Tag Archive: work


New Business Models

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Ecommerce is an area being watched closely by entrepreneurs and wantrepreneurs alike. New business models are constantly emerging, making this a competitive and constantly evolving field.
The apparel category is particularly exciting: The recently launched Amazon Prime Wardrobe, for instance, allows consumers to have clothing delivered to their door, after which they can try it out for seven days before deciding whether to keep it. They can send items back whenever they decide; they don’t even need to be home to have return packages picked up.
Taking inspiration from Amazon and other businesses, many apparel and accessory ecommerce companies are similarly trying their hand at “something new and different.”
These innovative companies are taking ecommerce to the next level.

Crisp Clothing
The perfect shirt is hard to come by. But what if perfect fit could be achieved with the help of two simple metrics? That’s what Crisp Clothing does. By using your height and weight and what it calls “3D Measuring,” Crisp Clothing can tailor the perfect shirt for you.
Founded by Swapnil and Prakash Kamble — a father-and-son team — Crisp Clothing uses 100 percent Egyptian Giza cotton to fashion its handmade tailored shirts, which are currently available in black, white, blue and pink. The company recently launched a Kickstarter campaign to raise funding for the project.
Not surprisingly, the cost of a single shirt isn’t cheap, but pledging to the Crisp Clothing campaign at the $78 level will get you one custom, hand-crafted shirt.
What’s clearly innovative about Crisp Clothing is the approach it takes to crafting the perfect shirt. Technology is the difference. It gives Crisp Clothing a more scientific way to tailor shirts that look and feel great.

Trunk Club
The Nordstrom-owned Trunk Club may be a familiar name to some. Its business model is a lot like that of Amazon Prime Wardrobe, except Trunk Club has been around a lot longer.
This is its process: First, the customer is prompted to answer a few questions about the style of clothing he (or she) is interested in, how the clothing should fit and what budget range is desired. Then, he can chat with a stylist who’ll offer help on exactly what he’s looking for (though this step is not mandatory).
The trunk is delivered free of charge once the customer approves it, and he or she has five days to decide what clothing to keep and what to send back. Then, the customer can either reorder on his or her own schedule or set up a regular delivery schedule, to keep the wardrobe fresh.
What Trunk Club did right was make it easier for the consumer to get items that are truly desired. Time can be a commodity in today’s busy world, and with the rise of online shopping, consumers don’t necessarily go to malls or stores to shop anymore. Trunk Club is an easy, fast and convenient way for today’s buyer to meet his or her clothing needs.

Bonobos
Bonobos was launched because its founders recognized how difficult it is for consumers to find pants that fit perfectly. To solve this problem, Bonobos developed a signature curved waistband that fits more naturally around your waist. The company offers free shipping as well as painless returns and exchanges.
Bonobos also has something called a Guideshop. Customers can schedule a one-hour appointment at a Guideshop, try on anything in the store and find the perfect clothing with the help of a Guide. Customers don’t have to take any bags home, as the Guide will place the order and have it shipped to the customer’s home or office.
Bonobos is doing a couple of noteworthy things for its customers. First, it came up with a solution where none previously existed, thereby creating more comfortable pants. Second, it created a unique in-store experience that allows customers to find what they’re looking for on their own time — a personalized experience they’re sure to remember.

Wanderlust + Co
Accessorizing is a term near and dear to many women. Jenn Low, founder of Wanderlust + Co, creates custom jewelry and accessories that many models and celebrities don at notable events. Her work is inspired by what she calls the #WCOgirlgang, which includes celebrities, fashion bloggers, editors, stylists and content creators.
What’s innovative about Wunderlust + Co is Low’s willingness to cater to a specific audience. She doesn’t create products consumers dn’t want. She built her own tribe, #WCOgirlgang, and stays in regular contact with them to come up with new product ideas her audience will love.
Entrepreneurs sometimes take the opposite approach, creating a product first and then finding an audience for it. Sometimes that can work, but there are no guarantees. A more reliable approach, especially today, is what Low does: She’s built a brand around a target audience, offering products they want and have even asked for.

Everlane
Complete transparency is hard to find but has become somewhat trendier, thanks to online entrepreneurs like Pat Flynn and John Lee Dumas.
That’s where Everlane stands out. These founders aim to be as up-front as possible about the cost of their goods. They even offer a detailed breakdown on materials, hardware, labor, duties and transport. They also reveal what the true cost of the product is, in addition to what they’re selling it for.
If you’ve ever wondered where your money is going when you purchase a product, you won’t have to, with Everlane. You’ll get total transparency, and that builds trust. Though full transparency may not be the right approach for every business, it’s something to consider: Maybe no one in your industry is embracing it, making it worth considering as a strategy.

Final thoughts
If you’re an ecommerce business owner, what could you be doing to separate yourself from the pack? If you have a different business model, what can you learn from the above and implement in your business?
As ecommerce becomes increasingly competitive, it will be more and more necessary for more business owners to embrace innovation and find their unique approach. The ecommerce landscape will continue to be an interesting one to watch, especially as Amazon continues to launch new and noteworthy services.


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Latest Financial Topics for Strategy & Business Developments

Decisive Entrepreneur

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An overview on one aspect that captures almost all the economic activities include a representation to a change. This clue distinctions of when and where supports all those interested wantings for the future development and innovation, in the activity of the products and the services desired for the necesary market.

You never know where you are going to find a good idea.

That may sound like a saying from a fortune cookie. But for Normal CEO, and founder, Nikki Kaufman, it’s a management style.

It’s also why the headquarters of her 3-D printed custom earphone company are open and transparent across departments. It’s a guiding principle on how to run a team.

I encourage new ideas all the time here at Normal. That’s one of the things that I really like about having everyone in one office.
She included this advices from the floor of her New York City retail location, which also serves as the company’s factory and corporate office along with an incredible pursuatiation for advocating content into the shared markets .
An idea can come from anywhere.”



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Latest News for Strategy Business Developments

 

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Emphasis the human element of strategy to identify the direction and scope which achieve an advantage in a changing environment through its configuration of resources and competences, has the aim to fulfill stakeholders expectations

“The competitive analysis is a statement of the business strategy and how it relates to the competition.”

The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.

The first step in a competitor analysis is to identify the current and potential competition. As mentioned in the “Market Strategies” chapter, there are essentially two ways you can identify competitors. The first is to look at the market from the customer’s viewpoint and group all your competitors by the degree to which they contend for the buyer’s dollar.

The second method is to group competitors according to their various competitive strategies so you understand what motivates them. Once you have grouped your competitors, you can start to analyze their strategies and identify the areas where they are most vulnerable. This can be done through an examination of your competitors’ weaknesses and strengths.

A competitor’s strengths and weaknesses are usually based on the presence and absence of key assets and skills needed to compete in the market. To determine just what constitutes a key asset or skill within an industry, David A. Aaker in his book, Developing Business Strategies suggests concentrating your efforts in four areas:

1. The reasons behind successful as well as unsuccessful firms

2. Prime customer motivators

3. Major component costs

4. Industry mobility barriers

According to theory, the performance of a company within a market is directly related to the possession of key assets and skills. Therefore, an analysis of strong performers should reveal the causes behind such a successful track record.

This analysis, in conjunction with an examination of unsuccessful companies and the reasons behind their failure, should provide a good idea of just what key assets and skills are needed to be successful within a given industry and market segment. For instance, in the personal-computer operating-system software market, Microsoft reigns supreme with DOS and Windows. It has been able to establish its dominance in this industry because of superior marketing and research as well strategic partnerships with a large majority of the hardware vendors that produce personal computers.

This has allowed DOS and Windows to become the operating environment, maybe not of choice, but of necessity for the majority of personal computers on the market. Microsoft’s primary competitors, Apple and IBM, both have competing operating systems with a great deal of marketing to accompany them; however, both suffer from weaknesses that Microsoft has been able to exploit. Apple’s operating system for its Macintosh line of computers, while superior in many ways to DOS and Windows, is limited to the Macintosh personal computers; therefore, it doesn’t run many of the popular business applications that are readily available to DOS and Windows.

To an extent, IBM’s OS/2 operating system suffers from the same problem. While it will run on all of the personal computers DOS and Windows can run on and even handle Windows applications, the number of programs produced for OS/2 in its native environment is very small. This is the type of detailed analysis you need in analyzing an industry. Through your competitor analysis you will also have to create a marketing strategy that will generate an asset or skill competitors do not have, which will provide you with a distinct and enduring competitive advantage.

Since competitive advantages are developed from key assets and skills, you should sit down and put together a competitive strength grid.

This is a scale that lists all your major competitors or strategic groups based upon their applicable assets and skills and how your own company fits on this scale., strategic management has three major elements: strategic position, strategic choices for the future and strategic in action.

To put together a competitive strength grid, list all the key assets and skills down the left margin of a piece of paper. Along the top, write down two column headers: “weakness” and “strength.” In each asset or skill category, place all the competitors that have weaknesses in that particular category under the weakness column, and all those that have strengths in that specific category in the strength column. After you’ve finished, you’ll be able to determine just where you stand in relation to the other firms competing in your industry.

Once you’ve established the key assets and skills necessary to succeed in this business and have defined your distinct competitive advantage, you need to communicate them in a strategic form that will attract market share as well as defend it.

Competitive strategies usually fall into these five areas:

1.Product

2.Distribution

3.Pricing

4.Promotion

5.Advertising

Many of the factors leading to the formation of a strategy should already have been highlighted in previous sections, specifically in marketing strategies.

Strategies primarily revolve around establishing the point of entry in the product life cycle and an endurable competitive advantage.

As we’ve already discussed, this involves defining the elements that will set your product or service apart from your competitors or strategic groups. You need to establish this competitive advantage clearly so the reader understands not only how you will accomplish your goals, but why your strategy will work.


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Internal experts and external brought in sessions, that articulate the organisation vision and added insights to new opportunities.

Is your team fully engaged to give their best, day in and day out? In a recent study by TowersWatson, an international HR consulting firm, fewer than 21 percent of employees surveyed described themselves as “highly engaged,” down from 31 percent. 8 percent admitted to being fully disengaged.“
Having only one-fifth of your employees highly engaged is not the hallmark of a “Winning Business.” Other studies show that employee engagement derives from three important factors:

  1. Alignment of the employee with the goals and vision of the company.
  2. Faith of the employee in the competence of management and their commitment to realize the goals and vision.
  3. Trust in their direct supervisor that he or she will support his or her people and help them to succeed.

It has often been said that employees rarely quit companies. Instead, employees quit their managers or supervisors by leaving the company. Mark Herbert, a consultant focused on engagement, says:

“Engagement lives and dies on the front line of your business.”
Increasing positive managerial behavior and reducing negative managerial behavior will go a long way towards improving employee engagement. When your talented employees are engaged, they are able to perform spectacularly and build and improve your winning business. Here are some ways to get managers and supervisors started in focusing on ways to improve engagement (and to be better managers).

1. DON’T get angry

Getting angry is easy. Anyone can do that. But getting angry in the right way in the right amount at the right time, now that is hard.”
Mark Twain

Anger does not belong in your managerial kit bag.

2. DON’T be cold, distant, rude or unfriendly

Especially in difficult times, employees take cues from their immediate supervisors and need to hear from them. As such, your team will judge you by your action, moods, and behaviors, not by your intent.

3. DON’T send mixed messages to your employees so that they never know where you stand

Keep your message simple, focused and prioritized. Too many messages and initiatives just confuse and alienate people.

4. DON’T BS your team

This includes saying things that you don’t believe in. This includes hiding information and just plain lying. By the time each of us is in our early 20′s, we have all developed very well-tuned BS detectors.

5. DON’T act more concerned about your own welfare than anything else
Your success will come through the success of your team. “Self-serving detectors” are also very well-tuned in most employees.

6. DON’T avoid taking responsibility for your actions
You are the boss. As such, you are accountable and the buck stops with you. You are trying to develop accountability throughout your company. So, lead by example.

7. DON’T jump to conclusions without checking your facts first

A few years ago, I watched in horror as a colleague of mine started screaming at an employee of his who had missed an important meeting that morning. After several minutes, the employee responded:

“I apologize and should have contacted you. But, I just got back from the hospital as a relative has been diagnosed with terminal cancer.”

Now here are the dos, which are even more important than the don’ts…

8. DO what you say you are going to do when you are going to do it

There is no better way to communicate the message that you are accountable for your promises and that everyone in your company should be accountable as well.

9. DO be responsive (return phone calls, emails)

As a manager, your team can be considered to be your customer.
You want your sales team to punctually respond back to customer requests, so you should do the same.

10. DO publicly support your people

Your disagreements and disappointment with your employees can be communicated later and in private. Nothing appears so hollow as your attempt to blame your team for failures.

11. DO admit your mistakes …

…and take the blame for failures.

12. DO recognize your team

“You can never underestimate the power of simple recognition for a job well done.”

13. DO ask and listen

“The manager of the future will know how to ask rather than how to tell.”
Peter Drucker

Some of the most dangerous words for a manager to ever say include:

But, you just don’t understand…” “Because I said so…

14. DO smile and laugh

Have some fun. But, be genuine; programmed fun and faked laughter is worse than doing nothing. 
When appropriate, laugh at yourself; it will humanize you.


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Latest News for Strategy Business Developments

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By the end of the century, a third of the workforce will be “knowledge workers”, or people whose productivity is marked by adding value to information, whether as market analyst, writers, or computer programmers.

Peter Druker, the eminent business maven who coined the term “knowledge worker“, points out that such workers’ expertise is highly specialized, and that their productivity depends on their efforts being coordinated as part of an organisational team: writers are not publishers; computer programmers are not software distributors. While people have always worked in tandem, Druker notes that with knowledge work,

” Teams become the work unit rather than the individual himself.”

Perhaps the most rudimental form of organisational team-work is the meeting, that inescapable part of an executive’s office in a boardroom, on a conference call, in someone’s office.

Meetings bodies in the same room are but the most obvious, and at the somewhat antiquated, example of the sense in which work is shared.

Electronic networks, email, teleconferences, work teams, informal networks and the like are emerging as new functional entities in organisations. To the degree that explicit hierarchy as mapped on an organisational chart is the skeleton of an organisation, these human touch points are its central nervous system.

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The total the talents and skills involved, whatever people come together to collaborate, whether it be in an executive planning meeting or as a team-working toward a shared product, there are in a very real sense on which they have been included in a group of IQ.

In maximizing the excellence of a group’s product, the degree to which the members were able to create a state of internal harmony, lets them take the advantage of the full talent of their members.


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Connected Revolution

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In challenge, success is based on others success.

The adage that two brains are better than one may explain why a lot of entrepreneurs and small business owners, including me, create partnerships. However, it’s not just those brains that should work well together. Partners’ personalities need to get along too.

As a serial entrepreneur who’s launched many companies, I’ve made a number of partnerships. Along the way, I’ve learned some lessons when creating those partnerships.

Among the most helpful tips that I’ve discovered is making sure that you get along with your business partner. It’s important to find someone who complements your skills, but don’t underestimate the importance liking one another.

Communication is another big part of a business relationship

There’s a great article from earlier this year about a long-lasting business partnership and communication is a theme that runs throughout.

I’ve learned many things about creating and maintaining partnerships during the past two decades. Although there are dozens of tips, here are five key lessons:

  • Partnership agreements: As I’ve mentioned in a previous post, I’ve been burned by not having the right agreements in place. It’s important for business partners to have clear partnership agreements drafted by attorneys.
  • Clear expectations: I’ve also learned the hard way that people, including business partners, can’t read my mind. I believe business partners should consistently set their expectations with each other.
  • Think about your clients: When evaluating a potential business partnership, I look at my weaknesses and what I need help with. I also think about my clients and what type of partnership would benefit them.
  • Mutually beneficial: It might sound obvious, but still should be noted. Partnerships should be mutually beneficial. In my experience, both sides need to gain something from the relationship for it to be worthwhile.
  • It’s ok to walk away: Like any relationship, a business partnership holds a great deal of promise. However, sometimes it doesn’t work out. That’s alright. Don’t stay in a business partnership if you believe it’s no longer viable. I’ve learned that it’s better to end the partnership and regroup than to force something that’s not working.

“For a better understanding to how to get started in achieving good partnerships, is taking in consideration the history in the early 1700s when workers gave way to machine operations and then the 1800s Henry Ford in mass production changed manufacturing forever, then came robotics, computers, lean manufacturing and the lean sigma. “

Each revolution is made to get products out the door and now we got a connected revolution.


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The Latest News On Contemporary Developments in Business Strategy Practise

True contrast

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Even though there is widespead acceptance, entrepreneurs often ask how to value the sweat equity invested in their startup. A quick and easy response: It’s worth whatever your investors tell you it’s worth. But over the years, come to realize that sweat equity isn’t the same thing as market value for your startup.

 

Investors have no idea how to value sweat equity, and I now believe it’s a bad idea to let them tell you how to do it. At a minimum, they could use this as a negotiating tool to undervalue your startup.

 

When you’re getting started, sweat equity is often a critical component of your negotiating leverage with co-founders, early stage employees and others who aren’t paid market wages to help you grow your business. As the business owner, you should be the expert on valuing sweat equity, not your investors, accountants or lawyers. Here are some tools for tackling the challenge.

When determining the value of the sweat equity provided by an employee or potential co-founder, first assess these three characteristics of the person in question:

 

  1. Commitment:Is he or she committed to being a founding partner for the long haul?
  2. Unique contribution:Does he or she bring specialized knowledge, skills, leadership ability or experiences that you don’t have?
  3. Hopes and dreams:Are his or her hopes and dreams for personal wealth, business success and autonomy the same as yours? If not, are the differences substantial enough that they’ll pull the company apart?

Then, start thinking about the numbers.

 

1. Market value doesn’t equal the sum of sweat equity invested by you and your partners.


If you have invested $100,000 worth of your time in writing a business plan, and your partner, a young engineering student, has invested $25,000 worth of her time in building a prototype, it doesn’t mean the market value of your startup is $125,000. In fact, it could be worth much more. Sweat equity is just one component of early-stage valuation. In a previous column, I discussed how valuing a startup is more driven by market conditions, comparable companies, exit potential, future capital needs and many other factors.

 

2. Foregone wages for an engineer aren’t the same as foregone wages for a prototype designer.


In the example described above, the $25,000 estimated by your business partner is likely to be based on wages that she could have earned in a full-time job. This is the typical way that a founder determines sweat equity: foregone wages. However, your partner could just as easily have argued that her sweat equity is worth $250,000 since that’s what a prototype would have cost you to make had you hired a prototype development firm. Or she could argue that the prototype is so critical to the business that she should get 50 percent of the company’s stock.

In my experience, this is the basis for much of the negotiation that CEOs will have with their early-stage employees and co-founder. You need to determine the principle applied for valuing services invested in a nascent business. Foregone wages tends to be the anchor that keeps valuation negotiations from sailing into oblivion. Don’t be tempted to dole out equity to everyone who helps you found the company–even it makes you feel good to have co-founders. (Being an entrepreneur is lonely, but there are better ways to make friends or build a community of credible supporters than by giving early-stage equity to people who make small contributions to your business.)

One simple solution is to “pay” a slight premium for sweat equity to early-stage employees. For example, when valuing the sweat equity invested by your prototype designer, use $30,000 rather than $25,000 as a valuation figure and explain that you’re paying a 20 percent premium because of the risks associated with being paid in equity rather than cash.

 

3. Employees and founders are motivated by different things.


How should you decide if your prototype designer should be a co-founder who deserves 50 percent of your company or deserves $30,000 in sweat equity for her work as an employee or consultant? Too often, I see entrepreneurs make this critical decision by trusting the opinion of their investors–or potential investors-rather than determining what their business will actually need. First-time entrepreneurs often think,

 

“If I approach a VC with a chief technology officer or chief prototype designer in place, then I’m more likely to get funded.”

 

So they end up getting a co-founder and parting with 50 percent of their company, even if their CTO is really a young prototype designer who will get discouraged or fired a few months later. Using a restricted stock agreement, you can mitigate risk, building in a buy-back right for the partner’s equity grant. Ultimately, it’s up to you. You get to decide what you need to give up to keep or get an invaluable partner on board.

 

How CEOs Manage Time

The scope of an organization’s managerial work is vast, encompassing functional agendas, business unit agendas, multiple organizational levels and myriad external issues. It also involves a wide array of constituencies—shareholders, customers, employees, the board, the media, government, community organizations, and more. Unlike any other executive, the CEO has to engage with them all.

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The epitome of leadership – The CEO in the lexicom of management

While CEOs are the ultimate power in their companies, they face challenges and constraints that few others recognize. Running a large global company is an exceedingly complex job.

The CEO must be the internal and external face of the organization through good times and bad, of course, having a great deal of help and resources at their disposal. However, they, more than anyone else in the organization, confront an acute scarcity of one resource. That resource is time. There is never enough time to do everything that a CEO is responsible for. Despite this, CEOs remain accountable for all the work of their organizations. 

The way CEOs allocate their time and their presence—where they choose to personally participate—is crucial, not only to their own effectiveness but also to the performance of their companies.

 

Where and how CEOs are involved
In determining what gets done and signals priorities for others it can also affect their legitimacy because a CEO who doesn’t spend enough time with colleagues will seem insular and out of touch, whereas one who spends too much time in direct decision making will risk being seen as a micromanager and erode employees’ initiative.

A CEO’s schedule (indeed, any leader’s schedule), then, is a manifestation of how the leader leads and sends powerful messages to the rest of the organization.

A crucial missing link in understanding the time allocation of CEOs—and making it more effective—has been systematic data on what they actually do.

Research on that has tended either to cover a small handful of CEOs, like the 1973 study in which Henry Mintzberg closely observed five chief executives (some of whom led nonprofits) for five days each, or to rely on large surveys that cover short periods (such as our HBS colleague Raffaella Sadun’s 2017 study based on daily phone surveys with 1,114 CEOs from a wide variety of companies in six countries over one week).


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Latest News for Strategy Business Developments

Windows of opportunity

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This world is moving away from a system of national markets

Isolated from one another by trade barriers, distance or culture, advances in technology and mass communication have made it possible, for people in one part of the world to watch happenings in far off places.

Theses are often used interchangeably but they refer to different processes. The process of integration on a worldwide scale of markets and production, has a single accepted definition used for it, globalisation.

For it, national boundaries are not important economically; free trade and movement of labour and other resources result in the breakdown of these boundaries and one big global marketplace.

On the other hand, referring to resources is internationalisation for which the increased links between nation states, with respect for trade and movement of this resources in participating and co-operating with other nation states to a common end.The regional trade agreements and regionalism are important in this process the EU is an example.

Hyperglobalisation – an extreme view process where the world market is a borderless global market.Consisting of powerless nation states and powerful multinational corporations.”

The process of globalisation brings changes in both the power of countries and companies and in national characteristics and culture, generally accepted in a view called transformationalism. The main international organisation concerned with globalisation are the World Trade Organisation, the International Monetary Fund, the World Bank and the OECD.

The OECD categories members into three bands high income countries, which include the EU, North America and Australia; middle income countries, which include East Asia and the Pacific Rim, and low-income countries, which include South Asia and Africa.

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Latest News for Strategy Business Developments

Dealing With Diversity

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As a result of the suits and the publicity surrounding it, employee especially managers must attend sessions about the advantages of a multiracial clientele.

 

The reasons, over and above human decency, are pragmatic. One is the shifting face of the workforce, as white males, who used to be the dominant group, are becoming a minority.

 

A survey of several hundred American companies found that more than three-quarters of new employee were non white – a demographic shift that is also reflected to a large extend in the changing pool of customers.

 

Another reason is the increasing need for international companies to have employee who not only put any bias aside to appreciate people from diverse cultures (and markets) but also turn that appreciation to competitive advantage.


Workplace-Diversity


A third motivation is the potential fruit of diversity, in terms of heightened collective creativity and entrepreneurial energy.

 

All this means the culture of an organisation must change to foster tolerance, even if individual biases remain.

 

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