Learn to simplify the business

“After strategic analysis, find the position of the enterprise in the core industry, find the core resources and key success factors, find the high cost drivers and high added value factors, and then sort them according to their importance. Knowing these will know the strategy of the enterprise. ”

A business is a collection of people with clear goals, hierarchical relationships, and collaborative rules. According to the functions, it is divided into strategy , organization, finance, human resources, marketing , culture, information management and so on. So how do you think of the management knowledge as a whole and quickly form your own thinking framework? In the process of serving the enterprise, in order to facilitate the high-level leadership of the enterprise, the middle-level cadres to quickly understand the enterprise, and understand the relationship between management and management , the author has created such a model. This model basically comes from one idea: the rule of the country is to cook small fresh ( Laozi language).

There is no end to learning, and people's energy is easily overwhelmed by the ocean of information and knowledge. When we look at the company, we must first look at the company as "simple" - simply understand the enterprise and simply understand management . This is a natural law . Simple management is a way of thinking, which is to accurately find and grasp the laws of things.

A German philosopher said that what causes us difficulties is not that we don't know anything, but that the source we know is not like this. We must deepen the essence and grasp the law in order to establish our own logical framework. The premise of simply looking at the enterprise is to build on the overall framework of the enterprise. If you don't build this framework, you will find that listening to the chairman of Wang, the lecture is originally a round; listening to Professor Zhang's lecture, it turned out to be a party; after listening to Li, the lecture is a dumbbell type; after listening to my lecture, It is also triangular. Then you will be confused, confused, and all right. Which one to listen to? How to do? Need to be "simple", to grasp the law, to falsify the truth, and thus, from the table to the inside.

In practice, I tried to use a piece of paper to let the middle and senior leaders of the company understand how I view their business, how I view and analyze the business priorities, and then how to look at other people's businesses. After many years of practice, the author is very useful. When the author serves the enterprise, he tells the customer about this thing, and then the customer follows this logical framework to consider his own problems and other people's problems. This is the process of a mental model and a logical framework. First, simply use the value chain to describe how to look at what kind of business a company is engaged in and analyze its strategic issues. The first thing that companies look at is not management , but what kind of products and services companies provide, and then you know who your customers are and know your mission.

In 1986, Michael Porter published an article entitled "Competitive Advantages, Establishing and Maintaining Continuous Business Performance," and proposed the concept of a value chain. What products and services are provided by enterprises, which are composed of activities that create value, and stringing these activities together is the value chain.

Through strategic analysis, we can find the position of the enterprise in the core industry, find the core resources and key success factors, find the high cost drivers and high added value factors, and then sort them according to the importance. After understanding these, we know the strategy of the enterprise.

The strategy was originally derived from military terms and was a means of achieving victory in the war. Strategy is not only a goal, not just a mission, but also a path and means. It is based on the analysis of the internal environment and external conditions to achieve the goal of maintaining a sustainable competitive advantage and the path and means to achieve the goal.

The strategy of a company is first to determine which kinds of businesses to do, what are the relationships between them, and then how to allocate resources. Second, in the selected field, how can companies beat competitors and how companies can pass in the business field? Competitive strategy to win competition; again, functional strategy , R&D, supply, production and marketing respond to and support competitive strategies .

The entire value chain is a whole and cannot be divided. Evaluating the quality of a company is not in research and development, not in marketing , but in the evaluation of the overall efficiency of the company. R&D, supply, production and other aspects are all part of it. According to their different positions, they are in a progressive relationship. When the strategic objectives are put into effect, enterprises are divided into business strategy , competition strategy and functional strategy , as well as how to respond to research, supply, production and sales. In the past, when many companies made strategies , they thought that a grand goal, a principled move is strategy , that is wrong. The key is how the business functions and management functions of the company respond to this goal.

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