Five ways how Wolf Culture shapes business strategy?

Ren Zhengfei introduced the concept of “Wolf Culture” into Huawei. In turn this culture shaped Huawei business strategy bringing in its wake a massive success across the globe. Here are five ways wolf culture can impact and influence business strategy:

1. Stamina & strength: Wolves are strong warriors in the animal kingdom. They have strong & powerful legs that enable them to roam the wild for almost 10 hours from dawn to dusk. On the foot wolves walk at 5 miles per hour, while hunting they can run up to 25 miles per hour. This is unique in that they can stroll as well as run. Huawei employees are made of sterner stuff and their stamina & staying power on the job is phenomenal as they can accelerate or decorate at ease.

2. Daring & ferocity: Zoologists have coined a phrase for the combination of daring & ferocity among the wolves: “Conversation of Death” is a concept where the wolves communicate with the pack members and take on large prey in a concerted action. In doing so they bring synergy to out-smart the prey and at the same time attack in such ferocity there is zero chance for the prey to withstand. They also defend the pack even at the risk of their own lives. Huawei made its employees to be daring in the pursuit of large business mainly at corporate level with fearlessness, courage, loyalty in team spirit.

3. Determination & hard work: Wolves are known for their determination in getting ahead. They are quick learners, do a quick judgement whether hunt is worthwhile. Once the leader of pack signals green, then quickly surround the prey and finish the task without losing a single moment. Huawei fashioned its business strategy with a shared value anchored on three corners: value, belief and attitude. Hence Huawei employees always act fast and go forward.

4. Aggressiveness: Wolves are not known to rest for a long time. Their ululation alerts members of the pack on imminent dangers or opportunities. They do plenty of roaming; extremely intelligent and connect with instinct & intuition. Wolves have another excellent quality: sharing & caring. Every member of the pack is taken care of in sharing the spoil. Bringing this trait into Huawei, Ren Zhengfei brought the concept of aggressive marketing that takes care of the employees in terms of their dues. Consequently the staff easily connects with the opportunities present in the market and pounce on them seamlessly.

5. Norms & loyalty: Wolves have their own standards in terms of hunting ethics that includes loyalty to the pack leader and welfare of the pack as a whole. Weaklings are identified and always kept as reserve warriors to avoid fatality. This internal assessment is matched with what wolves see as the external gain in terms of identified preys.

This is the major chunk of Huawei business policy. The company has internal standards. Never the less these standards must not be allowed to block gainful marketing. At the same time guidelines are given to the staff to conform to the rules & regulations of the market in which they are carrying out business operation.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

Five rules of engagement in business warfare

It may surprise my readers that there is something known as “Business Warfare”. Many consider business as of peaceful nature where transactions take place between buyers and sellers in orderly and harmonious fashion. Never the less, under the garb of peace, there is intense warfare going on behind the scenes.

This time the war is led by astute business strategists who following the military precedents, have set rules of engagement between two likely adversaries. In fact, business strategy dictates how the competition in the market is managed, how to conform to rules of engagement and what measures must be taken to chill down any out-blown conflicts between two competitors. Here are the five rules of engagement:

1. Equation of offensive: In military the rule is if there is an attack on military targets counter attack will be on military target only leaving the non-military targets unscathed. Similarly where a price war takes place the contestants limit the offensive only to the price and do not resort to non-price competition.

2. Equation of deterrence: As in military, equation of deterrence works as a balancing factor in business warfare. If one competitor embarks on offensive smearing or disparaging the product of the other competitor with the sole intention of demolishing market share then he positions himself in a glass house throwing stones. His opponent can play the victim role and is able to select from the bank of counter measures including advert blast, legal action or resort to the same idea of bringing disrepute to the initiator with much potency.

3.  Competition at acceptable level: Similar to the military concept of escalation ladder companies have to maintain business warfare to the extent it is ethical, legal and commensurate with the general level of competitiveness in a particular market. If anytime exchanges get out of control it is the duty of both opponents in business warfare to bring it back to the acceptable level. Often IT companies start with cut-throat competition in the beginning and level off climbing down the escalation ladder.

4. Control offensive:  This rule implies that business warfare must be played on a tit for tat basis and not to engage in all-out war with an opponent. Competitive postures of a company must conform to its business policy must reflect its business strategy. In military we have the concept known as limited offensive.

5. Charm offensive: Most companies accept this rule of chance offensive. In business strategy charm offensive is given pride of place because it does not bring any harm. Instead it garners goodwill amongst customers and competitors. When charm offensive fails to dislodge an opponent who is adamant, then the firm can play hard ball only with that opponent and not to extend it to the other market participants.

Cheers!

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

What went wrong in Dubai Palm Jumeirah?

Dubai called it “The Eighth Wonder”. The massive US$ 12 Billion showcase of Palm Jumeirah was a man-made archipelago in the Persian Gulf. Even from the space the Jumeirah was visible as a palm tree with trunks and fronds and definitely deserves its hubris. However the wonder did not last. Soon it became the “The Eighth Blunder”. What went wrong?

To build a huge rock & sand building over the sea, the developer of Dubai Palm Jumeirah had to do massive dredging and filling it up with huge amount of concrete fastened by rocks & sands brought from elsewhere. The first part caused dramatic ecological changes in that wave & sea erosion pattern making it go haywire. On the other hand, destruction of huge coral laden sea-shore caused the super structure somewhat unstable.

In order to prevent high waves lashing at the villas an outer breakwater of seven miles of length was built. This breakwater had additional purposes as well: to control sea current and to act as bulwark against “Shamal” winds originating from Iraq that blow across most of the Persian Gulf. By doing this the developer deprived the only source of cooling breeze that could rejuvenate the residents.

To tap it all sweltering heat & high humidity made life miserable to the residents. Without central air-conditioning installed residents who call themselves humorously as “prisoners” have to spend a wale of amount for air-conditioning.

Then there was another issue arose. Due to the functioning of breakwater, whatever water caught within the fronds started to stagnate and later gave nauseating stench. As an ad-hoc measure gaps were made over the break water but not without much avail.

Most pressing issue for the residents was the way housing intensity working against them. Originally only 2,500 villas were proposed to be built in the 16 fronds. Cost overlap due mainly to the miscalculation of per unit cost and the associated interest cost forced developer to increase the number of villas by another 1,500 making a total of 4,000 villas. Gone is the space between two units. The over-crowding had not only robbed the privacy of the residents as everyone can peer through his neighbour, but drained out the greenery that would have been there if sufficient landscape was made available.

Finally, the faulty supper structure was causing something unimaginable in this colossal venture. New York Times reported citing satellite scanning of the Palm Jumeirah that the whole edifice is sinking one-fifth of an inch per annum and expected to increase over the years.

For real estate development, business strategy dictates that an ECM study must be undertaken first. ECM is an acronym for economic, construction and marketing feasibility. Why developer of Dubai Palm Jumeirah ignored this, is the billion dollar question!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist

Understanding the challenge is crux of strategy dynamics

“Strategy dynamics” is a new realm in strategy study, the phrase itself was coined by Professor Richard Rumelt, a foremost authority in this field. He postulated two aspects: change and challenges. Let me say few pointers on the challenge part of strategy dynamics:

Business strategy neither can exist in a vacuum nor as static. Business always is in the state of flux. So is Business strategy. It evolves as time passes and revolves around how the movements in the internal and external environment are taking place, throwing out new challenges. Whether you like it or not challenges are there and the business that has the ability to cope up with these and have the ingenuity to come top of them succeeds.

First and foremost you must narrow down to the real essence of the challenge you face. It is similar to get the eye of the storm identified. Once you narrow down you can go deep into the challenge and its ramifications to your business, your competitors and to the industry you are in. Once you understand the nature of the challenge and its effects over you, it is easier to define the challenge in few words as possible.

A good example is the rising cost of air travel. Here the budget airlines emerged after studying the cost structure in details and narrowing down on the smooth and affordable travel as the new challenge. They came out with an alternative of no-frills air passage that includes a guarantee of timely departure and arrival plus the security of the carriage passengers take with them.

This innovative idea became a successful business strategy only after the budget airlines spent considerable time on the following salient factors:

1. Setting the right priority of the passengers

2. Focussing on the core subject of safe, timely and convenient air travel

3. Connecting with many people as possible including travellers, agents, pilots, ground handling staff, airport authorities and not to forget travel magazine editors

4. Balancing the needs of the passengers with the kind of services provided by airlines

5. Improving efficiency and effectiveness at one and the same time

6. Finally, realizing the need for something must happen that too speedily to solve high cost of air travel.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist