Desperately Seeking Synergy and Competing on Capabilities Essay

I.) I didnt infer that synergy was that much big of a deal until I accept this article. I am hotshot of those who assume that synergy exists, poop be achieved, and willing be beneficial, I didnt really take rough the downsides of synergy. When I read the article, it seems that it would be better if executives give more maintenance and evaluation to find real synergy opportunities. Its well-grounded that the author included in his article about the four managerial biases because its true that all too often, the managers are the ones being blamed for the trial of a synergy program, when the ones who really are to blame are the corporate executives themselves.These four biases will help corporate executives evaluate better the managers and themselves, be more aware of the situation, and be able to submit more self-made synergy programs. The butt against of size of it the prize is also a technical addition to the article. Being more precise as to what needs to be done ra ther than generalizing all the goals tend to be more effective and successful. It clarifies the real costs and do goods of a synergy program, as the writer stated, sizing the prize is the first and virtually important discipline in make sound decisions on synergy. Overarching goals should be disaggregated into discrete, well-defined benefits, and then each benefit should be subjected to hard-nosed financial analysis. Pinpointing the parenting opportunity will clear up the parenting bias. Corporate executives must know when and how to intervene in the management.The article handily stated the three relevant cases as to when intervention must offspring place to help the corporate executives. Then there is this bringing downsides to commence which can clear up the synergy and upside bias. I think that in every action which anyone may undertake, being more well-known(prenominal) with the consequences and downsides of that action can help the individual evaluate that action and be more successful. All in all, corporate executives must take telephone line of the disciplined approach the writers recommend, which is clarifying the real benefits to be gained, examining the potential for maternal(p) involvement, and taking into account the possible downsides of synergy programs.In relation to problem policy and strategies, corporate executives with the help of the managers must be able to make clear and effective business policies and strategies which can be implemented for the rise of synergy programs within the organization. Good policies will be able to go on them and their future employees in engaging in more successful synergies. I think this is think to accountancy because good interdepartmental communication and cooperation will help accountants do their job more precisely and conveniently. As a future professional, knowledge of this article will help me become a more effective leader by applying the three disciplined approaches he writers has stated and a more efficient team member who can synergize well with my co- accomplishmenters.II.) The article uses the success of companies like Wal-Mart, Honda, and MedEquip to familiarize the readers with capabilities-based ambition which is striking because seeing a concrete example of the principle at work makes the article even more interesting, realistic and not plain and boring. The focus of the article was on Wal-Mart and the secret of its success, which is the set of strategical business decisions that modify the community into a capabilities-based competitor such as the warehousing technique of cross-docking. Included in the article are these basic principles of a capabilities-based competition which can help a traditional attach to change or shape its organization into a more capability-based competitor.First, is that the focus of their corporate schema should not be on the products but on the business processes. Second, warring success depends on transforming a comp anys key process into strategic capabilities that orderedly provide superior value to the customer. Third, companies should create these capabilities by making strategic investments in a support infrastructure for these strategic capabilities. Fourth, is that the chief operating officer is the champion of a capabilities-based outline. I think that this puts the pres trusted on the CEO because he will be the one responsible for the solicitude 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 trump the completion in responding quickly to customer demands and to incorporate youthful ideas into products, take on a product that unfailingly satisfies customers expectations, see the competitive environment clearly, aline simultaneously to many different business environments, and bugger off new ideas and to combine existing elements to create new sources of value. It is obvious that the CEO has a very big responsibili ty. In summary, the article speaks about the new logic of growth today, being a capabilities predator, a company focalisation and investing more on its capabilities to satisfy the customer.But a gesture comes to mind after reading this article, what is the future of capabilities-based competition? If some clock 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? Will the growth of these companies be consistent? Or will there be a new kind-hearted 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 substance processes and making an efficient business policy can help this pr ocess. 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 accounting because a good accounting system 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 always 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.