HFT3240 Exam 2 Module 6 Control of Destiny Control of destiny Is having systems in place to achieve company goals and sustain success year after year Companies that sustain success control their destiny by Having a unique and valuable market offer Starbucks Having an independent attitude a mindset Google Focus on creating superior value for the customers Southwest Traits of successful companies that control their destiny Stress excellence over growth Act like a private company Control customer value creation Compete against themselves How do companies stress excellence over growth They identify and commit to an expansion pace that allows superior execution of the strategy Companies lose control over their future by growing too fast Rapid growth weakens the market offer and impairs the customers experience Ex Green Cab s growth problems hybrid vehicles reducing costs and improving customer service started by 8 cab drivers that wanted to start a company that was a little more environmentally responsible up to 16 vehicles now in 2009 they struggled with growing had to intensely focus on finding appropriate funding uses higher quality products trying to build a solid foundation for future rapid growth Ex Groupon s rapid growth people were excited about it at first but seem to have lost interest merchants aren t gaining loyal customers and are losing money on their deals stock prices are plummeting have started to reposition by offering Groupon goods instead of just services began offering payment processing services to create lower cost alternatives for merchants Acting like a private company relationships Giving employees and customers specialized services and attention that builds trust and long term How does a service organization act like a private company Ex Tide acts like a private company during natural disasters Loads of hope disaster relief program In times of disaster people turn to the most basic of human needs and one of those is clean clothes The Tide Loads of Hope program provides relief by means of a mobile Laundromat where the team washes dries and folds clothes for families for free can do 300 loads a day allows people to start rebuilding their lives Control customer value creation controlling processes that directly affect customers perceptions of quality and value Leonard Berry How do companies control value creation Creating excitement about your products and services Maintaining quality standards consistency Offering new options for customers Ex The Container Store elfa section represents 25 of their sales floors shelving basic Product knowledge training for employees organizing product of any closet closet dance so excited to walk into their dream closet that they do a little dance they love it so much so they keep coming back show off their closets and business builds from there world s greatest show box took 30 years to develop but only costs 1 79 worlds greatest show boxes sweater boxes under the bed boxes etc hanger wall world s greatest selection cedar hangers that smell great keep moths away are sturdy etc even their plastic hangers are custom made in a variety of colors had to do their own molds for hangers passionate about 25 cent hangers Ex Starbucks creates value by adding new options for customers redesigning seeks ways to heighten evening business people are interested in more options so they re creating an elevated experience with beer wine and food Creating a variety of options that would be found in a restaurant especially cheese and cured meats savory items served on china will compliment the coffee beer and wine Highlights locally relevant recycled materials working with local artists new table designs community tables that seat up to 12 or 15 people very homelike design that is inviting Ex Publix gives customers more options by launching online easy pickup for deli food able to shop from phone or computer specify a meal and pickup time cuts out waiting in line for your number Compete against yourself Successful companies seek to outdistance themselves Ex Facebook uses their culture to outdistance themselves three keys to Facebook s success 1 Cultural values a place where people can move quickly 2 Emphasis on making bold decisions newsfeed platform were controversial at first 3 Focusing on leverage and impact the best people want to go to the place where they ll have the biggest impact ratio of of engineers to the size of the user base each engineer is responsible for 1 million users focus on having leverage for the best people to join the company Ex Ikea uses it s corporate culture to outdistance itself mission is to create a better everyday life for people challenge each other importance of their culture is everything when a company wants to last the culture is the glue in a growing organization and it s the fuel the culture at Ikea is exciting but also questions what they are doing foundation for innovating have to revisit culture all the time growing into china and have to be Ikea in China the shopping experience is a big strength because it is engaging touching the stuff home furnishing offer is broad great prices smart home furnishing program According to the video Ikea Culture Ikea believes that the corporation s culture involves not only a community feeling for employees but also the delivery of fabulous good value to customers From the book Miller SQA leading a mini revolution in office furniture by rewriting the value equation for customers making a hard to buy product quick simple and affordable Companies in control of their destiny minimize unwanted interference that distracts them from their mission The senior leaders of a business determine its course Control of destiny is independent action Requires staying centered on the customer Strong values strong leadership strong focus Stressing Excellence over growth Charles Shwab hire employees with values who fit their own refuses to pay sales commission that could put the interest of sales representatives and customers in conflict internal communication investments such as town hall meetings Container store only opens a few stores a year and waits until a spot opens in the markets they want to enter the most important thing they do is hire great employees Midwest Express adds only 15 new people each year grow 20 per year with no debt homegrowns develop teams Acting like a private company Chick Fil A private one of the most successful fast food chains in the world and would get a ton