Going through Red Bull again
Connections between different concepts within the case 3
Wrap up:
Arc Initiative
1. Salem’s Ethiopia
– Provides local jobs to moms
– Promotes Ethiopian culture
– Acts as a role model of a social enterprise
2. Sasavona Guest House
– Support local families with job opportunities
– Local recognition by the globe
3. Zeritu Tadesse (Fresh Milk)
– Helping country-side farmers to sell milk
– Expanding her business while helping street vendors
4. Rayna Hluvukani
– Employ people
James Tansey on Sustainability
Financial Leverage: to invest by borrowing money, allow you to make more money, than only investing with your own money.
CRO: Chieft Revenue Officer
Inventory Ratio
Having a better inventory turnover may not be beneficial to the firm. For example, a decrease in price can achieve better inventory ratio but may not help the firm to increase marginal profit at all.
Organizational Structure
Centralization vs. Decentralization
Which one is better? It depends
How could the structure be built?
Divisional structure is based upon:
– Region
– Product
– Function (activity)
Responsibility accounting (divisions are evaluated)
Cost centers
– Assess actual cost vs. Budgeted costs
Profit centers
– Assess targeted profit vs. actual profit
– But this does not measure anything else such as investments, operations, etc.
Revenue centers
– Assess revenue target vs. actual revenue
– But costs are not included
Investment centers (return on investment)
– Profit / Investment base
– But people may be too scared to make a move
Management Information Systems/Business Technology Management is the process in which IT is used to apply into business.
IT — MIS/BTM —> Business
Why should we care?
1. What technologies should we consider?
What is missing?
1. Knowing who your users are and howthey are going to use the system?
2. Understand and providing requirements:
– How to identify them?
– How not to chagne your mind frequently?
– How to clearly explain this to developers?
– How to ensure that they are met?
3. Knowing how to adjust other parts of your business to accommodate the system
2. How do we leverage their opportunities?
If a firm does not hold on to the opportunities for its technologies, others may take advantages of them.
3. How do we minimize their risks?
What is missing?
1. Understanding and conveying requirements
2. Good project management
3. Business-IT alignment
– Ensuring your IT deliver values to your business
4. Can use IT governance to control
– Are we doing the right things?
– Are we doing them the right way?
– Are we getting the benefits?
– Are we getting them done well?
Revolutionizing Innovation
Measurement: Using IT to get data. Be careful of the quality and the validate of the data.
Experimentation: Using IT to get insights.
Sharing: Using IT to share insights
Replication: Using IT to replicate insights
What is finance?
Everyone who saves money in the bank is a investor
finance is about getting investors excess supply capital to companies or anyone whom have the demand to borrow
Investors —> Financial institution —> Companies
Types of financial institutions :
Banks
Pension fund
Mutual fund
Finance skills
Math skills to deal with uncertainties
Analytical skills to formulate problems
People skills to manage relationships with others
Communication skills
Stock allows you to gain:
Cash flow rights and ownership rights
Motivating employees at the customer service centers = better treated customers = better returns
Calls are usually stressful and emotional which might negatively cause the employees to be stressed
Costs and Benefits of outsourcing customer services (Example: Indian employees)
Importance of a positive and enjoyable working culture (environment) to reach employees loyalties