining a mission
  • setting out objectives
  • establishing values, goals and programs.

Vision

It is all there, it is all important, but first there is the vision.

So, is vision a spark, is it a moment? How much is inspiration and how much hard work? Is it 99% perspiration and only 1% inspiration? Can we all be geniuses?

According to Edison's theory I would say yes, if we are committed to hard working, as it is primarily the hard work that makes a genius. Inspiration comes on the way, when involved in as much action as you can handle. Contrary to the conceptual meaning, inspiration seems to be driven by propitious conditions - in this case, by work.

Hard work

So, what really happens behind the fairy-tale success stories is usually not what some would expect - a brilliant, extraordinary, never heard of discovery that changed the world, but, disappointingly enough, plain hard work. What these people have is what I would call "industry intelligence". How is it acquired? Working of course. That is, sharply aware of their industry environment, learning all the rules and deeply involved in their own businesses, success people have at some point of activity a vision for their business that proves to be a winner - the revelation naturally produced as a result of their work commitment.

Let's take the example of three American legends: Sam Walton, Warren Buffet and Bill Gates. What do they have in common? The winning vision, the winning strategy.

Sam Walton

In the case of Sam Walton, no new, innovative business models were launched. He followed the existing low-price retailing pattern but the competitive successful strategic approach was that instead of focusing on large cities he took his business to small towns becoming the low-price leader in rural towns.

Warren Buffet

Warren Buffett's success resides in his different approach to value investing. While usually investors look for stocks they believe undervalued by the market, Buffett does not take into consideration the stock market aspects, such as for instance the supply and demand ratio. He analyzes the stocks on the basis of their potential as companies. He is interested in long-term results, such as ownership in companies with capacity of generating money, namely, companies with a strong name, great historical results, strong management and industry expertise.

Bill Gates

Neither is the case of Bill Gates to have made extraordinary innovations. Rather than innovation, he had the ability to put together other people's ideas, thus producing big hits and making a profit. He did that first when adjusting BASIC programming language for the Altair 8800 (first PC) - neither of which was his original creation. Then, the same happened with DOS, which Microsoft bought (the original version was QDOS) and adjusted.

Business strategies implementation

Then, action comes. As the saying goes, planning without action is futile, action without planning is fatal. It takes guts to act boldly and take whatever risks are necessary to put your vision into practice. It takes a great deal of tenacity to surpass obstacles and get over unfortunate happenings on the way. So, how did they implement their planned strategies? What was the outcome, what principles resulted for them to base their businesses on?

Warren Buffet

For the implementation of his strategy, Buffett has drawn his company choice principles, involving a great deal of analysis of business, management, financial aspects and a great deal of patience, waiting for the right price once the possible investment has been identified.

On businesses

  • simple and understandable
  • consistent operating history
  • favorable long-term prospects

On management

  • rationality in treatment of retained earnings and investment of company profits
  • disclosure of all aspects of company performances
  • capacity of thinking independently of other managers' way of thinking.

On financials

  • look for return on equity, not earnings per share
  • analysis of free cash flow growth
  • unique niche companies with high profit margins
  • look for companies with at least one dollar of market value for every dollar retained

On stock valuation

  • reasonable price for the company
  • stock valuation analysis followed by analysis of a possible significant discount, case in which it will be purchased.

Success depends on the investor's dedication to learn and follow the principles.

Sam Walton

He gives his ten rules for success in the book "Made in America, My Story":

  1. commitment to business
  2. profit sharing with partners
  3. partners' motivation, competition encouragement
  4. total communication with partners, trigerring their commitment
  5. giving appreciation to what your partners do for the business
  6. keeping spirits up in celebrating success but also in treating failures with a touch of humor
  7. listening to everyone in the company, encouraging their talking
  8. a sustained exceptional relationship with the customer - exceeding his expectations, showing appreciation, apologizing for mistakes
  9. finding a competitive advantage in controlling expenses
  10. originality, doing things differently there is a good chance to find unexplored niches.

Bill Gates

Microsoft's corporate mission "A computer on every desk and in every home" shortly became a reality. Offering an easily accessible operating system for computers, perceiving the importance of customizing their product to the ordinary client and not only to computer engineers and thus addressing masses, Bill Gates succeeded in putting together and promoting towards a tremendous popularity (and profit accordingly) the world's dominant operating system.

What these people have in common is nevertheless an extraordinary ingenuity: they innovated their industry domain, building their own strategy tailored for their own business particularities and went further to its implementation.

About The Author

Laura Ciocan writes for http://www.businessplanning.ws where you can find more information about what is a business plan

Please feel free to use this article in your Newsletter or on your website. If you use this article, please include the resource box and send a brief message to let me know where it appeared. Contact: lauracio@gmail.com.

lauracio@gmail.com

Comments

Scott 27.04.2012. 03:34

What are some good business books to read? I would like recommendations for biographies or autobiographies of famous businessmen or business strategy books. I currently have an idea for an electronic product that should be patented within the coming month and no background in business I need all the help I can get. Thank you
For the smartass who told me to read Jack "Walsh" and decided to ask a smartass question over yahoo answers... I believe you you meant Jack WELCH, so now that you are unable to spell the authors name correctly I disregard your answer. Thank for the help (sarcasm).

Scott

Admin 27.04.2012. 03:34

how to think like a champion - donald trump

rich dad poor dad

Admin

bchboy_998 14.10.2006. 08:46

What are the downsides (dsadvantages) of investing in new technology, is a good business strategy? Picture this scenario: As a future stategy for an airline company, they decide to invest in technology, say the installation of Tv units (or anything thing u can think about) in the back of every seats, or a joint venture with a more famous airline say Singapore airlines, where bothairlines could work with each other and develop new technologies, new machinery, better service? Would those new strategy make sense in the external competitive environment? (i.e. what customers require, what competitors are doing, trends in the business environment)

bchboy_998

Admin 14.10.2006. 08:46

I think so because I have spoken with many people who only fly on JetBlue airplanes for the exact reasons that you speak of; multimedia systems that keep them entertained over the course of long, boring flights. Sure, it costs an airline money to do this but when you consider the fact that some passengers will fly with your airline exclusively for the reason that you offer such systems, then it becomes a good investment. You really wouldn't be developing this technology with an airline, such as Singapore, because there are many different components manufacturers and suppliers that can already provide your airline with such technology. In other words, there are other companies that you can buy this stuff from, off the shelf, for each of your passenger seats. None of that is new technology, and these are standard options from both Boeing, Airbus, various aircraft interior refurbishers, corporate aircraft manufacturers, etc.

Admin

bchboy_998 14.10.2006. 08:47

What are the downsides (dsadvantages) of investing in new technology, is it a good business strategy? Picture this scenario: As a future stategy for an airline company, they decide to invest in technology, say the installation of Tv units (or anything thing u can think about) in the back of every seats, or a joint venture with a more famous airline say Singapore airlines, where both airlines could work with each other and develop new technologies, new machinery, better service? Would those new strategy make sense in the external competitive environment? (i.e. what customers require, what competitors are doing, trends in the business environment)

bchboy_998

Admin 14.10.2006. 08:47

I think so because I have spoken with many people who only fly on JetBlue airplanes for the exact reasons that you speak of; multimedia systems that keep them entertained over the course of long, boring flights. Sure, it costs an airline money to do this but when you consider the fact that some passengers will fly with your airline exclusively for the reason that you offer such systems, then it becomes a good investment. You really wouldn't be developing this technology with an airline, such as Singapore, because there are many different components manufacturers and suppliers that can already provide your airline with such technology. In other words, there are other companies that you can buy this stuff from, off the shelf, for each of your passenger seats. None of that is new technology, and these are standard options from both Boeing, Airbus, various aircraft interior refurbishers, corporate aircraft manufacturers, etc.

Admin

Scott D 02.02.2007. 16:59

Who are well-known business "think-tanks" and what do they do? I've heard of business or government "think-tanks" but have never really been familiar with who they are or what they do? Are there some famous companies who serve as think tanks, such as for innovative new business strategies, product ideas, etc?

Scott D

Admin 02.02.2007. 16:59

Think Tanks are usually made up of individuals with special interest of knowledge in the subject the are exploring. Companies will often be included in the members. They are really just a droup of people who work out new angles on old themes to try and improve services/save money/ or both! lol

Admin

bchboy_998 14.10.2006. 09:01

What are the downsides (dsadvantages) of investing in new technology, is it a good business strategy? Picture this scenario: As a future stategy for an airline company, they decide to invest in technology, say the installation of Tv units (or anything thing u can think about) in the back of every seats, or a joint venture with a more famous airline say Singapore airlines, where both airlines could work with each other and develop new technologies, new machinery, better service? Would those new strategy make sense in the external competitive environment? (i.e. what customers require, what competitors are doing, trends in the business environment)

bchboy_998

Admin 14.10.2006. 09:01

*What you have described would only make the ticket go up and customers would not like that. People have portable computers now to occupy themselves with while on long flights. *

Admin

Aaron 30.03.2009. 08:55

I am going to open a business! Can anyone tell me the whole process of starting a business from scratch? My future plan is to open a business, no matter what it takes!
Business man and business owners, can you tell me what it takes to open a business from scratch?
Everything that is required in opening a successful business: from money, to hiring people, construction, time, and everything else in the process.
Thank You so much for those who answer, you made me a great favor and I respect you greatly, and if you are really going to help me, seriously, I will reward you, if my business does works out.
Thank you again!

Aaron

Admin 30.03.2009. 08:55

lol

Think about what sort of business you want to go into and why (you can't say you want to be a business man and then poof, you become one). Think about what sort of company you want to be (sole trader, partnership, limited company, limited partnership, etc. ideally people will pick a limited company but it will depend on the lifestyle they want to take. Becoming a limited company purely for the sake of it can end up being costly if you don't know what you are doing)

Make sure you know how to sell in a variety of situations. If you have problems doing this, I recommend to do a few sales jobs over the next two years to bring your skills up to speed. You may also want to look into how advertisement comapnies work.

You need a business plan. In it should containt your:
business SMART objective, your vision, what your company is about, your ethos

marketing plan: SMART objective, maketing strategy and advertising budget, marketing research of your customers and their demand for your product, assessing your competitiors and current market scenarios

financial system: cashflow forecast, budgets for your business, profit projections

sales plan: how you are going to sell your product? do you have an after sales service?

product design: what is it? what services are there? Find someone to design the product if it is beyound your expertise. Make sure the person is trustworthy and has experience in the field. If you are designing a product that is pretty innovative, is of very big interest to competitors (you wil know by the marketing research) and may be easily copied, get it patented once you get the money.

production plan: how you are going to make it? expenses, time, risk etc. why do you need that stage of production? Is it necessary?

growth plans: how do you intend the company to grow. write down projections

HRM: who are you going to hire? what sort of people do you need? why do you need these skills?


After the business plan you will need to check up on legal stuff: licenses, laws, etc. (ask solicitors for about 1 hour free legal advice on this stuff)

You will need to see prospective accountants. Pick the ones who would go the extra mile and help your company succeed. Hold themselves accountable and is very up and personal. Check for referrals for your type of business.

Form a team of people who have expertise that you don't have or outsource some of your tasks. e.g. IT person in the team or have an IT shop you know is reliable, cheap and of quality service.

Then gather the capital needed. this can be bank loans or private savings or borrowing from friends. Sell your ideas to them using your business plan. (if this doesn't appeal to you, try going on Dragon's Den.)

Once you have enough capital, buy the stuff you need and start operations, marketing, sales etc. Make sure you stick to your objectives and you meet projections.

For further details check out the following:
the 4 hour work week by Tim Ferris
how to get hire not fired by Sir Alan Sugar
How to get rich by Donald Trump
Rich Dad Poor Dad by Robert Kiyosaki (as well as books from his advisors)
Before you quit your job by Robert Kiyosaki and Sharon Lectuer
Lessons from Life by Richard Branson
From Pitch to Profit by people from Dragon's Den
Influence by Robert Cialdini
www.businesslink.org (I can't remember if it's .org or .co.uk, google it)
www.directgov.co.uk
Emotional Intelligence by Daniel Goleman

There are other books, I just have to suss them out from a very long list where some may be just selling to you instead of offering helpful and descent advice. It pays to look into those that have proven success or a strong undeniable legacy or media attention.

It also pays to read a lot of self development books and sharpen your skills. I also recommend reading autobiographies of famous and successful entrepreneurs. e.g. Alan Sugar, Donald Trump, Richard branson, Michael Dell, Bill Gates.

If this seems a lot, I could recommend you to get some experience with MLM companies. Those I recommend are Diamond FM and Kleeneze. (some can be genuine scams, it pays to always check them out thoroughly.)

Building a business requires you to be a bigger man and is a journey to becoming the best you can. This requires a lot of self development and becoming a lot more masculine. You got to have drive, decisiveness, determination, faith, street-smarts, intelligence, passion, love for the business, attention to every detail, goals, commitment and positive attitude. It will take a lot out of you.
If you are not passionate about your business, then it's not for you or you're in the wrong business.

Hope this helps

Admin

kimberlyrenee_08 04.06.2008. 15:58

Which of the following is the best way to get your catering business started? A. Research your area and develop a marketing strategy.
B. Wait for your excellent food and service to build you a good image and reputation.
C. Leave your business cards every appropriate place you can.
D. Get involved with local organizations and become a speaker.

kimberlyrenee_08

Admin 04.06.2008. 15:58

Write articles about your website or ideas.
Submit your website for users to review, free!
Post Free Classifieds.

Go to Famous Pages

http://famouspages.info

Admin

mrad1980 26.01.2007. 15:22

How to make successfull your own business and your own corporation ? How to make it famous worldwide ? I am asking this question because i need help and guidelines and advises about investment ... I am dreaming about building a successfull business with my corporation , i want to build a world larget corporation like Microsoft , Oracle , Sony , Siemens ... and so on ... This corporation will be setup for the Computer Hardware & Software Engieering and Information Technology , Networks Solutions and Telecoms Services ... I want to know what are the success keys that made such corporations widely recognized by their products and services while at the same time i saw many corporation like them failing in their business life ... I Know that it never be easy to make this dream one day come true , but i am working hard for it day and night ... but Help from Higly Motivated Individuals and Professionnally Experienced Men and Woman are welcomed to answer me this question ... Not Serious about that ? Please Do not reply ...

mrad1980

Admin 26.01.2007. 15:22

you need to do your deep research on these successfull companies first.Their internal strength and weaknesses as well as their strategies and history will help you get sommewhere in competing with them.

Admin

Andrew 31.05.2013. 22:03

What are some personal development books you recommend? I am about to finish the slight edge by Jeff Olson then going to think and grow rich. Then probably the compound effect. What are some other you recommend. I am business owner at 20 years of age.

So just anything will help

Andrew

Admin 31.05.2013. 22:03

The Book of Five Rings by Miyamoto Musashi. He is the most famous samurai in Japan's history, and business men today in Japan read this book of his on philosophy and apply it to business strategy and personal relationships.

Admin

Chris M 03.08.2010. 08:29

How would you PR a client whose services help businesses optimize their sales/employee performance? Hello all,

Would really appreciate your input regarding this. I work in PR and am working with a client whose predominant skill sets lie in business performance enhancement. She has a forty year career in sales, and her techniques, observations and seminars claim to enhance the performance of a company's workforce treble fold. Businesses have noticed radical performance improvements from their employees after hiring her as a consultant and she has forged a hugely successful career visiting different companies and advising them on how to break with useless conventions, introduce new techniques, reinvigorate a latent workforce - all with the objective to harness the very best from their employees. I'm trying to think of unique PR / publicity opportunities for her - aside from national and trade press, business TV and radio, etc. What inventive and imaginative PR opportunities do you think could be applied to her publicity strategy?

Thank you so much in advance, this has been eluding me.

Chris M

Admin 03.08.2010. 08:29

Frankly speaking, It's very nice and intelligent question you have asked and invited to pour ideas from others like me. ;-)

But I am just a bit suspect about her weather she needs PR person Or an agency if she is very famous and popular among her tribe? All though, we never know if she needs until we ask her intelligently. Anyhow, If I would be at your place, I would like to do.....

First of all, Study maximum (from all corners) about her. Her likes-Dislikes, Hobbies, Influences, Colleagues, Competitors, her leisure time-spending pattern etc. In a nut shell, Do her SWOT analysis. I am not suggesting you to spy her on her steps. But with a positive attitude KNOW MORE ABOUT HER. I am confident you will come out tons of ideas to praise her. Note everything.

Now, meanwhile find out the way how she wants to promote and maintain her PR rank through various creative activities and generate income. That's totally up to your skills. Endorse her with your highly potential client (or celebrity) get her on track. She will be flattered for sure.

Dear, Please update me how this techniques are effecting in your work. To Your Positive Success!....

Ali
The Better Business Idea Guru.

Admin

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