Financial Report 2010 Income Statement Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com what the CEO wants what finance finally approved what systems engineering thought the CEO wanted what manufacturing wanted engineering to do what the user really wanted what the supervisor actually requisitioned Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com THE CUSTOMER IS ALWAYS RIGHT IS THE CUSTOMER WRONG? yes no Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com CUSTOMER EXPECTATION OF QUALITY CUSTOMER EXPECTATION OF QUALITY COMPANY PERCEPTION OF QUALITY COMPANY PERCEPTION OF QUALITY Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com $ALE$ CUSTOMER LOYALTY CUSTOMER LOYALTY CUSTOMER LOYALTY Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com CUSTOMER RETAILER MANUFACTURER SUPPLIER Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com O P P O S H A RE O P R OF I B U Y L E V S A L E S MO N R F T E E T M S R R UN I T Y A R K E T S A G E E Y What entrepreneurs see in problems Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com QUALITY DRIVEN STRATEGY QUALITY-PROFIT LINK LOWER COSTS LOWER PRICE HIGHER QUALITY HIGHER PROFITS HIGHER SALES FASTER DELIVERY Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com A dissatisfied customer will tell ten of his friends about his experience. A dissatisfied customer will e-mail ten thousand of his friends about his experience (in 30 seconds). Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com CURRENT MBA FIRST YEAR CORE COURSES marketing management financial management operations management organizational management 6 units 6 units 6 units 6 units NEW (2025) MBA FIRST YEAR CORE COURSES customer delight intrepreneurship enhancing stakeholder value product life cycle analysis enterprise resource planning people empowerment 3 units 3 units 6 units 3 units 3 units 6 units Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Repeat & satisfied customers Higher profits Motivated employees Lower inventories Higher sales Lower costs Faster deliveries Less defects & wastes Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com President VP for Marketing VP for Finance VP for Operations VP for Administration President VP for Customer Delight and Loyalty VP for Stakeholder Value Enhancement VP for Product Life Cycle Management VP for Employee Satisfaction and Empowerment Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com + Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com WHAT THE MARKET REALLY WANTS WHAT THE COMPANY OFFERS WHAT THE COMPETITION OFFERS Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com RESTAURANT SIGN GOOD CHEAP FAST Pick two only Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Who is better? TARGET ACTUAL VARIANCE ACTUAL Next period A B 100 95 5 97 75 75 0 75 Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com HIGH VARIETY HIGH VOLUME LOW VARIETY Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com The J-Curve breakthrough crisis turnaround management growth recovery turnaround stabilization Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com The J-Curve firefighting firefighting firefighting firefighting late turnaround management irreversible decline Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com PHASES OF TURNAROUND 1 2 3 4 5 6 7 8 9 10 11 12 STABILIZATION OPERATIONAL IMPROVEMENT ENTREPRENEURSHIP REORGANIZATION Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com marketing myopia core competence overdiversification Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com Copyright © 2002 rtdonline.com, Rene T. Domingo, rtd@rtdonline.com