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Understanding Key Business Factors for Success in Real World

Learn about key business factors integral to a firm's success, such as good products, marketing, cash flow, and more. Explore George Steiner's research, Japanese approach, and real-world examples.

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Understanding Key Business Factors for Success in Real World

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  1. Overview • What are Key Business Factors • Understanding Key Business Factors • George Steiner • Japanese Approach • Examples in real world

  2. Introduction • Key Business Factors ? • Measures or indicators that are significantly related to the business success of a particular firm.

  3. Understanding Key Business Factors • “If you don’t know where you’re going, you probably will not get there.” (Yogi Bera) • Contribute to the overall improvement of a firms business results. • Each firm is unique

  4. Understanding KBF’s • Factors that all firms must address from the beginning. • Good Products and Good Service • Marketing • Satisfaction • Minimization of costs • Managing of Assets • Cash Flow • Etc.

  5. Understanding KBF’s • Example • A key business Factor for an organization may be getting the deliveries out fast and reliably

  6. Cross-Functional Teams • Teams that enlist people from a variety of Functional groups within the firm (Dr. Thomas Foster)

  7. Exercise • Form Groups of four to six people • Should include a secretary (note-taker) • Brainstorm some key business factors that would be relative for a financial firm or institute

  8. George Steiner • Study on the Strategic Factors of Business • Survey to 700 executives, treasures, planners, and others of many Financial Institutes • Provided a list of Factors • Asked to rank the importance of each 1-5, 5 being of most importance

  9. George Steiner • Factors for Today’s Performance • Most important factor was to Raise Short-term Capital • 2nd was to Raise debt at low cost • Raise equity at low cost • Get High quality Top Management

  10. George Steiner • Factors For Future Importance • The most important factor for the future was to Get High Quality Management • Others included • Managerial Drive for Profits • Train future Domestic Managers • Better Long-range Planning

  11. George Steiner • Top 10 factors listed by Chief Executive Officers • Get High Quality top management • Managerial drive for profits • Train future domestic managers • Vigor in sales organization • Service to customers

  12. Georger Steiner Top ten Cont’d • Better employee relations • Better overall control • Better long-range planning • Competitive stockholder return • Maximize stockholder return

  13. Japanese Approach • Use three variables to determine Key business Factors • Business Results • Employee’s morale • Corporate Flexibility

  14. Business Results • Ranking of the top 5 Business factors contributing to Business Results • Ratio of R&D expenditure to sales • Ratio of new equipment • New-product ratio • Channel of distribution • Employee Morale

  15. Employee Morale • Top 5 Business factors contributing to Employee Morale • Wage Levels • Level of basic research • Computerization • Human Resource Development for rank and file employees • Level of applied research

  16. Corporate Flexibility • Top 5 business factors positively contributing to Company flexibility • Employee Morale • Ratio of R&D expenditure to sales • Overseas strategies • Presidents Type • Business Goals (3 years ago)

  17. Solaris Wireless • Key Business Factors • Retaining Existing Customers • Cost Efficient and Rapid Delivery of services • 24X7 • Grow With Your Business

  18. United States Army • Key business factors • Rate of deterioration of our infrastructure • Political Support for studies and projects • Demand for products and services in our areas of expertise • Reputation of the District for delivering quality products and services, on time, within budget

  19. U.S. Army KBF’s Cont’d • Safety Record on corps projects • Funding availability and authorities • Environmental consciousness of the public and the Corps

  20. Summary Key Business Factors are not easily defined, they often involve team decisions and non bias goals for an organization. The overall objective for identifying Key Business Factors is to improve business results. These results will improve the companies profitability and market share.

  21. Bibliography Shimizu, Ryuei. Success Factors. Tokyo: Chikuro Shobo, 1989. Steiner, George. Strategic Factors in Business. New york: Financial Executives Research Foundation, 1969. Resnik, Paul. The Small Business Bible. New York: John Wiley & Sons, 1988.

  22. Bibliography cont’d www.mvs.usace.army.mil/stra_plan.pdf. 15 February 2001. www.sun.com/solaris/ds/ds-solariswireless. 13 February 2001.

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