Wednesday, August 13, 2014

The 4 Business Strategy Models Which Have Become a Corporate Fad!

The corporate arena too has its fads like fashion and entertainment industries. In the old days, manufacturing model dominated the economy. The business models kept on evolving to the present growth of knowledge-based economy model.
During the 1980s & 1990s, GE's famous rank-and-yank, Toyota's lean management & kaizen were the corporate fads along with Google's Top 20% during the last 10 years. Let’s have a look at the management fads of today!
  • Holacracy is the newest buzzword. It’s becoming a growing corporate fad most prevalent in Silicon Valley’s internet-based start-up companies. Some of the biggest firms adapting to this form of business model are consulting firms David Allen Company & Undercurrent.
  •  Holacracy is a business strategy which shuns the various top-down  hierarchies. It also eliminates designations.
  •  This business model believes in management by committees & not managers. It facilitates experimentation.
  •  Holacratic organizations as they are called are structured around specific tasks. A particular group or committee is formed which distributes tasks amongst the members. The members are responsible for the tasks given to them.

  •   Kaizen, a Japanese term for continuous improvement is still prevalent in several corporate sectors.
  • It refers to small but regular inputs to improve productivity, security, & effectiveness in business while reducing waste. Kaizen considers the inputs from the CEOs to the assembly-line workers which is very effective.
  •  It was popularized prior to World War II by the Japanese giants like Toyota and Canon. Later on American firms embraced this business model with gusto along with other countries also entering the bandwagon.
  •  The manufacturing firms globally consider Kaizen as very effective in improving work processes & quality of products. It also helps to reduce defects & accidents. Kaizen is also undertaken by many logistics & supply chain industries along with sectors of psychotherapy, coaching & healthcare.

#Lean management
  •   Some of the most popular business models like just-in-time, lean management & kaizen, all originated in Japan.
  •  Lean management traces its roots from the lobbies of Toyota where the idea was created after World War II. Hence, it’s often called as the Toyota way.
  • Lean management essentially focuses on creating value by eliminating wastage. This business model helped Toyota to reduce its wastes & improve overall customer value. It has played a significant role in the progress of Toyota, from a minor company to the world's biggest automaker! Hence, this management philosophy has garnered attention of many businesses worldwide.
  • Lean management helps to eliminate waste, deliver timely high quality products at least cost to the customers with greater efficiency. It also helps businesses to keep their workplace responsive and alert to current market trends. As a result of so many lucrative ideals, lean management today is has become the core business model of companies across Japan, US & India.

#Bottom of the pyramid (BOP)
  • Bottom of the pyramid (BOP) is a business model targeted at delivering goods & services to the poorest across the world.
  • Interestingly, when BOP originated, it was the time when the idea of BRIC was drafted to focus the world's attention on the emerging economies consisting of millions of poor.
  • BOP’s moral approach gained increasing traction across companies from West to East. Businesses started making low-cost products so that even the poorest people can benefit from their products. Today, BOP has become a buzzword for even some of the blue-blooded MNCs such as GE, Ford, Phillips & Nissan.

So which business model will you prefer for your business?

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  1. Yeah dear I really agree with you in Lean management, and I think i should to appreciate you for this one effort. thanks for sharing this beautiful knowledge with us .

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