Desperately Seeking Synergy and Competing on Capabilities Essay

I.) I didnt think that synergism was that much big of a deal until I read this expression. I am one of those who latch on that synergy exists, flowerpot be achieved, and leave be beneficial, I didnt accreditedly think around the downsides of synergy. When I read the article, it seems that it would be kick downstairs if executives give much(prenominal) attention and evaluation to find real synergy opportunities. Its entire that the writer included in his article about the four managerial biases because its true that all too often, the managers argon the ones being blamed for the failure of a synergy program, when the ones who really be to blame are the collective executives themselves.These four biases ordain help collective executives evaluate better the managers and themselves, be more aware of the situation, and be suitable to make more successful synergy programs. The process of sizing the bread is withal a honorable addition to the article. Being more fine a s to what needs to be done rather than generalizing all the goals scat to be more in effect(p) and successful. It clarifies the real costs and benefits of a synergy program, as the writer stated, sizing the prize is the first and most serious discipline in making sound decisions on synergy. Overarching goals should be disaggregated into discrete, percipient benefits, and then each benefit should be subjected to hard-nosed financial analysis. Pin pointing the parenting fortune will clear up the parenting bias. Corporate executives moldiness know when and how to step in in the management.The article conveniently stated the three relevant cases as to when intervention mustiness take place to help the corporate executives. hence there is this bringing downsides to light which fecal matter clear up the synergy and upside bias. I think that in every action which anyone may undertake, being more familiar with the consequences and downsides of that action can help the various(pre nominal) evaluate that action and be more successful. All in all, corporate executives must take note of the disciplined approach the writers recommend, which is clarifying the real benefits to be gained, examining the potential for parental involvement, and taking into account the possible downsides of synergy programs.In relation to chore constitution and strategies, corporate executives with the help of the managers must be able to make clear and effective chore policies and strategies which can be implemented for the betterment of synergy programs within the organization. Good policies will be able to guide them and their upcoming employees in engaging in more successful synergies. I think this is cerebrate to accountancy because good interdepartmental communication and cooperation will help accountants do their job more precisely and conveniently. As a early professional, knowledge of this article will help me become a more effective leader by applying the three disciplin ed approaches he writers has stated and a more efficient team member who can synergize well with my co-workers.II.) The article uses the success of companies give care Wal-Mart, Honda, and MedEquip to familiarize the readers with capabilities-based competition which is great because seeing a concrete showcase of the principle at work makes the article even more interesting, earthy and not plain and boring. The focus of the article was on Wal-Mart and the secret of its success, which is the strike out of strategic business decisions that transformed the smart set into a capabilities-based competitor such(prenominal) as the warehousing technique of cross-docking. Included in the article are these basic principles of a capabilities-based competition which can help a handed-down company change or shape its organization into a more capability-based competitor.First, is that the focus of their corporate strategy should not be on the products provided on the business processes. Seco nd, competitive success depends on transforming a companys key process into strategic capabilities that consistently provide professional value to the client. Third, companies should ca-ca these capabilities by making strategic investments in a support infrastructure for these strategic capabilities. Fourth, is that the CEO is the champion of a capabilities-based strategy. I think that this puts the pressure on the CEO because he will be the one responsible for the direction of his company and the decisions he make can shape the future of the company.To be able to be a good CEO, one must outperform the completion in responding quickly to client demands and to incorporate new ideas into products, produce a product that unfailingly satisfies customers expectations, see the competitive environment clearly, adapt simultaneously to galore(postnominal) different business environments, and generate new ideas and to combine existing elements to create new sources of value. It is obvious that the CEO has a very big responsibility. In summary, the article speaks about the new logic of produce today, being a capabilities predator, a company focusing and investing more on its capabilities to pander the customer.But a question comes to mind after reading this article, what is the future of capabilities-based competition? If some time ago, the traditional companies were successful and were replaced by the growth of capabilities-based companies, what will happen if most of the companies will become more capabilities-based? allow the growth of these companies be consistent? Or will there be a new kind of competitor that dominates the market in the future? One thing is for sure though, organizations are going to have to be very dynamic and adapt to the ever changing needs of the customers.This is related to business policy and strategy because to be an effective capabilities-based competitor, the company must start on its core processes and making an efficient business p olicy can help this process. The companys strategy will also determine the direction of the company whether it wants to focus on its capabilities or its products. This article can be related to score because a good accounting system of rules can be a part of an organizations relevant business process, they can focus on investing and improving their accounting system to better satisfy their customer. Lastly, as a future professional, this has kind of updated my point of view on what to focus on, because until I read this article, I constantly thought that a good product is enough for you to be successful but in fact, one should focus more nowadays to the business processes and compete on capabities.