Corporate Self-Analysis

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Corporate Self-Analysis

• Intelligent Business Analysis
• by Larraine D. Segil

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Corporate Self-Analysis

• Task of examining your own company before
  developing plans for the possible use of
  alliances in pursuit of company goals
• May require people from various parts of
  organization to develop.

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Purpose

• Understaing of how we do things (both good and
  bad)
• To ease finding of the right partner
• To ease the partners understanding of our
  organization

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Elements

1. The Culture Cluster
2. The Financial Picture
3. The Business Definition and SWOT Analysis
4. The Possible Strategic Direction
5. The Senior Executive Input
6. Selection of Alliance Strategy

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I. The Culture Cluster

• Understanding about the companys culture
  unwritten rules, norm, value, reality of the
  company
• Potential partner has no way to understand our
  culture, so it is important to do this analysis
  to prepare for compromise on cultural clashes.

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I. The Culture Cluster

1. Styles of decision making and problem solving
2. Authority-delegation and control reporting
   methods
3. Work behavior
4. Compensation and incentives
5. Leadership and mentoring styles
6. Communication-oral written nonverbal
7. Levels of secrecy
8. Attitude toward time and milestones
9. Ethics and values
10. Personal versus corporate goals

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1.1)Decision Making and Problem Solving

• Covers all the ways decisions are made in
  organaization
• One of the most common areas for culture clash in
  alliances
• eg- Start-up company vs old,
  sophisticated company
• - Japanese expatriate making all
  the decisions

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1.1)Decision Making and Problem Solving

• It should examine senior-to-senior and
  senior-to-middle managerial processes (those who
  are likely to be involved in alliance)
• What is the decision-making process within your
  organization?

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1.1) Decision Making and Problem Solving

• Also involves how the company solves problems
• Doing this analysis will enable your potential
  partner to know how we deal with issues

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1.2) Authority-Delegation and Control Reporting
methods

• Issues concerning authority
• How is authority delegated and what management
  controls are in place, including reporting
  responsibilities?
• Not only the official organization chart, but
  also the actual one

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1.3) Work Behavior

• Dress
• Management of work space
• Arrival and departure norms
• Task-oriented or process-oriented
• Country cultures affect some work habits

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Examples

• 35-hour work week in France
• Formal dress of mature company
• Casual dress of start-up company
• Not-leaving-before-the-boss norms in Japan

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1.4) Compensation and incentives

• 1. Every Organization have
• standard policies and
• procedures on
• compensation and
• Incentives
• 2. Different way of looking at
• Compensation
• Result
• "Destroy a strategically
• important relationship"

• Example
• Salesperson
• Alliance
• Asian Company Vs US Company
• Who would get the commission and credit?
• Who got the customer relationship?
• Different incentive system

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1.5)Leadership and Mentoring Styles

• 1. Leadership style are often
• related to the stages in the
• corporate life
• 2. Mentors are knowledgeable
• about internal politics
• 3. There are many types of
• leadership
• Autocratic leader
• Hunter Manager
• Entrepreneuriar
• Result
• "The lack of understanding of
• power structure in the alliance will
• lead to a failure of a project "

Example Michael Dell Adventure Manager to
Hunter Manger George Kozmertsky is the mentor
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1.6) Communication - Oral, Written Nonverbal

• Miscommunication
• can occur in any levels
• when you combined
• country culture
• Result
• 1. Relationship
• 2. Trust
• 3. Misunderstanding

• Example
• Can we talk without
• overheads?
• Aero space company culture
• viewgraphs
• data
• Partner Research firm
• doesn't see it necessary

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1.7) Level of secrecy

• Closed-door meeting
• Revealing corporate goal
• Knowing the actual decision makers
• Example
• ?Adventurer Manager combined with later-phase
  Company.

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Before the alliance stage we should make the
agreement that every member should admit that
some topics or information will communicate
though only certain groups of the project and at
which topic should be informed to every member.
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1.8) Attitude toward time and milestone

• now, soon and on time

• Now Tomorrow
• Some cultures believe in the natural progression
  of activities
• ? in Saudi Arabia, believe that we cant control
  the external progression of activities

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Speedcom time VS Judge time

• Begins at 9 oclock by rule
• ? it real begin at 9.20AM

• Judge time ? lawyer must be at the court at 7.29
  AM when it starts at 7.30 AM to answer his name
  when the judge call but if he cant make it on
  time his case will be put off.

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1.9) Ethic and Value

• Example

• CEO of milti-billion-dollar Company found out
  that the tactic of his partner is unethical but
  anyway it still legal.
• Western countries consider bribery, other
  countries consider a cost of business.

• Doing a particular thing is acceptable your
  company but unethical for your partner.

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Frontier Capitalism evolved into democratize
capitalism

• Stage1 Gangsters and pirates has highly
  influencing.
• Stage2 Family business began to develop (age of
  robber barons).
• Stage3 Foreign investors entered the market.

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• Stage4 Western mode of commerce
• Stage5 The legal institution was enforced.

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1.10) Personal VS Corporate Goal

• Multi-Billion-Dollar US Company
• VS
• Australian chemical industry group

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Money VS Relationship
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II. Financial Picture

• See the big picture of company
• Learn not to make the same mistake
• Plan for alliance
• Easier way to observe to learn other companies.

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III. The Business Definition and SWOT
Analysis
Major people in every department should
be included

• 1. The listing of SWOT
• issues brought issue into
• the open
• 2. To develop an alliance in
• context
• Know who you are
• You hope to be
• SWOT that will get you
• there

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IV. The Possible Strategic Direction
Time
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V. The Senior Executives Input Golf Cours and
Designer Alliances

• A stage where the senior executive take action to
  develop the alliance with potential partner

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Golf Course Alliance

• Alliance that is established by two CEO meeting
  on a golf course and making agreement
• Many early alliances are formed in this kind of
  nature

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Designer Alliance

• The announcement of the alliance that catches
  media and public attentions
• But often falls usually because of poor analysis

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VI. Selection of Alliance Strategy

• After all the analysises, you now have enough
  information and this is the stage where you
  decide what type of alliance strategy is most
  appropriate

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Develop a Mission Statement

• Set a goal for your alliance activity that is
  both qualitative and quantitative
• It sereves as a reference point when you want to
  see whether the alliance is working effectively
  or not

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After the Corporate Self-Analysis

• You have now become able to prevent issues that
  could be otherwise avoided by doing analysis
• Once it is done, there is no need to do it in
  detail again

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After the Corporate Self-Analysis

• Outcome may be that you decide not to go for
  alliance
• If you do decide to go for alliance, now you need
  to set a timetable and the next major task is
  developing alliance partner criteria, followed by
  partner search, negotiation, and closure