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Strategic Planning 4

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Last week we continued to have a look at questions that are helpful in finding out where our business stands today. Those of you who worked on these sections will now have more information about and insight in your customers and competitors. Meanwhile you are not sure how well your business is doing, and you are looking for some strategic guidance. Earlier you found out that your business is lacking focus and that it is not organised in an efficient and effective way, while some essential skills among your workers are missing. Looking into the questions related to your customers and competition, you arrived at some eye-opening conclusions again. You found out that you don’t know much about who your clients are at all. Sometimes the demand for your products is higher than usual, but for no apparent reason. You also could not foresee any expected developments in your market for the next few years and how to respond to that. You realise that there are quite a number of other businesses in the same sector, but instead of trying to find out more about them, and what their strengths are, you avoid them instead. You do know though that your location is good, in the centre of a popular shopping area. Others sell their products at a cheaper price, but then they are located further away from the main shopping streets. You never seriously looked into your market share, who your main clients are and what the competition does to improve their sales. Your marketing is rather passive, and your sales personnel don’t have much information about the customers.
Next, we will look into the products of the business (e) and the employees (f).
e. The business and its products.
What products or services does your business provide? List them. Are your products and services different from the competition?
Is there a way of differentiating your products and services more, adding value for the customers?
Would this allow you to charge higher prices than the competition?
How do you price your products and services? How are rates calculated? What are customers happy to pay for and what not?
What is the relative profitability of your products and services?
Do you have a good mix of products or do you have too many different items?
Are you a market leader or a market follower?
How do you identify new opportunities for new products and services?
What is your “Unique Selling Point”, meaning those things that make it particularly attractive to the market?
g. The business and its employees.
What training or development programs do your workers follow? List them.
What personal development opportunities do your workers see within the business?
What are the workers’ turn over figures for the business? How does this compare with the competition? Is the situation improving or not? What are the costs for workers’ turn over? Consider each group of workers separately and try to look for some of the least obvious costs.
What performance assessment system do you have in place? How is good performance identified and rewarded?
Is communication between departments and with management encouraged? How?
Are employees encouraged to make suggestions for improvements of the services that the business provides? Or for cost saving?
How do you rate the employees’ morale? How do they rate in terms of team spirit, motivation, belonging, identification with the business and commitment?
Do you have a policy on quality assurance? Do the employees understand how this works in practice and what standards and systems are applied?
When you have completed these sections as well, then you will have gathered a mass of information about the current state of affairs of your business. Next you will need to analyze all this information and match this with the main objectives of the business. You will summarise it, review it and mark relevant points as internal strengths or weaknesses and external opportunities and threats, i.e. make a SWOT analysis.
Next week we will see how to make this SWOT analysis and how this will clearly identify the resources you have available and the external threats facing the business. You will need to consider the implications each item in the SWOT analysis carefully and make a beginning with identifying appropriate strategic options for the future.

ton.haverkort@gmail.com

Rahel Telake

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Name: Rahel Telake

Education: Diploma in Management

Company name: SWMTIL

Title: Owner

Founded in: 2018

What it does: Recycle wastes to make pillows, jackets and comforts

HQ: Bishoftu /has branch in Addis Ababa

Number of employees: 7

Startup Capital: 250,000 birr

Current capital: Growing

Reasons for starting the business: To decrease the effect of waste to the environment

Biggest perk of ownership: Creating opportunities for others

Biggest strength: Hard work, ambitious

Biggest challenging: Capital

Plan: To be competitive in East Africa

First career: None

Most interested in meeting: Innovators

Most admired person: My kids

Stress reducer: pending time with my kids

Favorite past-time: Reading books

Favorite book: Bible

Favorite destination: any place far from cities

Favorite automobile: I prefer to walk

The Global Narrative of Sino-American Rivalry

China celebrated its 70th anniversary with a week long fanfare and in a symbolic parade. Not many Communist states have reached such an august age. No wonder then that China’s leaders exuded great confidence and people were genuinely happy. To document the pride, new intercontinental ballistic missiles DF-41 rolled in front of the Forbidden City and Tiananmen Square, which were later followed by dancing grannies and food delivery drivers on electric scooters. According to CGTN news report, the latter got some of the most heartfelt ovations on China’s social networks, “Here comes my daily savior!” Behind all the jubilation scenes on October 1, 2019, a narrative with global reach is coming together. At the same time, China is under no illusion that all is well.
Tomas Klett, Assistant Professor at the University of St. Gallen stated that the United States-China trade dispute might be the initial salvo in this century’s first and only Thucydides trap. Theorized by realist thinkers like John Mearsheimer and Graham Allison, that trap sees the incumbent and emerging powers destined for conflict. We hear about how many points of GDP growth will be shaved off by less trade, and we are treated to sophisticated analyses about the geopolitical manoeuvring between the United States and China. More important, however, is the two major powers’ competition for global affection and cognitive bandwidth that is tied to them individually. That is, the contest for the 21st century’s grand narrative.
Tomas Klett noted that the West always assumed that a rich China will be “like us.” Only five years ago, even many Chinese thought so too. Not anymore, but in a different way than Westerners might expect. As a matter of fact, most Chinese are now disillusioned not with their Communist Party, but with the erratic, leader-less and what many think is the technology-unfriendly, ideology beholden West. There is also a matter of practicality.
In the not so distant past, Chinese exchange students used to enroll in Western universities to attain a degree, and possibly a ticket to a better life, in a more promising country. Many parents must now cajole their children to study abroad for that foreign education advantage. However, often the kids can’t wait to return to digital China where consumer choice is endless and the streets are safe. To many millennials, social credit has its advantages. But it is not just Chinese disillusionment with the West that ought to give the West a reason to reconsider its own act. The challenge about who shapes the global narrative is a fundamental one.
Philip Bowring, the former editor of the Far Eastern Economic Review and columnist for the International Herald Tribune stressed that there used to be a time when that global narrative was shaped by the United States. Sometimes it was brilliant strategizing like at Bretton Woods, but often that didn’t require a lot of activity as the American dream begot voluntary adoration. Those times are gone. It would be a cop-out for the rest of the West, especially Europe, not to check its own act and relevance in the global context. There is a sense that Western liberal democracies cannot effectively tackle their own domestic problems. Policy performance, in the sense of solving actual problems that people have, is deemed all but exemplar by those looking at us. As a result, a valid question has arisen: Whose narrative, style and quality of operations – theirs or ours – will be deemed best-suited to tackle the world’s messiest problems like the environment, inequality or security?
In Nobel Prize winner Robert Shiller’s narrative, the economics discipline analyzes how stories “go viral” and their worldwide “economic impact.” An extended version of this view sees impact as abstractions converting into effective rules, for instance for commerce or political competition, and then these into tangible goods, for instance digital services and welfare. To date, the most accomplished global narrative ever devised is Western liberalism with its rules-based order, democracy, human-rights, open society and free competitive markets. But since the goods are not being delivered it is clearly under threat right where the “end of history” was once pronounced, on home turf.
According to Philip Bowring, China does not proselytise. There is deep awareness of the extraordinary performance of its pragmatic domestic development narrative, but China’s focus is China. Even the Belt and Road Initiative (BRI), the “new Silk Road” array of projects, parceling out aid and building incipient institutions, is an experiment whose story line must yet come into its own. For all the Western nervousness about the Belt and Road Initiative today, it is important to realize that BRI does not aim to challenge, but rather seeks to complement the Western narrative.
Philip Bowring further noted that part of the reason for the underlying prudence on the Chinese side is awareness that the road to the top is long and setbacks lurk. Developments in Hong Kong make that plain. There also is the yet to be resolved anti-corruption campaign, the dreaded middle-income trap and, of course, geopolitical rivalry. Faced with these challenges, the Chinese leadership is convinced that China is the resilient one, a country whose future is bright and whose narrative will end up seductive, presenting us all with choice. China aims to win global hearts and minds with larger markets, fairer e-commerce platforms, cooler fashion, smarter algorithms, more effective recycling.
Barry Wood, a Washington writer and broadcaster argued that whatever China’s drawbacks, which to many Westerners are self-evident, it looks as if it is only China that presently pursues a vision of any kind. The West, meanwhile, either engages in acts of meekness, as Europe does, or seems hell-bent on engaging, as President Donald Trump does, in a prolonged period of dismantling the institutions that bind the world to the Western narrative. As narrative economists would put it, the loss of global affective and cognitive bandwidth has economic, technology and geopolitical consequences.
According to Barry Wood, the open question is whether the West is ready to renew its global grand narrative for the complex 21st century ahead. That would probably require it to pursue elements that contradict its present positions and which do not emanate from its own traditions. For instance, last month Shanghai implemented a new recycling policy. Cameras and neighbourhood volunteers now check on citizens disposing trash in public containers and penalties are levied on those who don’t distinguish between the “dry,” “toxic,” “recyclable” or “wet” – offenses include throwing a “dry” bone in the “wet” container earmarked for organic waste.
Is a surveillance state, with cameras on every trash collection station, tree or production site, the way of effective environmental protection? Trying that might on the one hand have the interesting consequence of diluting what the West is all about, while on the other hand serving many of the West’s interests.

Senbere Teferi targeting fourth successive title at Atapuerca

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Ethiopia’s Senbere Teferi will aim to win her fourth successive title at the Cross de Atapuerca in Burgos on 9 November, the opening fixture on the 2019-2020 IAAF Cross Country Permit calendar.
The 2015 world 5000m and cross-country silver medalist made history with her victory at last year’s Cross de Atapuerca, becoming the first woman to win three times in Burgos. More recently, Teferi broke her own Ethiopian half marathon record with her 1:05:32 victory in Valencia last weekend.
Teferi’s 24:48 clocking in Burgos in 2016 – beating the then world cross-country champion Agnes Tirop – is the fastest time ever recorded on the women’s 8km course. In 2017 and 2018 Teferi finished just ahead of world 5000m silver medallist Margaret Kipkemboi to win.
The Cross de Atapuerca is one of eight meetings in the 2019-2020 IAAF Cross Country Permit series, which once again includes some of the most prestigious international cross-country races in the world.
After Burgos, the series will take in four other Spanish meetings alongside two stops in Italy before reaching its conclusion in the Portuguese city of Albufeira on 15 March 2020.