Corporate Self-Analysis

Intelligent Business Analysisby Larraine D. Segil

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.

Purpose

•Understaing of how we do things (both good and bad)

•To ease finding of the right partner•To ease the partner’s understanding of

our organization

Elements

I. The Culture ClusterII. The Financial PictureIII. The Business Definition and SWOT

AnalysisIV. The Possible Strategic DirectionV. The Senior Executive InputVI. Selection of Alliance Strategy

I. The Culture Cluster

•Understanding about the company’s 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.

I. The Culture Cluster1. Styles of decision making and problem solving2. Authority-delegation and control; reporting

methods3. Work behavior4. Compensation and incentives5. Leadership and mentoring styles6. Communication-oral; written; nonverbal7. Levels of secrecy8. Attitude toward time and milestones9. Ethics and values10. Personal versus corporate goals

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

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?”

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

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

1.3) Work Behavior

•Dress•Management of work space•Arrival and departure norms•Task-oriented or process-oriented

•Country cultures affect some work habits

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

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

AllianceAsian Company Vs US Company•Who would get the commission and credit?•Who got the customer relationship?•Different incentive system

1.5)Leadership and Mentoring Styles

1. Leadership style are often related to the stages in the corporate life2. Mentors are knowledgeable about internal politics3. There are many types of leadership

Autocratic leader Hunter Manager Entrepreneuriar

Result"The lack of understanding ofpower structure in the

alliance willlead to a failure of a project "

ExampleMichael DellAdventure Manager to HunterManger

George Kozmertsky is the mentor

1.6) Communication - Oral, Written; Nonverbal

• Miscommunication can occur in any levels when you combined country culture

Result1. Relationship2. Trust3. Misunderstanding

Example

Can we talk withoutoverheads?

Aero space company culture•viewgraphs•data

Partner Research firmdoesn't see it necessary

1.7) Level of secrecy1.7) Level of secrecy

• Closed-door meeting• Revealing corporate goal• Knowing the actual

decision makers• Example:• Adventurer Manager

combined with later-phase Company.

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.

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 can’t control the external progression of activities

Speedcom time VS Judge Speedcom time VS Judge timetime

Begins at 9 o’clock 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 can’t make it on time his case will be put off.

1.9) Ethic and Value1.9) Ethic and Value

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

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.

““Frontier Capitalism” Frontier Capitalism” evolved into democratize evolved into democratize capitalismcapitalism•Stage1: Gangsters

and pirates has highly influencing.

•Stage2: Family business began to develop (age of robber barons).

•Stage3: Foreign investors entered the market.

•Stage4: Western mode of commerce

•Stage5: The legal institution was enforced.

1.10) Personal VS 1.10) Personal VS Corporate GoalCorporate Goal

Multi-Billion-Dollar US Company VS

Australian chemical industry group

Money VS RelationshipMoney VS Relationship

II. Financial PictureII. 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.

III. The Business Definition and SWOT Analysis

1. The listing of SWOT issues brought issue into the open2. To develop an alliance in context•Know who you are•You hope to be•SWOT that will get you

there

Major people in everydepartment should beincluded

IV. The Possible Strategic Direction

TimeTime

V. The Senior Executive’s Input: “Golf Cours” and “Designer” Alliances•A stage where the senior executive take

action to develop the alliance with potential partner

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

Designer Alliance

•The announcement of the alliance that catches media and public attentions

•But often falls usually because of poor analysis

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

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

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

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